Year: 1875

Increase. 135, 316,317


In addition to the increase shown it should
be stated that the change in the law in regard
to bank reserves has added to the volume of
active currency. In 1865 the banks were re-
quired to keep 25 per cent. of their circula-
ton locked up in their vaults. That amount
ed in 1865 to S42, 10000 In subsequent
years it amounted to more as the bank crcu-
lation increased. On the 1st of January,
1875, the reserve was So, 100000. Now the
banks are not required to hold any reserve on
account of circulation. Thus nearly SO mil
lions have been virtually let loose, and if we
add this to the excess shown above, we have
the following comparison:


Total circulation in 1865 .s62s, ,6s2. 900


Deduct tIeserQe................ 42,T50,000


Actual available circulation 1856 900
Total circulation in lS75... IS. SOS, BIZ Sl3


Actual available circulation So. ,3l5
Increase equivalent to-. s265, ,4s6,sI7


1t is true per cent. certificates were issued
at one time, and banks were allowed to count
them in their reserves; but gold certificates
are now counted in the same way. Leaving
out the interest-bearing evidences Of debt,
which were never legal tender, and they
could not be called currency at any time no
more than they are to-day, we find large ac-
tual increase in the currency. With all the
talk about contraction the Republican party
has been guilty of initiation. Even in the re-
sumption act Of last winter initiation is provi-
ded for. Banking was made free to all, and
it was provided that every 800 of bank notes
issued only $50 of greenbacks should be with
drawn, and that in no event should the latter
be contracted below 300 millions. Now, if
the country needs currency, as Cary says, and
as Pendleton insists, there is no law to prevent
it, but very plain law to permit it. Suppose
people holding bonds should deposit them with
the Secretary of the Treasury and get 300
millions of circulation, what would be the
result? The Secretary could not withdraw
over "a millions of greenbacks. That would
lions greenbacks, and 45 millions fractional
currency-995 millions altogether. Now if
currency is scarce, as alleged, and National
banking is such good thing as the Democrats
say it is, why is it that the currency is not
forthcoming?


2. There is not enough money to meet the
wants of trade, we are told. This is wild
assertion, destitute of the shade Of shadow
of foundation in fact. Every fact that can be
quoted proves the reverse. We have already
shown that if currency was needed there is an
easy way to supply it to the extent of the
bonded debt, and if it were needed it would
be profitable to supply the want. The fact
that National Banks are voluntarily contract
ing their currency is proof enough that the
issue of paper money is overdone, like a good
many other branches of business Let the
demand for currency increase, and the sup
ply will grow fast enough.


8. The Democratic speakers seek to create
the impression that the adoption of the Ohio
Democratic policy would initiate the currency.
This we call the great delusion. There are
men simple enough to believe it. Adventur-
ers who have speculated until they are on the
verge of bankruptcy grab at this idea as a
drowning man would catch at straw, and
with about the same desperation and as little
reason. If Allen, as the old gentleman calls
it; or the Democratic ticket, as Thurman
,tates it, should carry Ohio by one hundred
thousand, that would not add one dollar to the
currency. Congress alone could do that, but
Congress wouldn't. The present House is
largely Democratic, but it would not lass
bill to initiate the currency. 1t will not even
elect an infationist as Speaker. But even if
the House should initiate, the Senate would
defeat the measure. Bnt even if the Senate
and House should both vote initiation, the
President would veto the bill. So that there
could be no practical initiation with Grant in
the White House, and he will stay there until
the 4th of March, 1877. Initiation is, there
fore, out Of the question, except in the way
already provided by law, and that way is wide
open to any body who can put up bonds.-
This is perfectly plain. There never was
more idle capital in the United States than at
this time,. and as banking is free, and, as
Democrats say, it is very profitable, the cur
rency already available for circulation. But
is not. There is an excess of currency now
Of over one hundred millions This will be
called into use as the crops move, and ss the
crops move business will revive This is
where our wealth lies; where the basis for
business lies. Give the country good crops
and there will be money enough and business
enough. If imitation could keep business NOV
ing actively it would never be dull We have
had initiation, but that has impaired business
and the present talk about the barren ideality
of a solid basis, the proposition to add to the
volume of an irredeemable currency, which
every sensible, and every honest man knows,
means reputation. disturbs confidence and is