Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1842-07-12
Number q.

SPECIE RS. PArER.-In 1918. Says the National
Gazette the paper issues Of England. those Of tho
bank and private bankers. were esiimated at 273
millions o: dolars. and the specie then circulating
IN the country at Ia millions and that in banks at
% millions This was the year OF peace. after a
war OF nearly twenty years duration. No one VIII
venture to maintain that the currency Of England
wa not deprecated at that time. Owing u is
great deprec alton. specie for some three or four
years previous u lsI5. commanded premium from
twelve II twenty per cent. IN that country and
bills on London were sold 10 Paliadelpha IN 1913
ana IA a: twenty per cent discount. TINS was ow-
ing 10 the deprecated currency IN England. grow
Ing of the excessive issues OF II. In 1879 the
amount Of paper 90 circulation N England had be-
come reduced TO l32 millions. while the specie in
crculition had augmented 10 2ll millions and that
~ bank was 32s millions Of dollars. In 1928 and
- large shipme is Of specie made from THIS
country, both II England and France, wing 20 the
high rate of exchange at that time. Thus
from the appreciation of the currency IN England
by the dimnutlon Of the paper part Of the crculat
lng medium, and the depreciation Of our through
the increase of that part of Il. Ia 1913. the paper
crcu alton OF England had increased 10 200 mil
lions, and the whole OF the specie in circulation and
IN bank was PIP millions o. collars. Eaat year,
and IN l-i, there WAS vast quantity Of specie i'm
ported into tins country from England. large
profit made by those who engaged IN the bust
ness of purchasing bills drawn on London, and i'm
porting specie for the proceeds. This arose from
the deprec alton of the currency Of England through
the g-e3t additions 10 the iss Of paper. The ex
cesslve drafts that were made upon the specie OF
England at that time, had the effect 10 cause a
great and RAPID dimnution of the paper part Of the
circulation. Before the close of the year 1854. the
paper circulation in England amounted to only
l22 millions. and the specie 10 Is millions.
In tins country. from l. "a '36. tae paper part
Of the circulating medium was constantly ncreas-
ing. In January 1884. the paper IN active circu-
laton, was 20 millions the specie - millions and
the amount in banks - millions o dollars. In Jan
uary l-33. the paper circulating was = millions
the specie i millions, and the amount IN banks a.
millions of dollars. In January 1856, the paper
circulating los millions, the specie p mil
lions, and the amount banks 40 millions OF dol
lars And IN December 1850. the paper IN clrcula-
ton had aug nented To ia millions, the specie 10
> lions, aud the amount ~ banks 10 - millions
of dollars Here was an augmentation OF the CIR
cullt NJ medium Of the country, between January
1891 and December 1886. from $500 70 $40 per
head. 81 the whole population. Inc usual average
had been prev ousy not more than %, and az no
time prior To ISL, was It supposed ever 10 have
averaged more than - pr head. The consequence
es attending and succeeding this extraordinary eX-
pansion and redundancy Of the currency were, an
inordnate IN the prices Of all foreign products.
in consequence Of lis depreciation excessive I'm
poralOns, and even foreign bread stuifs 10 the val
ne # more than FIVE millions OF dollars were IN
ported in 1886 excessive shipments Of specie. and
finally general su>l cns!on OF specie payments by
( the banks m May 1857.
We trust that have given proofs enough 10
satisfy any one. that bank notes do derreciate IA
va ue when e"b-tt;nted TOR specie If ISSUED 10 ex
cess.
An opinion prevails with some. ti-t the
paper circulation of tho bank e France Is only about
IS millions Of dollars or one dollar and a half =
head of the Populnt.s n great reduction IN the
psfce of labor 0ugRi 1, Az Taer una cndJlt 'ha'
country u compete with all the world IN manufac-
turing. This opinion, We think is also erroneous
The great proportion of The circulating medium OF