The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1862-12-13


bic for the curren; year under existing
laws excep through sales, regarded as
imprac icabie under the act authorizing
their Issue, of the iive-twcntics at their
market value.
These credit resources, with the
actual receipts from like resources, add
ed to revenue III AL forms may supply
the treasury with Sol ,G46, $50 .96.
| There remains a balance of disbursements
Of S27G,9l2,5l7.GG 10 be provided for.
How!
The easics' mode doubtless would be
an issue of the required amount in
United States notes; but such an issue,
especially in the absence of proper re-
strictions on corpora circulation,
would, IN the judgement of the Secrc-
tary, be as injurious as it would be easy
The addition of so vas: a volume to the
existing circula ion would convert a
currency, of which he benefits thus far
have grea ly on weighed the inconveni-
cnces, into positive calamity. Its con-
sequences would be vast dimunition
of exports, initiation of prices, increase
of expenditures, augmentation of debt,
and, ultimately, disastrous dcfeat Of the
very purposes sought to be attained by
| it.
TO certain extent, however, and
under certain circumstances, a limited
additional ;s>nc of Uni cd States notes
may perhaps be safely and advantageous
y inade.
The Secretary docs not concur in the
opinion entertained by some, whose abil-
ity and experience command deserved
respect, that the aggregate currency
of the country, composed of United
States notes and notes of corporations,
is at this moment greatly in excess of
legitimate demands for j employment.
Much less does be concur in another
opinion, not unfrcquen ly expressed, but
expressed in his Judgment without due
consideration, that any actual excess is
due to the issue of United States notes
already in circulation.
1t is true that gold commands pre-
mium in no es in other words, that to
purchase given amount of gold IL
greater amount in notes is required
But it is also true that, on the suspen-
sion of specie payment and the subs itu-
tion for ccin of Unite States no cs,
| CONVEX able into six per cent specie
bonds as the legal Standard Of value,
gold became an article of merchandise,
subject to the ordinary fluctuations Of
supply and demand, and to the extra
ordinary fluc uatlons OF mere speculation.
The Ignorant fears of foreign invcs crs
in ma ional and $ ate bonds and her
American securi les, and the timd
alarms Of numerous nervous individuals
in our own country, prompted large sac
rlticcs upon evidences of public and cor
poratc indebtedness in our markets, and
| large purchases of coin for remittance
abroad or boarding at home. Taking
advantage Of these and other circun-
$ anccs tending to an advance of gold,
SPECTATORS employed all The ar of the
{ market to stimulate that tendency and
carry it TO the highest poin.. This
point was reached on the 10Th day of
October. Cold sold in the market at Il
premium oi So per cent.
That this remarkable rise is no. due
wholly, or even in greatest part, to the
increase of the currency, is established
Beyond reasonable ,'oub. by considcra-
lions now 20 be stated.
FRS The whole quantity of circu-
la'lon did not, ut The zine, grea ly, if Il
all, exceed the lcgi innate demands of
payments. On lie LIST day Of Novcm-
Der, 1861, the circulation of lpic cd
States notes, inclndiug credits to dis
bursting officers and the Treasurer of the
United States, was Sl5, 10000. On
the lst day of November, 1862, 1t was,
with like inclusions, $2l0,l04,OO0. or
corporate notes, on the Is: Of November,
1861, the circulation in the loyal States
was, according to the best estimate,
$50, 200: on the 1st Of November,
1862, it was $lG7, 100000. The coin
in circulation, including the coin in
banks, was probably not less, on the Is:
of November, 1851, than $40, 900.
On the lst of November, 1862, the coin
had been practically demonetized and
Withdrawn from use as currency, or as a
basis for currency, and is therefore not
estimated. The aggregate circulation
OF the loyal States, therefore, was, at
the first date, $355, 100000; and at
the second, only $377,lO4,ooo.
Scconl' y-,-The whole, or nearly the
whole, increase in the volume of the
currency which has taken place was, it
| is believed, legitimatcly demanded by
the changed condition Of the country
in the year between the two dates. The
&C ivity in business which, at the close
of that year, had taken the place of the
general stagnation which marked its be-
ginning, and the military and naval pre-
parations and movements which had
vastly augmented the number and
amounts of payments TO be made in
money, have, it is believed, lcgtimatcly
demanded nearly OR quite the whole Of
it.
That such is the case may be reasona-
lily inferred from the fact that the prices
of many of the most important articles
Of consumption have declined or not
materially advanced during the year.
Wheat, quo cd at $l.3S to SLID per
bushel on the LIST of November, 1861,
was quoted at Sl.45 to $1.5O Oh the
LIST of November, 1862. Prime mess