The Manitowoc tribune. [volume] (Manitowoc, Wis.) 1866-1878, 1876-05-18
THE FRACTIONAL CURRENCY
PROBLEM.

The experiment of substituting silver
coin for existing fractional currency does
moi produce the results anticipated by
the friends of the measure. The frac-
tional currency disappears, it is true,
but silver does not as yet take its place,
and the result is anything but satisfac-
tory. It was an attempt to commence
resumption of specie payment, five dol
lars at time, and it has converted both
silver and fractional currency into mer-
chandise. In attempting to substitute
one kind of small change for another,
the people are discovering that they are
left with none. Thus far silver coin has
been disbursed at the rate of about $50,
900 day, and its only result has been
to put premium on the fractional cur
rency and on coin as well. Whether
any larger issue of silver would afford
relief with sufficient rapidity is exceed
ingly doubtful. Should the experiment
be tried and the silver shorld disappear
rs it does now, it world cI-Iy hasten the
event it was designed tC av5rt. II would
seem that the experiment thus fan DEM
onstratrates the folly of coming money
that is not legal-tender. Both the pa
per and silver currency are not full legal
tender, and. therefore, are made mer-
chandise by brokers and others. Con-
gress has assumed the responsibility of
furnishing the people with small change
and it must be done without delay, or
its scarcity will result in disaster and
ruin. The st. Louis, Globe Democrat
in remarking upon the situation, says ::
We doubt whether there is a single
business man OF private citizen who has
not already experienced the inconven-
fence of the scarcity of small change,
and, in the face of so universal al ex-
perience, we do not need to go into de-
tails to show how serious would be the
effects of a greater stringency, and es-
pecially of that total dearth of small
change SO suddenly brought among
the astounding possibilities. 1t is not
merely a question of the comfort which
depends ON the transactions that are
carried on small change, it is a ques-
on it, of serious loss, if not of ruin, to
those who are least able to bear the or
deal. That such disaster should come
about by the action of those who are in
trusted with the care of tho public inter
ests, is disgrace to the system which
has sent such men to Congress. 1t is
no use, however to abuse them now !;
the main thing is to avert the catastrophe
and hold them to their responsibility
afterwards.
1t is absolutely certain that the corn-
try cannot afford to be entirely deprived
of small change while Congress is ex-
perimenting. 1t is matter of vital mo-
ment, and the people cannot afford to
remain in doubt. The attempt at sub
stitution thus far has resulted in the dis
appearance of both kinds of small change
and the best thing to be done is to stop
the process as early as practicable, and
get back to terra frna as soon as posi-
BILE. Supply the people with small
change, and avert threatened disaster
and ruin. Issue silver if it is desirable
rs rapidly as possible, but supply the
deficiency with fractional currency, and
leave substitution to take care of itself
gradually, as it will if silver is made
full legal tender, without danger to bus
mess interests. The disastrous effects
of forced withdrawal of fractional cur
rency without sufficient volume of sill
yer to prevent dearth of small change,
is already too painfully apparent, and
the people urgently demand instant re-
lief.