The Jasper weekly courier., 1876-08-18


as security for these notes. bonds Of the United
states Ia gold 3o0, ,O,O,0,O, available ana eur.
rent In all foreign money markets. In resuming,
banks even II lt were possible for all their notes
To be presented for payment, would have 900.
OoO, 90 of specie funds to pay &2s0 UDOt 90 al
notes without contracting their loans 10 their
customers, or calling on any private debtor for
payment Suspended banks undertaking 10 re-
sumo have usually been obliged 90
collect from needy borrowers means 10 redeem
excessive issues and 10 provide reserves. A
vague idea of distress h therefore often assOciat
ed with The process of resumption. but the condi
uOns which caused distress In those former in
stances do not now exist. The Government has
only 10 make gsOd its own promises and The
banks can take care OF themselves without die
tressng any body. The Government Is there.
fore the sole delinquent. The amount OF the le
gal tender notes of the United states now out
standing Is less than SS70 600 90, besides s8l,
ODO, 900 OffractiOna currency. How shall the GOV
6snment make these notes at all times, In refer
ence Ia the mass which would be kept In use by
the wants Of business, centra' reservoir OF
coin, adequate % the adjustment Of temporary
fluctuations Of international balances and AS a
guaranty against transient drains artihcially
created by panic or by speculation 10 also
has 10 provide for the payment, In coin, OF such
fractional currency a may be presented for re-
4. mpuOn, and such inconsiderable portions OF
lega.tenders as individuals may from time 10
time desire TO convert for special use. or in or
der 10 lay by In coin their little stores of money
80 20 make the coin now In the Treasury availa-
ble for the objects of this reserve, 10 gradually
vide for such other exceptional demands for coin
AS may arise, docs not seem 10 me n work OF
difficulty. II wisely planned and discreetly pur.
sued Il ought not o. cost any sacrifice TO the bus
iness of the country II should tend on the
contrary, 10 revival of life and confidence
The coin IN the Treasury on the 31th Of June. in
Guiding what is held against coin certificates
amouuted 10 nearly seventy four millions. The
current Of precious metals which has flowed out
Of our country for the eleven years from July ],
~ 3. to june 30, 1876, averaging nearly seventy
six millions year. was s}s millions, in the
whole period OF which bll mill Ons were the pro-
duct Of oar own mines. To amass the requisite
quantity by interceptng from the current fi0w-
ing out Of The country, and by acquiring from
stocks which exist abroad, without disturbing
the equilibrium Of foreign money markets. Is a
result 10 be easily worked out by practical
knowledge and judgment, with respect TO what
ever surplus of legal tenders the wants of bust
ness may iaii TO keep In use. and which. i'm or
ter to save the interest, will he returned for re-
demption. They can either be paid or they can
be funded. Whether they continue as currency
or be absorbed into the vast mass Of securities
hold 10y investments is merely question OF the
rate Of interest they draw. Even II they were TO
remain In their present form and the Govern
ment were 20 agree 10 pa on them rate of in
terest making them desirable a. investments
they would cease 10 circulate aud take their
place with Government, state. mu-
nicipal and other corporate and
private bonds OF which thOusSnds OF mil
lions exist among us. In the perfect ease with
which they can be changed from currency into
Investments lies the only danger 10 be guarded
against In the adoption OF general measures in
tended % remove or clearly ascertain the sur
pus-that Is, the withdrawal of any which are
not a permanent excess beyond the wants of
business. Even more mischevous would be any
measure which affects the public Imagination
with the fear Of an apprehended scarcity. In a
community where credit Is so much used fuctu-
atoms of values and yicissitudes in business are
largely caused by the temporary beliefs Of men
even before the beliefs can conform 10 ascer-
talned realities.
FLUCTUATIONS or TIE CURRENCY.
The amount of necessary currency at a given
time cannot be determined arbitrarily. and II
should not he assumed or cOniectured that the
amount is suhjected To both permanent and tenn
poraI changes. An enlargement Of IL. which
seemed 10 be- durable. happened At the begin
ming Of the civil war by substituted use OF cur
rency In place Of individual coedits.
10 varies with certain states Of
business. 10 nuctuates with comfortable
regularity AZ different seasons Of the year. In
autumn, for instance, when buyers Of grain and
other agricultural products begin their opera
tons, they usually need tO borrow capital on CIR
culalng credits, by which to make their pur-
chases ana they want these funds in currency
capable of being distributed IN small sums
among the numerous sellers. The additional
need Of currency at such times Is five or more per
cent Of the whole volume, and Il a surplus be-
yOnd what Is required for ordinary use does not
happen 10 be on hand at the money centers n
scarcity of currency ensues and also a stringency
In the loan market II was in reference To such
experiences that, in "a discussion Of this subject
N my annual message 90 the New York Legsla
iure oi January ,, lei3, the suggestion was made
that the Federal Government is bound to redeem
every portion Of its issue which the public do
not wish 20 use Having assumed 10 monopo.
lizc the supply OF the currency and enacted
exclusions gainst every body else II is bound 10
furnish all which the wants Of business require
The system should passiyely allow the volume of
circulating credits 10 cbb and flow according to
the ever changing wants of business. IL should
initiate as closely possible the natural laws Of
hade, which II has superseded by artificial con
trivances. and m similar discussion IN my
message of January 4, ISIS, ~ was said that re-
sumption should be effected by such measures as
would keep the aggregate amount of the currency
self adjusting during all the process without
creating at any time an artificial scarcity, with
out exciting public Imagination with alarms
which impair confidence and distract the whole
machinery of credit, and disturb the natural
operations Of IN business public Economies by
official retrenchments anu wise finance are the
means which the ST. Louis Convention indicates as
provision for reserves and redemption. The best
resource h. reduction of the expenses Of Govern
ment below its income. for that imposes no new
charge on the people. II. however, she improy
idcnce and waste whicn have conducted us 10 n
period Of falling revenues oblige us TO supple
ment the results Of economies AMI retreu chments
by some resorts 10 loans, we should not hesitate.
The Government ought not 10 speculate on is
own dishonor IN order 20 save the interest OF it,
broken promises, which u still compels private
dealers % accept at a fictitious par. The highest
national JnOr ~ not only right but would prove
profitable. OF the pBOlic debt, sasf ,e0 90 bear
interest nj per cent In gold, and eos ,ouu 0Jo NJ
per cent. IN gold. The average interest Is ,. -
per cent. a financial policy which should se ,ure
the highest credit, wisely availed Of, ought
gradually 10 obtain n reduction OF per cent. ia
the interest on most OF the loans. saving Of
per cent. on an average would he ELI ,W0.t \
year I'm gold. That saving regularly invested nj
iour ana half per cent. would in less than thir-
~ eight years eXtingush the principal. and the
whole sum Of 81 700, ,OlO of the funded debt
might be paid by their saving alone without cost
to the people.
THE PROPER T1ME FOR RESUMPTION
Is the time when wise preparations shall have
ripened into a perfect ability 10 accomplish the
object with a certainty and ease that will inspire
confidence aud encourage the reyiying OF bust
ness. The earliest time in which such result
can be brought about Is best Even when prep
aration shall have been maturcd. the exact date