Stability In Finance

The greiit war of lSfll wrought a marrelous 1 aud radioal ehauge in American 11 nance. From f a system of State banking based on State 1 bonds and other securities often worthloas, j floating an inane of paper for the most part 1 üreeiated in valué, from a systoui atmort versally condemued, we have advanced by the ' necessitios of war to a paper cnrroncy national ' in its character and known and recognized as ' of equal valno thronghout the States of the uational Union. The exigencies of war gave it to e, and we Iiold it to-day upon a principie ( well understod, tliat its ultímate destiuy ie to , be pald in coin at the holder's will. Iu the oye of the law and the decisions of the courts, each note ifl a promite to pay and to pay in coin. If '. the peoplc choOBe to hold thia currency in circulation as raoney, let them do ao upon the ', principie that it símil be maintained equal to coin in its value. Let us accept the character imparted to it by the Supremo Oourt of our ■ common country when it saye : " We do not reat their validity upon the ; eertion that their emisaion is coinage or ; auy regulation of the value of money, nor do we asaert that Cougreas may niake anything which has no value money. What we do , aort is the Goverament's proniiec to pay money shall be, for the time, equivalent iu value to the representativo thereoí." Under the Itefcumption act. aa it now stands, the greenback on the lt day of January, 1879, may demand its face valuo in coin at the treasury of the nation, but "shall bo reisnied and paid out again and kept in circulatiou." If maintained on a parity with coia the speeulator will find no margin iu its exchanfio at the treasury upon which to live and thrivo, and will leave it to pumio the evon tenor of its way, to circuíate in the gruat arteries of trade and commerco. The f act of resumpüon is strongcr than the law itsoh', for with the greenbick at par we shall have refmmed specie p&yments, even though the law itself was repealed. Kesumption. whetbcr it takes place to-day or on the lst day of January next, means simply that the legal-tender note is worth all it calla for in the Standard dollar of the world- this and no more. When it reachea that point practica resumption is bare already, and the equality in value of paper and coiu established, anij this steadily maiutained han never yet failed to bring with it stability, confidence, eutorpriso and renewed business activity. Ötability in nuance begets conftdeuce, aud canfidence - and that alone - sends the capital of a natíon into business undertakings. Under this systemtlie largest vclanie of healthy circulating medium is attained. Tho greenback reachiug par on the lat day of January, 1879, we shall have as an available volume of circulation ■■?990,ÜOO,COÜ, made np as folbws : The amount of United States notce then outstanding and in the treasury, say. .t:)10,000,000 NatioDal-bank notea outstanding then . . 3'26, 000,000 Gold in tbe treasury ]80,OU0,00O Silver in the treafeury 25,t 00,000 Atotalof $370,000,000 Aud thö national banks will hoM then of coin (not counting their coin treasury certificalc) at least 15,000,000 Amuunt of goid in tbe country (sides. . 70,00!,000 Amount of Bilver ia the ■ mnlry beside?. 