The weekly sun., 1862-03-01
The CnrrencH 0usssisn.

The Currency Qusstien.
There IL q great deal written in relation 10
the depreciation Of the currency as a result Of
the suspension Of specie payments by those
who do not cover tho whole ground Of argu-
nent. Thuss circulAr issued by a banking
house in Beaver street In tho bull interest for
general distribution, alleges thst the legal ten.
der clause will have the necessary effect N put
mp the price Of gold" This Is utterly falla.
cieus. The price OF gold may rise simultano-
ousy with the fact that the bills are made q 10.
| gal tender but il will be either because tho
the notes arc in too great supply for the pur-
poees Of paving Government dues or because
| Of a continued and activo demand for gold, and
| not simply because tho notes are made legally
equal TO gold Tho circular illustrates its notion
by reference 10 the Bank OF England during
the French war, showing that a considerable
rise then TOOK place in tho price Of gold. Trat
vap. no doubt, the fact, but not because the
ourrorcy was paper, but because gold
was Indispensable for the large military
operations on tho continent and for sub
sdios paid by England 10 the Governments
in league against France. Every year irnmonss
sums were required TO Gil the military cheats
Of marching armies, and which, when paid out,
was hcardtd by the people Of tho disturbed dis-
trcu. Tho supplies Of gold at that timo were
limited, and tho constant demand, al an unlnit-
ed price, carried up the ratio Of il in England.
In subsequent years, the celebrated N. N.
RorIscHILp, whom before tho COMMITTEES Of
Parliament, said that war always made an i'm
pcrtan, change in the price Of gold, because it
muot be had 10y belligeronts at any price.
England undertook to supply hor allies with the
moial duiirg twenty yeSr', and thoro is no
wonder that iti value rose, for a reasoa 4 quito
apar, f,cm that Of making paper a legal tender.
The parer Of the Bank Of England wm never
pushed to oxoess, ard would not Of itsslf have
caused a riso in geld in face of tho fact that
commerce and industry were very active In
the United States, at present, thoro is abun-
darco Of coin, and no special demand for it
whatever, except that caussd by spseulstion
bascd upon such theories as that Of tho circular
alluded TO- ard which oroaks about the evils
arising from 1.-TWO standards
Up 20 1852, the country always had a. France
still has, two standards gold and silver and
when goll began to flow in in abundance from
the United States abolished tho silver stan ard,
and llol AID tho gold standard. Tho lattsr
county adhered to silver under the uprossion
that il would rise a. comp rod TO gold, aud
Therefore benefit tho mouied or creditor clsa.
Both nations wore disappointed; gold has con-
tinued to pour in, 10 tho extent Of 900 mil
lions from Australia atd Calf rnia in ton years,
hut there is no porcop,ible change in the rela-
tive value Of gold to silver. whyi B,causs
simultaneously with tho gold discoveries, tho
progress Of affairs in India was such as 10 cause
an active demand for silver for that country,
and the quantity sent thithor rery Ss1rky e2udiS
he rhoic suppiy c'gotd which has poured into
the vacuum caused by the withdrawal Of silver
| from the Fast. Hencs there has beon no apps-
| rent charge in the value Of the metals.
In tho loyal states there is 1926, 900, 900 Of
J specie in hank and circulation, and there are
| $15n, Goo OC0 Of bank notes circulating side by
side with geld. To mako the latter legal ton
der the quantities being maintained would not
d,p'ociato them, neither would government
notes 10 tho same extent dopreciate. Tho dan.
ser is not in making them legal tender, but in
noglec,ing to psy them 10y taxes, and in in
creasing the quantities to grca, excess. In
this lics the real difficulty. The notes if DO
reuded upon entirely will be ruinous, but will
lie useful IL confined in amount TO the sum oi
the taXeS levied.
In the same sense, the pay mont Of interest in
coin upon the stocks without providing thu
means of paying, by taxation, is mor''~ boat
ing the air. MIR. SPAuLDINo of the Commit
tee on Ways and Means, in the Committee o
the Whole, pointed out the evils Of paying on'
class Of creditors In coin aud another in paper
but he did not go to the bottom Of the matter
and show that the whole argument rested OIL
taxation. If that a adequate, all will hav
coin If not 40, none can get ii by any posi-
| bility,