The Van Buren press., 1876-08-15

tAke tuctt ptaSC WIN 6ONS'"'
and other corporate and pri-
yate bonds, of which thousand OF mil
lions exist among us. In the perfect
ease with which they can be changed from
currency into investments, lies the only
danger to be guarded against in the adop'
tion Of general measures intended to re-
move a clearly ascertained surplus, thai
is the withdrawal of any which are moi
a permanent excess beyond the wants o.
business. Even more misehievous would
he any measure which affects the public
ina gination with the fear OF an appre
hended scarcity. ln a community where
credit il so much used fluctuations Of val
ues and vicissitudes in business arr
largely caused by temporary beliefs o.
men, even before those beliefs can con
form to Lsccrtainsd realtstea. Th'
amount Of ecessary currency 1t giveI
time cannot be determined arbitrarily
and should not be assumed on conjecture
That amount is subjected to both perma
nent and temporary changes. An en-
largement Of 1t which seemed to he dura'
bic happened at the beginning Of the civ
il war by substituted use Of currency
in place of individual credit. 1t varies
with o certain status Of business. i
Huctuates with considerable regularity
at different seasons of the year. In au
tumn, for instance, when buyers Of graft
aud other agricultural products begir
their operations they usually need tt
borrow capital or circulating credits BY
which to make their purchases, and wan
these funds in currency capable OF being
distributed in small sums among numer
Gus sellers. The additional need Of cur
rency at such times is five or more Pc
cent, of the whole volume, and II sur
plus beyond what Is required for ordina
ry use does not happen to have been OF
hand at money centres,
SCARCITY or CURRENCY
Ensues, and also a stringency In the LOAF
market. 1t was In reference to such cx
periences that in discussion Of this sub
jcct in my annual message to the New
Legislature OF January 5. 1875. the sug
gestion was made that the federal govern
ment is bound to redeem every portion
of its issues which the public do no! wist
to use. Having assumed to monopoliz'
the supply Of currency and enacted ex
clusions against everybody else 1t II
bound to furnish all which the wants o
business require. The system shoult
passively allow the volume Of circulating
credits to ebb and dow according to tn,
ever-changing wanta of business i
should initiate as closely as possible thu
natural laws of trade, which it has sus
pended by artificial contrivances. In ,
similar discussion in my message Of Jan
uary A, 1876, it was said that resumption
should be etiec ed by such measures q
would keep the aggregate amount OF cur
rcncy self.njusting during oil process
without creating ut any time an artificia
scarcity, withou, exciting public imagin
alton with alarms which impair confidenc,
and distract the whole machinery OF cred
it, and disturb natural operations Of bus
mess. Public cconom mics, official retrench
ments, and wise finance are the mean'
which the st. Louis convention indicates
as a provision for reserves and rcdemp
tions.
THE hest RESOURCE
Is reduction ofthe expenses Of the gov
ernment below its income, for that i'm
poses no new charge on the people. II
however, the improvidence and vast
which have cocducted US TO q period 0
falling revenues oblige us to supplement
the results of economies and retrench
ments by some resort to loans, we shoult
not hesitate. The government ough
not to speculate on its own dishonor II
order to save the interest OF its broker
promises which it still compels privat,
dealerc to accept at fictitious par. Th'
highest national honor is not only righ
but would prove profitable. or the pub
lie debt, 1885,, 900, 900 bear interest at [
per cent in gold, and S85, 900, 900 at
per cent in gold. The average intcres
is So per cent. A financial policy whicl
should secure the highest credit, wisely
availed Of, ought gradually to obtain !
reduction Of one per cent in interest OF
most Of the loans. A saving Of one pei
cent. on the average would be 8l7 900. .O0(
year in gold. That saving regularly
invested at four and half per cent
would in less than 80 years extinguisi
the principal. The whole el,700,000
900 of the funded debt might be paid BY
this saving alone without cost to the p o
pie.
THE fRorER TIME EoR RESUMPTION
Is the time when wise preparations shal
have ripcned into perfect ability to &C
complish the object with certainty anc
ease that will inspire confidence and en-
courage the reviving Of business. Th
earliest time in which such q result cal
be brought about is best. Even whel
preparations shall have been matured
the exact date would have to be chosel
with reference to the then existing stat
of trade aud credit operations in GU
country, the course offoreign commerct
and condition Of exchanges with othe
nations. The specific measures and act
ual date are matters Of detail having ref
erence to ever changing conditions. The,
belong to the domain ofpractical, admin
istrative craftsmanship. The captain o
a steamer about starting from New Yorl
to Liverpool does not assemble coun
Gil over his ocean chart and fix an angl
by which to lash the rudder for tn
whole voyage. A human intelligence
must be at the helm to discern the shift
ing forces of the water and winds. A bu
mainland must be on the helm to fee
the elements day by day and guide to
mastery over them. Such preparations