Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1891-02-09
BARTON. VERMONT. MO-

GuTOuGu
own country to their western destin;
ton. The result of these unfair and III
just determinations against our ow
people and our own transportation line
has been not only seriously to jeopardiz
the revenues, but also to build up fol
eign transportation interests at the Cd
pense of our own.
Reciprocal liberty of commerce. is
high sounding, seductive phrase, but til
kind of liberty cur foreign shipping il
terest has enjoyed for the last ffd
years is the liberty to die under unju|
determinations of the London Lloyd
Register association, the crushing powd
of European treasures, and the utt@
neglect and Indifference of our own go1
ernment. Reciprocity itself is a mos
valuable thing if kept within the line
Of protection; but reciprocity by whic
we surrender our merchant marine
our rivals, or give away a home markd
worth ten times more to us than all til
other markets in tho world, in the val
attempt to grasp an uncertain marlk|
abroad, is u policy freighted with ir|
measurable disaster.
Presidents Of the United States HAY
repeatedly expressed fine national hi
nZ5Eation and appealed to congress /
action in behalf Of our rapidly vanisI
ing merchant marine, but thus far the|
words have fallen upon deaf ears. II
US hope that the urgent appeals of Pres
dent Harrison on this subject may be-
fruit in some well devised measure
151 :
What is Sound Finance:
Pardon a few words with reference
the instrument by which commoditiz T
exchange ownership. It is as essenti 4
to commerce that the currency wi
which it is conducted be adapted, bo i
in quantity and quality, to the wants
trade as that the vehicles of transport
ton should be adapted to their purpose
If the circulation be deficient trade
crippled, prices fall, obligations are d
honored. distrust is created and cor
mercial panic and disaster ensue. IF,
the other hand, circulation be redundant
prices become temporarily inflated, wi
speculatiOns are stimulated, debts
recklessly contracted, credit is dangdz
ously expanded, and for a time ira
seems to float upon the high tide of su
cess, when suddenly the failure of SOL
large firm or banking house discloses t
true situation, and the entire fabric
fictitious prosperity falls with era
even more disastrous than can be pm
duced by deficient circulation.
The ideal financial system would
one that should furnish just enough
absolutely sound currency to meet t
legitimate wants of trade and no mon
and that should have enough elastici
of volume to adjust itself to the varyi
necessities Of the people. I know tt
seems difficult of atta%nment, but I
lieve it is substantially possible. Cot
such a circulating medium be secur
the graYest commercial disasters viii
threaten our future might be avoidd
These disasters have always come wh
unusual activity in business has causI
an abnormal demand for money, as
the autumn, for the movement of d
immense crops.
There will always be great danger
those times under any cast iron systeN
of currency, such as we now have. Id
it not been for the peculiar conditioI
which enabled the United States trea
ury to disburse over $75, 100000 in aboI
two and half months last autumn
firmly convinced that the stringency i l.
August and September would have II
suited in widespread financial ruin. Lid
conditions will frequentlE E
occur, but it is not at all probable tina
they can be encountered and their COZ
sequences averted by like action of thH i
government; nor is it desirable that sue
power should be lodged with the secre
tary of the treasury.
l am thoroughly convinced that bet
ter method can be devised, which wi
in large degree place the power of e2
pansion and contraction in the hands
the people themselves. The opportunity
for securing such a currency may /
found in our bonded debt, which should
in my Judgment, be in part exchange
for intercOnvertible bonds, bearing lo
rate of interest, and always sinterchang
able for money at the will of the holde
Of course | cannot now enter upon
on this subject, but [ may
excused for briefly mentioning the on
which has any apparent weight-vi7
that it would cause an outflow of mon
from the treasury when speculation II
high, and an inflow in times of thref
ened panic, and would therefore tend tC
initiate initiation and contract contrac-
ton
This objection was cOnclusiVely an
swered and the policy triumphantly
in 1862 and in 1868, under the
of Salmon P. Chase, who
was one of the ablest secretaries of the
treasury we have ever had. Mr.. Chase
had urged and congress had authorized
what he called the Savings Bank of the
People" whereby they could deposit in
the treasury up to the limit of 800, 900,
900, and receive an interconvertible
bond, drawing not more than five per
cent. interest, which bond was again
into cash at the will of the
holder on ten days notice. 1t is well
known that the year 1862, and the first
half of 1868, was period of most active
speculation, and yet those deposits con-
tinually increased, until on June 30,
1868, they had overrun the limit and
amounted to $1O4, ,934, 1O2.
In August and September of 1868 the
unusual activity of business had placed
The country in the same condition as it
was last autumn. A severe stringency
set in and panic was threatened. Did
his vast deposit of over 800, ZOO, 900 re-
main in safe hiding, and thereby in
5ensify the stringency? Exactly the re-
verse occurred. AT the time when it is
argued that everybody who could would
avail himself of this safe and convenient
place for boarding money, and draw 4
Ind per cent. interest on it until the
storm should pass, the money actually
lowed out at the rate of millions day
Until on Dec. 1, 1868, $59, ,427 900 had
:ome out to the relief of business, and a
commercial crisis had been thereby avert
ID. l commend this item of history as
If more value than any theory.
The quality of circulation is even more
than the quantity. Numerous
levices for enlarging credit may, and
,ften do, avert the evils of a deficient
circulation, and redundancy may some
lines modify its own evils before their
esults become universal, but for the
)aleful effects Of debased and fuctu-
lting currency there is no remedy, ex-
,ept by the costly and difficult return to
ound money. AS poison in the blood
)ermeates arteries, nerves, brain and
leart, and speedily brings paralysis or