Daily press and Dakotaian. [volume] (Yankton, Dakota Territory [S.D.]) 1875-1880, 1876-08-05

fractional currency. How shall govern
| ment make these notes vi all times as good
as speciey IL has to provide In reference
to the mass which would be kept in use
by the wants of business, q central reserve
of Gaia adequate 10 the adjustment OF ten.
porary fluctuations OF the international
, balance and as q & iarantY against transcient
drains, artiicially created by panic Oh by
|. speculation. 1t has also TO provide for rhe
payment in eein Of such fractional carren.
cy as may be presented for redemption, aud
such inconsiderate portions OF legal tenders
AS individuals may from time TO time de
sire to convert for special use, or IN order
to lay by in coin their little stores Of
money. To make the coin now in the
, treasury available for the objects of this
reserve, To gradually strengthen and en-
large that reserve, and 10 provide for such
other exceptional demands for coin ss may
| arise, does not seem TO the as work OF diff
Guilty If wisely planned and discreetly pur-
sued. II ought not to cost any sacrifice TO
business of the country. II should tend /,
I on The eeatfayy, |, " revival Of hope and
confidence.
The coin in the treasury on the Both Of
June. including whal is held against coin
certificates, amounted to nearly seventy
four millions. The current OF the precious
| metals which has flowed oat of our coun-
Try for eleven years, from July lst, 1865, to
June 30, 1876, averaging nearly seventy
six millions year, WAS. eight hundred and
thirty-two millions for the whole period of
which six hundred aud seventeen millions
we're the product Of our own mines. To
amass the requisite quantity by Intercept
| ing from the current flowing out ot the
country, aud by acquiring from stocks
which exist abroad, without dis
turbing the equilibrium Of the foreign
money markets, is result to be easily
worked out by practical knowledge and
Judgment with respect to whatever
surplus of legal tenders the wants Of
business may fail to keep in use, and
which in order to save interest, will
be returned for redemption, they can
either be paid or they can be funded.
Whether they continue MS currency
or be absorbed into the vast mass Of
securities held as investments AS
merely question of rate Of interest
they draw, even if they were to re.
main in their present form and the
| government were to agree to pay
on them at rate Of interest
making them desirable as an
investment, they would cease to cir
culate and take their place with gov.
crnment, state, municipal and other
corporate and private bonds, of which
thousands Of millions exist among US.
In the perfect ease with which they
can be changed from currency into in-
vestments lies the oulY danger to be
guarded against in the adoption Of
general ia.e+,ed!t..4
u clearly asccrtained surplus, that is
the withdrawal Of any which are
not permanent excess beyond the
wants of business. Even more mis-
chevious would be any measure
which affects the public imagination
with the fear of an apprehended scare
ity. In a community where credit is
so much used, the fluctuations oil
values and vicisitudes In business are
largely caused by temporary beliefs
of men, even before those beliefs can
conform TO ascertain realities
The amount OF necessary currency alta
given date cannot be determined arbi-
trarily, and should not be assumed on
4 conjecture. That amount is subjcc,
TO both temporary and permanent
changes. An enlargement of il, which
I seemed to be durable. happened y,
the beg inning of the war, by sub
sstituted use of the currency in place
Of individual credits. Ii varies with
certain states OF business, it ,tluctua,e.
:, with consider able regularity at certai,
seasons Of the year. 1t autumn, fo
instance, when buyers OF grain an,
other agricultural products begin the
operations they usually need to Dor
row capital or circulating credit, BY
which 10 make their purchases, an,
want they funds in cur ency capabl
: of being distributed in small sum
: among numerous sellers.
The additional need of currency a
! such times is Ave or more per cent
of the whole volume, and if the SUI,
plus beyond what is required for or
dinary use does not happen TO hav
been on hand At money centers,
scarcity Of currency ensues, also
! stringency in the loan market.
was in reference to such expediencies
y that in the discussion Of this subjec
in nv annual message to the Ne,
: York legislature Of January 5, lS7;
the suggestion was made that tn
" federal government is bound to re
! deem every portion of the Issue whic
the. public do not wish to use. Ha,
9 ing assumed to monopolize the SUI
: ply Of currency and enacted exclusi,
:, laws against every body else; il
y bound to furnish all which the wan
y of business, require. The syste1
should passiyely' allow the volume I
; circulating credits to ebb and flo
) according to the ever changing wan
- Of business.
: Ikshould ini,sie,as closely Ms possible,'