The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1879-04-04
THE FINANCIAL SITUATION.
The Nie,os of Colonel IVillium Johnston, Of
-. Charlotte.


Your favor asking me to give you my
views on "the financial situation Of the
country and its future prospects" is received
And ! hasten.to briefly reply. Our country
q Hfesent is in peculiar condition. Ow-
ing to the rapid contraction and forced
resumption of specie payments, the entire
country has passed for the last four years
through an ordeal hitherto unknown. Near
ly all values have diminished, property has
shrunk, labor has been depressed, and
gloom and despondency have hung like
pail over the land. All industries
have suffered except that of the banker
and broker, who received their discounts.
The industrious aud enterprising, who bor>
rowed capital to create new enterprises,
generally became 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 be-
conc turned from these courses and hid
itself in secret places. This was the con-
dition of things on January 1st, when re-
sumption took place, and to great extent
stillexists. But the indications are bright
enidg, and the prospect is decidedly more
cheering. There is no doubt but that the
bottom has been reached. When contrac-
tion ceased and paper and gold came togeth-
er 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 u transitive state, and as
soon as confidence is restored will commence
to assume renewed prosperity. 1t is now
on rigid economy, which will greatly help
the revival of prosperity. Confidence in
finance is plant of slow growth. Give it
time. II is gradually coming. Rcsump-
tion Of specie payments is :: cuccoso, With
balance of 3OO,O00,OOO of gold or its
equivalent iD favor of our country in its
foreign trade, it could not be otherwise.
But few want specie; the mser cannot
now hoard it with any profit. The farmer,
merchant and mechanic prefer the green
backs, because they will purchase as much
property pay as much debt, and is more
convenient to handle. The importer 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 pc paid in specie or United States
bonds The European stock of bonds
is said to be nearly exhausted, more
than three-fourths Of them having been
rcpurchased in this country. Then we may
expect our foreign trade to yield us annu-
ally large amounts of gold. Again, the
gold and silver mined annually in this
country amounts to about S75 600, 900, and
is increasing. You will recollect that the
price ofproperty in any country is governed
or regulated by the amount of the circulat-
ing medium. On the 31st of December
last, the currency in circulation in the
United States, consisting of legal tenders,
bank notes and fractional currency, was
less than 500, 100000 On the 1st Of
January, the day after, when resumption
took place, nearly s30O,OOO,OOO of gold
and silver were added to this amount,
making tn, circulating medium near ST.
100000. OF this gold ane silver there
were nearly S150.00O,0OC in the United
States Treasury, over $50, 100000 held by
the banks, and S1O0,OOO,OO0 boarded and
hid in boxes, trunks, safes, banks, &c.
These sums, in the treasury, banks. and
boarded amounts TO nearly $500, 900 900,
or 40 per centum additional to the then
currency, were not in circulation until
resumption or until paper became as good
as gold That in the treasury was lock cd
up for resumption and that held otherwise
was used as an article of merchandise. 1t
commanded premium and was bought
and sold as horse or COW or any other
merchantable commodity. Now, it is no
better than paper money, and will, from
necessity, perform its functions as currency
in the commerce Of the nation. 1t can be
used in no other way, except by few
ignorant misers who may hoard. Thus we
see the nation has more currency to-day
than it has had for years past. This fact,
with the large amounts of gold and silver
being mined and imported to pay the
balance of trade, has already had asensible
effect in making money easier and reducing
the rates Of interest on loans. Further
evidence Of the easy money market is in
the large sales Of governmct bonds at less
rates Of interest, and of an advance Of
bonds and stock generally, over the entire
country. The Federal government has
authorized the issue of treasury certificates
Of small denominations bearing low inter
est, as well as the State of Georgia, which
will be used as currency, though not ioten-
ded for that purpose Other States NAV