Daily Democrat and news. [volume] (Davenport, Iowa) 1859-1864, 1862-06-24
CURRENCY AND SPECIE.

CURRENCY AND SPECIE.
The attempt to produce fine gold
from ba.er metals was matter that oc.
cupied the most earnest attention Of the
wise men of past centuries. The phi
losophers of the present day deride the
efforts of the alchemsts of old, and
wonder why they we're so wanting in
plain common sense as to seek for such
an impossibility as q stream Of the most
precious metal from crucible that had
received nothing but coarser mineral
substances. 1t has been claimed that
the world has grown wiser, and that
such cxtravagant ideas have been aban-
doned.
1t is not exactly so. The country is
trying an experiment at the present
time that is not a whit less visionary
and imprscticable than that which oc-
cupied the minds Of the alchemists Of
former days. Their idea was to pro-
dnce higher order of metallic sub.
stance out Of lower ORDER ours is to
produce higher order Of metallic sub.
st.nce-to wit, gold and silver, or its
equivalent, out of linen rags and ink !!
We allude, of course, to the great Trca-
sury note scheme. 1t was expected, it
is said, that these notes would range
alongside with gold that the one would
balance the other dollar for dollar.
They were declared by Congress to be
legal tender thus compelling parties
to receive them on debts due just as
they would receive gold. 1t was a
great farce. The high premium which
gold now commands Is proof positive
that Treasury notes are not and cannot
be made an equivalent for gold and sill
yer. And we have but Just taken our
first lessons in the matter. The expert
ence Of the public will be rather unpleas-
ant, We are afraid, before the end con- es.
The New York Erening Post, one Of
tn, soundest financial papers of the
country, talks to the point in its issue
of the 10th. We quote the article
entire:
MORE LscAL TENDER.-Our national
treasury has passed through several try.
ing periods since the outbreak Of the
rebeIIiop-it is said successfully aud 10
proof thereof is cited the quotation Of
government stocks at par on the Stock
Exchange. We cannot afford to pass
over all questions of policy and man.
agement of our national securities be
really maintained at par under the bur.
den of war. But that is not the case.
a morning journal reports that the pre-.
MUM on gold reached seven per cent.
on Saturday. This may be very sig
niticant fact; for, though attributed to
sudden demand for shipment, and reced-
ing after that was supplied, we can
hardly suppose it to be independent OF
all speculation as TO the effect of the
call Of the Treasury Department for
second "batch" Of legal tender currency
OF Que hundred and fifty millions Of dol
lars. A question in the rule Of three
may have been ciphercd out on the
w all street slate: II one hundred and
MY millions Of irredeemable paper mo-
ney give five per cent. premium on gold
what Will three hundred millions give
An 'rredeemablc currency is a sole.
clsm 10 commerce. 1t is . mere eroe.
dent OF snsotrency-submitted to in
certain cases rather than justified. As
to declaring it legal tender, it is inhe.
rently affection, and it cannot be made
anything else by any force Of law. This
approved by the market which, on Sat.
urday, quoted it screen per cent. below
par. Our government may enforce
creditors to accept as equal to gold what
IS rot worth gold, bat Il cannot make
substances equal which are not so in
tier nature. 1t may say to the holder
OF mortgage, You shall take ninety
cents In the dollar for your debt, but It
cannot make ninety cents equal to dol.
sa'' Stubborn, righteous gold will not
W corrupted, ese6ab BY 40 act Of Con-
s s.es bnt while the government may
eo.o.cs this fiction, it cannot prevent or
.hs. ps .o@ : single one Of the effects
$1,000 rom 1t. These effecta. 40
~ = pns Hnosdred and fit,y m;ll;ons az
currency are concerned. mn.t =. 90.
what would follow the emis.io, - ~
same amount s.s'sq ~ orr aaepend,d S. :. -
Ha"g4. 1nlqsaxa saa'