Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1876-08-11

| hSTT, thO NCulidl AtsCANOiA VI NOiu 10 dui
quate to the demand of temporary 1uctua
tions, of international balances and as
guaranty against transient drains artificial
created by panic or by speculation. 1t ha
also to provide for the payment in coin @
such fractional currency as may be present
ed for redemption, and such ineonsiderabl
pu. tions of the legal tenders as individual
may from time to time desire TO conver
for special use or in order to lay by il
coin their little stores of money.
To make the coin now in the treasur,
available for the objects of this reserve. tc
gradually strengthen and enlarge that re.
serve and to provide for such other excep-
tional demands for coin as may arise, doe,
not seem to me work of difficulty, if wise.
ly planned and discreetly pursued. 1t
ought not to cost any sacrifice to the busi.
ness Of the country. IL should tend, on
the contrary. to the revival Of hope and
confidence The coin in the treasury on
the 30th of June. including what IS held
against coin certificates, amounted to near
ly II millions. The current DI precious
metals which has flowed out Of our country
for eleven years. from July |, lsG5, to June
80. 1876. averaging, nearly 70 millions a
year, was s32 millions in the whole period =,
of which 62 millions were the product of
our mines. 10 amaSs the requisite quanti-
| ty by intercepting from the current
| flowing out Ofthe country and by acquir-
| ing from the stock which exists abroad with
/ out disturbing the equilibrium of the for
! elgn money markets is a result to be easily
worked out by practical knowledge and
| judgment. With respect to whatever surplus
OF legal tender the wants Of business NAV
iall to keep IN use, and which IN order To
save the interest Will be retlrned for re-
dempti0n, they can either be paid or they
can be funded. " neither they continue as
currency or be absorbed into the vast mass
OF securitloS held as securities. is merely
4 question OF the rate of interes. they draw.
Even il they were to remain in their pres
cnt form, and the Government were to
agree 10 pay on this a rate Of interest
making them desirable as investments, they
would cease TO circulate AMI take their
place with the government, state. munich
pal and other corporate and private bonds
Of which thousands OF millions exist among
lis. Ia the perfect ease wi:h VIII ch they can
be changed from currency into Investments
lies the only danger TO be guarded against
IN the adoption OF the general measures in
tended TO remove the clearly asccrtained
surplus. tnat Is the withdrawal OF
any which are not in permanent
uc-S. Even more mschioyous would be
any measure which Affects the public ina
giuati0n with the fear of an apprchcnlcd
scarcity. In community where credit is-1
much used fluctuations of values and vici--
~itudc~ in business are largely caused hy
the temporary beliefs of men, even before
those beliefs can CONFORM to aSccrtaincd
realities. The amount of necessary eur
rcncy at gwen time cannot be determined
arbitrarily and should not be ASSUMED ON
conjecture. That amount Is subject t. hJth
permanent and temporary changes. IN en-
largoment ol 1t which seemed % ho durable
happened at the beginning OF the clyi. war
hy the substituted use Of currency in place
OF individual credit. lt varic- with certain
states OF business. Ii tluctuatcs with c1nsi-
derahlc regularity at different seasons of
the year. In the autumn. Tor instance. when
the buyers Of grain and other agricultural
products begin their operations they usu-
ally need o. borrow capital or circulating
credits hy which 10 make their purchases
and want these funds in currency capable
Of being distributed in small sums among
numerous sellers, the additional need oi
currency AZ such times l. five OF more per
cent 90 the whole volume. and II the sur
plus beyond what is required for ordinary
at the money centres a scarcity of currency
cn~ues. and a'~) stringcucy in the loan
market. lt was in re ference to such cN-
porcn,cs that 10 the discussion of .1i- suit .
iect DO my annual message 10 the New .
York erI-iaturc ot January =. l,75. the .
,9ycrpmenr Is bound Z, redeem every p.r.
ti,r of lis Issues which the publi, d, NOT
wish T., u-e Having assumed ~ m.n.po-
D .., tbr -.u.I,- ~ ,nrrcncy and enacted tx
c.g-i1n- against everybody else. it is bound
% furnish ADJ which the wants of bu.tne.-
rsqtllrc." d" ..fbc system -hnulI raSsfva.y
allow the --.lumc of currency credits 10 obi F.
ana nuN according 10 the c,,r-cbanein.
want 90 business. It should initiate as close
lv a. possible the natural law- of tr.lr
which t has -upcr.cdol D, artIdca. ra-.
trIunce~. Ina similar il-,n~>i.n .n mv
i'',d-' ul January g. i,'' '"4
r1',-',-.- ,s....li .... .'-...,..
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III ,L, ,- ,.,,..'-. - ,-
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e,,tr,.t he t,b,f' i,r.., - ..-
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l,r.irr-s pnl,i,.. '-.,,,.,,,,,i .lr.,,f re-
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,-.,i.;,, g. - .., -.
t,.,i ~, 49, -, '''''
ruE REur CIloN Ot FNrINSEs g. TuF GOV
nlNNENT
below it, Increase f.r that inr,.fs n, now
,.i+rrc or, th, nconia n Io,ro,,r Tho inn
ororiienre and wasteUbieb have o,nlnctei
II. IN a ucriod of falling revonne- nblioe MS
T., -,,rr.i,ncnt tho r.s,lts,, e,,r,,,,,,- ana
Nv some ,e.orr +, Ioan. We
.bouId rot hesitate Tho ,.,,-r,,cr,, ,r,.,bt
noi IN -nccnIato on. its o,n di.bonor N or-
d.r n save the interest an its br1kcn nro-
misc. which il .tilI rornnrl : nriv,,c dealers
To accept at factitious pricfs The bisbest
national honor is not only r.,ht but would
provo profitable. OF
TIE Iuhllc ptl1
nine hundred and eighty FIVE millions bear
interest at SIX per cent in gold and seven
hundred millions at five per cent in gold
The average interest is 3 lS per cent \
financial policy which should secure the
highest credit wisely availed of ought gra-
dually TO obtain reduction Of one per cent
in interc g on most of the loans. \ saving
Of one per cent on an average would be
seventeen millions yearly in god That
saving regularly invested at four and a halt
per cent would in less than B years cxtin-
guish the capital The whole Il 700 600.
OOO of funded debt might b, paid hv this
saving alone. without cost t1 the people.
Tho proper time for RESUMPTION Is the time
when wise preparations Shall have ripened
perfect ability 10 ACCOMPLISH the object
with certainty and ease that will inspire
confidence and encourage the reylying of
business. The earliest time in which such
result can be brought about IS best. Even
when the precautions shall have been ma
- ~ - As u"'0 "uu'u ~ w
of trade and credit in onr own connfrv tho
eonrse ot foreirn commerce and the eon-
dition Of exchanges wi,b other nation.
the snec;fc measures and actnal data arc
matters of details having reference
+, existinr conditions They belonq
IN the don,ain n, nracfical ao7
,ninistrative sfarcsmansb;n' Tho caut1in
If a steamer a bont startinG from Nav YorL