Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1876-08-16

duets begin their operations the
usually need TO borrow capital or ci
culating credits by which to max
their purchases and want these funt
in currency, capable Of being distrib,
ted in small sums among numerol
sellers. The additional need of currel
cy at such times Is five or more pc
cent of the whole volume, and II
: surplus beyond what is required Il
ordinary use does not happen TO hay
been on hand at the money centres
scarcity ofcurrcncy cnsues and also
stringcncy in the loan market. 1t VIZ
in reference to such experience that
discussion OF this subject in my al
nual message TO the New York Legi
laturc of January 5, 1875, the sugge
ton was made "tbat the Federal Go,
ernmcnt is bound to redeem every POI
tion of its issue which the public d
not wish to use. Having assumed I
monopolize tho sui ply of currency, an
cnactod exclusion against overybod
else, it is bound to furnish all whic
the wants of business require. TIL
system should passivdy allow the vo
ume of circulating credits TO ebb an
flow according to the ever changin
wants of business. ltshould imitat
as nearly as possible the mutual law
OF trade which it has superseded b,
artificial contrivances." In simila
discussion, in my message Of Januar'
4, 1876, II was said that resumption
should be effected by such measures a
would keep the aggregate amount Q
currency seli-adjusting during all tn
process, without creating at any tim
an artificial scarcity and without ex
citing the public imagination witt
alarms which impair confidence, con
tract the whole large machinery q
credit, and disturb the natural opera
tions of business"
MEANS OF RESUMPTION.
Public economies. official rctrencb
ment and wise finance are the mean
which the 81. Louis Convention indi
cate as provisions for reserves and re
sumptions. The best resource is a re
duction in the expense OF the Govern
mont below its income, for that i'm
poses no new charge upon the people
if however the improyidence an,
waste which have conducted us 10
ncriod or falling rovenpes oblige no /,
snpnlcment Inc results Of economie
and retrenebments bv some resort /,
loans we sbould moi hesitate. IN
Government ougbt M, IN sneculo,e n,
its own dishonor in order TO save in
terest on its broken promises which
still compels private dealers to accep
at fictitious par. The highest ma
tional honor is not only right but woul,
prove profitable. OF the public deb
$685. 900. 900 bear interest at six DC
cent. IN gold and s7l2,OO0, 900 at fv
per cent In gold. The average inter
est is 81 per cent. A financial polio,
which should secure the highest credi
wisely availed Of ought gradually t
obtain a reduction of one per cent. in
terest on most OF the loans. A savinj
Of one per cent. on tho average woull
be seventeen millions year in gold
That saving regularly invested at 4
per cent, would in less than thirty
eight years extenguish the principa
The whole seventeen hundred million
of funded debt might bo paid by thi
saving alone, without cost to the pee
pie.
PROPER TIME FOR RESUMPTION.
The proper timo for resumption
the time when wise preparations shal
have ripencd into n perfect ability L
accomplish the object with a certaint,
and ease that will inspire confidenc
and encourage the revival of busincs.
The earliest time in which such a re
sumption can be brought about is th
pest; Even when tue preparation
shali have been matured, the cxac
date would have to be chosen wit
reference to the then existing state 9
trade and credit operations in our owl
conntiry,t the course ofioreign commerc
and the condition OF the exchange
with other nations. Ihe speclfc meas
ures ana the actual date are matters 9
detaii having reference 10 our chane
ing conditions. They belong to tn
domain OF practical administrative
craftsmanship. The captain OF q steam
er starting from New York to Liver
pool does not assemble a council owe
his own chart and fix an angle b,
which TO lash the rudder for the Who'll
voyage. A human intelligence mus
be at the helm to discern the shiitin
forces OF the waters and the winds
human hand must be on the helm t
feel the elements, day by day, an
guide by a mastery over them.
PREPARATION FOR RESUMPTION.