Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1862-08-06
Money REnners nj The Nor,h.

The Chicago Times Of the 3lst ult, says:
The supply of currency is abundant and the
demand quite limited, owing in part to the scar
city of vessels and only a moderate business
doing in breadstutfs. The banks are discount
ing all good paper offered at rates ranging from
Z to 10 per cent. Gold is quiet and very little is
doing. The rates today were quoted at 1I3 to
lis, the fluctuations in the New York market
causing dealers TO preserve a vida margin in the
buying rstes-the market closing at II3 The
recent high rates ruling in New York has led to
large shipments there from all points IN the
West, but the present dropping tendency in rates
has temporarily checked this. Silver is being
sent East in considerable amounts on s~9ecula-
tons. Tn West viii soon be completely drain
ed Of silver coin. What is not boarded by the
laboring classes viii be bought up and sent
East. In lieu thereof the people must be con-
tent to accept "shiRplasters' and postage
stamps. The decline in gold is explained by
the fact that Mr.. Chase, alarmed at the growing
premium il WIS commanding consequent upon
his policy of flooding the country with paper
money, had decided not to put ahOat, for the
present at least, any but notes Of small denOmi-
na.ions and fractional parts of q dollar, for con-
v%enience as a matter OF change. The closing
price in New York to-day was lI41.
The New York World says:
1--WE must be prepared for excessive and IN
expected fluctuations in The price of gold. The
sudden addition Of twenty millions TO the cur
rency will send it up; the withdrawal of the
same amount will have an exactly contrary eff
feet. The internal tax bill, which gees into ope-
ration on the first of September, will bs a fruitful
cause Of fluctuations in the price of the precious
metals. Large payments of legal tender notes
to the government for taxes win lessen the
amount in circulation for the time being and the
price of gold will Of course fall. In time the
payment of this tax viii make a use for a GER
tain amount of the government currency ahoat,
and will give all Of it q superior value to the IT,
redeemabie bank issues Of the country. We will
therefore have confusion worse COMPOUNDED in all
values hereafter. Gold wilt bear one premium,
silver another, old demand notes a third, then
legal tender notes will have g superior value to
the bank paper currency on account of its use
in the payment of taxes. All tbs will create a
rich harvest for the brokers, but viii cause inf
mite annoyance and loss to the trade Of the coun-
try.
There is a prevalent impression that, as soon
as a sufieiency of postage stamps are aOated TO
supply the wants Of the trading community in
the matter of change, cents and silver change
viii again become abundant This is mistake;
this inferior currency always drives out the su-
perior and the more postage stamps arc issued
the less chance is there for retaining our metal
currency.
&" The cause of all our miseries is an excess
i've issue Of irredeemable paper, and until the
Legitimate business OF the country, and not the
of the treasury department, dictates
tho amount Of paper We shHll use, the present
unhappy state If things will grow steadily