Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1879-04-02
Views Of Colonel William Johnston on
the Future Prospects Of
the Country.

WV 90abA
Raleigh News
CHARLOTTE, n. c., March II, 1879.
Your favor asking me TO give you
my views on the financial situation
of the country and its future pros
poets" is received and l hasten to
briefly reply. Our country at present
is in a peculiar condition. Owing to
the rapid contraction and forced re-
sumption of specie payment the entire
country has passed for the last four
years an ordeal hitherto unknown.
Nearly all values have diminished,
property has shrunk, labor has been
depressed, and gloom and despOn-
dency have hung ike a pail over the
land. All industries have suffered ex-
cept that of the banker and broker
who received their discounts. The
industrious and enterprising who Dor
rowed capital to create new enterprises
generally become the victims of high
interest and the shrinkage in price of
property. Hundreds of thousands of
honest men have in a few years past
been made thus to tread the road to
bankruptcy. Capital had become
turned from these courses and hid it.
self in secret places. This was the
condition of things on January 1st.
when resumption took place. and to a
great degree still exists. But the
indications are Frightening and
the prospect is decidedly more
cheering. There is no doubt but
that the bottom has been reached.
When contraction ceased and
paper and gold came together to be of
equal value, it was manifest that the
crisis had been reached and that the
down grade of depression and ruin
was about to terminate. The country
is now at the bottom in a transitive
state, and as soon as confidence is re-
stored will commence to assume a re-
newed prosperity. 1t is now on a
rigid economy, which viii greatly help
the revival of prosperity. Confidence
in finance is plant of slow growth
give it time, it is gradually coming.
Resumption of specie payment is a
success. With a balance of 5000, 900,
900 of gold, or its equivalent, in favor
of our country in its foreign trade it
could not be otherwise. But few want
specie the miser cannot now hoard it
with any profit. The farmer, mer-
chant and mechanic prefer greenbacks
because it will purchase as much
property, pay as much debt and is
more convenient to handle. The i'm
porter alone requires specie and the
supply is more than ample for him.
Again, we are rapidly gaining specie
from foreign countries owing to the
large excess of our exports over our
imports. This balance of trade in our
favor has to be paid in specie or Uni
ted States bonds. The European
stock of bonds is said to be nearly ex-
hausted, more than three-fourths OF
them having been repurchased in thi.
country. Then we may expect our
foreign trade to yield us annually
large amounts Of gold. Again, the
gold and silver mined annually in this
country amounts to about SO, 600
and is increasing. You will recollecI
hat the price of property in any
country is governed or regulated BY
the amount of the circulating meli.
UNI. On the 3lst of December last
the currency in circulation in thC
United States, consisting Of legal ten.
ders, was less than 500, 0O0, 900. On
the LIST of January, the day after
when resumption took place, uearly
$500, 000, 900 of gold and silver wer,
added to this amount, making thecir
culating medium nearly 81 900, 900, 00O
Of this gold and silver there wer
nearly Sl50,00O,0 900 in the UniteC
States treasury, over $30,000,000 hell
by the banks and boarded or hid i
boxes, trunks, safes, banks, etc.
The amount is estimated at leas
one hundred millions. These sums il
the treasury, banks and boarded
amounting to nearly $500, 900, 900, o
40 per centum additional to the the
currency, was not in circulation unit
resumption or until paper became a
good as gold. That in the treasury
was locked up for resumption and tina
held otherwise was used as an articl
Of merchandise. 1t commanded
premium and was bought and sold a
a horse or COW or any other merchant
able commodity. Now it is no bette
than paper money and will from ne
cessity perform its functions as cur
renoy in the commerce of the nation
II can be used in no other way eXcer
BY d few ignorant misers who ma
hoard. Thus we see the nation ha
more currency to-day than it has ha
for years past. This fact, with th
large amounts Of gold and silver bein
mined and imported TO pay the ba.
ance Of trade, has already had a sens
bic effect in making money easier an
reducing the rates of interest o
loans. Further evidence Of the cas-
money market is in the large sales {
government bonds at less rates Of il
tgrest, and Of an advance of bonds an
stocks generally over the entire cour
try.
The Federal government bias az