New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1863-02-10

s"'~ n"i~ Nv w Per cops pEbmuUs
about &C cents in gold will buy dollar o, ON,
currency. The currency Is consequently a..
precated 80 or more per cent. Gold ia i.
fact nearly go per cent premium, but IL h
convenient to pursus theoretical discuss;o,
on NE basis Of 80 per cent. The dollar ia M,
a myth, but is definitely 6xei BY an oct ID
Congress- at certain number Of grains Of
gold, and our prices of all commodities wsr.
formerly regulated by this Standard Coagres
might have made the dollar Of. a creator or q
less weight of gold, and in that case Their.
would have been corresponding increase in
present prices; for it was the averses value a
gold as q commodity in the world 'whicS req.
ulated our prices so long as gold was our
measure and standard. If our currency was
at any tune in excess Of the amount needed u
transact the business Of the country Il taia
average value, then prices rose, more goods
were imported, the excess Of curreacy WA
exported, aud its volume was reduced 10 4
proper amount az compared with average
prices in the rest of the world. On the other
hand, when our currency became Insufficient
prices of goods soon fell below their value in
other countries, exports were stimulated, ana
We imported gold until the currency reached
it's proper level; excepting, as was too. oitea
the case, when the vacuum was filled by The
issues Of q vicious banking system.
Our currency bias been increased largely
"A a fra. Ia
business of the country upOn. the gold OASIS Of
price; aud, as this currency not Itself
commodity, but only promise to pay, we
cannot export it, and the only possible way Of
absorbiua tho excess is by general increase
Of uricss. SO long as the volume of currency
iuerea.es, so long viii prices increase in pro.
portion. All prices, however, do not spprs-
ciate together, real estate moving slowly, and
labor being the last to feel the increase. This
absorption, SO to speak, Of the currency by The
increase Of price is simple fact quite over.
locked by those who complain Of q scarcely Of
currency, oad think that with more Of il tie
Government loans would ne freely taken. 10
truth there Is not. relatively speaking, any
more currency at one time than another. Yh
difference is IN prices. Evidence Of this fat
is supplied BY any paper.money country
BueDos Ayres, for instance, where paper st
legal tender, and received for duties on i'm
ports as well. Excessive issues have there
reduced the dollar to 4 value OF about A centA,
or, in other words, gold 10 st about $500 per
cent Premium and yet, prices being in pro-
portion, the paper money 10 ut times scarce,
interest high. and bard tines" are expo
riepced as often 40 in countries with no excess
of issue.
Our currency is now composed mainly Of
bank deposits, bank paper money, aud Govern
ment paper money. 1t is a mooted question
whether specie should be so considered. or IN
cuded IN the estimate of its amount. Assum.
ing that the Increase of business growing out
of the war makes up for the loss of tho sottos
and other Southern trade, We should require
on gold basis Of prices about S5oo,0oO,O 600
of currency. We have, in fact, about 800
O00, 900, or fully 40 per cent too muehi All
prices of all commodities (gold incladed) might
leeitimateIy be 40 per ceat higher than for
n,erly. An addition Of $500. 600, 900 more WI
carry up prices to 100 per cent above o'1
rates, provided that the war and the volume
of commerce remain as they now are. u
would, however, be uuwise to count on this 10
any extent, for military success, or peace,
would enlarge the volume Of commerce-mors
currency being then required to manage it,
aud ut the same time diminish the amount 81
the circulation by the conversion Of it into
Government bonds. 1t will be especially dan.
gerous to run into deb! at paper prices and b.
obliged TO pay in gold; as, for instance, to pay
paper. price for real estate, aud give a mort
gage for any considerable part of it; the prop
erty in such cases will be very apt to revert
TO the original owner by foreclosure.
Gold and goods arc now about so per cent
higher than formerly, in place of about 40 per
cent, as they should be on the basis Of the
above calculation. This 10 per cent is pross-
bly, the measure of the effect of speculatiOE
aud Of distrust-a discOunting Of the future.
The premium or increase of prices is in al
way a proof of want of confidence by the PEG.
pie in the currency. Indeed, so long as IL
passes freely, confidence or the want Of il
would have but limited effect. If We have
an excessive supply of coffee and sugar, the
price declines; but we do not therefore say
that there is any want of confidence in the
strength of the coffee or .ae sweetness Of tho
sugar.
That we must have q still further supply oil
currency seems inevitable. aud this might BE-
done to the extent of probably $500, OOO. 900.