The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1863-01-30

rency OF country pears certain HAeu
proportion to its wealth and business. II
We expand the currency beyond this pro.
portion, We violate this law, and will sure.
iy suffer the terrible penalties Of this disc.
bedience. This law is so certain and inva
riable, that. if the expansion beyond this
proportion should be even in specie. the re
suit would still be disastrous.
This was illustrated during the reign oI
Ferdinand and Isabella, when Spain, having
opened the virgin mines of America. bro'i
the precious metals in countless millions
within her limits, and restricted their expor
tation by the most stringent penalties. And
what was the consequence! Mr.. Prescott.
of Boston. tells Us in his great history, tina,
"ihe streams of wealth which flowed in from
the silver qurries of Zscatecas and Potosi
were jealousy locked up within the limits
OF the Peninsula" "The golden tide.
which permit a free vent, would have fer
tiliZed the region through which it poured.
now buried the land under deuge which
bIighted every green and living thing. Ag-
ricuIture. commerce, manufactures. every
branch Of national industry aud improve
ment Iangnished and fell to decay; and the
nation. like the Phrygian monarch who turn
ed all that he touched into gold, cursed by
the very consumm alton Of its wishes. was poor
in the midst Of its treasures" Such was
the effect of violating the law which regu-
lstes the ratio Of money TO wealth; such the
consequences of a superabundant currency,
| even in specie.
The result was that Spain, which had
been the most prosperous nation in Europe,
and whose products Of manufactures had
supplied the markets Of the world, lost near
ly all her exports, and was forced to resort
to the prohibitory system. The cost of liv-
ing. of working farms, of manufacturing
goods, of making and sailing ships, became
SO high in Spain. from her superabundant
currency, that she was unable to compete
with any other nation, was reduced to pow
er.y, and never began to recover until
"Spain changed her system, encouraged the
expectation OF the precious metal. and thus
brought down her snperabundant currency
and Inflated prices, and thus enabled Span
ish industry to supply the market Of the
peninsula Of the world" Then, the distin-
guished historian tells US. '.the precious
metals. instead of flowing in SO abundsntly
as to palsy the arm Of industry. only served
to stimulate it. the foreign intercourse was
widely extended: the fourishing condition
of the nation was seen in the wealth and
dant currency, even if gold or conver .ible
into gold, that produces these evils. although
depreciation adds to the disaster
Ruinous as must be the effect of a redun-
dant and deprecated currency upon all in-
dustrial pursuits. the injustice to our gallant
Army and Navy, regulars and volunteers,
would be attended with extreme peril. Up
on their courage and endurance We must re-
f.. LII
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 mako allosments of portions Of
heir money for the support of their families
Turing their absence. We have promised
pensions also. These are all solemn pledg-
,s ON the part Of our Government, and our
iath is violated if this pay or these pensions
are reduced. But there is no difference be-
tween a law directly reducing this pay and
.hese pensions, and the adoption by Congress
of the policy Of redundant and deprecated
which will produce the same re-
suit.
Every vote then in Congress for such a
policy. is vote to reduce the pay and pen
sions for our troops, and to annihilate the
allotments made by them for the support
Of their families. What effect such a poll
cy must have on our troops and the MAIN
tenance Of the Union is but too pslpable.-
1t is disbandment aud dissolution. Every
such vote is given also to reduce the value
of the wages Of labor. and for increased tax
alton, to the extent, as We have seen. of
408, 800, 900 per annum. 1t is a vote also
10 reduce our exports and revenue from Gus
toms, to paralize our Industry; and finally.
in its ultimate results, il is a vote against the
war. for reputation and disunion. and hence
every disunionist will oppose the plan of
the Secretary.
To what extent this redundancy and de.
probation will 60. by enlarged issues OF legal
ender Treasury notes. We may learn from
he fact that the banks substitute them for
,oin for the redemption OF their paper
Now. just in proportion as the issue OF Treas
lry notes become redundant and deprecia-
ed, will the bank circulation, redeemsble
n such notes. augment and depreciate also.
This is the Law of bank circulation, as
now forced upon US by Congress. 1t is the
law Of redundancy and depreciation. II
his policy is adopted by Congress. an en-
Iarged issue made Of Treasury Notes. and
the plan of the Secretary discarded. our
Bank and Treasury Note circulation, with
the war continued. will very largely exceed
one thousand millie iens of dollars before the
close of The next fiscal year, and both will
be deprecated much more thar sixty per
cent. Thus, il we should enlarge our is-
sues Of legal demand Treasury Notes TO
s $500, 900. 900. and these be made the basis
Of bank issues. in the ratio of three to one,
our total paper circulation would be SO, ,000,-
100000, such Treasury Notes initiating the
bank issues. and both depreciatius together.
And yss this is the currency in which it is
proposed to conduct the war and business
of the country. The banks alone. by ex.
,lusivo loans aud issues. would grow rich,
apparently, on the rain of their county
But there would be = terrible retribution.-
The result would be general insolvency and
reputation. the debts drs the banks ,couEd
become soorfhlsss, and thew be involved in
the general ruin. 1t is the,. the interest Of
the banks to sustain the Government aud
the Secretary, and 10 transfer their capital