The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1876-08-15

cry anu totally destroyed us lnarKetathe
value. It is impossible that these evils
should not react upon the prosperity Of
the whole country. The nobler motives
of humanity concur with the material in.
terests OF all in7requiring that every OBJ
stacle be removed to complete and du-
rable reconciliation between kindred pop
Eulations, once unnaturally estranged, on
a basis recognized by the St Louis plat
form, and the Constitution of the United
States with its amendments, universally
accepted as final settlement of the con.
troversies which engendered civil war,
but in aid, of result so bene6cent to the
moral infuen BE of every good citizen, as
well as every governmental authority,
ought to be exer!ed, not alone to main
tain their just equality before the law,
but likewise to establish cordial fra
ternity and goodwill among citizens,
whatever their race or color, who are
now united in the one destiny Of com
mon self-govei inment. If the duty shall
be assigned me l should not fail to exer-
else the powers with which the laws and
Constitution of our country clothe its
Chief Magistrate to protect all its citi
Izens, whatever their former condition, in
every political and personal right.
THE CURRENCY QUESTION.
"Reform is necessary declares the
| St. Louis Convention, "to establish a
sound currency, restore public credit and
maintain National honor" and it goes
on to demand a judicious system of
preparation BY public economies, by off,
cial retrenchment and by wise finance,
which will enable the Nation soon to as
sure the whole world of its perfect abil-
! ty and its readiness to meet anv of its
promises at the call of its creditors enti-
tied to payment. The object demanded
by the Convention is resumption of
specie payments of legal-tender notes of
the United States. That would not only
restore the public credit, and maintain
| the National honor, but it would estab
| LISP sound currency for the people
The methods by which the object is to
be pursued, and the means by which it is
to be attained, are disclosed by what the
Convention demanded for the future, and
by what it denounced in the past. Re
sumption of specie payments by the
Government of the United States on its
llegal.tender notes would establish specie
payments by all the banks on all their
notes the official statement made on
the 12:h of May shows that the amount
Of bank-notes was $500, ,000,0 900, less
$40, 900. 600 held by themselves. Against
the $3.50, 100000 of notes the banks held
$141, 100000 of legal tender notes. or a
little more than fifty per cent of their
amount. But they also held on deposit
in the Federal Treasury as security for
these notes bonds of the United States
worth in gold about $3.50, 900, 900, avail
able and current 10 all foreign money
markets. e4aT s#l a4 ags
IN REsUMING,
Tie banks. even if it were possible for
all their notes to be presented for pay
ment, would have $500, ,000,0 900 of spe
Gle funds to pay $2S0,000,OO0 of notes,
without contracting their loans to their
customers, or calling on any private
debtors for payment. Suspended banks
undertaking to resume have usually been
obliged to collect from needy borrowers
means to redeem excessive issues, and
to provide reserves A vague idea Of
distress is, therefore, often associated
with the process Of resumption, but the
conditions which caused distress in those
former instances do, not now exist. The
Government has only to make good its
own promises, and the banks can take
care Of themselves. The Government
is, therefore, the sole delinquent. The
amount of legal-tender notes of the Uni
ted States now outstanding is less than
1910, 900, 900, besides $3A,000.000 of
fractional currency. How shall the Gov
good as specie9 1t has to provide in
reference to the mass which would be
kept in use by the wants of business a
central reservoir of coin adequate to the
adjustment OF temporary fluctuations of
international balances and as guaran-
tee against transient drains artificially
created by panic or by speculation. 1t
has also to provide for payment in coin
of such fractional currency as may be
presented for redemption, and such in
considerable portions of legal-tenGers as
individuals may from time to time de-
sire to convert for special use or in or
der to lay by in coin their 4sa'as
LITTLE STORES OF MONEY
To make the coin now in the Treasury
available for objects of this reserve, to
gradually strengthen and enlarge that
reserve, and to provide for such other
Exceptional demands for coin as may
arise, does not seem to me work OF
difficulty. If wisely planned and dis
creetly pursued it ought not to cost any
sacrifice to the business of the country
1t should tend on the contrary to re-
vival of hope and confidence. The coin
in the Treasury on the 30th of June, in
cluding what is held against coin certif
Gates, amounted to nearly $74,O0O,O00
The current of precious metals which
has flowed out of our country for the II
years from July l. 1865, to June 30
1875, averaging nearly $76,000,000 &
year, was 1882: 100000 in the whole pc
, riod, of which $6l7, 100000 were The
product Of our own mines. To amas'
the requisite quantity by interceptins
from the current flowing out of the coun
TRY and by acquiring from the stock
which exist abroad, without disturbing
the equilibrium of foreign money mar
kets, is result to be easily worked ou
|, by practical knowledge and judgment
With respect to whatever surplus of le
gal-tenders the wants of business ma,
fail to keep in use and which in order t.
save interest, will be returned for re
; ldemption,th they can either be paid or they
can be funded Whether they continu,
as currency or be absorbed into the vas
mass OF securities held as investments il
merely question Of the rate of interes
they draw. Even if they were to remain
in their present form, and Government
) were to agree to pay on them rate o
interest making them desirable as invest
ments, they would cease TO circulate NJ