The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-02-23
Legal Tender Notes and High Prices.

Legal Tender Notes and High Prices.
Hon. JosErH A. NcDorGAIL, United States Senator
DEAR SIR have received your kind letter and win
spond carefully TO your inquiries my leisure will
permit. You ask "what will be the effect OF further
OF legal tender upon the price OF gold and other
articles OF necessity and luxury? This is certainly
very important inquiry, and requires from a very
careful and well considered answer nasmucn the ques
ton discoses doubt In your mind Of the accuracy
Of public opinion. 10 diner from newspaper and political
authorities and print opinion, requires thorough self
reliance and conviction well strong array of wei
established facts. In compliance with your request as
well 10 perform duty have determined 70 give you
through the public PRESS such opinions as entertain on
these subjects wealth. in this country is the result, 10
very largo extent, Of productive labor. without labor
should be possession Of thi, groat amount OF
wealth Therefore, according 70 well known laws OF po
tcal economy, may consider productive labor as the
very base handspring from which we derive the neces
saries and uxuries Of civilized life. This is directly
reaching the foundation Of argument. Destroy pro
ducve labor and you kin the goose that lays the golden
e9gn You may destroy the product Of labor you may
devasate the country with Are and sword but you do
destroy the aborer all these losses be repaired
Princes and lords may flourish and may fade;
breath can make them as breath has made;
But bold peasantry, their counfry'a pride,
When once destroyed can never be supplied.
IT, then you will assent TO this well known and estab
lshed fact that the wealth and prosperity Of country
to be estimated by the number OF artisans aborers and
others incidentally connected with them in building up
great communities then, coroary, must conclude
that the withdrawal Of productive labor must that pro-
portion impoverish the country. We come to the
statement Of a few well Known facts. In this
Try about in five Of population is
producer. Tho remainder consumers, who
live upon and are supported by the labor
Of he he
and women, sick, decrepit loafers, many men Of
elegant leisure gamblers NC fair estimate gives TO
productive labor OF every five in all popua.
tion in time Of peace.
Until the rebellion disturbed the industry OF
try, every department well supplied with laborers.
Each old state. when TOO much crowded, threw on its
surplus aborers into the boundess 6eos Of the great
West where they immediately became producers Of grain
for the East and South and consumers OF many or the
products Of those sections The laborers Of
try foil employment and the general prosperity Of
the whole Union such that labor found more liberal
reward than any other portion Of tho EARTH In
this state OF prosperity had among less proper
Of nonproducers than any other country
We needed government officials because the people
naturally obeyed laws they had themselves enacted
And for tho required no military power
beyond what could keep the Indians frontier In
sub ection.
In this condition the great rebellion found US Inc
spirit Of the nation aroused by infraction Of
constitution and laws and the aborer and artisan the
merchant professional man, all inspired with
desire to in enforcing the laws The consequence
was the farmer his plough the his loom the
carpenter his toosand every trade and calling voiun
teered the country Never before the history
OF any nation, have many persons been taken within
the period of time from the active and profitable
pursuits Of labor. Every department OF industry has
been depleted Of some OF the most valuable Of it's mem
beers.
Here then. may look for material change in the
price OF the products of industry. The hie and drum
drawn on large number that the employers find
themselves without Sufficient forces 10 carry forward
their manufacturing and other business Of the country
Consequently labor - in great demand and as il IL mol
readily obtained the price Of labor rsos aud the prOduc
ons labor decrease. Thus Will be that the war
by taking away aborer decreases the number Of pro
ducrr- and Increases the In other words
the converts many producing lfb0rers into destruc
tyes and consumers OF the product or other men labor
Tho o this Is 10 increase the eOs Of every
article productive labor aud reduce the quantity. This
naturally results from the cause stated aud sufficient
prove that must advance whether the currency
be gold paper We may Illustrate this idea By refe
to cotton The war found cotton worth ten cents
per pound 1t commands ninety cent Is this tho
effect of currency
Cotton il the product OF labor This article
prved Of, consequently we compelled %
silk ras. wool aud anything else out Of which 40 can
make substitute for cotton This demand for six, Dan
and wool very naturally enhances The prices OF these ar
tclcs The increase the price Of this class Of articles
IL produced by the same that influences tue price
u labor. when labor i abundant than the demand
IL will deprccae 10 price and 80 will cotton, SILK wool
fax, sc. ard when labor 10 withdrawn aud employers
want than they can obtain, II viii rise, and % o.
every other thing.
II the should terminate tomorrow, all the pro
duets Of labor would fall because ~e should require
standing army, The host Of soldiers producers
would nd o. labor and seek labor and the
demands % for the supply ~ ths army aud
the munitions Of war would case, there would be fall
10 the prices OF All articles which the immediate
suit n productive labor.
You vii ind that the Old rule tina, supply and de
msnd control prices" holds good no~i and that ibs
withdrawal o more thsn t~o millions OF produssrs by
this war, and converting them into consumers aud de
structves OF the fruit VI labor than sufficient
for tho prices without seeking for cause
In the volume Of currency.
II s my purpose 70 now tbs, the price Of gold not
affected BY currency currency by gold and that
really tho high price OF gold has been great blessing 70
our country. And ne viii try 70 show that have
many legal tender notes the business Of The country
requires and rule TO determine when we have
cess Yours truly, s. MS.