The daily Evansville journal. (Evansville, Ind.) 1862-1863, 1862-12-10
NUMBER 80.

less does ne concur IN another opinion,
not unfrequently expressed, but express
ed, in his Judgment, without due consid-
Grafton, that any excess is due to the
issues of United States notes already in
circulation.
THE PREMIUM ON GOLD.
1t is true that gold commands a pre-
MUM in notes; in other words, that, to
purchase given amount of gold, a
greater amount in notes is required.
But it is also true that, on the suspect
sion of specie payments and the substitu-
tlon for coin of United States notes con-
vertible into six per cent specie bonds
as the legal standard of value, gold be-
came an article of merchandise, subject
to the ordinary fluctuations of mere spec
ulation. The ignorant fears of foreign
investors in National and State bonds
and other American securities, and the
tmld alarms of numerous nervous indi-
viduals in our own country, prompted
large sacrifices upon evidences of public
and corporate Indebtedness in our mar
kets, and large purchases of coin for re-
mittance abroad or boarding at home.
Taking advantage of these and other cir
cumstances tending to an advance of
gold, spectators employed all the arts of
the market to stimulate that tendency,
and carry it to the highest point This
point was reached on the 18th day of
October. Gold sold in the market at q
premium of 37s per cent.
That this remarkable rise is not due
wholly, or even in greatest part, to the
increase of the currency, is established
beyond reasonable doubt by considera-
tons now to be stated.
First-The whole quantity of circula-
ton did not at the time, greatly, if at
all, exceed the legitimate demands of
payments. On the lst day of November,
1861, the circulation of United States
notes, including credits to disbursing
officers and to the Treasurer Of the
United States was Sl5, 10000 On the
lst day of November, 1862, il was, with
like inclusions, $2i0, 10000 Of corpo-
rate notes, on the lst of November, 1861.
the circulation in the loyal States was,
according to the best estimates, $780,
100000; on the lst of November, 1862,
it was $l67, 100000. The coin in circu-
lation, including the coin in banks, was
probably not less on the lst of Novem-
Der, 1861, than $2l0,000000. On the
lst of November, 1862, the coin had
been practically demonetized and with
drawn from use as currency or as bfss
for currency, and is therefore not esti-
mated. The aggregate circulation of the
loyal States, therefore, was, at the first
date, $355, l40,0O0; and at the second,
only $3I7 l04 0ilG--------~.- f'ruvv "dS IL
;s believed, legitimately demanded by
the changed condition of the country in
the wear between the two dates The
activity in business which, at the close of
that wear, had taken the place of the
general stagnation which marked its be-
ginning, and the military and naval
preparations and movements which had
vastly augmented the number and
amounts Of payments to be made in
money, have, it is believed, legltimately
demanded nearly or quite the whole of it.
That such is the case may be reason
ably inferred from the iact that the
prices of many of the most important ar
ticles of consumption have declined or
not materially advanced during the year.
Wheat quoted at 81 80 to$l 10 per bush
el on the lst of November, 1861, was
quoted at 81 As to 81 so on the lst of
November, 1862. Prime mess pork, on
the lst of November, 1861, was quoted
atSl5 to $l5 80 per barrel, and on the
lst of November, 1862, at $l2 SO to $l3.
Corn sold on the lst of November, 1861,
at 50 to 63 cents per bushel, and on the
lst of November, 1862, II to 73 cents.
A comparison between the prices of hay,
beef, and some other staples of domestic
produce at the two dates, exhibits SINH
lar conditions of actual depression in
price or moderate rise.
Thirdly: 1t is perhaps, still more con-
elusive against the theory of great redun-
dancy that, on the 18th day of October,
when the aggregate actual circulation,
national and corporate, was about $780,
O00.0 900. the premium on gold was 37s
whereas, on the Doth day Of November
when the or yulation had increased by
more than millions, the premium on gold
was 20 to 80 per cent
THE EXPANSION OF GOVERNMENT CIRCULA-
TIoY
But if the fact of considerable redun-
dancy in circulation be conceded, it by
no means follows that it is the circula-
ton of the United States notes which is
redundant.
1t must be remembered that the law
confines national payments and receipts
to coin and notes of the United States.
Officers of the Treasury, officers of the
army and navy, all officers of all depart
ments, must observe and enforce this
law For all payments to be made in
behalfof the United States, in case of ina
bility to obtain coin, United States notes
must be issued. 1t is, indeed, the duty
of the legislature to see that the purchas-
ing power Of these notes is kept as near
ly as possible equal TO the purchasing
power which gold would have had if
specie payments had been maintained;
! but the issue and use of the notes is
unavoidable, and the Government can
resort to borrowing only when the issue
has become sufficiently large to warrant
a lust expectation that loans Of the notes
can be had from those who hold or OBJ
tain them at rates not less advantageous
than those of coin loans before suspen-
sion. The difficulty which the takers Of
the recent loans of 3,6l3, ,450 found in
obtaining United States notes with which
to meet their engagements to the Treas
ury is very instructive on this head. 1t
points, indeed, directly to the conclusion
l. Z