The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1876-08-05

luueS IN DuA'iuehb are largely cauS0u OF
the temporary beliefs OF men, even before
those beliefs can conform to ascertained
Irealties. The amount Of necessary cur
rency at given time can not be deter
mined arbitrarily, and should not be as
sumed on conjecture. That amount iy
subject to both permanent and tem-
porary changes. An enlargement OF IL,
which seemed to be durable, happened
at the beginning of the civil war by a
substituted use of currency in the place
of individual credits. 1t varies with
certain states of business; it tiuctuates
with considerable regularity at different
seasons of the year. La the
autumn, tor instance, when
buyers of grain and other agricultu'
raj products begin their operations, they
usually need to DOrroW capital or circu.
lating credits by which TO make their
purchases, and want these funds IL cur-
rency capable Of being distributed in
small sums among numerous sellers.
The additional need oil currency at such
times is five or more per cent. Of the
whole volume, and ii a surplus bsyonn
what is required for ordinary use does
not happen to have been ON hand a
money centres, scarcity OF currency
ensues, and also stringency in the loan
market. 1t was in reference to Such eK.
periences that in a discussion OF this
subject in my annual message to the
New York Legislature, OF January o.
1873, the suggestion was made that the
Federal Government is bound to redeem
every portion of its issues which tho
pubic do not wish 10 use. Having as.
sumed to monopolize the supply OF cur
rency and enacted exclusions against
everybody else, it is bound 10 furnish all
lul
The system should passlveiy allow the
volume OF circulating credits to cub and
dow according TO the eVer-changins
wants OF business. 1t should initiate as
closely as possible the natural laws OF
trade, which il has superseded, by arti-
fetal contrivances. And i'll similar
discussion Ill my message OF January 4,
SIG, it was said that resumption should
be effected by such measures as would
keep the aggregate amount OF currency
self-adjustlng during the process without
creating at any time artificial scarcity,
and without exciting public imagination
with alarms, which impair confidence
and distract the whole machinery of
credit and disturb the natural opera
tions of business. Public ec0nOmies.
official retrencnm9nts and finance are
the means which the St. Louis Convex
ton indicates as the provision for re-
serves and redemption. The best source
is to reduce the expenses Of the Govern
ment below it's income, 1Or that imposes
no new charges on the people. Ii, how
ever, improVidence and waste, Whicn
nave conducted US to a period of fall ng
revenues, oDlige US TO supplement the
results of economies and retrenchment
by some resort to loans, we should not
hesitate. The Government ought not to
speculate on its own dIshonOr in order
to save the interest of its broken prom.
ises which it still conipels private
dealers to accept ut fictitious par.
rue highest national honor iS not only
right but would prove profitable. or the
Public Debt, nine hundred and eighty
i've millions bear interest at 6 per ceat.
in gold, and $50, ,000,0 900 at 5 per cent. In
gold. The average interest is per cent.
A financial policy which should secnrR
the highest credit wisely availed OF
ought gradually to obtain reduction of
1 per cent. in the interest of the most OF
tue loans. A saving of one per cent. on
an average would he $4,000, 900. a year in
gold. That saving regularly invested
at AZ per cent. woulu, in less than
thirty eight years eXtinguish the princi-
pal. The whole 81, 100, 100000 OF funded
debt might be paid by this saving alone,
WITHOUT CUSI W Ll6 people,
The proper time for resumption is the
time when wise preparations shall have
ripened into a perfect ability to accom-
plish the object with certainty and
ease that will inspire confidence and en-
courage the reViying OF business. The
earliest time in which such result can
be brought about is the best even when
shall have been matured.
The exact date would have to be chosen
with reference to the then existing state
of trade and credit operations in O9r
the course of foreign commerce
and condition Of exchanges with other
nations.
The specific measures and actual date
are matters of detail having reference 10
ever-changing conditions. They belong
to the domain of practical administra-
live statesmanship. The Captain of a
steamer about starting from New York
TO Liverpool does not assemble a coun-
Gil over his ocean chart and Tx an angle
by which TO lash the rudder for the whole
voyage. A human intelligence must ba
ut the helm to discern the shifting forces
Of the Waters and winds. A human hand
must be ON the helm to feel the elements,
day by day and guide to u mastery over
them. Such preparations are every
thing. Without them legislative OOin-
mand fixing day, an official promise
liking day, are shams. They are worse.,
They are a snare and delusion to all who
trust them. They destroy all confidence
among thoughtful men whose judgment
will at least sway public opinion. An
to act on sucl a command oE
such promise without preparation
would end in "a new suspension. II
would be a fresh calamity prolific OF coa-
fusion, distrust and distress.
Tue act OF Congress of July, 1873, en-
acted that on and after the lst of Janu-
airy, 1879, the Secretary Of the Treasury
shall redeem in coin legal-tender notes
of the United States on presentation nj
the office Of tue Assistant Treasurer in
the CITY of New York. 1t authorizes
the Secretary to prepare and provide IOf
such resumption of specie payments by
the use of any surplus revenues not
otherwise appropriated, aud by issuing
in his discretion certain classes OF
bonds. More than one and half Of the
four years have passed. Congress and
tue President have continued ever since
to unite in acts which have legislated
out oil existencs every possible surplus
to this purpose. The coin IN
the Treasury, claimed TO belong TO the
had on the 30Jh of Juaa
Iallen to less than forty-tive millions Rt
dollars, against ffty-uine millions on
the 1st OF January, 1915, and the avail
W nF rt of nut ia aaiA