Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1863-09-03

The Currsncy-Lstter from Secretary Mem mingsr.
The following letter from Secretary Memminger to
Senator Hunter relative to the currency is published
TREASURY DEPARTMENT, Q. S. A., I
Richmond, August a. 1868.
Hor. r. 81. I. Hunter, LlQyds, Va:
Sir-In reply to your inquiri"s about the finances,
2rd you condensed statement of he issue of Tree sury
notes. aud OF the funding operations of the Treasury
You will from this statement that the funding has
been successful; and you will learn, also, that the
amount OF outstanding Treasury notes is still within the
limits CT the depreciation which reported to Congress
at the last session. Ny report then estimat-d the
emount Of circulation which tue country could proba-
bly, haor at $l5O,O00,0OO.
The statement now shows that the out standing Treas
ury notos used general currency amount almost to
three times this amount. But when it is considered
that very large portion of these notes across the
Mississippi, it will he apparent that in the Atlantic
States the estimate of three to is rather the
na1k. Two absOrbents now added which will keep
down the excess from new issues-namey the taxes
and the sale of cotton bonds-and when the tax in kind
tgns to contribute its portion to the support of the
army there is every reason to believe that the currency
can be we'll sustained.
It is obvious from this statement that the popular
notion of estimating the value of the currency by COM
person with gold is altogether faacious for, while
the actual volume OF currency has only an Increased
three fold its proportion to gold rates at more than
double that amount. The fact is you all know that
situated are, gold is much commercial com
modify platina TIM and its price is governed by
| the law OF demand and supply. AS have already
| SHOWN, III Tue report lO WHeaG auu
much more reliable standards of value when their prc.
is not controlled by some local obstruction and by
ferring to these, it will be seen that the currency
has maintained itself at the ratio which the outstanding
issues indicate. You will perceive by the statement
that, uniting all the various appliances tor funding
there has been funded in bonds 1892 404 CO. to which
according to estimate there yet to be added about
500 600 900 more, which yet In the hands of the
Treasury officers to be funded, making 10 all alb u
1902 100000 Add to this SIS 442 900, deposited il
I'm. cent cali have oatf
of nearly $3l8 900 900 Withdrawn from the currency
that the adoped by Congress have been quite
as successful any of US had anticipated 1t Is some
what remarkable that the Yankee Government shoulC
have adopted exactly the measures for withdraw
ing their circulation, aLd according to statement pub
ished in Hunts Merchants Magazine, for July, they
have funded, in call loan and bonds, not thar
5000 900 900.
These figures show that there is for distrus
as to cerrency and if, when Congress meets, yoi
will address yours lives vigorously to measures which
will restrain lis farther increase shall b. fully ab
to maintain our cause. [ would Suggest you TIVE
matters tor consideration One is the export dut,
which proposed, aud the other is rebeEa of the Cal
loan 1ur all Treasury notes upon the principle witt
the six per cent. Call loan which reported at tn
last session.
1t is worth the experiment to try whether by allow
ing deposit in the Treasury, interest," may no
be able attract and retain there all the Treasur
note not actually required for circulation
Very truly, yours,
q. II. MEMMINGER,
Secretary of the Treasury.