The Goodhue volunteer., 1863-01-28
The Currency Of the Country.

laS ever Oeen tRe test questioned statesman
ship. Its successful solution has always
been sure badge Of ability in all nations
That question is now, for the first time since
our national existence, presented to US in a
practical form. Frequent and excited have
been the discussions on that very question
lin Congress, in years that are passed away,
but its Importance has never been urged
before with the urgency Of nations exist
ence. :.'.- -. . ",.Ao... -. 7:;uy d.: >s*}
The cost Of fthistwar is enormous, and has
long since demonstrated that, by the ordin~
ary revenues Of the nation, it cannot bo car
ried on. Whether at any time it could
have been different, We do not, at this time,
undertake to say but it is conclusive fact
that the Government cannot command the
specie to meet its current war expenses
The very first step that was taken, was with
the idea that the war must be carried on on
credit, and on credit it must 90 on. Now
the important question to ask is, how sha
that credit be employed to the best advan
tage to the Government, and with the least
Injury to the people ? The Government
must borrow the money it uses. and the
question is, how shall it borrow AT first
glance it would seem that the plan OF issuing
Treasury notes, or "Green Backs" upon
which the Government has to pay no inter-
est, would be the most convenient and prof
table method, inasmuch as the indebtedness
Of the Government thereby would become
diffused among the people, and enter into
the every day transactions Of life, affording
convenient circulating medium, and rclev.
ing the people fromssa burden Of taxation for
the payment of interest. 10 limited ex
tent it would be so, bat only to a limited
extent. Every article we use has an intrinsic
value. For the purpose of trade we need a
certain amount Of something representing
the value Of that we have to buy or SELL
We need just enough to carry on our busi-
ness and no more. If we do not havc
enough, the commodities we have to trade
Immediately recognizes the deficiency, and
its value is decreased. by sort of law of ne.
ceSsity, until it falls to that point when all
the property OF intrinsic value in the country
just equals the value Of all the money in the
country. If we have more money than is
necessary to do our business, the effect is
Immediately perceptible. The property Of
intrinsic value Immediately puts on a false
and ticticious value to correspond with the
increased supply Of money. So that, mul-
t'ply the money Of the country million
times, and there would be just enough, and
no more than enough to equal the value
real or assumed, of the property of the
country. Such being the case, it will be
perceived that to increase the supply of
money beyond the necessity Of trade must
he only t" add to the burdens Of those who
have to purchase. 1t has been estimated
that the business Of the loyal States requires
a capital of abou: S275 100000. All OF
our business is, and. in fact, always has been.
done on credit, that is to say, on paper
promises 10 pay OH demard," called bank
notes, Of which there is now in circulation
not less than 500, 100000, and gold form
|orIy entered into trade about sufficient to
make up the $75,0o0.UOo. In addition to
this there has been put into circulation abou,
S227,oQO.OOo in Treasury notes, thus max
ing the supply Of currency greater than the
absolute demand 10y about SO per cent. BE
fore any Treasury notes were issued. and
before the banks refused to pay specie as
they promised: wheat could be bought 70,
about sixty cents per busl:el now it is worth
about ninety.two, showing an expansion in
price just commensurate with the expansion
in money. From dire necessity the Govern.
ment has issued another batch Of 100000,
600 and we may expect another rise in al
kinds Of property. ...: s
/ Now this thing wont DO. The Govern
ment Suffers as badly, and indeed, worse
than individuals do. For everything it buys
and for every stroke CT work i, has done. i,
has TO pay at this advanced rate, thus max.
ing the trifie it saves in the way of interest
as nothing compared with the advance in
the p'ice it pays. Then what must be done
We confess we can see bus one thing for the
Government to do; and that is. borrow
money, and pay interest for it, perfect its
revenue laws 50 that the interest, at least.
shall be promptly paid exercise its consti.
tutional right to regulate tho currency oI
the country, by compelling banks to base
their operations on United States securities.
thus ensurins uniformity Of value in the
bank notes Of every State. and by making
the notes OF every one Of those banks, thus
secured. legal tender in any Of the States
OF the Union. ensure u cheap and uniorm
exchange. TO make the operation efsectiv.