, 1863-02-07
OUR FINANCIAL TROUBLES.
Gold Is Up-The Currency Is Not Down.

Sometimes Us honestly as great truths. It Is
our lot In this world, and our duty, to avoid
error as carefully rs VIC would geek the truth;
eycn more so, for the ways Of error are Ear
more numerous and easy to trnvcl iAan n' tne
ways Of truth. Popular errors, whom Of suth-
cient importance to have many advocates.
generally have long race before they are
brought down and destroyed There is one
at this moment attracting wide attention, and
causing great outer5. It Is proclaimed Il, IN
speeches, and occular deliyetnnce5 Oh all sides,
that the currency Of tic loyal States Is dcpre-
ciated to the exact extent Of the price OF gold.
Mnny, very many, Intelligent people assert
They would say that two and two make four.
They assume it us m undoubted element In
their financial rcas soninEs, and the whole finan-
cial position Of the country is considered from
that point Of view. The nation is pronounced
to be, on that account, on the very brink Of
financial ruin.
This is q monstrous mistake, founded on
fa}lacy not lcss monstrous. We have certainly
real troubles and difficulties. ..senough, in oar
present national position, to encounter, with
ont allowing this alarming and misehievous
apprehension place in our minds. Long ia
miliarity with subjects Of this Kind leads Us to
the conclusion that there is absolutely no
Las deprecated to the extent that gold has
risen, nor indeed to any injurious extent.
What is the import af this asserted depre-
citation? It imports that the banks and peo-
pie Of the loyal s'ates arc receiving cTery
week, in payment Of debts, not less than two
hundred and fifty millions Of dollars, in cur
rency deprecated forty to ltty per cent; that
is, worth at most one hundred and fifty mil
lions, losing for the time at the rate Of np-
wards Of flfty-two hundred millions yearly.
It imports that the operations of the New
York Clearing House, which exceed one
haoea g % n9nS ang ons Mfsa ana tha 0a tGs
rest is only moonshine. 1t imports that
a man who, with this currency, pur-
chases real estate at tho same price he
could hare had it for three years ago, to the
amount Of s100, 900, really only pays S55, 900
cciyes the 100000 can with this same cur
rcncy go into the real estate market and pur-
chase productive real estate at about the same
rate he would hare given several years ago, or
although he can purchase the best of six or
seven per cent. mortgages at the s:lmc rate he
would have paid for them in gold three years
ago. Farms In all the best agricultural dis
tricts Of the country Gnu be purchased with
this currency as cheuply as before the sus-
pension Of specie payments. The rca1 estate
Of the country, the main item Of national
wealth, and ccrtainly worth twenty times our
whole stock Of gold, can then be purchased
ard paid for in this currency, alleged to be
deprecated ut leas! forty-avc per cent, at
| rates Us favorable to purchasers rs before the
assumed depreciation took place. If this
doctrine be we'll founded, real estate has de-
prcciatcd i'll the same ratio ns the currency.
It is well known that although there hare
bpen fluctuations In city property as well be-
fore as since the suspension Of payments in
gold. the great bulk Of the real estate in the
loyal States has undergone no depreciation
since the rebellion commenced, whereby it
can be purchased at the same prices as for
merly in 4 currency now deprecated; neither
is il supported at its present valuation l'y
speculation, nor by i currency so deprc-
ciatcd.
II is asserted strcnuously, by those who
should be more careful Of their conclusions
and admissions before committing themselves
| 10 doctrine 60 Injurious to our national
credit, that great imitation Of prices has oc.
CURED us consequence of the large issues OF
paper currency. This assertion is made in
| Iart on the faith Of doctrine which has been
! much taught by Il certain class of theorists In
! political economy during the last half ccntu-
| rv. In the whole range Of industrial and conf
| n!ercial economy there is scarce more com
| plicatea subject, both az to facts and theory,
| than prices. OF all the Influences which beal
upon prices, there are perhaps none whose
| effects are SO general, and yet 30 small, as
| changes in the quantity Of currency. 1t IS 50
| much easier to attribntc any increase Of pTf
ccs to the currency than to ascertain the real
|
fayorite mode Of saving tEc labor Of minute
and careful Investigation.
No one will deny that every article oftrade
every product Of industry, has Its own Law o1
| price, its own fluctuations Of market value
| ruling mainly the rates ut which it is sole
| These special laws which pertain to each com
/ modify, and on which its price essential,
and most Of nil depends, must, in the frs
place, be consulted, and the actual facts ami
Influences pertaining thereto be aecertainet
/ before attempting to discover the effect Of tlt
Influences ha nsnE from no tqs M
currency which has raised the price Of cotton
or coal, or sugar, OF wool; the causes Of thI
advance in these articles are well known. Til,
| paper currency is not responsible for the I'D
vance in labor, which 1t is equally. vel
nearly m1ian II a5srers as xF"Ea Sr u
suppression Of rebellion; nor for the adyanc
/ in very many articles, into the price Of wiicl
the cost of labor enters as q chief element
| Such ia the whole range Of the products O
| our domestic industry. Iron is wholly tn
natural condition having little comparative raj
| lie its advance then is to be attributed to th
cost Of labor TO heavier duties, and to th
premium on gold. Lumber has advanced be
cause tho hardy men WHO hare heretofore pre-
| pared it for market have left the wild region
occupation for tho defense Of tue country
The whole range Of imported commodities lla
been affected by increased duties and the rise Ii
| gold. The extraordinary advance IN czcllns
Las increased the price OF the commoditic
uelially exported by offering such 4 ltrgc pre-
MUM on foreign funds.
! When all these considerations, and all th
| facts 10 which they point. are duly weighed
where Is the propricty of insisting that th
| currency Of tile present time in the loya
States is deprecated forty-1iyc per cent, or
as is asserted, TO the very figure Of the pre-
MUM on gold?
This assertion deserves the braadest denia
which can be offered to it. We deny tina
there has been any advance in prices owing tt
depreciation Of the general currency: we dc
ny that there has been any depreciation o
the currency to correspond with the advance
in gold. We insist that the rise IN gold is Il,
independent event, totally unconnectcd will
the general currency. It is as easy to assig1
the reasons for tho advance Of gold as thos
for the rise Of any other commodity wlicl
has increased in price. When the banks wcr
paying gold it could not command preml
nm, for the banks supplied the demand a
. par. When the banks suspended, the hold
ers Of gold Immediately asked from one t
tNo per cvnt., and those who needed gol
we're obliged to give it. As the demand in
creased tho dealers in gold increased the prict
The demand Increased for several reasons:
!. The export Of gold was constantly dimir
ishing the stock on hand. 1t carried off sixt,
1lilic millions In 1869.
2. Gold was constantly required for pay
ment Of duties, and the importers were com
could not demand of the banks.
5. The Government required consfderabl
quantity of gold for payment Of interest o
tile public debt. for various other purposes !,
home, for payment Of purchases abroad, m
for payment Of nava1 expenses and salaries {