The national era. [volume] (Washington [D.C.]) 1847-1860, 1858-01-21
THE CURRENCY.

THE CUHhENCI.
A correspondent says-"I suspect the argu-
ments that have lately been used in favor of
abolishing or curtailing the use of paper cur
rency, are causing large amount of money to
be withheld from circulation, in the apprehen-
sion that possibly the present Congress may do
something that will reduce prices lower than
they are now; and that times would Immediate
ly be easier if you would convince everybody
that this Congress will do nothing to lessen the
circulation of paper money-that if this curren-
cy is ever abolished, it will be done so gradually
as to produce no sudden contraction of prices
that the necessary contraction would not at worst,
be ruinous-and, above all, that the increase of
specie is such that prices must hereafter aver
age far higher than heretofore"
On this question of the Currency, as on other
important questions, we have not withheld our
opinions. Our subscribers are trained to think
for themselves, and that is our training, too.
They respect 80 highly the independence ofthe
Press, that they would hardly tolerate an editor
too timid to assert and use it.
We think Protection an absurdity, and the
supposed necessity of Paper Money delusion I;
but we have no expectation that q majority of
our countrymen are about to jump to this con-
clusion, although they will gradually, we are
sure, approximate thereto. Meantime, sudden
changes by legislation would be unwise, and,
at all events, they will not be attempted. Let
no one hope or fear from this Congress. The
President in his message, with his usual superAu.
GUS Difference for the Supreme Bench, assumed
that it's decision had established the constitu-
tionality of the issue of bills of credit, bank
notes, by State Banks, and no voice of dissent
has yet been raised among his supporters.
AS to discriminating taxes on small notes,
he refrains from any suggestion, and confines
himself merely to the recommendation of q
bankrupt law, to apply to banks. How much
practical value attaches to such recommend
alton may be inferred from the fact, that the
banks of New England, New York, and New
Jersey, have resumed specie payment Western
Banks generally have not suspended and the
Pennsylvania Banks are to resume on the LIST
of April. By the time bankrupt law Of the
LII - --., - .----,---o'- ~o"e1 1850,
there would be no banks to operate on, except
those in South Carolina, Georgia, Alabama,
and perhaps one or two other Southern States
a circumstance that renders the passage of
such an act entirely improbable. Besides, the
ruling Party in the present Congress, in con.
formity to recommendation of the Admins
tration, having passed bill establishing sort
of Treasury Bank, for the issue of some millions
of paper money-promises to pay-nobody can
expect from it any serious measures against
the promiseto,pay system.
Prices, generally, we have no doubt, have
touched bottom. Real estate and produce are
as low as they will believer, we think. Panic,
as we'll as necessity, compelled contraction of
the currency. The panic is disappearing, and
the necessity abating boarded is re-
appearing. That there has been O large
increase in the actual amount of specie, and
that this increase must 60 on to an indefinite
period, necessarily keeping up if not carrying
up prices, is certainly true. California and Aus
tralia are pledged for this.
On the whole, there is not the slightest ground
to fear anything, except that the progress of
Public Opinion in regard to the true and only
safe currency will be an exceedingly slow one.
MINNESOTA