The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1864-02-27

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Cssresry aaa Prizes.
The fact \ pstent 70 all persons Who have
been compelled to purchase anything that
prices have been greatly enhanced since the
pssssge ofthe oct ct Congress to reduce the
amount Of the currency. Some persons who
know better may have used the bill - pre-
tense for raising their prices. but there = ID
tho community generally > lamensAo'e isn.-
rance on the subject Of currepcy, ana 'ne .,,
fcass Of what Is TO be the effect OF tue o''
are leading them to do great in)us''cs 70
themsslyes or 10 Others. We believe II 10
demopstrable thas The bill must operate 10
favor OF Che holders Of treasury notes. not
vithstanding the tax of one-thirdnpon their
amount, and that in fsct they will reap the
whole benefit of the tax upon properly
which shall be applied to the reduction OF
the amount of the treasury notes in clrcula-
tion. Our opinion is based upon few eie'
meptary and recognised principles, OF the
correctness Of which we believe there Is lit
Tie or no difference Of opinion among writer's
upon the currency, and to these principles
re ask the attention of our readers.
The wealth OF country consists OF it's
property and labor, including Its skill. Cur
rency y merely An instrument to facilitate
the exchange OF property and the employ
ment Of labor. The material Of which cur
rency is composed may be a part Of the
wealth of o country, but the currency as such
Is no part of that wealth. The currency
value Of the material is distinct from the in
trinsic or real value. The currency value
may be immense, whilst the intrinsic value
of the material may be very small. We can
readily comprehend this fact when paper is
the currency; but it is also true Of gold and
silver. If the whole world should at once
put an end TO the currency of gold and si-
yer, their value would be fixed, like that of
iron and lead, by the uses to which they
could be applied.
Again It Is the experience of the world
that the prices Of property and labor arc
regulated by the amount OF the currency iu
the country. This is the general law, though
there may be partial and temporary exeep.
tions to 1t, as by the excess or failure of one
OF the staple crops of the country, or tenn.
porary obstruction to the transportation of
supplies. The amount of currency which is
necessary in any country to facilitate the
exchanges of property and the employment
Of labor win depend upon the amount Of
properly, the activity CT commerce and la
Dor, and the extent of credits employed in
carrying on business. All these vary from
time to time, and therefore the amount of
currency actually employed varies also, as
prices are affected. II the amount of cur
rency is unchanged, whilst property is in.
creased and commerce and labor are active,
prices go down. If the amount of currency
Is increased, whilst property, commerce, and
labor is diminished, prices 90 up. And if
the currency increases in greater pregres-
sion than propertyan labor, prices continue
TO rise; and by the imitation of prices and
the facility Of obtaining money, with the
apprehension that the currency will fail a
spirit of speculation is aroused which car.
ries prices much higher than is required to
meet the increase of the currency. This is
our condition now.
1t Is immaterial what the currency is
whether paper or gold-the result is sub
stantiaily the same. 1t requires only sc
much currency to carry on the business of 9
country, and when that is increased, what
ever it may be, the necessity of finding EN-.
ployment for 1t compels the rise of prices
It true that where commerce is open there
never can be this great accumulation of gold
Ia one country, because the demand for it il
other countries will carry it off But if 9
country were wholly separated from the rest
OF the world, and gold accumulated in it, tho
effect on prices would be the same as it is in
the case of paper money.
And whilst 1t is true that the acc umulatiol
OF gold in county would affect prices jus,
as the accumulation of paper currenc,
would and does affect them, it is equally true
that though the currency is wholly Of paper
yet If It is not greater in amount than is re
quired for carrying on the business of til,
country, prices will be as moderate and sta
BILE - If 1t was gold. From 1896 down t<
1922 specie payments were suspended il
England; but until about 1910, we believe
the currency was not increased beyond The
demands Of the business of the country. ant
there was no depreciation Of the currency
At that time the amount OF the currenc,
was Increased, and 1t Immediately began t.
depreciate.
It IL, then, fact that the prices of prop
erty and labor are regulated by the currency
II there is more currency than the business
OF the country requires, prices will 20 up
and where the currency becomes very much
inflated, speculation will carry up prices even
higher than the due proportion between the
amount Of currency and the property and
labor Of the country. 1t is estimated tina.
the amount Of currency in the Confederate
States at the commencement oSsAAe war,
was fromeighty to one hundred millions.-
The better authority is, we think, in favor oil
the last amount. But at the present time
dsducting that part of the Confederate States
occupied by the enemy, where our currency
does not now circulate, probably the cur
rency at the commencement of the wal
amounted to from seventy to eighty mil.
ll0n& At this day we have within this Ter