The weekly register. [volume] (Point Pleasant, Va. [W. Va.]) 1862-1909, 1862-10-09
scareIlr I'D currencr.

The most remarkable feature in money
affairs at present, is tho large absorption
aud consequent scarcity of paper curren'
cy, both Federalau local. The United
States notes Of lawful tender, thus far is.
sued by the Treasury Department, arc
wholly insufficient to supply tho demand.
The city and country banks Of New York
are also unable to meet tho requirements
of trade for circulation, although thoag!
grogate now exceeds thirty five millions Of
doIlor., The Bank Note Reporlerof Mr..
John Thompson thus explains this extra.
ordinary state Of the currency:
"0ur solution Isl Wealth has idcrcas.
ed faster than currency, and unlike for.
mer iimes.sl this wealth IS held by tho
people 10 Tie shape Of papsrmoney \
vast amount has fallen into tho hands Of
tho families and friends OF soldiers, who,
Instead Of buying something with il, or
deposiling il in bank, hold 1t in papof
money against the time Of need. Four
hundred thousand soluntecrs, averaging
5000 osch bounty, absorb $40, 600, 900.
4 gsI3 lelge portion q tllIis Is heil II
The Identical money paid out 10 them. 81
This, 10 our opinion, is the greatest
source of absorption Of currency. Ma.
ny other absorbing sources are in active
play. So long as the war is disastrous
and discouragipg the money that falls
into the hands of the people will remain
unused, ana this ,ostclly OF currency
will continue until feeling of confident
security payes The way for the purchase
Of property, or investments in securities,
1t will gradually enc It's way into banks
aud saving banks, and this obvisLcs, TO
some extent, the extreme scarcity Of cur
rency by still further increase of dc,
posits.
How shall currency be Increased to
the requirements of the people? Tho
chartered banks are generally up to their
legal limits; the free banks are up to
their volume for peace and prosperous
times. A lew Of tho more enterprisipg
keep increasing cautiously. Wilhoul
amendments to choracters or other legis.
laliyc enaclments, the local banks can
not meet the demand f6r money in tho
shape of oarronoy The supply, then
must come from tho Government, in the
shape OF Treasury notes, We are aware
that the opponents Of Government our
rency are making, or ara 10 make, &c
monslrotion on the Secretary Of tho
Treasury with view to stopping the
further issue of circuloting notes. Theie
mnin argument is the necessity Of bring.
ing down the price Of gold, and they
preoeiye that the old method Of contrao'
ton will dc il. This is, at leas, tteis
bretenco; their real object is to raise lhs
r;!ss NJ 5S;e2s@E aa6 il. -. sIf, yGbGSg 81
sell Bonds nj reduced price-say Feds
ral skies at 60@7o, V"
Anything othis kind would lead to a
panic, an ins1ead Of bringing down the
price Of rold, would surely carry sho
pfemiaR mach hi5EeF than & e aci;i-ys
There is no danger that tho Secretary Of
the Treasury viii be caught in such u
tap Treasury note currency has taken
y deep root, and the preutcst safetynoE
is in It's uniform use, increased in volume
to the legitimate demands Of the people,
When the war assumes a brighter dnO,
currency will flow into Stocks as fast @
tho hollOrs desire to part with It, and
then gold will come down, not in oanSaI
luenoe of contraction, but Of eoua'
lence not from necessity, hut from II
popular investment in Federal Stocks"