Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1876-08-05

evils suould not react upon the prosperity of
the whole country. The nObler motives OF hu-
mauity concur with the mateIi i interests OF
all in requiring that every obstacle De re-
| moved 10 complete and durable recoacllla-
ton between kindred population once I'M
! naturally estranged, on a basis recognized by
the st. Louis platform Of the constitution of
the United states with its amendments uni
versally accepted as a final settlement OF the
controversies which eDgendered civil war,
| but in aid OF a result 50 benetcent to the moral
| influence of every good citizen, as well as
every governmental authority, ought to be ex-
erted not alone to maintain their Just equality
before the law, but likewise to establish cor
dial fraternity and good viii among the citt-
| zens,whR;ever thei race or color, who are now
! united in the one destiny of common self
| government. II the duty shall be assigned to
| me, should not hesitate 10 exercise the powers
| with which the laws aud co stitution OF cur
| country clothe its chief magistrate, 10 protect
| all It's citizens, whatever the ir former condi-
ton, in every political and personal right.
CURRENCY.
Reform is necessary, declares the At. Louis
| convention, to eStablI sh a sound currency, re-
| store public credit, and maintain national
| honor; and II goes on to demand Judicious
| system OF preparation by public economies
| by official retrenchments and by wise fDan-
| ctal laws, which shall enable the nation soon
| to assure the whole world OF its perfect abili-
| ty and its perfect readiness to meet any of its
promises, at the call of its creditors, entitled
| to payment.
SPECIE PAYMENT.
| The object demanded by the conven-
| ton is resumption of specie paw.
ments of the legal-te tender notes Of the United
store public phs' credit Tond a aot Gny
national honor, but it would establish a
! sound currency for the people. The methods
| by which this object IL TO be pursued and the
/ means by which it is to be attained are dis
| closed by what the convention demanded for
| the future and by what ii denounced in the
| past. The resumption of specie payments of
| the government on It's legal tender notes
| would establish specie payments by all the
| banks on all their notes.
a
The official statement made on the
twelfth of May shows that the
amount of bank notes was three hundred
millions less twenty millions held by them
selves against the two hundred and eighty
millions OF notes; the banks held Que hun
dred and forty one millions of legal tender
notes, or a little more than fifty per cent. of
their amount; but they also held on deposit
in the federal treasury as a security for these
notes bonds OF the United States worth, in
available and current in all foreign money
markets. In Iesuming, the banks, even if II
were possible for all their notes
would have five hundred millions OF specie
funds to pay two hundred and eighty mill
lions OF n ties without contracting their loans
to their customers, or calling on any private
debtor for payment. Suspended banks, I'M
dertaking to Iesume, have usually been OBJ.
liged to collect from needy borrowers means
to redeem excessive issues and to provide re-
serves. A vague idea of distress is, therefore,
often associated with the process of resump-
in those former instances, do not now exist.
The government has only to make good its
own promises. and the banks can take care of
themselves without distressing anybody.
THE GOVERNMENT THE ONLY DELIN-
QUENT.
The govern raant 10. therohsrv, the sole delin
quent The amount of legal tender notes of
the United states now Outstanding is less
than $50 600, besides So 900 600 of actional
currency. How shall the government make
theSenoIes at all times par with reference to
the mass which would be keptIn use by the
wants of business? A central reservoir OF coin,
adequate to the adjustment OF temporary
fluctuations of interna, ional balances, and as
a guaranty against drains aItificially created
by panic or by speculation. 1t also has 10
provide for the payment in coin of such frac-
tional currency as may be presented for Ie-
demption, and such inconSiderable portions
of le2 al tenders as individuals may from time
to time desire to convert for special use, or
in order to lay by in coin their little stores of
money. -
So, make the coin now in the treas
ury available Tor the objects of this reserve.
