Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1852-02-05

We are indebted To gentleman OF This
city for permission to publish the following
extract Of . letter from . gentleman dis
tinguishcd for his intimate acquaintance
with the moneyed concerns and operations
Of the country:-[Nat Int.
New YoRK, Jan. 81. 1882.
The January returns. when in from all
the States, will show. | think, the Bank
issues one hundred and sixty millions. or
over. with about forty millions Of specie.
What an expansion! In 1913 they were
fifty Height millions; and while / believe
that the paper money should only equal
the specie in the Banks and Subtreasury
merely render available the dead weight
certain it is it should never be more than
double. Now it is four times nearly
The truth is. if we would have steady and
permanent prosperity, there should be no
paper money less than ten dollars. We
never shall be in permanent condition Of
currency I'LL all issues under tens are abol-
ished Strike out all under that denomi-
nation, and our paper medium would now
only be about S0,000000. Notwithstan-
ding the Government are now furnishing
good supply Of small gold coinage, the
Banks of New England set their fiees
agains. it, and in travelling through oil the
Eastern States scarcely see gold coin
nothing bot ones, twos. and threes Of the
Banks. Could not the Subtreasury at
Boston, by Withholding coin over FIVE dol
lars, force tie one dollar, and quarter and
halfeagles into circulation In this wise
much can be done to avert the coming evil
That policy would compel curiailment
Of the immoderate small issues of all the
New England States. of which Massachu-
sets aud Vermont are the greatest sinners
The circulation of the New England States
| expect, is nearly thiry-fve millions, with
little if any more than three millions OF
specie. This is awful.
The collar gold coin seems generally
thought too small; and wish our beautiful
system Of dccimals was better carried out
by free coinage Of tucnty rents and tuo
dollars. leaving the twenty FIVE cents and
two dollar and half coinage to disappear
There would then be no fractions Of deci.
mails, except in the FIVE cent and FIVE dollar
p'eces-both beng necessary as fractions
We shall soon have reaction in the value
of silver, and the mint will be able to GO
into a large coinage Of double dimes
which would be permanent. They would
remain in the country, or never 90 abroad
to be melted but wherever they did go
would be emblcms of our National Re
public, as well as specimens Of our beaut
iul system of dccimalse
Nothing but the high credit Of oul
stocks IN Europe prevented general bank
explosion in June, July. and August last
But England is getting shy of our shower.
Of Railroad Bonds. and Mr.. Walker vii
probably have to return as he ent, so fal
as selling his railroad bonds is concerned
The interest alone on the three hundred
millions Of American stocks has now
become serious matter, to say nothing OIL
the mortgage plaster of the three hundred
millions, which will become fifty or hun
drcd millions larger SO long as the debts Of
our cities and States are deemed such
good security through all Europe. The
United States stocks will centre there Of
course.
In view of these facts. who can doub,
the tempest and whirlwind that must come
next summer and certainly. if we find no
market for our breadstnffs, after the cotton
crop IS at market. feel that wanted
all done that Can be done to avert the ter.
rible distress that must ensue. The more
the Banks are compelled to take in sail, the
hess will be the general disaster, and the
smaller the number Of Banks of the feet
that will be dsmasted and shipwrecked