New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1862-11-18
NETWORK DAILY TRIBUNE TUESDAY, NOVEMBER Is. 1856.

mercal machinery was really only portion o.
their own. II was war which drove the Bank
of England to purchase gold at premium
when struggling to avoid the suspension of 1797
|. was the reaction over Europe of the great
American crash Of 1857 which stimulated the
Rank Of France to most of its enormous pur-
chases. 1t is the disturbance of our own com
mcrcial machinery by the rebellion that sends
Nd the price OF gold now. Tho coin OF the
country is not diminishing in quantity, but II
has ceased to circulate. For once in the ex'
perience of this generation, money has become
merchandise, and therefore. like corn or cot
ton, an object Of speculation. The nation has
TIA full share of the worlds metallic currency
for peaceful times Remove the disturbing
causes which have dslocated our commercial
machinery, and the fact will become apparent
by coin aud paper circulating at equivalent
values through resumption by the banks. AS
the disturbance has been unprecedented, 20
time will be requird to smooth away the
local asperities it has raised up, and to repair
the almost ruinous breaches Of commercial con-
Gdeuce it has Occasioned.
It is held that $500, COO 900 is all that Great
Britain requires for a gold currency. None
but the Scotch banks issue notes for less than
IS, say S25. Below this figure, therefore,
the currency must DO metallic. But our paper
currency has always been as low as one and
two dollars, thus dispensing with millions of
metallic currency Yet for the fractions Of o
dollar we needed millions Of silver; but we
ALWAYS had abundance until the Rebellion COM
PEELED suspension. The greater prevalence OF
paper currency here, has undoubtedly enabled US
to prosper on q smaller metallic currency than
| that of Great Britain, though the population OF
the two countries is equal We have aseuredly
had it in our power to maintain as large
metallic currency rs hers, had wo elected to
dispense with bank notes of less amount than
so. Our mining statistics go far to sustain
this view. From 1893 to 1913. our mint,
coined sal 100000 of gold. But in 1913 the
mines Of California were discovered. and from
that year to this our coinoge has been $50
600, 600 annually, or total OF 500, 100000.
Ia the Same period the impOrtatOns have beeu
large, and it seems incredible that we should
have failed TO retain many millions Of this
vast sum. boarding may be practiced extern
svcly. Yet boarding originated in q barbarous
age and has been practiced generally only by
uncivilized communities. where wars and ropino
were frequent, and the oaning upon interest
was unknown. As civilization advances, 80
private boarding dimin'shes. In our day the
largest hoarders are the banks. But these
boards are indispen able as supports to the
vast paper and credl! system Of the country
II they we've distributed among the people
ard by them secro,od ia chests or buried IN
tho ground, as was the custom anciertly the
whole commercial machinery would stand STILL
Gold now commands premium over paper
because OF the great disturbance Of our COM
mercnl machinery. Both banks and Govern
meat are apparently striving to sec which can
issue the creates, amount Of paper, and tie
effect Of this il TO rggrayate the disturbance.
In this respect the public expectation has been
diaapponted--the Government paper docs no,
drive home the bank paper. On the contrary,
The latter is constanily inerensing. The effect
Of this collision il manifest in the spparent
premium on gold, in other words, in general
rise OF prices for all articles 10 be paid for in
paper This country Possesses all tho gold it
needs for business in Us normal condition.
The fact was evident before Rebellion made
change in that condition. When the Rebellion
ia overcome L VIII be even more apparent by
II cessation OF aniagonism between Govern
ment paper and bank paper. As the former
withdrsws il, issues by fundiJg them, the latter
will DO compelled TO do the same by redeem.
ing in coin, and tho Distinction between gold
and paper being thus obtorated, the fact of our
possessing oil the gold We need will for bird
time become manifest. The commercial ma
chincry OF the country being again Sc. in mo.
ton, il will rapidly attain Is former NJ mentum;
and, in England, the multiplication OF bills
Of exchange and paper credits other than bank
notes viii dlspane gold from the list Of specu.
laiye commodities BY general equalization Of
values.
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