New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1863-01-15


paper and the only question is as to the character
and extent OF the issue. 1t is my opinion that we
should limit this paper currency, as Tar ae practical
ble that may be as little deprecated as posi-
BILE; SO that when the Rebellion is crushed, the
banks and the Government may resume specie pay.
meuts at the earliest moment. favor the plan OF
the Secretary manly because, by arresng dsprecia
tion it would furpish currency approaching specie
now more nearly than can be accomplished III any
other way, and because, when the war is over, II
provides the best means for return, IN the sh"'es
possible period &c specie payments. Al lrrt ueeWa
Bile paper currency dissolvcs contracts, violates goo1
faith and its history here and in Europe, 70 recoro
Of financial ruin, bankruptcy, ana repudiauon' OF
frauds, crimes and decentralization, which no irlshd
of his country or race can desire TO witness Inc
issue Of treasury notes as legal tender was ayorca
by me as necessity, 6uperlDduced Dy the l'eoeinoi
and as substitute for the present bank sues. nuen
notes would he deprecated much less when mace
legal tender and. to that extent our expenditures
wond be diminished, and specie payments conioi
therefore be resumed eventually at nucn earhe,
period. Why, then, it is asked, not continue sno
extend that system. rather thsn anoPt 'he pan ie'
ommspdad bv the Secretary Because, Congress
refnsno 70 prohibit bank circulation, such ln-
creased i.sues of treasury notes would cause iur
bar greet depreciation Of such notes. 10 that extent
augment our expenGitures and postpone, perhaIsnl
definitely, the resumption OF slecle payments To;u
noyy commands premium OF 80 per cent pay aoIe IN
treasury notes. but. such issues he increased one
half thew would fall 50 per cent, and, II doubled
TO at least 60 per cent below Specie. Al INC ias1
rate, if our yearly expenditures, pald ID paper
reached 500 600 600 this would command but $IU,-
600 900 in gold. thus subecipg the Government to
loss of q, coo 900 per annum, and at - per cent
disconnt sg2l OJ0 900 per anDun. These noteR II Is
true bear no interest which at per cent on S2SO,
900, 900, would save $4,000 600 year; But as
under the Secretary's plan thereafter developed inc
Government would only pay an annual Interest OF q
rer cent on this loan, the saving would only be
slI 200 coo. Deduct this interest thus sayed IRON
The $40 goo 600 Of increased annual expenditures,
arising from such depreciation Of treasury notes and
the result IS net Ions Of SiOS oOO OO0 per anum TO
the Government, from the use Of such Iednndant
and depreciated currency. Surely, such system
/ would soon terminate in bankruptcy and repudld'
tiOn repeating the history OF French assignats and
Continental money.
! Nor is il the Government only that suffers from
such disaster but the ruin extends TO the people
There ia no law more clearly established than this:
that the currency of country bears certain nAea
promotion To Its wealth and butlness III we expand
the currency beyond this proportion, we violate Tins
law and will surely suffer the penalties OF TINS disO-
thai, if the expansion beyond this proportion should
be even III specie, the result would still be dsas
trous. 49,
This was illustrated during the reign Of Ferdinand
and Isa bells when Spain, having opened The YirSp
mines of America, brought the precious metals III
their exportation by the most stringent pend'ues,
/ And what war the consequence I Mr.. Prescolt OF
Boston tells in bis great history, that the Streams
of wealth which flowed ia from the silver quarHes
of Zacatecas and Polosi were Jealously locked up
within The limits Of the Peninsula" - The golden
tide which permitted free vent, would have ferii.
lzed the region through which itpourcd, now buried
the land under Geluge, which blghted every green
and living thing. agriculture commerce, MANI,
IFAcTUREs, every branch Of national Industry ana
l.. nd and fell IN AscaC lie
nation, like the fhrygsn monarch who turned I'LL
thet hs touched into gold, cursed by The very CON
summation of its wishes, was poor 10 the nidst OF
It's treasures" Such Was the eject oil violating the
law " Itch regulates tie ratio OF money W "e@"hi
such the consequence OF "a superintendent currency,
even in specie. The result was that ), ain, winch
had been the most prosperous nation oil Europe, ana
whose products ana manufactures had suppied the
markets OF the world, lost nearly all her exports,
and WAS forced to resort to the prohittOry system
The ocet OF living, of working farms, OF mshuac-
turing goods Of making and sailing ships, became
40 high in Spaio, from her superabundat currency
that she unable 10 compete with any other ma
ton, was reduced 70 poverty, and never began 70
recover uutl Spain changed her system encouraged
the expectation OF the precious metals, aud tnus
I brought down her supera5undart currency aud IN
aaled prices, and thus enabled Spanish industry to
supply the markets of the Peninsula and OF the
world" Then, tie distinguished historian tells us.
I" The precious metals, instead OF hOwing ia 80
abundantly as TO palsy the arm of Industry, only
served 10 stimulate IT, the foegn intercourse OF the
country was every day more widely eAtenced;
the Aourishng condition Of the nation was seen IN
the wealth and population OF us cities, etc. IL IS
q rsdu1dapt currency even il gold or convertible
into goid that produces thete evils although depFe-
ciatlOn adds TO the disaster.
! What is tho effect here Of redundant currency,
ia ascertained by reference 10 our exports By
Treasury Table 20 and u, foreign imports con-
sumed here III 1886 81 rose 10 $ltS, 1855, beng
largely more han double what tGey we're III 1852
is76 $50 1881, and nearly double the cOnsum ptlOD,
per capita, which was SOL in 1882, aud SlO.93 IN
1886. This was orr great year oi redundant, al
thouyh still a convertible currency, when our im-
ports contamed exceeded our exports OF domestic
produce SCI 662,733 and so enhanced was the eost
OF living and production here, that we actually i'm
port, bresdstuts that year of the value OF 3 III,
, $40 Table |, Com aud Nav) Our bank currency
that year was ae follows: Circulation Sl4J $40;
deposits, $l27 ,397 l65 circulation aud deposts,
s216 SIS, 075; loans $525 llj,702. Treasury Re-
bort, 1888, Doc. ~ tables X. K.) The legitimate
result VI this expansion of loans and currency was
the great bank suspension of May, 1897, and general
bankruptcy thIonyhoui the country.
Nov our bank circulation In 1850 was 1907 ,l02,-
Az; derosits, $l53 S02, l29i circulation aud depos-
it's 500, 80 ,6O0; loans $Gyl, 1850. liable "a,
Census OF IoOD.) Yet our reputation in 1860 was
more than double that OF 1871, aud our wealth tbe
true barometer, marking the proper rise and fall Of
currency had much more than qnadrupled. tCen-
SUE table 81 Tue proportion OF tie currency 10
weshh in 1857 was more than double the ratio OF
1860. IL not the tariff that produced the sus-
pension OF 1887 for il was much tOuer i'll 1850 than
al the date Of the bank suspension Of 1897.
By Treasury Table "A, our total exports abroad Of
dDmesiic produce exclnIvs Of specie from the 3Oti
OF September, 1891 70 30th Of June, 1861, were
1900 81, Sol; aud in the year ending the 30Lh Of
June, 1869, were S3l62i24@3. At the same rate Of
increase from 1860 20 1870 "a from 1850 10 1862 our
don exports excllslve Of specie IN the decade
ending the 3yth June Ie70, would nave exceeded