Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1876-08-12

ascertained surplus, that is, the withdrawal of
any which are not permanent excess beyond
the wants of business. Even more mischievOus
would be any measure which effects
THE PUBLIC IMAGINATION
With the fear of an apprehended scarcity: In
community where credit is much used fuct
uations of values and vIcissitudes in bus mess
are largely caused by temporary beliefs Of men,
even before those beliefs can conform to ascer- |
tanned realities. The amount of necessary cur
rency at given time cannot be determined
arbitrarily, and should not be assumed on con-
lecture. That amount ID subjected to both
permanent and temporary changes. An enlarge.
at the beginning OF the civil war by u substituted
use of currency in place of individual credit.
1t varies with certain status of business. 1t
ent seasons of the year. In autumn, for 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 purchases, and want these
funds in, in currency capable OF being distributed @
additional need of currency at such times Is five
or more per cent. Of Che whole volume, and If |
use does not happen to have been on hand at
money centres, u
SCARCITY OF CURRENCY
Ensues, and also u str1n2ency in the loan mar |
ket 1t was in reference to such experiences that
IN discussion of this subject in my annual |
message to the New York legislature of January |
5th, 1875. the suggestion was made that the fed |
eral government is bound to redeem every por-
ton Of its issues which the public do OF wish |
to use. Having assumed to mOnopolize the sup
ply of currency and enacted exclusions against |
everybody else it is bound to furnish all which |
the wants of business require. The system
should passively allow the volume of circulating
credits to ebb and flow according to the ever
as 81 4ne aWs Of
which it has suspended by artificial contrivan-
ces. In Il similar discussion in my message OF
January 4, 1876. it was said that resumption
should be effected by such measures would
keep the aggregate amount OF currency elf-ad.
justing during all process without creating at
any time an artificial scarcity, without exciting
| public imagination with alarms which impair
credit, and disturb natural operations of busi-
| ness. Public economies, Official retrenchrnents,
and wise finance are the means which the St.
| Louis convention indicates as u provision for
reserves and redemptions.
THE BEST RESOURCE
Is q reduction of the expenses OF the government
| below its income, for that imposes no new
charge on the people II, however, the i'm
| to period of falling revenues oblige us to sup
plement the results of economies and retrench-
| ments by some resort to loans, we should not
late on its own dishonor IN ordsr to save the IN
terest of its broken promises which it still COM
pes private dealers to accept At fictitious par.
but wo1ld prove profitable. OF the public debt,
$9S5 600 600 bear interest at per cent. in gold,
age age Interest is sss per cent. q financial policy
| which should secure the highest credit, wisely
availed of, ought gradually to obtain a reduc-
tion of one per cent. In interest on most of the
| loans. A saving OF one per cent. on the average
would be sl7 ,O0O. 600 year in gold. That saw
ing regularly invested at four and a half per
cent. would in less than 80 years extinguish the
principal. The whole 81 zoo. .0OO, 600 of the fund
ed debt might be paid by this saving alone with
THK PROPER TIME FOR RESUMPTION
Is the time when wise preparations shall have
object with u certainty and ease that will inspire
confidence and encourage the reviving of busi-
ness. The earliest time in which such u result
can be brought about is best. Even when prep
arations shall have matured. the exact date
would have to be chosen with reference to the
then existing state of trade and credit opera
tions IN our country, the course Of foreign
commerce and condition of exchanges with
other nations. The specific measures and actual
ever-changing conditions. They belong to the
!: domain Of practical. administrative statesman
! ship. The captain OF a steamer about starting
from New York to Liverpool does not assemble
council over his ocean chart and fix an angle
by which to lash the rudder for the whole yoy-
to discern the shifting forces OF the water and
winds. A human hand must be on the helm to
l feel the elements day by day and guide to mas
: thing Without them u Legislative command
) liking day-an official promise fixing day
sion and snare to all who trust them They de-
/ strOy all confidence among thoughtful men
whose Judgment win. at last, sway public opin-
: such promise without preparation would end
in new suspension. II would be a fresh ca
ia%ity. ,uIys.. prolific OF confusion, distrust and
e WHAT THE ADMINISTRATION HAS DONE.
