Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1879-12-25

From the Chicago Express.
The country is getting what it has been
praying for since 1873, an imitation of
money, and an initiation Of money ard Il
revival c business. But the revival we
are nOwl aving, on 4 coin basis, is like
the apparent reviya, OF Il fever prostrated
patient on the stimulue of wine. It's not
permanent; the greater the initiation, the
greater the collapse. The higher we soar,
the further we haS G to fall, and the more
destructive the alightiag when the col
lapse comes. We. are told that the retire.
ment OF the greenbacks would prevent
dangerous and undue initiation Of money
ana rr,nces. But we must remember that
..etiring the grccnbuCks would rob the
people Of that much money. The gov
eminent hats some $500 100000 Of coin for
which it gave interest bearing bonds, prin-
cipal and interest to be paid by the peo.
pie. If it pays that coin ont for green
backs and then destroys the latter, it robs
the people as effrctually as though it sunk
the gold in the bottom Of the ocean. But
suppose it does? As tine banks are already
initiating the currency at a rapid rate, even
with the grecnbncks in circulation, and as
the law allows them unlimited expansion,
is there any surety that they would not
continue to do so until the vacancy made
by retired grecnba2ks would be ultimate
" filed with bank notes, or at least to the
extent that the influx and production Of
gold and silver would afford them legal
reserves? Gold cannot be held in this
country, even as bank reserve, when
bank notes dre redeemable in it on de-
mand. The movement Of gold from one
country to another, is governed by a law
as immutable and unerrlng as the law Of
gravitatlOn. The removing of gold from
Europe to America produces IN inverse et-
feet upon prices in the two countries. 1t
advances prices here, and reduces them
there. Bye and bye the high prices here
will invite the low priced products Of Eu
rope to this country which will send our
gold back in payment, and as our gold
is drawn from the banks to meet foreign
balances, the banks must either contract
their issues, four dollars Of paper to one
OF coin removed, or suspend. In either
case, panic and fnancla! crash Is in
evltable.
With an incxportablc greenback re-
serve, no such danger would threaten the
banks unless the foreign demand for gold
should drain our national treasury and
cause the government to suspend also.
We're our entire currency at this time
legal tender grecnbacks, cXcIdngcaOlr
with coin at the option OF the government,
no amount Of coin exported would disturb
prices, or in the least interfere with or M
settle business, and should it ali leave our
shores in n'gut, il would no maze n
ripple upon the surface Of our finances,
In 1851, the expectation Of hut $1,000
900 of coin produced one of the most dis
astrous panics the country ever cxparienC.
ed. 1t sent hundreds OF banks TO the wall
under the run of the panic it produced.
prostlaling business andruInng thousands
of men who a week previous counted
themselves rich.
But during the month OF July, 1870, we
exported $lG,022,4 ,4jl, and during the
same year our net exports OF gold amount.
ed to $93, ,0H 4SS, and as taras it affected
business and the general prosperity OF the
country, no one would have known that
we had parted with IL dollar,
The greenback was the sole medium Of
exchange at the time, and it alone saved
the country from financial crash. Re-
tire the greenhacks base our bank issues
on coin, and the expectation of onc-haIt
that amount would precipitate a run
which would close every bank in the ma.
tion, and not legal tender dcbt-paying
dollar could be found 10 save Il collateral
from conGscation. If the people are wise
they will not permit the sharks to catch
| them in such trap.