Newbern weekly progress., 1861-01-08
THE MYSTERY OF EXCHANGE EX-
planned

L
is not without interest to many in this region ot
country:
| A subscriber writes to US to say that not being
much of business man, he oes not uilderstsn nd
| the mystery of currency and exchange and is at
| loss to know why it is that because exchange
| on New York is worth 10 per cent premium
business should be embarrassed and every one
| omplan of hard times. The simplest ma lner OF
| explaining this is, perhaps. the following:
All over the United States there is kind of
| money that has the same intrinsic value every
where. That is gold. dollar in gold is dol
lar everywbere-it is dollar in New York a dol
lar in New Orleans, dollar in Chicago. If we
had no money but gold, the price of exchange
would simply be the cost of carrying the gold
from one place to another, and this would, per-
haps, never be moro than one fourth OF one per
cent. But rye have other money. In Illinois
have very little gold. In its stead we have eev
en- or twelve millions Of dollars in the bills of our
State banks, which are called "currency." Now
owing to the depreciation OF the stocks on which
this currency is secured, dollar of our currency
is only worth ninety cents in New York city.
The people of New York believe that if these
stocks were sold they would only produce enough
to pay ninety cents the dollar of the currency.
Consequently, when Mr. Drygoods wants to pay
the merchant in New York, of whom he bought
his stock of goods, he goes TO his safe and finds
that He has got ten thousand dollars II currency.
He owes his New York creditor nine Thousand
dollars So he counts ont his nine Thousand dol
press hfice, and sends it to his New York credi-
tor In due course of time he receives the follow
ing letter
zoos BROADWAY, NEW YORK.
Dear Sir; Your favor, incIosing $4,000 in Illi-
nois currency, is just received. This currency is
worth only 80 cents the dollar, and consequent
ly falls just $500 short of paying your note,
Please send US the balance and oblige,
Yours. truly, TAGRAG, DOBBIN & Co.
So Mr.. DrygooGs has to 60 to his safe again,
FOL, nd
New York, knowing that when it gets there it
will be worth only 5000, and be just enough, with
the $4,000 sent before, to pay his debt of $4,000
The s 900 was all the profits of the business
which Drygoods had been doing for the last three
months: They all have to go to make up TIA e
amount he owes in New York. SO Drygoods finds
he is short of a sum he had locked upon as his
own, and his business is just TO that extent en-
barrassed and retarded. He can't pay his butch
er, his baker his landlord, and his coal merchant
with his usual promptitude, and perhaps half
dozen individuals who depended on him put
to Inconvenience and loss. They in THEN turn
cannot meet their obligations and the circle OF
disaster spreads.
Thus it is seen how the whole community is
interested IN The price Of Eastern exchange
w hen the newspapers say that exchange on New
York is worth ten per cent, it Is only another
way of saying that cur money is worth only nine
ty cents on the dollar, and that he who tancies
lie has hundred dollars of it, in reality has
ly ninety dollars. Thus the value, and
in fact the imperative necessity, of a specie basis
for currency If our bank bills were redeem
able at any moment in gold exchange would be
down to a mere nominal sum, and VIC would be
prosperous.
All the rnysery which banks end brokers throw
around the matter Is needless. 1t Is simple
that child can understand it There it more
mystery about the value of gc'd than thers. is
about the value of potatoes Gold here is worth
N per cent. more than our currency. In New
York it is worth just much as New York cur
rency Is, because New York currency is redeem
alb III goll at any oment.
The Legislature of Illinois meet soon. Can they
i nothing to place our money on "A specie basis
other words, to make it equal gold
From the ''Seyv EsepusDS5c.'
The Charleston (Carolina) Courier of Sal !
urday has the following.
AFFAIRS AT FORTS MOULTRIE, SUMTER AID |
CASTLE PINtKEEY.-Our reporter visited he Is |
land yesterday, and found matters AT Fort Mou |
rie progressing quietly and satisfactorily.
The rubbish left by the Federal roops Is being
cleaned away, and the fortress assuming deten- !
sible aspect. Many apprehended difficulties, of !
nature we need not name, have been removed; |
and the Volunteer Companies constituting the |
garrison are making merry over the hardships !
If the injured by the burning of the carriages. |
Activity prevails At the garrison, and It's vigi |
ance officers are determined OH the course that !!
guides their action.
Fort Sumter. as viewed at distance, presents |
III appearance of lively activity Sehooners and !
ya'ges were plying between the fort and the
.nrs,ne during the day, Everything seems to
Indicate active preparation.
Castle Pinckney reinforced in the after
noon by detachment of :he Marion Artillery |
rom Fort Moutrie. under the command of Cap /
am King detachment of the Washington !
Light Inf;lntry transferred from the former |
@ the latter place in the forenoon, thus retaining |
1T Fort Moultrie the same force first occupied !
The garrison at Castle Pinckney consists of |
about two hundred men. Ten twenty-four pound !
cannon are mounted on the ramparts, besides !
some fifteen pieces-a few of which are casema-
ed-in the lower tier. The work is well provided !
With munitions of all kinds, and under the com |
lland of its field officers Col. Pettngrew and .
Maj Ellison Capers, will make itself felt, if need
De. when the time comes. 1t is tar from beng /
he in significant position of which it has the |
equation. Although a defective construction ,
las impaired the power of the lower batteries 20
considerable extent it has effective tier OF
ampart guns, which, from its eligible POSITION
ire capable of much service. it is beyond the |
each of the largest guns of Fort Sumter, and |
the entire line of wharves and ship |
,ing along Cooper River and in the hands Of an |
nemy would be capable of doing vast injury to
he city.