E The act Of congress of 1868 and Of July. 1878,
enacted that on and after the 1st of January,
1879, the secretary OF the treasury shall redeem
IN fAla elega fie Office OF the assistant treas
urer in the city Of New York. 1t authorizes the
secretary to prepare and provide for such re-
sumption OF specie payments by the use Of any
surplus revenues not otherwise appropriated,
! and by issuing in his discretion certain classes
oil bonds. More than one and q half Of the fOuI
years have passed. Congress and the president
: nave continued ever since to unite in acts by
which they have legislated out of existence ev-
cry possible surplus applicable to this purpose
, The coin in the treasury claimed to belong to the
government t i had on the Both Of June. fallen te
ffty-nine millions on the first of January, 1875,
and the availability of part Of that sum is said
to be questionable. The revenues are falling
faster than appropriations and expenditures are
reduced, leaving the treasury with diminishing
%s ne =, secretary has done nothing Hn
command and the official promise fixing day
for resumption have been made. There has been
no progress; there have been No steps backward
there IS no neSromancy in the operations Of
governments: The homely maxims Of every day
; debtor who should promise to pay loan out OF
: surplus income. yet be seen every day spending
all ne could lay his hands on in riOtOus living,
would lose all character for honesty and verac.
, ity. His offer Of II new promise, or his profes.
sion as to the value OF the old promise, would
alike provoke derision. The St. Louis platform
, good the promise of legal tender notes; it de.
: nounces tile omission to accumulate any reserve
| lOI IL OenOunCe8 the CO0UuC
which, during eleven years of peace, has made
, no advances toward resumption, no prepara
tions for resumption, but instead has obstructed
resumption by wasting our resources and eX-
, hausting all our surplus income; and while pro
Tossing to intend speedy return to specie pay.
4 mems, has annually enacted fresh hindrance.
t thereto, and having first denounced the barren
I ness of the promise of day of resumption, il
next denounces that barren promise as q him
drance to resumption. 1t then demands its re-
peal, and also demands the establishment of u
JUDIClOUs SYSTEM OF PREPARATION
For resumption. 1t cannot be doubted that thu
. Substitution OF system of preparation withou
promise of i day, for the worthless promise OF
, day without a system of preparation. would bt
{ c the gain of the substance Of resumption in ex'
change tor its shadow. Nor Is denunciatior
J. unmerited of that improvidence which In clever
years since the peace, has consumed 81 6O0, 900,
r OOO ana yet could not Afford to give the people
1 sound and stable currency. Two -and-a-hal
per cent. on expenditures of these eleven year.
e or ever, less would have provided all the coli
needtul to resumption The distress now felt by
the people in all their business and industries
]: waste Of capital occasioned by false policies o
It our government, has been greatly aggra vated b,
is the prolific parent of mlschefs in all business
Q Never were Its evils more felt than now. Mel
10 do nothing because they are unable TO make an,
e | They undertake nothing because they fear los
r in everything they would attempt They stol
e and wait. The merchant dares not buy f0
= future consumption of his customers; the manu-
Z facturer dares not make fabrics which may no
d refund his outlay; he shuts his factory and dis
n charges his workmen; capitalists cannot lenC
s on security they consider unsafe and their fund
: lie almost with out interest. Men of enterpris,
C who have credit or securities to pledge, will no
i borrow. Consumption has fallen below tn
e natural limits OF reasonable economy. rricei
= of many things are under their range in fruga
: specie payment times before the civil war. Vas
s masses of currency lie in banks unused. A yea
II and half ago legal tenders We're ut their larges
II volume and l2. 900 900 since retired have beer
: replaced by fresh issues of Slj 900 900 OF banl
! notes. In the meantime the banks have beer
: surrenderng about s. ,OOO, 900 month becaus,
: | they cannot lind u profitable Use for So many o
y their notes. The public mind will
n NO LONGER ACCEPr sHAMS.
: | 1t has suffered enough from illusions An in
sIncere policy increases dstrust; an uustabl,
policy increases uncertainty The people need
TO know that the government is moving in thu
direction Of ultimate safety and prosperity, and
u that II Is doing 30 through prudent, safe an,
u conservative methods which will be sure to in
B lict no new sacrifice on the business of tn,
o country Then the inspiration OF new hope anC
wcll-1Ounded confidence will hasten the restor.
: ing processes OF nature. and prosperity Will be
Z gin to return.
The st. Louis convention concludes its eX.
preston in regard to the currency by dcclara
5 ton OF its convictions to the practical re-
!, suits OF the system of preparations il demands
Il 1t says: 1--WE believe such system well de
S visc,l, and above all. intrusted to competen
> hands for execution. creating at no time al
artificial scarcity oil currency, and at tim.
II alarming the public mind into withdrawal o
o that vaster machine of credit by which ninety
II five per cent. of all business transactions are
perfoI Ine'i-a system open, public and inspiring
), general confidence from the day of Its adOp-
ton. would bring healing on Its wings to ul Oll
u harassed INDUSTRIES set in motion the wheels O
commerce, manufactures and mechanic arts
restore employment to labor. and renew, in al