The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-03-10

Inc Dill passed ~ COngrooo 70 tax Specuis-
tors In gold and silver coin upon purchases to
| deliver on time, and to prevent banks loaning
them money upon the security Of specie beyond
its par value, has only partially checked the
operations of the tribe. The first consequence
Of the measure was panic and general desire
to got rid Of gold and invest capital in something
else. Such was the rush that 1t caused the
price Of specie rapidly to fall, tho supply being
so much greater than the demand. But now
that this rush is over, gold does not continue to
fall; but on the contrary, after remaining for
several days In tho vicinity Of $50, has gone up
again to the neighborhood Of 1877, and yester-
day auctuated above and below 1866 The bill
meditated in our Legislature to prevent the
banks loaning any money upon the security Of
gold and silver coin goes beyond the act OF
| Congress, and would have . similar effect in
| repressing the rage for speculation In the
! precious metals till the panic passed of or the
sharpers discovered some method by which they
might evads the law.
But no enactments can permanently prevent
the rise of gold or the depreciation Of inconver-
tible paper currency, unless an act compelling
payment In specie; and, after all, probably it
was presentiment Of something Of this kind
being done by Mr.. Chase, in pursuance of the
discretionary powers invested in him BY Con-
gress, that had most influence in giving tenn
porary check to the Spectators. The idea had
been set aHoat in this journal the day before
the sudden descent. The spectators began to
doubt about the course they ought to pursue.
The very thought Of specie payments had
| scared them; but when they found Mr. Chase
was not acting on the suggestion, they rallied
and somewhat resumed their composure. Only
let him, however, now make the announcement
that he intends to restore the currency to its
normal condition, and gold will soon go down
to q much lower figure than 1t has recently
fallen to, or rather the currency will imme-
diately 60 up, and when specie payment is ac-
tually begun, greenbacks will rise to par; and,
though the gold on hand to redeem the notes
might not be equal to one-eighth Of the. circula-
ton, 1t would be sufficient, because everybody
would be satisfied he could get specie for the
bills he held when he wanted it, and therefore
would be careless about it. At the same time
the necessity of making specie payments when
demanded would check over-issues Of paper
either on the part Of the banks or the govern
ment, and this is the only cure for preventing
the depreciation of the currency and specula-
ton in gold
That gold rises or falls is popular error,
caused by the jargon Of Wall street. 1t is not
gold that rises or falls, but the paper currency
Gold is the standard of value agreed upon by
all nations, and owing to its scarcity its value
does not alter. Hence it Is medium of uni
versal exchange. 1t is like yard in super
fetal measure apint in liquid measure, or q
pound weight; and it determines all other
values, including stocks and paper currency.
Strictly speaking, therefore, gold is not bought
| and sold for greenbacks but greenbacks are
bought and sold for gold. If gold really rose
sevanty above par, 1t must necessarily rise to
the same figure In England and France; other
wise oil that It would be necessary to do
| to make an enormous fortune from ii would be
to ship 1t to the United States. II has not risen
in value in those countries, neither has it done
so here; but our paper currency has fallen,
through the financial Encouragement of Con-
gress and the Secretary Of the Treasury, SO that
hundred dollars in gold few days ago could
purchase one hundred and seventy dollars
in greenbacks, and even now upwards Of
| one hundred and fifty dollars. If the same
system is pursued hereafter the currency will
continue to fall in spite Of all legislative enact
| ments. Congress may make hundred dollar
| greenback legal tender for debt nominally
one hundred dollars; but it is beyond the power
| Of Congress or Mr.. Chase TO make the greenback
| equal in value to one hundred dollars in gold,
unless by being always prepared to pay on de-
mand that amount of specie for it.
The spectators do not want the resumption
Of specie payment, because it would interfere
with their game. But the people desire it, for
they are the victims Of the inflated currency
| which causes the most exorbitant prices, while
wages are either not raised at all or not in pro-
| portion. 1t is pretended that it would be i'm
practicable for Mr.. Chase to resume specie pay
mens and compel the banks 10 do It in the
midst Of such a tremendous war. Perhaps
these financial wiseaores can explain how
| it was Napoleon was able to do II
after France was flooded with rredeemable pa
per money, and how he continued to pay gold
through all his great wars. To this day gold
coin is the currency of that country. Mr.. Chase
has the power to do what Bonaparte did. 1t
remains to be seen whether he has the sagacity
and the nerve If he continues TO issue ire
deemable currency 1t needs no ghost to tell
what must be the result Independently Of all
speculation, very soon one hundred dollars in
| gold, instead of being worth one hundred and
seventy dollars in paper, will BIO worth two
hundred dollars, and the evil will 60 on In
creasing od iafnitsam For what is it that causes
depreciation 1t 10 excess Of issues, and con-
sequcntly the greater the excess the greater the
depreciation. Why is It that the cereals and
all kinds Of provisions are so cheap in the
Vest II is because they are greatly in excess
Of the wants Of the community, and the cost Of