The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1876-05-03
Our Currency.

We find the following article on the
Currency, in a good Democratic paper.
We are satisfied of its wisdom and
commend its careful perusal to our
readers:
"Our paper currency-how to make
it equal to gold. Provide means for
its redemption in gold at all the great
commercial centers of the world.
"To do this let the reserves in the
National Treasury consist in great
part of United States bonds that will
at any moment buy bills of exchange
on London. Authorize the Secretary
of the Treasury to sell at any time
such number of these bonds as may
be necessary to redeem all the curren-
cy that may at any time, and in any
place, be presented for redemption.
ThegOld spectators occupation will be
gone whenever a touch of the mag
netIc telegraph can be made to COM
mand exchange on London, to be used
in the redemption of the currency at
all points. If the reserves in the
treasury be chiefly bonds, and those
bonds should even amount to eight
hundred millions of dollars, they will
cost the nation nothing, for the treas
ury will pay to itself the interest on
the unsold bonds.
"But will not this lead to a contrac-
ton of the currency and make the
present financial pressure more intOl-
cradle?
Certainly not; for when paper cur
rency is equal to gold coin, the paper
is preferred. But if misers at home,
or merchants in our seapOrts, or spec
ulators abroad, demand gold, the pa
per currency redeemed would be i'm
mediately paid out to the numerous
employees of the government and
again thrown into circulation.
"But will not this means of putting
the paper currency On par with gold
coin seriously affect the national credit,
and depreciate the value of the bonds?
Not unless war or some great calamity
should occur and render a large in
crease of debt necessary. No human
wisdom can prevent such evils But
will not this sudden appreciation in
the value of the paper currency in
crease speculation and extravaganza,
unless the volume of the currency be
reduced? Not if the amount of the !
currency bear a fixed relation to the |
number Of population. If 1, 400
banks, or one bank, or even Secretary
of the Treasury, or Congress of the
United States be authorized to increase
or diminish the volume Of the paper !
currency at will, disastrous results
must follow. Speculative times will
be made more extravagant, and hard
times harder. But if paper currency
should never be allowed to exceed
twenty millions of dollars for every
million of inhabitants, the legitimate
business of the country will absorb and
employ that amount.
"But viii not a paper currency of any
kind, lead to financial panic? Wheth-
err the currency be gold or paper, or
gold and paper, commercial nations
can not possibly avoid financial re-
verse. In the nature of things overtra-
ding, extravaganza and idleness will
run their course and produce their
effect, no matter what may be the
character of a nations currency.
Then follows stringency in the money
market, and loss and suffering among
the people, until income exceeds ex-
penditure enough to atone for past
prOdigality. Our country at this
time, is unfortunately suffering, not only
from the results of past folly, but still
more from the fearful effects of distrust
and uncertainty of national financial
A settled determination to