Osage Valley banner. (Tuscumbia, Miller County, Mo.) 1879-1881, 1879-06-12
SOUNDING THE ALARM.
"a Sudden, Sharp, Unnecessary and
Dangerous Contraction Of the Clreu.
lation."
From the Nnw York Trlhuns.

During the ns't week the banks Of this city
baYe lost $5,SGe ,0O0, in legal tenders. The
surplus reserve has again been reduced over
! $4,000, 900, and is now only S6 $50, 000 la
other words, one week Of such work would
leave the banks without any surplus reserve
whatever--wito lees than the reserve requir-
cd by law. What Is the msttef? These
have been very large disbursements by tho
treasury on account Of called bonds. Both
the treasury and the business community,
apparently, have supposed that these would
suffice, But they do not. There Ia very
sudden, shnfp, unnecessary, untimely aud
aa1gerops contraction OF the circulation.
Secretary Sherman may wisely take into
confederation, without sday's delay, the fact
that thropg of mon, women and children,
who besiege all day long The Offices OF the
sale OF $40 certificates, are violently contract
ing the currency, Every person in each long
line has some currency and by far the great
er Number have 800 each. Millions every
day are drawn from bank, 10 this city alone,
10 equip this array Of pretended investors"
who are in reality acting only as the messen-
gers OF bankers and specnlators Millions
more are drawn In Ike manner 10 other
cities all over this land, and in towns and
villages wherever the Certificates are sold.
From all these placee there comes sudden
and unnatural demaud for legal tenders. The
outflow which Is both caused and compensat-
ed by commercial movement, takes away cur-
roDcy to be employed in this systematic fraud
until IL gets locked up In the Treasury. Bes
tween sl,O00,000 and 81 900 ,0O0 each day
thus goes into the Treasury, and much
larger amount each day goes out OF the banks,
in preparation for iurther pretended invest,
ments; and unless the greatest care is taken,
tho powerful contraction resulting from this
unnatural and dlscredible process will cause,
serious trouble. No banker or business man
needs to bs told that this army OF so.called
'Gnvestors' is not composed OF persons to
whom the Treasury intends 10 sell the csr-
tiicates. Surely, MIR. Bherman knows by
this time that 1t 10 utterly impossible TO pre-
vent wholesale disregard OF the law and its
disorders. AS long as the certificates are
worth over per cent. more than the legal
tenders demanded for them, She government
Is robbing itsolf for the benefit Of set OF
sueeulRtots and bankers. Any man or woman,
boy or girl, who will consent % stand in
line all day, and can buy only SlOO worth
of certificates, can thereby make more than
an average days wages for an able hodied
man, on farm or 10 shop or mine, Bnd as
much besides for the banker or operator WOO
sends the money, This Ia an unproflable
operation for the government az II is de-
moralizing and discrebible, and Secretary
Sherman may well consider the proprlety OF
withdrawing Inc coruhchIes hIOgetntrs Iuey
do not get Into the hands OF small lnvestors,
as ia obvious TO everybody. Tho treasury
has tried its best and has demonstrated the
futiliy Of any attempt tn prevent the organ
ICED capital of the country from erowding
the places of sale with It's messengers
II tho sale Is to be continued, however,
some strong precautionary measures by tho
treasury are necessary to prevent monetary
disaster. The legal tenders locked up by
purchases OF CERTIFICATES, will not, in the or
binary course, come out OF Inc the treasury
again until calls for bonds mature in July.
About S25 100000 in currency has thus been
suddenly drawn from the store at the chief
commercial centres, and the banks do not
get into their possession the new bonds,
might be employed as a basis for increased
deposits OF currency, nor the old bonds
which are to be redeemed. Unless some ar-
rangemsnt can be made to obviate the dtti-
Guilty by more rapid disbursement Of cur
reucy in redemption OF called bonds, there Il
reason 10 fear that tho sale OF $40 ,O00,COO
mere of the certificates will prove i'll timed
and undesirable. The matter ccertainly de-
aerVea speedy attention and action.