The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1891-02-12

bank currency has been all the time
much more than counterbalanced by
the monthly coinage Of silver. and the
issue of silver certifcat S thereon,so that
there has been continuous and very
considerable increase in the circulating
medium of the couLtry, instead of a
decrease. AS the writer has heretofore
shown your readers from official figures,
the entire currency of the country on
June 30, 1873, was 1881, l,3l6,3S7, and on
June 80, 1889, had increased to 81 $685.
o95, ,42O, that is it had more than doubled
during this period of sixteen years. 1
have not the latest reports before me,
so cannot say exactly how much it
now is. But Secretary Window in
his recent report informs us that dur
ing the nineteen months of the present
Administration the money circulation
of the country has been Increased by
the addition of s93, 3,sO6,Sl3.
THE POPULAR ERROR.
We see how incorrect is the prevail
ing idea, so assiduously cultivated by
that wonderful fabricator of figures,
the National Economist, that there
has been at any time any contraction
of our currency as whole, and that we
must look elsewhere for the cause or
causes of the present stringency in the
money market.
CORRECTING PAT CALHOUN.
I do not propose to enter into this
part Of the question at present, further
than to say that I do not consider Mr..
Pat Calhoun's idea, published few
days ago, as at all the correct explana-
ton. Mr.. Calhoun is no doubt very
able man financially, and has an un-
usually astute mentor in "the old City
by the Sea-" But his idea that the
boarding of money by our poor South
ern cotton planters has any important
part in creating the present money
strengency will, I am sure, be received
with a smile Of increduility by all who
are we'll informed as to the hard up
condition of most of these planters,
and how hard it is for them to make
ends meet at the end of the year. No,
Mr.. Calhoun, this is not the cause of
the stringeney any more than the pre-
tended contraction of the currency.
WHO IS TO BLAME?
But, as I said above, it is true that
the national bank currency has been
and is still being contracted, and the
writer fully agrees with those who re-
gard this as great misfortune for the
country, for it is the best and safest,
and at the same time most elastic, cur
rency We can have. But is it any fault
of the banks that their notes are being
decreased? Is it because they wish the
currency OF the country contracted? Is
it not on the contrary, the fault of the
very elements in the country who are
complaining of them for doing so; of
the ''greenbackers" originally, then of
their natural successors, the "silver-
ites," the "dat moneyites," and all
who are in favor of what they call
"cheap" money-that is, short yard
sticks-for the people. These are they
who have forced the banks into con-
traction of their circulation and then
abuse them for it.
The national bank circulation reached
its maximum in October, 1882, when
the total national bank notes outstand-
ing amounted to 1862, $50, l34. Since
that time they have been gradually
diminished by the redemption of the
United States bonds, on which they
were based, until, in November last,
there were outstanding only S179,75 >
64S. The original idea of Mr.. McCul-
loeb, which was also that of Mr. Sher-
man-our two greatest financiers-was
to gradually withdraw and cancel
the Government notes-''greenbacks," /"
which were generally regarded of
doubtful constitutionality-and have
national bank notes to take their place.
But the "greenbackersn We're able to
put a stop to this plan after the ''gfeen-
backs' had been reduced to about $346,-
000,G00, at which amount they still
stand.
EFFECT - HIGH TARIFF.
Since then the policy of the Govern
ment has been such, in the mainten-
ance of high protective tariff, thus
taking out the pockets Of the people
hundreds of millions beyond necessary
Government expenses, aud, in order to
put this vast surplus back in circrla-
ton again. a"nlying it to the purchase
Of Unit States bonds, that it has run
the bonds up to such high premium
that the banks can no longer afford the
purchase them as basis for the issue
of notes. Thus We see how the policy
Of the Government has been such as to
force the banks into a contraction of
their notes. They have not done so
from choice, or because they favored a
contraction Of the currency Of the coun-
try, as some would have US believe, but