The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1864-07-08

Money Matters.

The recent rise in the apparent value Of
Igold, and consequent increase in the prices
of many commodities, affecting as the lat
ter does the immediate interest of every
purchaser, render the money question at
the present time one of peculiar impor.
lance. And as it is very .needful that
correct views should prevail upon this
matter, let US see if we cannot do some
thing towards calculating it. s,e.
We stated 10 last weeks paper, that the
value of gold, as compared with that of
notes, was affected by three principal eau.
SEES. /. The aspect of the War. g. TIE
amount Of paper money put in circulation
B. The excess Of cur imports over our ex-
ports, which affects the demand for gold
Now during the last year we have i'm
ported about S50,000,000 more than we
have exported-and, the amount of paper
money in circulation also having been
largely increased, while the successes Of
our armies have not been of decisive
character, we see the natural result in the
decrease Of the relative value of our paper
currency as compared with the general
standards Of all nat ons, the precious met
ais.
1t is evident that this depreciation Of the
paper currency cannot go on, without the
most lamentable results. tits raising pri-
ces so that the expenses of the war are
doubled ind trebled And the 6nal re-
suit would be, if the depreciation were not
arrested, to make paper money utterly
worthless, SO that it would no longer serve
the purposes Of currency at all Thus
bringing the country perforce to specie
aud specie prices. Besides, the currency
thus deprecated, would run great risk Of
being repudiated by some future admins.
traton.
But how is the evil to be remedied p
Evidently by victories in the field, by hea-
Wy taxation, by raising the tariff and thus
restricting importations, and by lessenipg
the volume of the currency. IF VIC eau
not do all four, by using such of these
means as are in our power
Under the advice of the Secretary of
the Treasury, the tariff has been increased
and the taxes made heavier Gold still
continuing to rise, however, it is said that
Mr. Chase is lessening the volume of pa
per currency as much as he can. 1t is al
SO said that if be is able he will make
loan in Europe, payable of course in gold,
and by selling exchange based upon it
lessen the demand for gold 81.
Bnt some may say, what will it avail
that the amount of greenbacks is les
sened, if the banks can fill the vacuum
with their notes? We answer that, al
though specie payments are suspended,
every state bank is bound to redeem its
notes, upon demand, in greenbacks, which
are now the legal tender. Consequently,
if any state bank begins putting out too
many notes, it will be apt to have them
returned upon it, and greenbacks demah-
ded in exchange. A bank thus may pow
be checked or broken, even during the
suspension Of specie payments.
That Mr.. Chase's movements to restrict
the greeuback currency are beginning to
tell, we judge from recent structures We
have heard upon his course, from some Of
those who have heretofore warmly COM
mended him. Poor Mr.. Chase we can
not help sympatbiziug with him when he
is denounced for not working impossible
ties. .gr .a.. Pm.
In our opinion, the finances of the couu-
try have been managed by Mr.. Chase on
principles essentially unsound, but, never
theless, practically the best, if not the
only ones that could be adopted. Sound
princi Piles would have dictated heavy taxa
ton from the first, and effecting the neces-
sary loans to carry on the war by going
into the money markets of the world, aud
getting the money at the best rates posi-
bic. But the opening the war, SO for
midabe was the character of the rebellion,
depressed all trade and business, and ruin
ed our credit iu the great money markets.
The people neither could nor would bear
the necessary taxation--the capitalists
would net lend their money. The war, in
one word, could not 60 on, on sound fnan-
cia principles. u. ,a
What then We did what our forefa-
theirs did, what revolutionary France did,
what the Rebel Confederation has done
put ou government notes. In the doing
Of this, and 10 popularzng the acconpa-
nying domestic loans, MIR, Chase certainly
manifested great shrewdnes. He did well
the only thing that it seemed possible to
do. a..s .r.t
Nobody thought the war would last
three years. Ii the war had lasted only
three years, Mr.. Chase would have tided
aud poDtooned the vessel of state over the
6uan''ial rocks. -, .-.
But the misfortune of false system is,
that it will last ouly for brief period. -
You may keep up your failing strength
for whleiwith alcoholic stimulants, but
you do 50 only by drawing upon your re.
served power-ultilnatey the exhaustion
must be greater in consequence of the un.
natural stimulation. ....
But 60 on giving greater and greater
quantities of liquor, say, in effect, many
bankers and brokers', and spectators in