The Sun.
London, England, 1865-10-31 00:00:00

Secretary M'Culloch on the Currency.

Secretary M'Culloch has inado a speech at Fort Wayno,
Indiana, on the paper currency question. He said:—

"Ho was not one of those who seem to repudiate coin
as a measure of value, and to make a secured paper cur-
rency the standard. On the contrary, he belonged to that
class of persons who, regarding an exclusive metallic cur-
rency as an impracticable thing among enterprising and
commercial people, nevertheless look upon an irredeemable
currency as an evil which circumstances may for a time
render a necessity, but which is never to be sustained as a
policy. By common consent of nations gold and silver
are the only true measures of value. They are the neces-
sary regulators of trade. He favoured a well-secured con-
vertible paper currency. No other can to any extent be
a proper substitute for coin. It is not expected there shall
be a dollar in coin in reserve for every dollar in paper in
circulation. This is not necessary for all ordinary home
transactions. Paper currency is sufficient, but there are
constantly occurring periods when the balance between
countries, and in the United States between its different
sections, must be settled in coin. These balances are in-
significant in amount in comparison with the transactions
out of which they arise ; and when a vicious system of
credit does not too long postpone settlements they are
arranged without disturbing the movements of coin.
Whenever specie is needed for the purpose, or for any
other purpose, the paper currency of the country should
be convertible into it, and a circulation not so convertible
will not be, and ought not to be, tolerated by the people.
The present inconvertible currency of the United States
was a necessity of war; but now that the war has ceased,
and the Government ought not to be a borrower, this cur-
rency should be brought up to a specie standard, and he
saw no way of doing it but by withdrawing a portion of it
from circulation. He had no faith in a prosperity which
was the effect of a depreciated currency, nor could he see
any safe path to tread but that which leads to specie pay-
ment. The extreme high prices now prevailing indicated
that the business of the country is in an unhealthy con-
dition. Wo aro measuring values by a false standard.
We have a circulating medium altogether larger than is
needed for legitimate business. The excess is used in
speculations. The United States to-day is the best market
in the world for foreigners to sell in, and among the
poorest to buy. The consequence is, Europe is selling us
more than she buys of us, including our securities,
which ought not to go abroad, and there is a debt rolling
up against us that must be settled, in part at least, with
coin. The longer the inflation continuos the more difficult
will it be for us to got back to tho specie payment, to
which we must return sooner or later. If Congress shall,
early in the approaching session, authorise the funding of
the legal tenders, and the work f reduction is commenced
and carefully and prudently carried on, we shall roach it,
probably, without serious embarrassment to legitimate
business. If not, we shall have a period of seductive pros-
perity, resulting in wide-spread bankruptcy and disaster.
He spoke of the evil tendencies of the present inflation on
the public morals,' converting the business of the country
into gambling, and seriously diminishing the labor of the
country. Men were apparently getting rich, while mo-
rality- languished, and the productive industry of the
country was being demolished. He was hopeful that by
wise legislation we should escape financial collapse, and
that the currency might be brought to a specific standard
without those financial troubles which have in all coun-
tries followed protracted and expensive wars."

The Fenian Council have issued a circular calling
a Congress of the whole order to moot at Philadelphia on
the 16th inst.