The weekly Elko independent. [volume] (Elko, Nev.) 1872-1887, 1876-08-13

where credit is so much used. Fluc-
tuations i'll values and vicissitudcs in
business arc largely caused by tenn
porary beliefs OF mon, even before
these beliefs can conform to asccr-
tanned realities. The amount Of nee
| cSsary currency Gt u given time can
not 10 determined arbitrarily and
should not he assumed on con lecture
that IS, tho amount is subject to
both permanent and temporary
changes. An enlargement of it,
which seems to be durable, happened
ut the beginning of the civil war, hy
substituted uso Of currency in the
place OF individual credits. 1t varies
with certain states Of business. and it
|-fuctuatcs with regularity at different
seasons. For instance. when buyers
OF grain and other agricultural pro-
ducts begin their operations they
usually need to borrow capital or cir
culating credits by which to make
| purchases, and want these funds in
currency capable of being distributed
III small sums among numerous sell
crs. The additional need of currency
nj snch times is five or moro per
cent. OF the whole volume, and il n
surplus beyond what is required for
ordinary uso does not happen to have
been OH hand Mt the, money centers, II
scarcity OF currency onsucs and also
n stringcncy in tho loan market. 1t
was Ill reference 10 such experiences
that i'll discussion of this subject i'm
my annual message to tho Now York
| | L., Al
suggestion was made that Inc Federal
Government was bound to redeem
every portion OF its issues which the
public does not wish to usc. Huving
assumed to monopoli2c the supply OF
currency AMI enacted exclusions
against everybody else, il is bound to
furnish all which tho wants of bust
ness require. The system passivcly
allows the volume of circulating.
credits TO cOb and How according to
tho cvcrcbanging wants of business.
1t should initiate rs closely rs posi-
bic The natural laws of trade which il
has superseded by artificial coNtri-
vGncCs. In similar discussion III
my message of january, 1876, it WAS
said that resumption should DO effect
Cd by snch measures as would keen
Tho aggregate amount of currency
self'ahjustiuG during all the process.
without creating ut any time an arti-
ticiai scarcity, and without exciting
public imagination with alarm, which
impairs confidence, contracts the
whole machinery of credit, and dis
turts the natural operations vi bust
ness and public economies.
OFFICIAL EErREScIMENr AND wIgr
FISAScE.
OGiciAl rctrcnch:nent and wise
finance are means which the ST. Louis
Convention indicates for resources
and redemption. Tho best resource
Is reduction of the expenses OF the
Government below its income, for
That imposes no new charge on the
people. If, however, improvidenca
and waste, which have conducted it
to apcriOd of failing rcvcnuca, obliyo
us tn supplement tho results OF econ
omic5 Gni retrcnchmcnts by some re-
sorts To loans we should not hesitate.
The Government ought not TO epecu-
late on It's dishonOr to save interest
on its broken promises, which it still
compcls private dealers to accept Mt n
| fictitious par. The highest national
honor is not only right but would
prove profitable. or the public debt
$0S0, OnD, 900 bears interest mt q ncr
cent. in gold, and $TI2, 900, 900 u. D
per cent. i'll gold. Tho average in
| tor2st Is 0$E per cent. a financial
policy which should receive tho high.
est credit, wisely avGiIed of. ought
! gradually to obtain reduction Of /
| per cent. on most Of these loans. 4
| saving Of per cont. on Tho average
would be Sill GOA, 900 year in gold.
| That saving regularly invested ut ~
per cent. would in lCst that thirty
eight years distinguish tho principal.
| The whole q 100, 600. 600 Oi thc fund
cd lcht, might be paid by this saving
alone, without cost 10 the people. At
its best, even when preparation si.nil
have been mnturcl. an exact date
would have to DC chosen with refer
cIrc to the existing state of trade and
credit, Of operations in orr own
country and tho state Of furciun com
! mcrco and condition Of exchanges
| with other nations. Tho specific
measures and actual date are matters
OF detail having reference 10 ever
changing conditions. They belong to
tho domain of practical ndminigtra-
tive stdtcsmanship. rho captain of Il
steamer starting from New York TO
Liverpool does not assemble coun.
ell over his ocean chart; human in
tclligcnco must he ut tho helm to
trace tho shifting forces of water and
wind; human Intelligence must 10 Gt
the helm 10 feel the elements dny by
day aud guild" To mastery over them.
Such preparations arc everything.
Without them II Legislative command,
fixing The day and official promises
arc shain1 among thoughtful men,
whose judgment will mt least sway
public opinion. An attempt 10 act
on such command or such prom.
iso without preparation would end in
new suspension. 1t wOnld he fresh
calamity, prolific Of confusion, dis.
| trust and distress. Tho Act Of Con
GrcSs of July II, 1879, enacted that
On and after January /. 1879, the Soc.
rottrv of tho Treasury shall redeem
in coin lrgal.tcndor noioH Of tho Uni
ted States, on presentation ut tho oil
flee Of tho Assistant Treasurer i'm tho
city Of New York. 1t amthGrizns tho
Secretary Ia prepare unl provide for
Snch resumption Of specie payments
by tho usC Of any surplus rcvcnuna,
moi otherwise appropriated. nud by
issuing in his discretion certain class
! Cg pf bOnlg Aiprp tLln mn nuI n