The weekly register. [volume] (Point Pleasant, Va. [W. Va.]) 1862-1909, 1862-10-09
seareity of Currency.

The mostremarkablc feature in money
affairs at present, is the large absorption
and consequent scarcity Of paper curfen'
cy, both Federal aud local. The United
States notes Of lawful tender, thus far is.
sued by the Treasury Department are
wholly insufficient to supply tho demand.
The city and couotry banks OF New York
are also unable to meet the requiremenls
of trade for circulation, although the agi
gJegaDe no q exceeds thirty five millions Of
doIlOr. The Bank Note Reporter of Mr..
John Thompson thus explains this extra.
ordinary state Of the currency
"Odr solution is Wealth has increas,
ed faster than currency. and unlike fot.
mer times, this wealth IS held by tho
people in the shape Of papgrmoney 4
vast amount has fallen into the hands Of
the families and friend, Of soldiers, who,
Instead Of buying something with il, OF
deposiling it in bank, hold 1t in papet
money against the timeo need. -Four
hundred thousand volunteers. averaging
5000 qeeh bounty. absorb sac, 600, 900.
isA gssg lsfgs portion ol tlIs Is helii ia
the Identical money paid out 70 tlisIh..-s'
This, 10 our opinion, is the greatest
source Of absorption Of currency. Ma.
ny other absorbing sources are iu aotige
play, So long as the war is disastrous
and dscourlgi0g the money that falls
into the hands Of the people will remain
unused, sud this scarcity Of currency
will continue until feeling of confident
security payes the way for the purchase
of property, or investments in securities,
twill gradually dn( its way into banks
aud saving banks, ard this obviaLrs, to
some extent the extreme scarcity Of cur.
reucy BY still fur'ter increase of de
posits.
How shall currency be Increased to
the requirements Of the people? The
chartered banks are generally up to their
legal limits tho free banks are up to
their volume for peace and prosperous
times A few OF the more enterprisins
keep increasing cautiously. Without
amendments to choraciers, or other legis.
laliye ennciments, the local banks can.
not meet the dcmqad ;9r money in ,hs
shape of cdrrdnog 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 are to make, de-
mops,mtion on the Secretary Of tho
Treasury with view to stopping The
further issue of circuloting notes. Theis
main argument is lhe necessity Of bring
ing down the price Of gold and they
preociye that the old method Of oontrao'
ton will de- il. This is, at leas, tieis
bretenre their real ohisct is TO raise Ihs
rate Of interest, aud ininnc Nh Chase TO
c.A Syadss-"e4 -"j,sre~! Fe'ss ~.ray NEef';gs'"
rsl skies at 60@7o. Fe'
Anything o'tiis kind would lead 10 Z
panic, an ins cad Of bringing down tho
price Of gold. would surely carry sho
premium much higher than il 10 nov
Thegs n. M l.GE9ei faEC ne Ssctevt&g IS
the Treasury viii be caught in such
trap Trcasury note currency has taken
n dee p root, md The ereatest safety noE
is in lis uniform use, increased in volume
to the legitimate demands Of the people
When the war assumes brighter duo,
currency will flow into Stocks as FAST @
tho hollors desire to part with Il, and
then gold will come down, not Ia can0O
quenoe Of contraction, but OF cona
donce mot from necessity, hut from Il
popular investment in Federal Stocks"