The Pickens sentinel. [volume] (Pickens, S.C.) 1871-1903, 1876-08-17
NO. 50,

were to remain in their present form
and the government were to agree O
nay on them rate of interest MAX
ing them desirable as Investments
they would cease to circulate and
take their place with government,
State, municipal and other corporate
and private bonds, of which thous-
ands of millions exist among us. In
the perfect ease with which they can
be changed from currency into in
vestments, lies the only danger to be
guarded against in the adoption of
general measures to remove q clearly
ascortained surplus-that is, tho
withdrawal of any which are not q
permanent excess beyond the wants
OF business. Even more mis- chievous
would be any measure which effocls
the public Inauguration with the fear
OF an apprehended scarcity. In a
community whero credit is so much
used, fluctuations of values and vicis.
STUDIES in business arc largely caused
by the temporary belief of men, even
before those beliefs conform to asccr~
tained realities.
Tho amount of tho necessary cur.
roncy at given time cannot be do.
tcrmlncd arbitrarily, and should not
DO assumed upon conjecture. That
amount is subject to both permanent
and temporary change. An cnlarge>
mont which soemcd to be durable
happened at tho beginning of tho civil
war by substituted use of currency
in place Of individual credit. 1t varios
with certain states of business, it
tluctuntcs with considerable regulars
lty ut different seasons Of tho year. In
autumn, Tor instance, when buyers OF
grain and other agricultural products
begin their operations they usually
need to borrow capital or circulating
credits, by which to make their pur~
chascS, AND want these funds in cur
roncy, capable'of boing distributed in
small sums among numerous sellers.
The additional nood OF currency at
This timc is fivo or moro por cent. OF
tho whole volume, and if surplus
beyond what was procured for ordi~
nary use does not happen to havo
boon on hand at the money contros, 10
scarcity OF currency onsucs, and, also,
a stringency in tho loan market. 1t
is in reference to such experiences
that, in a discussion ON this subject, III
my annual message to the New York
Legislature of January 5th, 1875, the
suggestion was made that "tho Fedo@
raj Government is bound to redeom
every portion Of its issues which tho
public do not wish to uso. Having
assumed to monopolizo the supply Of
currency, and enacted exclusions a.
gainst everybody else, it is bound to
furnish all which the wants of tho
| business requires. The system should
passivcly allow the volume of crcu--
lating credits to ebb and flow accord
ing to the over changing wants Of
business. 1t should initiate as closely
as possible the natural laws of trade
which it has superseded by artificial
contrivanceS." And in similar dis~
cussion, In my message of January 4,
1876, it was said that Presumption
should be effected by such measures
rs would keep tho aggregate amount
OF tho currency self adjusting during
all tho process, without creating, at
any timo, an artificial scarcity, and
without exciting tho public imagna-
ton with alarm; which impair conf
dcnco, contract tho whole largo ma
chincry Of crodit and disturb tho ma
tural operations of business.
Public economics, official rctronch-
monts, and wiso finance aro tho means
which the ST. Louis convention indi-
Gates as provision for reserves and
redemption. Tho best resource is q
reduction of thOir Expenses of tho
| government below its income, for that
imposes no now charge on tho people.
#, however, tho improvidcnco and
waste which havo conducted us to
| pcriod Of falling revenues obligo us to
supplimont tho results of economics
and rctrcnchmonts by somo resort to-
loans, wo should not hesitate. The
government ought not TO speculate
on its own dishonor in ordor to savo
interest on its promises, which it still
compcls private dealers to accept at II
fictitious par. Tho highest national
honor is not only right, but would
provo profitable. OF tho public debt,
1885, 100000 boar interest Mt 6 per
cent in gold, and $720,000,000 at 5
por cont IN gold. The average intor-
est il So pcr cont A financial poll
cy which should secure tho highest
crodit, wisely availod of, ought grad
ually 10 obtain reduction of ono per
cent on tho interest Of most of tho
loans. a saving of ono por cont on