The Leavenworth weekly times. [volume] (Leavenworth, Kan.) 1870-1880, 1877-12-13


act and forced contraction. desire in con-
nection with this question of the redun-
dancy OF the currency and the $ atement
made at the Outset of this argument thar
the resumption act was in itself an obstacle
to resumption TO read from this little work
by Moran, strong resumptionist an argu-
ment the logic OF which seems unanswer-
able, which touches both these questions
and answers fully the two troublesome
questions, why and how?
We believe we have clearly demonstrated
that the much-ta;kei-of redundancy OF the
currency only exists IN the Imagination of
men whose minds are wholly absorbed in
mere statistics, to the Disregard of THE chang
es In the extent Of the production and cx-
changes of the world, and of the vast invest
ments Of economical capital that have to be
constantly transferred by IN ans Of money OF
some kind. These Men imagine that, be-
cause the volume of the currency Is now
much great than in 1850, IL mast necessari-
ly be redundant, losing sight of the patent
fact that the Circulating medium has in
creased in Europe nearly in the same ratio as
in the Unite-i States; and that the amount
necessary TO the operations of the communi-
~ constantly varies, and depends on circuin-
stances SO numerous and 30 little understood
that very few persons are capable of throw
ing much light on the subject But one thing
Is certain-no other currency can be- oyeris-
sued than one comppsei of Government pa
per money made a le.,sl-tender 10y statute.
The entire issue of legai-tenier notes is
now only So ,000Vt0, and We're our currency
redundant the national banks could not
have kept their notes in circulation, as they
have never been !, gal-tender except To the
banks, and hence can only De issued at the
demand OF industry and commerce, which
never pay interest for money not absolutely
Necessary To their operations IL Is To the
srlf-intereSt Of all borrowers OF currency 10
return il To the issuers the moment il Is not
needed, As they thus save tine interest paid
/ Tor IL. nd If the currency be not redund-
y - .Nrgx x4t
| even contraction. of either legal-tenders or
national bank notes is not necessary, but on
the contrary, an impairment 10 resumption;
and that when We resume specie payments
| there can DE no important demand for gold in
| exchange for legal-te nd-rs-hence that there
is no Necessity whatever for the United
| states Treasury 10 accumulate gold to any
| great extent ia anticipation of resun- ption.
| There never has been n resumption OF specie
was accompanied by am important demand
| for coin upon The banks. On the contrary +,
| the tendency after resumption is invariably
i iSs hiding eS,n t eD and flow in 10
| the banks instead Of out of them. IL
| is always I'm an icipaiion of a suspension of
| specie payments that runs for coin take
| place. In England in lS2l after resumption,
there was no q mand for gold upon tine Bunk
| of England the same in tue United states
after the assumptions of. ls;,, ISIS and 1891.
The Bank of France suspended specie pay
| ments on the 10th Of March, lSis, aid re-
| sum. them on the 9Th of August, 1870. In
tory to resumption, II was largely increased,
| being
ON 9th April lsis............. 2O5 10000 francs.
On ith July, lsJo....--...--.... 5O,OO0vO francs.
This shows an increase ofG9 per cent. on the
eve of resumption, and yet there was no de-
| mant for gold at the bank after that event
On the contrary, NJ. Pal Cog an eminent
economist Of Paris stated IN the Journal d es
economists of April last that "a strange
struggle occurred, previously To resumption,
between the Bank of Frs.I'ce and the public.
~ hat every one then sought were bank
notes and what every body universally reject
| ed was coin. The Bank of France ma i- ev-
cry effort TO pay ont coin 80 us To Keep its cir
cuiation within legal limits, while the pub
lie ob>tinately refused TO accept coin so IN
| convenient 10 handle and transport, and
strenuously demanded bank-notes, although
their conversion into coin could not then De
legally exacted." The fact is that no intelli-
gent community that has ever used bank
notes will ever resume The use of coin II II can
be avoided.
| Resumption cannot be successful unless il
takes place with an easy money market and
general confidence in the success OF the meas
ure. To that end there must be no forced
contracted of Tie currency, for that will pro
duce "A monetary crisis and il IL be redundant
| after re>uming, instead of the legal-tenderS
being prosecution To the Treasury Tor redemp-
| ton ia coin, as people generally suppose, the
| nat toual bank notes Will be returnsd 10 Til,
| banks in liquidation of the Indebtedness oi
the bank dealers, without Inconvenience "a
the banks, which will merely io> the Interest
| on the not-s returned To them. Hence the
| contraction of legsti-tender> Row going ON III
| pursuance of the provisions OF the finance
bill enacted at the last session of Congress, u
! the extent of 80 per cent. OF the new issues oi
natioual-bank notes, instead OF ftcilitalin4
| resumption, will act ua!l v render IL more dIf
cult. Every one seems 10 forget that AT = re
sumption legal notes ril become god certi
fcdtes, which are to-day preferred by every
one Ia coin Tor the internal operations Of tn.
| county; and hence, to the extent 10 which
, the leyal-tenders are contracted below the
I probable want of the banks and the public
10 h. .gsf.I fL.Is-
adding needi,ssty 20 the cost and DIFFICULTY ottead
: | ing resumption
We ar. totally opposed to the issue of cur
| rpncy of any kind by the Fe,iera GOV
, | eminent, but, now that the legtl-tenderS ar,
: issu, d and the pub &c are accustomed 10 theil
: use and have full confidence in th' III, we be
lieve, with Abraham Lincoln, that II Is un
| wise To attempt TO swap horses while crO>slns
u stream. Let us wait until We have success
fully resumed specie payments and hay.
: further diminished our heavy nHtIonal dt bt
b fore We increase u XatiOn for the purpose u
substituting national bank notes for the pres
, ent legai-tenders. Tue latter, alter resunlp
5 ton, will perform all the functions OF gold
| and will generally be preferred To coin for TN,
internal operations OF the country; btnE
8 notes. on the couiTy, cannot take the place o
p | gold for many purposes. because not legal
tender. We are confident that after re>ump
ton, without any further contraction of The
: legai-tenders- they will often be worth sigh
2 | premium I'm exchange for gold, and that they
Will never be presented for redemption il
, coin, except when coin is needed for export
! which cannot be the ease AT the time Oh ft
/ sumption If il be- fixed, a. it should be, al {
= time of year when the annual crops cxporte,
suffice for the liquidation of ourforeisn In
D lie btedness. To curt,il the present issues %
| le.:.al-tendeFs is to force the people OF tn,
Il United States to pay for the unnecessary sup
ply of gold at the very moment when thei
burdens will weigh heaviest upon them Gu
| banks have constantly found il difficult e
, keep up their reserves of leSal-tendcrs whei
the business Of the county il active In III
: autumn and the annual CROPS are being mar
y k,.trd while the iega!-tend,.TS IN circulation
amounted to $500 % U. How, then, car
S3D,UD,1aO suffice after resumption, when in
], dustfy and commerce shall have resume
I their usual activity, with each year adding L
, our production and exchange:
Now, Mr. Speaker, it is far from my in
tention to impugn the integrity OF lhos
s who have had these matters in charge, no
, do desire to create misrepresentation q
the true situation of affairs; but, sir, | d'
insis. that under this ambiguous and I'm
, certain third section Of the resumption ac
, the financial enormity can he committed
under color of law too, of annihilatlng tn
entire legal tender currency.
do insist that in express terms 1t com
pels the cancellation of fifty -four and hal
millions more of the notes at least, and Il
view of the widespread stagnation OF on
industries, largely attributable to the con
traction OF the last few years, | conceiv
that true regard for a sound public polio,
demands its repeal and the substitution o
wiser legislation.