The Brookhaven ledger. (Brookhaven, Miss.) 1875-1883, 1876-08-10

OF the creation Clltltleu W FagtieHV. A
object demanded by the Convention is
a resumption of specie payment on the
legal tender notes cf the United State
that would not only restore the public
credit and maintain the national honor,
! but it would establish a sound currency
for the people; the methods by which
this object is to be pursued and the
means by which it is to be attained, are
disclosed by what the Convention de-
manded in the future and by what it de-
nounced in the past.
BANK NOTE RESUMPTION.
Resumption of specie payments by
the Government of the United States,
on its legal tender notes, would oetab-
llish specie payments by all the banks
on all their notes.
! Official statements on the 18th of
Nay shows the amounts of the bank
| mites were $500, DOC, 900, less $40, 000,-
90 held by themselves; against these
} $50, coo. 900 of notes the banks had
, $1t1 900, 900 of legal tenders, or a little
I mere than fifty per cent OF the amount;
but they also had on deposit in the Fed
erl Treasurer, or security for those
noes, bonds of the United States, worth
ingold about $3.50, 900, 900, available
!, and current in all the foreign money
: markets. In resuming, the banks,
{ evssn if it were possible for all their
ntes to be presented for payment,
{ w,uld have $500, 900, 900 of specie funds
+ to pay $3.50, 600, 900 of notes without
Extracting their loans to their custo-
ners, or calling OF any private debtor
f,f payment. Suspended banks under
!, fixing to resume have usually been
' obliged to collect from needy borrow
ds the means to redeem excessive is
sles, and provide reserves. A vague
ilea of distress is therefore often as
sociated with the process OF resumption
| Int the conditions which caused dis
tess in those former instances, do not
low exist. The government has only
t, make good its promises and the
links can take care of themselves with
!, ont distressing anybody. The govern
!; nent is therefore the sole delinquent.
LEGAL TENDER RESUMPTION.
The amount of the legal tender notes
rpw outstanding is less than 1910, 600
/ OO, besides $34, 900, 600 of fractional
{ currency. How shall the government
make these notes at all times as good
= IS specie? 1t has to provide in refer
f alce to the mass which would be kept
{ ID use by the wants of business, a cen
f trail reservoir of coin adequate to the
adjustment of the temporary tiuctua-
IONS of international balances, and as q
guaranty against trancient drains artI-
icially created by panics or by specu>
htion.
1t has also TO provide for payment OF
such fractional currency as may be pre-
/ sented for redemption, and such lncon-
; siderable portions of the legal tenders
as individuals from time to time may
desIre TO convert for special use, or III
order to lay by in coin their stores OF
money.
RESUMPTION NOT DIFFICULT.
To make the coin in the Treasury
available for this reserve, to gradually
strengthed and enlarge that reserve,
and to provide for such otherexceptlon-
al demands for coin as may arse, G
not seem to me t o be a work of difficult.
Ii wisely planned and discreetly pur-
sued, it onght not to cost any sacrifice
to the business of the country; 1T should
tend, on the contrary, to a revival OF
hope and confidence. The coin IN the
Treasury on the 30th of June, lnclud-
ing what is held against coin certlti-
Gates. amounted to nearly $1,000, 600;
the current of precious metals which
has flowed out of our country for elev-
en- years, from July LIST, 1863, to July 3Oth
Isis. averaging dearly $76,00o,OO0 a
wear. was 1892, 600, 000;in the whole peri
cd of which s617, 900, 600 were the pro-
duet of our W mines.
To amass the requisite quantities by
intercepting from the current flowing
out of the country and by acquiring
from the stocks which exist abroad
without disturbing the equilibrium OF
foreign money markets, is a result to be
easily marked out by practical knows
edge and Judgment. With what re-
spect to whatever surplus of legal ten
ders the wants of business may fail to
keep in use, and which IN order TO save
interest will be returned for redemption,
they can be either paid or they can be
funded whether they continue as nf-
lency into the vast mass OF securities
had as investments, is merely a ques-
, ton of the rate of interest they draw.
Even if they were to remain IN their
present form, and the government were
TO agree to pay on them a rate OF inter-
est. making them desirable as invest
| ments. they would cease to circulate,
, and take their place with Government,
!, State, municipal, and other corporate
bonds. of which thousands of millions
exist among us. The perfect ease with
which they can be changed from cur
rency into investments, lies the only
danger to be guarded against, in the
Abortion of general measures to remove
ia clearly a%scertained suplus. That is
the withdrawal OF any when are not q
permanent excess beyond the wants OF
business, eve more m~lschlevous Wouid
be any measure Which effects the mag,
nation with fear OF an a~pprehended
scarcity in the community where credit
is so much used, fluctuations OF values
and yicissisitudes in business are largely
caused by the temporary belief OF mel
: even before those beliefs conform to as
certained realities.
AMOUNT OF NECESSARY
The amount of the necessary curren-
cv at n eiyen time can not be determin-
Cd arbitrarily, and should not be assumed
mon conjecture. That amount is sub
, iect to both permanent and temporary
charges. An enlargement which seem.
ed to be durable happened at the be-
, oinning of the civil war by a substitu.
ted use of currency in place OF
individual. 1t varies with certain States
+ of business; it fuctuates with consider
, able regularity at different seasons OF
!. the wear; in autumn, for instance, when
buyers Of grain and other agricultural
, products begin their operations, they
r usually need to borrow capital or circu-
lating credit by which to make thei1
purchases, and want these funds in cur
!, rency, capable of being distributed IL
! small sums among numerous sellers.
The additional need of currency a
: such times is five or more per cent. O.
the whole volume, and if a surplus be
yond what is required for ordinary ust
+ does not happen to have been on hant
!. AT the money centers, q scarcity of cur
rency ensues and also a stringenc.
I in he loan market. 1t is in reference
! TO such experiences that in a discussion
). of this subject in my annual message
to the New York Legislature, OF Janu
ary 9Th. 1875, the suggestion was mad
3 that the Federal Government Is poun'