35,000,000 Making a total of $990,0(0,000 And with a steady coinage of silver at the rate of $36.000,000 per annum, of gold at tho rate of $44,000,000 per annum, leading the world in the prodnetion of the precious metáis ; deriving year by ytar a surplus of untold millions from thé ceibal grains that come from oursoil, from the groat itap'.cs that cominmd the markets of the world ; with a pöpolation industrious, intelligent, and free, shall we look the great nations of Éurope in the tye and acknowledge that we canuot maintaia a currency of paper and coin in all its partí, iti all its qualitiei, in all its f uuction8.as nioney, equal in value to theira? What coustitutes the financial systcm and policy of the leading natioui of the Old World V They havo had the alternationn of war and pöaöe as well as we. They have bout up great mouutams of debt in the uational di - feuse aa wull as we. They have been through tho vicissitudes of adversity as well as prosperity : and, while we are in the midst of a conflict of opinión on the subject of fiuauce, they have settled down upon a well-kuown and inexorable rule of action. The Bank of England is the index of lier financial poliey ; ite ciroulating notes are demand liabilitics, and they have been ciaintained at par since 1822 by a constant coin and bulliou rejerve in bank, at no timo les than 17 per ceat. of its demand habilitios, and running aometimes to 45 por cent. thereof. Upon tlie same principio is the paper money of the Imperial Bank of Germany, with its 151 branches ecattered over the empire, and of the imporial Government itnelf, maintainbd al par with gold. 80 with the National Bank of Belginin, aud su with the Bank of Francti, the evidence of which appeara from the state:nent which I subjoin : STATEMKNT SUOWINO ltESODRCKS AND IJAlilLlTIES OF CEHTAIN EUHOrKAN BAUKS AT l'ATF.i' MENTTONED BEWW. BW F g-SB Bi 5' K K i lBSÖ5BtBïBöBBB3S B O ! - ? ? ? ? ? ? ? ? ? ? ? tí f I f l gfihiliiniiiH!:! -?. t a, a at a O XÏIXÏïXCOÏÏÏXXBX A „„g BSSLli.gs i Hl S I . ': Hffl'3i"[iiM1í' ï - W-"w i; i -i x i' ï ■; x i: --i x - ■- ü j w - - ; . 5 sSS=?L5T5j5 __ï_ - = 3 I t-i K M " y i; ■; ji i; ; -i ü C ï ï i iv io g -t illl'l"ilii i I H ito tC J1 CC Oj IC tC IC ÍC ÍC hS CC CC IC IC t J IC ; í'íJSj1 f f1 .' .- ;- - .- " .-11 ."J í - s ("io üiV-l C". QfriKO i" i w -1 ODÚO-Vm ? o i ■ o; - i; t te " vi i ct w j. w 3j ii (c - o cc 'c a t; w io c x ;i i ?, 'c i; o o & go L H" L ? ' í í 'S 2 '?C5?25 _W 4 X ■?-. '.i ' - S Vi 1 -1 j5 O) - -T CO Ci W MC W C ï - IC 'C ,i C M il :; Oi ï 3 m =: S. H JC Jfi 5 S Ol ■■:2;C.'.;ib.iXi-i; . C c b c"-i tcb b ;'-":'': cVc'c a o"c 2 5 ' c:ca capo cooSSoSoc ■ ' ""■■ ; ..--".. ,_. -,)( .iih)j,. y Indeed, thore is not a government in the Old World whose paper money is not at a discount, agiünst whoae securitie'i the bost markets of the world are not elosed, whose plighted faith is uot taruished, whoao public credit is not ruined or impaired, tliat does aot to-day keep, opérate and maintain its financial system upou this great principie ailopted by England, Gormany, Belgiüm and France. The fiaancial sncceRy of Franco is a marvel to the world, but one of tlie great secrets of that sueoesa ia fouud in the faot that the Bank of France istmos no larer vcilnme of paper money thau m be maintained in circulatiou on a par with gold and ailver coin. Bince 1848 the Bank of Franco has had the solo right of isisiiin;,' DOtes in France. Wheu the war bogan In 1870 its cireulalion wan -ii'ijl.UDO.OOO, and the sp(!Cio ou hand was 22O,OÜ0,OOO, or about íiü i er C3nt. 'li e highest iK)int of issue wa in November, 1H73, when it reaohed $602,000,000, with a mutallic reserve of 11(!,000,000. Tho largest depreciation of the notes was in November, 1871, when it reached 2J percout. ascompared with gold, and with au oututaijrting circulation of $505,000,000, and 132,O0O,000 due depositoiK on demand, and, notwiHistanding (he payment of the war indemnity of 1,000, 000, 000 u specie by tlie Frenen people to tíermany, the Bank of France accomplishod itio reanmpüon of ppeoie paynient on tiio lst day of January, 187H, and placed its papèr'snd iU c:t'm on tho aamc great level of value.