The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-02-12
Report OF the Secretary of the Treasury.

ldT0e dTOrds sdIls
factory esidmce that he issw Of them jud cios
sure; and for any ordinary the bonds and interest
votes, amonng oohsr u monthly sale o., .sc,,y and
A&J millions, oonld hare sustained the government tcphoW
any Tapr currency. But the estimates call for
more than twice the amounts furnished by these
sources, and compelled 10 resort 10 the Treasury
notes TO supply the deficiency 1t becomes then most
important inquiry whether ne sue OF such notes be
continued, and u can, then % What extent
he Confederate S.o. t:ors he might BE- estimated at
hundred miIisns or dollars Ia ne eriiing state o
@SHGs u q JrpHe hdt larger oD.oRs1 q cJreacy Is
required In time of peace money passes rapidly from
hand to hsld and The same money in single day will
discharge many obligations large portion, too, OF the
operations Of business performed by bills Of exchange
and bank cheeks In the present sagnston o
md sS rSs5 ns & %osy are KEEP,
notes and call certificates used substitute for
bills and drafts to considerable extent If this be
he usual amount Of carreney and this would raise no
sum total at which might stand 10 husdred aud mn
uasItons The difference bci1c-en his sta ana dc actvai
circulation ie.u shosC Tie redundancy The actual eli cua
tou embraces not only Treasury notes but bank and
State emissions u Treasury notes In ordinary times cln
would also form part but at present not only the
but large portion Of the bank notes have been with
drawn from. circulation
amounted 70 $500 la9 692, exclusive Of saeye4 bcdrJ
rotes. ~ add,ng 10 hts sufficient amount 10 corc,
Ms Stat Treasury notes ana Ms bank notes urcplr ion
can arfac at me to'di o. ne currency. Tceniy
'cns add 70 TIE Treasury notes ,oouid p,a,dtiy represent
hs mhols.
Is this aggregate which must be kept in view v hen
we deal with the currency Of values II Is
fhe VINO mass a. II re accepted b. the community in
exchange Tor us various commodities which by ts pro
portona relations 10 those commodities dctermin their
prices. by law nvarabo as any law OF phys cal
nature, thrse prices rise fall with the acua volume
The whole currency. Neither skin nor povcr can vary
the result. IL e, 10 fact, relation subsStug between
two numbers the enc representing the total values Of
property AMI the other the creulatlnr medium
The nature OF that medium cannot change l., IL would
with a currency OF gold with inuch certainty as
with OF paper, n the gold kept within the
vonlry by restraints equal To hcso winch retain the
paper.
Assuming, then. that entire confidence exists in or
currency, the fact that It's actual volume has been
increased threefod would lead EXPECT correspond
ing increase prices such increase, although tally
certain does not usually appear al the same moment with
tie expansion. Like tho moons extraction upon the
cocan, the time Of high water postponed for
period beyond the moment at which the influence has
been cNefted, and tile length Of the interval affected by
exceptional causes But although there may be dcay
the event IS certain. Prices will reach tho bcght al
Nsted by the sCae ol issues an1 they can Ouy be
stored % their condition by return to the norma
Nanuau :" currency. IN Other words ne aig rsAais IA
81 Nytfd currency Is regcfign Of M crcldttH0
snn y iha reduction rrlcticablep
neioe answering ths question Il Is nFortADt shouts
&C ihy assured o. the cNce-s ot paper currency
u the country were open 81 t1elan intercourse tho al
ference IN value between coin ptl ar nancy ntd "A
af1ri tot But IN tho present conoi,on nj rsge
con cannot be imported, and gd AMI oliver have boo m,
srtCcs IL commerce Ike on Or lead They cannot ,r
f're ake their usual pac absolute measures 81 sso
nifcues somewhat of the same Kind attend o1h,r
tets such bills Of exchange real estate or comm,
Sis general use, aud Of which ihefe i pF srtrtfty
Ordinarily, the average prco II wheat grain .ed ID :.
bike articles VI prime necessity would furnish 4 guI4s
demand and supply from day 70 day and lbus alransc
rr,rcs Mating al duo allow ances f0r elttaaI W. t
tbst ne tlepi rr,css II sscA agee tGag 81 rfarg u
"Ss ae ssssi psae, pr,css. Ns.g,h,aalns "a. lslgnp