The Abingdon Virginian. [volume] (Abingdon [Va.]) 1849-1883, 1863-09-04
Letter OF the secretary of the
Treasury to Mr.. Hunter.
TREASURY DEPARTMENT, .. .. A.,
Richmond, Aug. "a, 1868. /
Ton r M n Hunter, Lloyds, Va:

Hon. r. NJ T. Hunter, Lloyds' va:
Sir-ln reply to your inquiries about the
6nancos I send YOU a condensed statement of
the issue Of Treasury notes, and Of the fund
inc onerations of the Treasury. You will see
from this statement, that the funding has
been eminently successful; and you will learn,
also that the amount of outstanding Treasu-N
~ notes is still within the limits of the de-
nreciation which reported to Congress at the
last session. NY report then estimated the
amount of circulation which the country could
probably bear, at 5O,OOO,O OO.
The statement now made, shows that the
outstanding Treasury notes, used IS general
currency amount almost exactly to three
times this amount But. when 1t IS consider
ed that very large portion Of the notes are
across the Mississippi. it will be apparent,
that in the Atlantic States the estimate. Of
three to one is rather over than under the
mark. Two :.bsorbents are now added, which
will keep down the excess from new issues
and when the tax in kind begins to contribute
it's portion to the support Of the army, there
is every reason to believe that the currency
can be well sustained.
. It is obvious, from this statement. that the
popular notion of estimating the value offs the
currency by a comparison with gold, is alto
saether fallacious :4for,s while the actual ve-
June of currency has only, been increased
three fold, its proportion to gold rates at more
than double that amount. The fact is, as
you well know, that situated as we are, gold
is as much a commercial commodity as plati-
ma or tin, and it's price is governed by the law
ofsdemand and supply. AS | have already
shown. in the report referred to, wheat and
corn afford much more reliable standards of
value when their price is not controlled by
some local obstruction; and, by referring to
these, it will be sect, that the currency has
maintained itself at the ratio which the out
standing issues indicate. You will perceive,
by the statement, that uniting all the various
appliances for funding, there has been fund
ed in bends $685., 404, $40, to which, according
to estimate. there is vet to be added about
SO ,000, 900 more, which are yet in the hands
Of the Treasury officers to be funded, making,
in all, about $500. 000, 900 add to this Sl5.-
AZ, 900, deposited in the five per cent. call
loan. and we have an aggregate Of nearly
1913. O00, 900 withdrawn from the currency.
This resultis certainly very favorable, and
shows that the measures adopted by Congresd
have been quite as successful as any of u
had anticipated. It IS somew bat remarkable,
that the Yankee Government shonld have
adopted exactly the. same measures for with
drawing their circulation, and, according to
a statement published in Hunts Merchants
Magazine, for july. they have funded, in call
loan and bonds, not more than $500. 000, 600.
These figures show that there is no reason
for distrust as.to our currency; and if, when.
Congress meets, you will all address your.
selves vigorously to measures which will re-
strain its further Increase, we shall be fully
able to maintain our cause. 4 would suggest
to You two matters for consideration: One,
IS, the export duty which I proposed; and the
other. is a renewal Of the call loan for all
Treasury notes, upon. the same principle with
the six per cent. call loan, which was reported
at the last session.
1t is worth the experiment to try, whether,
by allowing deposit il the Treasury, on In
terest. we may not be able to attract and re-
tain there Oil the Treasury notes not actually
required for circulation.
Very truly. yours,
C. G. MEMMINGER,
Secretary Of the Treasury.