The daily Evansville journal. (Evansville, Ind.) 1862-1863, 1863-01-23

perhaps indefinitely, the resumption OF
specie payments. Gold now commands
q premium of thirty-two per cent, paya-
Bile in Treasury Notes; but if such issues
be increased one-half, they fall to fifty
per cent, and if doubled to at leastasixty
per cent. below prices At the last rate,
1t our yearly expenditures, paid in paper,
reached $700,000,000, this would com
mand but $3.50, 100000 in gold, thus sub
Jecting the Government to a loss of
S42O,OOO,O0 per annum, and at thirty
two per cent discount, 1924, 600 900 per
annum. These notes, it is true, bear no
interest, which at six per cent. on $780,
100000, would save SIC, 100000 year.
But as under the Secretary's plan, (here-
after developed the Government would
only pay an annual interest of four per
cent. on this loan, the saving would only
be $1l 100000, Deduct this interest
thus saved from the $420,000,000 of in
creased annual expenditures, arising
from such depreciation of Treasury
Notes, and the result is net loss of
$40S, S,S00,000 per annum to the Govern
ment, from the use of such redundant
and deprecated currency. Surely, such
system would soon terminate in bank
ruptcy and repudiation, repeating the
history of French assignats and Cont
mental money
Nor is it the Government only that
suffers from such disaster, but the ruin
extends to the people. There is no law
more clearly established than this: that
the currency ofa country bears certain
fixed proportion to its wealth and busi-
ness. If we expand the currency beyond
this proportion, we violate this law, and
will surely suffer the terrible penalties of
this disobedience. This law is so certain
and invariable, that if the expansion be-
yond this proportion should be even in
specie, the result would still be disastrous.
This was illustrated during the reign
of Ferdinand and Isabella, when Spain,
having opened the virgin mines of Amer
lea, brought the precious metals in count
less millions within her limits, and re-
stricted their expectation by the most
stringent penalties. And what was the
consequence? Mr. Prescott, of Boston,
tells us in his great history, that the
streams of wealth which flowed in from
the silver quarries of Zacatecas and Po-
tosi were jealously looked up within the
limits of the Peninsula" The golden
tide, which permitted free vent, would
have fertilized the region through which
it poured, now buried the land under
deluge which blighted every groom and
living thing. agriculture, commerce,
manu- fdctures. every branch of naiieAAI
1nnnCfFV and ImnrnVPmpnf ianUUIGhpN
and fell to decay; and the nation, like
the Phrygian monarch who turned all
that he touched into gold, cursed by the
very consummation of its wishes, was
poor in the midst of its treasures. Such
was the effect of violating the law which
regulates the ratio of money to wealth;
such the consequences of a superabun-
dant currency, even in specie.
The result was that Spain, which had
been the. most prosperous nation in Eu-
rope, and whose products of manufac
lures had supplied the markets of the
world, lost nearly all her exports, and
was forced to resort to the prohibitory
system. The cost of living, of working
farms, of manufacturing goods, of max
ing and sailing ships, became so high in
Spain, from her superintendent currency,
that she was reduced to poverty, and
never began to recover until "Spain
changed her system, encouraged the ex-
portation of the precious metal, and thus
brought down her superabundant cur
rency and inflated prices, and thus ena-
bled Spanish industry to supply the mar
ket of the peninsula of the world. !"
Then, the distinguished historian tells
us, the precious metals, instead of
flowing in so abundantly as to palsy the
arm of industry, only served TO stimulate
it, the foreign intercourse was widely ex-
tended; the fourishing condition of the
nation was seen in the wealth and popu-
lation of the cities, &c. 1t is a redundant
currency, even if gold or convertible into
gold, that produces these evils, although
depreciation adds to the disaster
Ruinous as must be the effect of re-
dundant and deprecated currency upon
all industrial pursuits, the injustice to
our gallant Army and Navy, regulars
and volunteers, would be attended with
extreme peril. Upon their courage and
endurance we must rely for success
We have pledged to our brave troops,
who are wounded or dying by thousands
that the Union may live, such pay as to
enable them while fighting our battles to
make allotments of portions of their
money for the support of their families
duringtbe .alhGc Il nrS9 are all solemn
pledges on the part of our Government,
and our faith is violated if this pay or
these pensions are reduced. But there
is no difference between law directly
reducing this pay and these pensions
and the adoption by Congress OF the pol
lev of a redundant and deprecated cur
rency, which will produce the same re
suit.
Every vote then in Congress for such
policy is vote to reduce the pay anC
pensions for our troops, and to annihllat'
the allotments made by them for the sup
port of their families. What effect sucl
a policy must have on our troops AM
the maintenance of the Union is but to-
palpable. 1t is disbandment and dis
solution. Every such vote is given ais
to reduce the value of the wages of Ia
bor. and for increased taxation, to tn
extent, as we have seen, OF S4OS ,SOo,uO'
per annum. 1t is vote also to reduc
our exports and revenue from customs
to paralyze our industry; and finally, II
its ultimate results, it is vote again;
the war, for Reputation and disunor