The New York herald., 1878-09-29

OF peaa and clam shell currency. They asd ,n 10
France at the beginning Of the esnlesnsn oun, n"r
sive Scotch fnanelor, John Law They mao
IL in France during the great s kevc.u
rsss % had !. in this country ag ain during the Waro
Independence In the shape of tho Conunensrs
monsy-aways in all essential features lures ,naeSaits
way upon an indefinite something; IN some cases
withoutiI "nen u became apparent that the erauu
indefinite 'ssome,hlng" uDon which the paper moncy
was based, bo il The OF the Emperor oi Cn,na
the wealth OF the country, practically amouned'o
formly in the breakdown Of tho poor people. The
laborug classes suffered the greatest Distress aro IN
iuy to the old conclusion again-ihat, aor all, the
precious metals wero the only safe basis Of monoy
system.
THE OHIO IDEA.
Mr.. Schurz next discussed tho "ohie idea" IN
nee, and said -
Let us at last reduce tho govern again 10 Its
proper functions and return 10 that condition OF
III ngs in which the cnrrency regulates Itself No
Congress knows how much money the business OF
country needs but business itself feels and deter
mines IL with certainty. Whom srecie payments pre-
vuIl there is more coin IN circulation than bus
ness needs il will flow out and 20 where
IL finds more profitable employment When there
Is less In circulation than business requires u
will become dear aud flow in from countries where t
has less profitable employment The same rule ap.
pies well eulatcd system OF BANK issues based
upon specie. When the quantity OF notes out ia
excess OF the requirement of business they will fow
back 10 the bank ior redemp.iun. Mnsn 'ne qnan,
trade the bankers will hud 1t profitable TO increase
their Issues and thus the gap will be filled Locsi
or speculative periods, which under no money
system can be entirely prevented, may
Sometimes interfere with this sci.adjusting
machinery but, on the whole, the rule holds good.
The government has nothing 10 40 with IT but 10 soc
TO II thai the coin struck In ITS mints OF the pre-.
scribed standard value. 1t prevents and Furnishes
counereIting; regulates the banking system SO as
TO make 1t sae, and then It lots currency and trade
NJ fnons sAlV fhAnt
sumpg any arbitrary control over vonme and value.
These arc the simple prlncipes OF sound money
system under whiUh business can regain confidence
IN itseIi and prosperity will revive That the
which We should accom- psh and which Is now within
our reach The paper money mon have contrived to
bcfog the public mlnd with certain supersttious m-
prcssions to the pr judice OF the cause advocate
SAFE BASKIyG SYSTEM.
Tho third thing hich pointed out as necessary to
lay tho foundation OF souna business and prosperity
well regulated and sale nkipg system as dc.
posilory OF business funds nd machinery for bust
ness exchanges. How supremely important part Of
our economical organism banks have become, need
not explain Every practical business man, as weii
every student OF the SUBJECT knows IT, Tho American
people, even OF this generation, have, IN this 70.
spect, gone through lively variety OF experiences.
before the war the national banking system OF TO-
day. What qualities must q bank possess SO that you
may call il good ono? II " be bank OF issue Its
notes must be well secured surrounded with suoh
guarantees OF convcrtiblity tnat tney may pass
throughout the land without discount ana withous
danger OF loss TO anybody. Second-Its deposits
be well by reserves, SO as TO be reason
ably safe. Third-Its discount and loan business
must be conducted without extortIOn, SO as to anorA
reasonable accommodation 10 the business COM
munity. When the banks OF tue country possess
these qualities they are u blessing to tho business
community. worth untold millions year after yoaE
When the banks do not possess these qualiies they
the source OF innnto distrust ana rcstessness.
For then business walks as on thin crust OF leo IN
danger OF breaking through every moment.
SITUATION
After comparing the Stato baak system as II existed
before the war with our national banking system az
II exists now, Mr.. Schurz closed as loiiows-rhs
situation appears very grave. diiigsnt agitation
like an epidemic. but this last blazing up may alter
all turn out TO be like the decisive paroxysm IN
typhoid lever which, although apparently threaten-
ing death, is only the iorerunner OF convalescence
Indeed, with as Intelligent and nigh minded
people the Americans, II can scarcely DO
otherwise. Through Whatever extravagances Of i'm
aenation and reaouing they may pass, even most OF
those present earnestly opposing tho re-es stlDisn-
nent oil The spocIe basis w,Ii finally land at the
cusIon that, while In the economic movements OF
modern society paper money Is necessary that paper
money must be convertible intO the money OF the
world, ana mat ITS volume and value must not be the
football OF politlcal agitation. The hopeful signs OF
the inspiration which wild schemes OF rsef
receive from the long suffered distress. The
laboring man who now imagines himself engaged In
death struggle with capital as hostile power ana ~
excited by eXtrnvagant theories moving already OUT
siae OF the boundaries vt existing social srder, wi
the for profitable employment returns.
pcgin lec again mat society Ii not only not his
enemy but is ready to redress his real grievances, and
that a country ike ours there Is the most fruitful
neJ and com plee reward Tor est individual ehort
Many OF them begin already 10 perceive that tue huo-
tuations OF au irrcdeemaOle paper money rob ths
laboring first and rob HIM last and
that an honest dollar Is his best friend.
But at present tho duty CT the hour calls
upon every patriotic man Tor an honest enort to put
end to senseess and destructive agitation which pre-
vents the revival OF the confidence necessary tor the
revival Oi business ana the return oi prosperity.
Our national debt, formerly held abroad has returned
10 our shores, our national credit Is good beyond
precedent our products, exported In an abundance
never seen before, ind profitable market. current
prices the gold basis, our treasury Is well
stocked with coin. 1t not now, when can We expect
to restore money system solid foundation W
u naiura! process Can any sensible man desire 10
the country exposed 10 longer suffering from the
disastrous effects OF uncertainty
Let the solemn duty OF thus hour unite all patriotic
IN earnest aBd active endeavor 20 prove that
the American people are an honest people, religousy
faithful TO all their national obligations, and wise
people. who, although not always exempt from tenn
porAry gusts OF ard the INVASION oil erro-
ne0us doctrines yet at last always follow tue dictates
OF calm judgment and sovereign common sense