The daily gazette., 1880-12-02

condition Of the currency and the pros
pect for greater activity in trade pre-
diets season Of greater enterprise than
was ever known in this country before.
1t takes the ground that by the vast re-
turns Of the English national income
investment, the current rate OF interest
has decreased to "a per cent; that the
money plethora of the United States
has been, in measure, affected by the
condition of things in England, chiefly
by the bad seasons there, which have
caused the extra demand for food sup
plies, which correspondingly favorable
ones here have enabled US to supply,
producing great influx Of money Into
the country. But chiefly II has been the
result Of internal and independent
causes. The ''tirst OF these was the
great diminution In extravigance, caused
by the sharp financial crisis and indus
trial depression. There was retrench-
ment and economy In every form OF
luxury, and a consequently great reduc-
tion in the amount Of Imports, which
has continued up to the present time,
although there are signs Of increase"
There is no doubt truth in these re-
marks; but it might also have been
stated that the greatest impulse given to
economy was by the Democratic House
of Representatives In reducing the
government expenditures in a single
session some thirty or forty millions
year. 1t well says ECONOMY prevailed
In every form, aud the unnatural ex-
traVagance caused by initiation ceased.
That lesson has not lost its effect, and
q more wholesome style of living pre-
walls throughout the whole county.
Then our manufacturing industries took
their natural revival after the period OF
depression. The shrinkage of values
established business on a sound basis,
and security and stability once more de-
veloped healthy enterprise. Emigration,
with its accumulaLions OF wealth, began
To flow in again, and there was steady
Influx of productive labor and capital
All these things produced an accumLla-
tion Of capital, while enterprise and
speculation had not yet recovered from
the check Of disaster and Its consequent
distrust. Therefore there has been a
of
vestment IN the United States than at
any period in its history, and its
national securities have been enhanced
to a degree that would not have seemed
possible few years ago.
The question Is whether the present
financial condition may be expected ex-
pected to last. Some are as confident
that 1t will as th9y were depressed with
the idea that the late depression would
be permanent, and that industry in the
United States had seen its best DAYS, for
eeolul, III either case of the immense de.
mands as well rs possibilities of the
country. IL seems TO us that the ac-
cumulation OF capital seeking for per.
maDent investment will continue, and
that we may calculate on a larger sur
plus of wealth than we have ever
known. But it also seems evident that.
the check on enterprise has passed away
and that we are on the eve of an era OF
Industrial and commercial enterprise for
the development of the national resout
ces OF the country and adjoining ones in
manufacture, agriculture, mining, rail.
roads, commerce and every form of bus.
mess Improvement, which will ofIe,
fields for and require the employment,
OF capital. We trust that it will be-
sound and healthy and not speculative
and that the prosperity before us will bt
permanent. But We are still of the
opinion that the market for nationa
securities is not likely TO be stimulate,
TO much greater extent as pei mal ent
feature of the coming financial era, apt
that at least it would be wise to take ad
vantage OF the present plethora of capl
tai by funding as largely as possible a
the lowest rate at present obtainable.
We would hail with pleasure th,
arrival of the better times referred to
But what would be the result of 1e
duction of interest by the government t.
per cent. by refunding the bonds i
not so clear as the fact of there being
"plethora of money" in the banks an
at the control Of government. 1t migt
be expected that the government woul
desire to part with large amount {
coined money it now holds. Should
pay off hundred millions of the bond
held by the banks with coin would
not be making those institution
stronger and safer, and to this exter
reduce the debt of the country. TIL
would not interfere with the fundin
of the D and 0 per cent. bonds int
new Q or 81 per cent. bouds. Nov
the question arises as to whetbs
the banks would continue to hold bono
at a rate of interest as low as 8 or 9
per cent. 1t would not be necessary Il
them to do SO for having had their col
circulating medium increased with gol
and silver, so many notes would N,
beorequired. What Jackson and Bento
advocated, a specie circulation, migl
thus be brought about, and small not.
be retired to make room for gold an
silver. The coined money ought to /
distributed among the people. 1t woul