Daily Democrat and news. [volume] (Davenport, Iowa) 1859-1864, 1860-11-21

Inc OUboU0Yv
We recommend the following curren.
cy article from the Chicago Herald q
Monday. It contains large amount o
commoo sense {: .s-asnsast
A. every, frequently occurring. 6uctaa
tim in tia price Of New York exchsng
We are asked 'swhat makes exchange 8.
high ?' And our merchants and bust
ness men have good reason for Wishing
to know the cause, Why it is that Chica-
20, sending gram, pork and beet, am unit
ing to fully thirty millions year to
New York. il obliged to pay - at pres
ent, three per cent, and, sometimes five
and ten per cent. premium, tor drafts
on New York, with which to pay it,
debts TO New York.
flour merchants buy goods from New
York to larger amour. than the total
Of western products shipped there, il
would, Of course, necessitate the ship
ment of sufficient gold to pay for tina
excess though such We believe is no
the case. 1t It was 80, then be differ
ence between money here and money In
New York, should be reasonable charge
tor tie transpo, tation, the ri.k. and tn.
interest on gold while in trdnsitu. This
charge, any Of our bankers will tell you,
is fully covered by Mree-tenths Of one
per cent, or, say three do'la's on
thousand. This rate will hold good, re-
garding either gold or the cost OF con-
verting the bi Is of Eastern banks into
gold 10 New York city. Thus 1t should
appear that one-hsf Of one per cent.
should be as high q rate as exchange
should reach Incorporating exchange
is Daid for here IN na,ney But what
is money in New York city may not be
money IN Chicago. All nations, in al
ages, have mad their own standards.
Sometimes it has been iron as with some
OF tn. early Greeks. In the early histo-
ry Of Virginia, tobacco and other articles
we're considered money. In New York
city the standard Is gold, in Chicago 1t
Is currency. And here comes in the Sc.
cret. That currency, which has fiuc-
tua ing value here, because it depends
upon collateral values to maintain or de-
press its value, being governed by the
laws Of trade, supply and demand, the
same ss any other merchandise article.
should not at all times command gold at
our banks, or iu New York, without a
large sacrifice, need therefore surprise
no one for being based upon conf ience
only, with no positive, fixed value, it can
only be used in buying gold (of which
exchange is but the transfer certificate)
At such rate as the gold may dictate. In
illustration OF the worthless character Of
oLr Western money, we would ask oar
readers how much gold they could pur-
chase in Wall street for bushe. Of our
currency if 1t were not from the fact that
the brokers there can find some brokers
here to buy It Of them at a greater or a
less price! Gold will command its val
ne anywhere, because it is money. Cur
rency will bring what any one may be
filing to pay for it-but it can COM
mand nothing, Tor it is not money. Bass
wood CHIPS would answer as well, if
confidence coverted them into c,rcula-
ting mea'um, as what we call money
but withdraw that C n6dence, and they
bsea~s J' ssdrS KY e soHnds &c s max:
it the circulation medium, and, so long
Is confidence exists-so long as there Is
not larger supply of It tn il required
in handling the productions OF the conn
try, it may be s,rviceable in the business
OF the community. But let con6Jere
cease produce such panic Is Is now
in force among us; increase currency to
an extent, as IL now the case, beyond
what is necessary for the trading pnr-
poses of the l'nsiness community, and
the confidence 10 currency is lost, and it
falls below the standard it should repre-
sent. Currency with Us g but the evi
deuce of indebtedness. To give great,r
confidence in It, it is pretended to be
secured by the collateral pledge Of other
evidences OF Indebtedness, called State
stocks confidence game all around,
for touch the confidence 10 State stocks
or currency, and the effect is more disas-
trous upon the collateral THAI the direct
evidence of Indebtedness. How is
1t with our ''stock secured" bank bulls
They are mostly secured" by the pledge
OF Missouri stocks. These stocks
the evidence OF the Indebtedness of the
State of Missour-never saw the day
that they could command dollar for dol
lar-'par."
What is the result Of the hypotheca-
ton Of deprecated securities! Every
tyro IN finance knows that in panic
tunes times of want, or loss of conf
deLce-the poorest stock depreciates
first and most. Con equently, the cur.
rency used most in Chicago and in Iii.
nois-being that OF banks whose circu-
lat'on is based upon Missouri Stat,
stocks-falls first and falls lowest. II is
Is the reason why exchange is now so
high. The poorest currency, because
it is not based on specie, having depre.
ciated stocks-,he issue of State with
large debt, which has once repudiated
for basis, is all that the business
men of Chicago have to offer for cx.
change" which we here repeat is but
the transfer certificate of gotd, from
Chicago to New York. In the Fall of
81 and Winter o. '57 and SO, much
boastiug was INDUCED in by the (fancy)
financiers of Chicago about how well
the currency of Illinois and Visions, n
maintained i's credit" They will boast