Year: 1874

During the session of congress that
adjourned week before last, the iinan.
cial question absorbed more attention
than all other matters that were
brought forward for consideration.
After a hard struggle between the
money lenders of the east and the
money borrowers of the west, between
the plethoric money pags of the puri-
tan and the mortgaged-to-death lands
ofthe hoOsier, the latter came of vie
torous, and n bill was passed that
promised speedy relief to the impecu-
NOUS west through large imitation of
the circulation of United States treas.
ury notes. General Grant, with a
sticking regard for the platform of his
party which would do him honor If he
would apply it to the constitution of
his country, vetoed the bill. The COM
mingled howl of rage and shout Of joy
that followed this action of the eXecu-
tive told how deeply rooted in the
hearts-or rather in the pockets-of the
people the issues involved were. The
New York Herald actually sounded
the tocsin of war; and proclaimed that
the rights of the west were ruthlessly
assailed and that only powder and
blood could atone.


In due course of time compromise
measure, on which both inhationists
and contractionists could agree, was
brought forward, and was soon invest
ed with the authority of law by the
presidents approval. This measure be-
ing compromise one-a piece of
patch work to hold the republican par
ty together for the next presidential
election-does not please either side,
and, as is always the case with such
measures, both sides construe ii, favora-
BILE to their own peculiar views. Knox,
the comptroller of the currency, hav-
ing been called upon officially to con-
strue certain section of the bill, gave
construction that favored imitation.
Thereupon President Grant and Secre-
tary Bristow were very much incensed,
and, as rumor has it, have notified
Comptroller Knox that his resignation
would be accepted.


The law as it now stands legalizes
the issue of $4,000, 900 of reserve legal
tenders ordered by President Grant
last September during the panic, and
by thus fixing the volume of legal ten
ders at 1882, 100000, gives stability to
trade and takes away from the treasury
department the power of contracting
or expanding the money market when-
ever it may be so minded. The bill
further provides for the withdrawal of
S54, 900, 600 of national bank currency
from those states that have more than
their dne share, and for it's redistribu-
ton among those states which have
less than their share. Both of these
are most salutary provisions, and un.
der the last one there is no reason why
the west and south should not have
speedy relief from their dearth of mon
ey. From the almost fabulous rate o.
interest that money is commanding
in north Texas, it is clear that
she does not have her due
share of the currency. Now is the op'
portunity for her men of capital tC
form banking associations, and make
provision for relieving the necessities
and assisting the enterprises of their
fellow-citizens. The well informed
New York correspondent of the Phila.
delphia Ledger says that "the passage
of the bill has produced favorable
effect upon business circles. The
long prevailing feeling of depression
has given way to confidence that we
have reached the point for new de
parture, which will lift the material in
terests of the country out Of the slough
of despond in which they have beer
floundering ever since the panic o
September. The fixing of the lega
tender circulation at an invariablt
point, will enable the merchant to say
what his goods will be worth montf
or six weeks hence, and with the re
moval of that heretofore great elemen,
of uncertainty, freer and more conf
dent p,Ovemept must follOwv