The New York herald., 1862-12-06

SO VIII - required BY IL wants q he ceuu-
soss S b s counted ss 3 . q sSas NO rssess sss
easy determine what ursher payments BE- made 70
payments in that form may be safely carried 70 the
amount Of 500 600 O00 These payments have soaay
reached $SI ,363, ,2Al 66, and tho addtionM sum "
y6s IS may therefore be paid in that way What
be justly expected from unuof inc act au
1nornng ne issue Q, I've twenty nsS ss.ss notes SSr
these bonds, at par-canno pe sts,eu wisi nuon eo'
tainty The amount received from TINS source from tne
the last week in November is SIS $50 900. II may rea
sonably be expected that thrtya millions will DO 70
ceived If lie ac. unmodhct, during the remain
der Of tho fiscal year The aggregate OF all these sums
namely $ls 1877 s5Oonsttutes the total Of resources
available for under existing laws except
through sales regarded impracticabe under the act
authorizing their ssne Of tho five twenties at their mar
These credit resources with tho actual receipts from
like sources added 70 revenue In all forms mag supply
lance Of disbursements Of s276 60 10 be provided
'01 Howr
THE CREDIT RESOURCES on rHH COUNTRY.
The easiest mode doubtless would be issue Of tho
lued amount United States notes. but such an issue
especially the absence OF proper restrictions corporate
circulation would tho judgment OF the Secretary be
Injurious as it would be easy Tho addition OF 90 vast
volume TO tho existing circulation would convert
rency of which the benefits have thus far greatly
weighed tho inconvenicnoes into positive calamity. It's
consequences would be vast dminutson Of exports, ina
tion prices increase Of expenditures augmentation Of
debt and ultimately disastrous defeat or the very pur
puscs sought 70 be attained BY II.
To certain extent. however, and certain circum-
stances limited additional issue Of Unitsd ssates notes
may perhaps, be safely and advantagsously made.
The Secretary does not in the opinion enter
tanned by some whose ability and experience command
deserved RESPECT that tne aggregate currency o. me
OF corporations, Is at this moment greatly 10 ex-
cess Of legitimate demands for its employment
Much less does he concur In another opinion.
not unfrcquenty expressed, but expressed, 10 his
judgment without consideration that any actual
circulation.
THE HIGH pRica or GOLD.
II Is true that gold commands premium ia notes; IN
other words that 10 purchase given amount Of gold
greater amount ia notes required. But s also true
that, on the suspension Of specie payments and tho sub
sttuon for coin OF United States notes, Convertible into
six cent specie bonds the legal standard OF value,
gold became article OF merchandise subject to tho ordi
nary fluctuations supply ana demand and TO the extra
ordinary fluctuations Of speculation Tho gnoraut
fears OF foreign investors national and State bonds aud
other American securities, and the nid alarms OF nume
individuals In country, prompted
large sacrifices evidences Of public and corporate in
debtedncss markets. and large purchases OF
for remittance abroad boarding at home Taking ad-
vantage OF these and other circumstances tending
gold speculaors employed arts OF the
market to stimulate that tendency and carry It TO the
highest point This point reached the 18th day of
October. Gold sold In tho market at premium OF 31S
per cont
That remarkable rise not due wholly or even In
groatest part TO the increase OF tho currcocy csta
bshed beyond reasonable doubt by considerations
be stated.
REASONS FOR THIS GREAT RISE IN GOLD
FWsThc whole quantity or circulation did not, at the
time greatly, If at ALL exceed the legitimate demands OF
payments. On the st day Of November 1861 the ciscu-
ing officers and the OF tho United States
SIS ,l40 900. On the 1s day OF November 1862
notes. on the ist OF November 1861 tho circulation in
the loyal States according to the best estimates
sI3o oCo oO0 on the LIST OF November 1852 was $751;
coo 000 The coin in circulation, including the in
banks, probably not less, the 1st Of November
1861, than s2o 1000 On the ist Of November, 1862
the coin had been practically demonetzed and withdrawn
therefore not estimated. The aggregate circulation
therefore, OF the loyal States at the aIst date was
1855 ,l40 O00 and at the second only S377 l0i 600
Scccndiy-The whole, nearly the whole increase in
the volume the currency which has place wss
it believed. egmaely demanded by the changed
don OF the country in the year between tho two dates
The activity in business which, the OF that year.
had taken the place Of the general stagnaton which
marked its beginning, and the military and naval prepa-
ratons and movements which had vastly augmented the
pumber and amounts Of payments to be made money!
have, believed. egtmatey demanded nearly quite
the whole Of 1t.
