The New York herald., 1863-01-12


Tho issue OF such large Quantities Of paper mooey BY
this government was Of great moment BY II tho
volume Of currency throughout tho country greatly
Increased and h's increase has, of course brought It's
attendant eyis. Al all times certain anoult OF money
other than spece can DO absorbed and fact needed
by the people. But this amount s mited II cannot be
indefinitely increased without tho disastrous oects
Al the beginning Of the rebellion the oircuasiag oaum
OF tho country aside from the seoe by the govern
ment was in the form OF bank notes. them amply
secured and as good as tho gold which would have boon
gven Tor hem on demand; others worthless or nearly
So ago the bank note circulation Of the country
was about $3.50 00o and not greatly excess OF
the amount which could readily and properly DO absorbed
by the people, During the year however thus circulation
alone had increased $37 900 000 making tho bank note
circulation on the is Oh Noyembor $l6T 100000 Added
TO this wcre the issues o demand notes. which had como
into use Together they had increased tho crcul
ton OF pspor enormously until had greatly exceeded tho
absorbing powers OF the people, But tho government s
sues had been made receivable for all debt5-they
legal tender for all kinds Of Indebtedness BY making
them thus receivable, it thought by somo that the
roublcs naturally incident to their could be avered
But in thus our legislators havo been woefuy dsap
pointed You cannot alter the laws OF 0uauoo any
than you can those Of NATURE aud this Of tho uoda
mentai rulos-that paper money cannot be issued in
probation keeping pace with The But not
orcseen BY all how this depreciation could oooaf when
tho notes authorized by Congress wore made legal
tendcr How oan thc.r value bo less, whsn AL
pched By law 10 take them for debtss buy barrel
OF faoursoit reasoned beorc the notes wcro issued
and oaer in payment legal tendor nole obtain what
wish readily II offered bank note or specie How
then, tho notes DO deprecateds The people have
found the answer 10 tho question sooner than they
would have wished. TO be sure the notos are no.
minaly worth tho amount expressed face but
tho market value Of eyory species or merchandise and
produce has increased 80 that the effect has boon
acty tho same tho notos themselves wero received
for but seventy cents dolae Fivo dollars paper
money would buy during the tter months OF tho year,
only much as IS so ia gold.
Tho great difference 10 tho values specie and Of paper
money did not manifest itselr until after the terrible
battles before Richmond last June and July Up thai
time the vaiue Of gold, compared with legal tondor
notes. was most Of tho time, only about 81 OF o.
is TO 81 But shortly after that time tho difference
value began to rapidly until tho autumn tho
premium gold had reached nearly forty per It
with be Interesting. at future time 10 revert this
season Of doubt and TO oxalno tho duotuatng value
gold (or more properly OF legal tender notes) at that
tme We therefore prosont below q table Of the mar.
ket value Of gold compared with that OF oga ondsr
notes during tho most exciting month OF tho season
TABLE KxnBIrIN6 FLUCTUATIONS VALUE or
GOLD As COMPARED WITH That or LEGAL TENDER NOTES.