To gradually strengthen and enlarge that re-
serve, and to provide for such other excep-
tional demands for coin as may arise, does not
seem to me work of difficulty. If wisely
planned and discreetly pursued, it might not
cost any sacrifices to the business of the coun-
try. 1t should tend, on the contrary, to re-
vival of hope and confidence. The coin in
the treasury on the thirteenth of June, in
Guiding what is held against coin certificates,
amounted to SeVenty-fOur millions. The cur
rent of precious metals which has flowed out
OF our country TOR the eleven years, from July
l, 1865, TO June 30, 1875, averaging nearly sew
enty-Six millions year, was eight hundred
anu thirty-two millions, in the whole period
Of which six hundred and seventeen millions
were the product OF our own mines. To
amass the requisite quantity by intercepting
from the current flowing out of the country;
asroad W1thoaI disturbing thA' equilibrinm
OF the foreign money markets, is result TO be
easily worked out by practical knowledge and
judgment.
SITRPTJTS OF IEGAI-TENDERS
With respect to whatever surplus of
legal-tenders the wants of business may
fail to keep in use and which, in order to save
tue interest, will be returned for redemption,
they can either be paid, or they can be fund
ed. Whether they mature as currency or be
absorbed into the vast mass of securities held
as Investments, is merely question OF the
rate of crest they draw. Even If they were
to remain 10 their present form and the gov
of interest making them desirable as invest
meuts, they would cease to circulate and
take their place with government, State,
municipal and other corporate and private
demands OF which thousands of millions ex-
list among us. In the perfect case 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
intended to remove a clearly ascertained
surplus, that is, withdrawal of any
the wants of business. + yen more misc nieV-
Gus would be any measure which affects
public imagination with the fear of an ap-
pretended scarcity. In community where
Of values and vicisitGdeS in business business
nefs OF men, even bsiore those
beliefs can conform to ascertainCd realities.
NECESSARY CURRENCY.
The amount of necessary currency al given
time cannot be determined arbitrarily, and
it should not be assumed on conjecture that
the amount is subject ID to both permanent
and temporary changes. An enlargement of
1t which seemed to bs duraele happened at
the beginning of the civil war, by a substi-
tuted use OF currency in the place of individ-
nal credits. 1t varies with certain states OF
business; IL fluctuates with considerable reg
ularity at different seasons OF the year-in
autumn, for instance, when buyers of grain
and other agricultural products begin their
operations they usually need TO borrow CAPT
tai or circulating credits by which TO make
their purchases, and want these funds in cur
rency capable Of being distributed in SIN all
sums among numerous sellers. The addi-
tional need of currency at such times is five
per cent OF the whole volume and II sur
Plus beyond what is required for ordinary
use does not happen to tie on hand at the
money centers a scarcity of currency ensues
and also stringeucy in the loan market.
THE WANTS OF BUSINESS.
TWAS in reference to such expenses that in
discuss sion of this subj sct IL my annual mes
sage TO the New York legislature of January
5, 1875, a suggestion was made that the Federal
government is bound to redeem every portion
of its issue which the public do not wish to
use. Having assumed 10 monopolize the sup
ply OF currency, and enacted exclusions dII3Ils
all which the wants or business require. The
system should passively allow the volume of
circulating credits to cub and flow according
to the ever changing wants of business. 1t
should Initiate as closely as possible the nat
uIal laws OF trade, which it has superseded
by artificial contrivances. In a similar dis
oussion in my message of January 4, 1876, 1t
was said that resumption SHOULD be elected
by such measures as would keep the aggregate
amount of currency .lI-adj usting dur
ing all the process without creating.
at any time, an artificial scarcity,
without exciting the public Imagination with
alarms which impair confidence and distract
largely the whole machinery of credit and
disturb the natural operations OF business. z
RESERVES AND REDEMPTlONS. 4
Public economies, official retrenchmeuts
and a wise finance are the means which the st,
Louis convention indicates as the provision
for reserves and redemptions. The best re-
source is a reduction of the expenses of the
government b low its income, for that i'm
poses no new charge on the people. If, how
ever, the improvidence and waste which have
conducted us TO a period of falling revenues
oblige us to supp ement the results of econo.
loans we should not hesitate. The govern
ment ought not to speculate on its own dis
honor in order to save the interest Of its bro
ken promises, which it still compellS private
dealers to accept at a fictitious par. The high
est national honor is not only right but would
prove profitable.
REDUCTION OF INTEREST.
OF ire public debt nine hundred aud
eighty five million dollars bear interest
at SIX per cent. in gold, and sixty-fiye
millions at II We per cent. in gold: the AVERAGE