Vicksburg weekly herald., 1877-07-13
How 10 Regulate tRe Volume OF
Currency.


Cincinnati Enquirer.l
The last point to which we proposed
to call the attention Of the approaching
Democratic Sta:e Convention was the
quantity of greenbacks to be issued,
and how such quantity shall be regu-
lated. or the quantity to be issued we
have already spoken. 1t should be
commensurate with the real iequire-
ments OF the business Of the country.
We have shown that we ought to have,
according to our population, over one
thousand millions Of dollars of circuls-
tlon, If our volume Of circulation was
made equal to the average ratio Of
currency to population that the three
great commercial nations Of Europe
possess. We have also shown that we
ought TO have over ore thousand nil
lions of dollars Of circulation, had we
now as much in proportion to our
present wealth as the periods of 1850
aud 1860 had according to the wealth
of the country then existing. Accord
ing to those measures we are nearly
three hundred a1illtOns short. Instead
OF the volume of our currency being
inf lted as is industriously charged by
the money class, II Is in q contracted
state There is not money enough, and
that is what is the matter. The wants
OF industry ard trade require at last q
volume oi one thousand millions.
To guard against the possibility Of
redundant issue, there should be
: provision made by law for the conver.
/ tibility OF the greenbacks into United
I States bonds bearing a low rate OF
interest, IS was suggested by Jefer-
son-the rate OF interest not TO b. SO
> high as to invite to permanent invest
= ment And to guard against com.
: binalions 10 make corners in produce
: or TO "lock up currency" as we'll as to
accommodate the real wants ofindustry
and trade, the bonds should be .e-
convertible into greenb acks at the op'
: ton of the holder.
h There are seasons of the year WheI
moro money for circulation Is needed
than at others. The want, could bC
e readily and safely supplied by the
: foregoing plan. II ia noticeable fact
n in regard TO the influence on business
OF az increase or decrease OF the vol
ume Of currency that a diminuhou
= produces depression, and an increase
r buryAucy, a constantly expanding
cGtrrlcg, 10 matter how trifing, keeps
up the activities of industry and trade
while contracting currency, no mat
ter how small, produces q panlcky feel
ing aud hard times. The following
J. statement, made up b. Ale 'rdeT
/. Delmar, formerly Of the 7 . ':r!
/. Department, will illustrate
PERIODS Al D Cc COMMERCIAL REs . IL.
|, lS!S-, expansion from s. 40 to $l4Co; ~
q tivity.
ls87-AS, contraction from sH GO to 20 20
y depression.
is43-57, aYpau.,cn rom SO 20 to SIG 70
1 activity,
iSj7.6i. contra, t.ou :rcmS.. 7ltc 81 .
: depression
II iSGl-G4. eXraG- 4 rom Sl3 70 20 S!s 70
o activity.
!. lsB4-5O contraction .ron 81 10 70 So Sc
depression.
The contract, q, the currency la
now reached e., per capita, aud th
depression is st'cre. The regulator
" nverlibility OF greeubacks into bonds
aud reconverliblily Of bonds int
geenbacks-would operate as checl
\. TO contraction oUt Of season or b.
vicious design. as well as to uudu
Is expansion. The country would lhe-eb
d secure a self-adi iusling currency.
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