Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1863-09-01
LETTER OF TIE SECRETARY OF TIL
TREASURY TO MIR. HUNTER.
TREASURY DEPARTMENT, C. 9. A,
Richmond, August "a, 1868. !

Hon R. NJ T. HUNTER, Lloyds, Va:
: SvR-In reply to. your inquiries about the tinan-
ces serd you q condensed statement of the u.s.
sue of Treasury notes, and of the funding operas
tons O.: the Treasury. You will see from this
statement that the funding has been eminently
successful; and you will learn, also, that the
amount of outstanding Treasury notes is still
within the limits of the depreciation which re-
ported to Congress ut the last session Ny res
port then estimated the amount of circulation
which tho country could probably bear, ut
! SlIU. 900 900.
! The statement now mado shows that the out
standing Treasury notes, used AZ general cur
roncy, amount almost exactly to three times this
| amount. But. when it is considered thai very
large portion of these notes are across the Mis-
s.ssippi. it will be apparent, that III The Atlantic
States The estimate of three to one Is rather over
than underline marx. Two absorbeIAs are now
added. which will keep down the excess iron
new issucs-namcy: the taxes and the sale oi
cetton bonds-an0 when the tax IN kiili begins
to contribute its portion to the support OF the
army there is every reason to behave that the
currency can be well sustained.
| il is obvious from this statement, that the
popular notion of estimating the raue at tle
currency by n comparison with gold. is alto
/ getlcir falIacious for, while the actual currency
has only been ncreased three fold It's proportion
ia gold rates at moro than double that amount.
The fact is, as you well. know that. situated
as we are, gold is as much n commercial com
modify ms platina or tin. and its price is govern
ed by the law of demand and supply AS have
already shown, in the report referred to. wheat
ami corn afford much more reliable standards O
value, when their price ID not controlled by some
local obstructiun; and, by referring TO these, Il
| will he seen that the currency has maintained
itself ut tlaS rstio which the outstanding is
lao Iu ia
,neni that uniting all the various appliances fol
fnnf ing, there has been funded in bombs S232..
DO 60: to which, according to estimate, there
Is vet TO be added abou: $40 900 .Gh0 more, which
ar 1T in the hand. vi the Treasury officers to b.
funde; mnliug. in all. about I:SO2 900 0O0-adt
to this $l5,iia 600, deposited in the five pei
cent call loan. and we have an aggregate o
! nearly $3ls,O0a.o00 withdrawn from the cIIrrcn
+ cy.
! This result is certainly very favorable. ans
shows that the measures adoptcd by Congress.
: have boon quite az successful rs any OF Us had
n,ticnateG II is somewhat remarkable, thai
the Yankee Government shonld have adopted
exactly the same measures for withdrawing. lhr;i
. circulation, and, according 20 n Statement. pnh'
isho,i in Hunts "Atcrchan:s' Magazine, for July
the have funded, IN call loan and bonds, net more
/ than 500 In4I,ilun.
These figures show that there is no reason fo
! disirust as to our currency; and ii, when Goa
/ crcss meets, you will address yourselves vigorous
" TO measures which will all restrain its further
Increase we shall be fully able TO maintain our
cause. ! would suggest 10 son twu matters 20,
cons eraion One is, he export duty which
proposed and the other. is renewal OF the call
! loan Cor all Treasury notes, up0n the same princi
! pie with the six per cent, cali loan. which wa,
! reported At the last session.
! Its worth experiment 10 try, whether. by NJ
! lowing II deposit in the Treasury. OF interest w
may not be able to aitrac: ana retain there 81
Tic Treasury notes not actually required for cir
CITATION Very Truly. yours
G. G. MEMMISGER.
! Secretary of the Treasury.