Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-06
From the NesO York Post.
THE WAY 10 EXPAND TIE CURRENCY.

The WAY To EXPAND TIE CURRENC1.
Heretofore the quantity of psper-money in this
country has been largelyin excess of specie. In
1887 Whereabouts, before the suspension Of that
| period, we think the proportions were about as
follows: The bank notes issued were $3.50, 00O, O0O
the coin in the country was about $50, 000, 000
| Of this coin the banks held say $4,000, 900 the
/ people say So 000, 600; we speak only from mem
ory, but if We err, it is in giving the banks too
much credit for strength in COIN The correction Of
the error, if we are wrong, would only make the
| contrast between then ana RoW stronger. 1t would
| not weaken, but strengthen our arguments.
Now we have S187 900 900 Of bank notes. The
coin in the country is $289, 900. Of this the
banks hold 500, 100000; the government S1l ,000,
0GO; the people over 5000, 100000.
In 1887, Of our pspermoney $50,000,0 900 might
be put down as representing coin. There was
$780, 100000 of excess, substitute for coin.
Against this 500 900 900 of paper substitute the
people held only $50, 100000 of coin.
In 1857, S60,0O0,OOO of our paper money repre-
sents coin. There is S127, 100000 of excess,
substitute for coin. Against this the people hold
S2OO,OOO 900 of coin.
Our preiudices on the question Of coming to the
use of exclusive specie currency formed
upon the state Of things heretofore always existing
until the few last years. We take 1t for granted
that paper currency must be a more expanded
currency than specie currency, because heretofore
it has been 1t might be so still, if the banks
ad an unlimited right 10 issue paper, provided
also they could get possession Of the bulk Of the
specie of the country for the amount of specie they
can get does have some control their issues
But our Legislature has limited their issues by
quiring securities to be pleged, and many other
States have initiated this policy. They thus
limited, and are also limited by the fact that the
bulk of the specie real money of the country is
no longer in their hands The people hold three
times much specie as the banks; in 1887 the
banks held nearly twice as much as the people
tyroe fafp of hath
dices formed upon former condition ARE clearly
no safe guide for conclusions in our present condi
ton.
In 1887 the paper money was $3.50, 900 900, which
was S70,0O0,0U0 than all the coin in the ooun
try.
In 1857 the paper money is S1S7, 900, 900, which
is SlOO,OOO,0O0 less than the coin in the cOun-
try.
In 1887, the bank notes in excess of the specie
held by the banks were $l00,000,000 This was
used a substitute for coin, being S7000O,000
more than the whole stock of specie held by the
people.
In 1857, the excess of bank notes the specie
heldby the banks, is $l27, 100000 This is used
substitute for coin, but it is $40, 000,OO less
than the coin which the people now hold in their
hands, ready for use.
1t seems to be clear that by bringing into the
coin as our currency, which only be done etfec
tually by dis ofthe paper substitute, should
really expand our currency safe expansion, be- |
cause the further expansion Of such q currency can
only go on by earning additional amount of |
gold, either by producing it by labor in our own |
mines or by trade with other nations. 1t is an |
expansion, too, not subject to a sudden col |
lapse.
An expansion of the currency, in any safe way, /
is certainly desirable now. Weare suffering from |
literal scarcity of money. There is abundance of
money in the country, but there is a scarcity of |
money in use It is not from any great destruction
Of property throughout the country by any series |
of disasters; not from our labor having been I'M
productive the past year nOtfrOm any waste, for,
with all extravaganza are hot seriously indebted
abroad; not from actual poverty, that our exchsug
es Of property are hindered, and men, everywhere,
willing 20 work, are idle. Most of the work that
has been stopped this winter ought to be going on
not only because we ought always to be producing
all can, but because of the very things of which
the production is now stopped or diminished, there
is, for the most part, OverstOck, as the demand
next spring will no doubt show. The bulk of this
unhappy idleness is due TO actual insufcisncy of
money in TO facilitate the various exchanges of
property and labor
The paper money men have always favored an
expansion Of the currency. 1t happens that the |
hard money men now desire the same thing. Will |
the paper money men hinder their own favOrite
scheme?