The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-04-17
Tne Currency Questton.

the Currency Question.
The currency question is one Of great import
ance to the trade and commerce Of the nation.
We have witnessed the most violent fluctuations
in our standard of value within the last few
weeks, carrying in their train most uneasy
feeling and making our mercantile community
suffer to no small amount. This must continue if
Mr.. Chase will not come to the rescue and give
us standard of value less susceptible to these
variations.
The government has 1t In its power. with the
vast resources open to it, to bring about better
state of things. Never, perhaps, ia the history
of the world has any nation been better able to
support war than we are. We should use
these resources to the best advantage possible.
We would most earnestly enjoln on our finance
minister to take steps tending to bring the
currency to a specie standard. We have seen
enough already Of the bancful effects which
deprecated currency has on the energies of the
people. Trade in great degree is now para
lyzed, merchants being incapable Of judging
how their transactions may turn out with an
evervarying currency as their standard of value.
In California we do not hear Of these fire.
quont ups and downs in the prices Of commodi-
ties, and, although State bearing her share
of the burthens of this war; there are no indica-
tons of any unusual commotion in her trade,
but it is carried on with its usual safety, and
she is growing stronger every day. She can,
therefore, lend her aid to the suppression Of this
rebellion with comparative ease, her energies
being not in the least disturbed, but allowed to
have their way California has a standard Of
value which never varies to any great extent
Our currency is there quoted at discount.
To bear the burthens of war q nation must be
allowed full scope to its energies and allowed
continual application to labor Of alisorts.
We can look into history and there see that
currency liable to any violent fluctuations in
Its value is great impeachment to continued
application to industry.
The financial condition Of Great Britain from
1897 to 1914 should be highly instructive to us
in our present calamity. The Bank of England
had, in 1907, Ell 100000 of her paper aaoat,
and in her vaults the usual amount Of specie
deemed necessary for the usual redemption Of
her paper, and was quite strong. Rumors Of
invasion in this year spread, and every one be-
! came alarmed A run on the bank Was h s..e
consequence. The bank had to stop specie pay
ments The burthens ofw war were more severely
felt by her on account Of her means being
employed on the Continent, and, consequently,
very little, If any, finding its way back again.
! The paper afoat of the bank was not increased
to any extent for three years after its suspen-
sion, and during that time its value WIS not i'm
paired, but circulated freely on par with gold.
In the year 1900 the bank began to increase its
issue, and the depreciation Of its paper. Of
course, followed, until the amount adoat reached
about e29 900 900 in 1914. The bank currency.
during this space OF time, experienced many
fluctuations, and, although Its increase was grar
dual, could not 6nd employment enough for
that increase to sustain it. Notwithstanding
this moderate use Of its paper currency, the
fluctuations In prices occasioned many disasters
Many persons were ruined during this period
and the price Of labor being always 6uctuating
was damaging to the increase Of wealth. Labor
is tlis foundation Of all wealth, and that
country where labor can be carried on with
less liabilities to interruption is certain Ia
make the most progress. An overissue Of pa
per money is great interruption to labor Of
all kinds. In France, during the republic of
Robespierre, her finances were managed with
the most reckless disregard to her prosperity
The assgnats soon became worthless, and the
people who held them lost their labor Of years
with them.
Napoleon followed and he found means to
resume specie payment; and never during his
reign would he allow any other standard OF va
lue lie was enabled to continue those ex-
hausting wars which marked his times princi-
pally by maintaining this standard Of value and
by imposing contributions on conquered ma
tons. At the restoration of the Bourbons, in
1914, the total debt Of France was only
$500 100000.
The currency of the rebel States is fast be-
coming worthless, and when the day of its utter
worthlessncss arrives the rebels will be COM
PEELED by the force of circumstances to 90 to
the wall.
A MAIN CAUSE OF THE DEFEAT AT CHARLES