That such the case may be reasonably inferred from
the fact that the prices OF many Of the most important
advanced during the year Wheat quoted at 81 So TO
81 45 per bushel on the 1st Of November, 1861,
Prime mess pork, on the LIST OF November, 1861,
quoted at s5 TO SIS SO blrre and the LIST Of No.
vember 1862 at $l2 SO to Sl3 Corn sold the 1slof
November 1851 at 81 to 50 cents per bushel the
1t of November 1852 a. II to 70 cents comparison
domestic produce the two dates exhibits similar con-
diions actual depression n price moderate RISE
Tifdy-It is perhaps, still conclusive the
theory great redundancy that day Octo-
ber when the aggregate actual circulation national and
about 1850 900 0O0 the gold
was 37x whereas, on the 10th day OF November, when
the circulation had increased by than millions the
premium on gold was 20 to 80 per cent
tho fact Of considerable redundancy in circulation
be conceded by means follows that II is the circula
tion of United States notes which is redundant.
PAYMENTS IN UNITED STATES NOTES AND COIN.
II be remembered that the law confines national
payments and receipts 10 coin and notes OF the United
States the treasury officers Of the army aud
navy all officers all departn must observe and
force this law For all payments to be made n behalf Of
the United States in case Of inability to obtain CON-
Init ad Stat rls
duty OF the legislature 10 that the purchasing
Of these notes kept as nearly as possible elua TO the
purchasing power which gold would have had IL
specie payments had been maintained but the
and OF the notes is unavoidable, and
the government resort to borrowing only when
the issue has become sufficiently large TO warrant just
expectation that loans OF the notes be had from those
who hold obtain them at rates not less advan-
tsgeos than those OF coin loans before suspension The
difficulty which the takers Of tho recent loan OF S13 613-
450 found III obtaining United states notes with which to
their engagements TO the Trsasuryss very nstruc
tive this head II points, indeed directly 10 the con
clusion that loans Of United States notes. IN sufficient
amounts the disbursements OF the government
could not he obtained at rates which due regard
tary accept Whatever may be said Of the aggregate
circulation 1t cannot then, be successfully maintained
that the circulation oi United states notes Is excessive
When extended to the limits authorized by existing laws
will be no larger than the wants ol the people and the
government imperativey demand.
WHAT Is TH CAUSE DETERIORATION OF ClRcUfA-
If there considerable redundancy then: il there be
considerable real depreciation Of the circulation
is by 10 means admted-what has caused the redun-
dancy and the depreciation
The cause Of all that exists is easily found In the state
merits Of the banking corporations. The circulation Of
corporate increased during the year ending the
lst November 1862 from $3.50 100000 TO $167 900 000
During the time the volume Of deposits, which
many Of the purposes OF circulation, had
sweed from 1924 900 10 S344 000 The greater
portion this took place within the last
months.
The augmentation of deposits always accompanies in
crease Of circulation. Together they stimulate oans
and are turn stimulated by the desire Of the interest
derived from loans. As might have been antciDated
loans increased though equally with the circulation
aud deposits. From SG07 900 600 on the LIST day OF No
vember they had TO S677 900 on the LIST
day OF November, 1852.
Here is obvious and sufficient explanation OF what
ever undue panson may have taken place. The Secre
tary has already expressed the opinion that the ccula
ton greatly redundant, and that considerable
depreciation OF currency has actually occurred. He
thinks il sufficiently proved however that whatever
he al Ia