The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-08-02
FINANCIAL AND COMMERCIAL


any country abundany shown In the history
OF the French assgna issued In l1ss OF the old Cont
Nsnts money this country, issued during the Revolu
sonary war 1878 ISL and recently that Of the
bnapces OF rebel coniederacy. We will omit our OWE
case al from the list OF examples for IL Is not
yet late TO guard against similar depreciation In the
value Of the Treasury notes that now food the land
when Congress authorized the Of the first three
millions o: paper money in 17T5 il imagined that
early june 1881, the value OF this inconvertibe
currency would be in the ratio OF one thousand
dollars 10 one In silver; but such was, nevertheless
the fact and subsequently, Its decline utter worthless
rapid that when the question Of the assg
mats first mooied in the French Assembly Dupont
Nemours, with the example OF this country before his
eyes, said-"There IN the United States Of America
ten ago q government paper currency, secured,
Like the you propose the honor and loyalty OF the
whole republic and enormous amount OF landed
property supported also by eloquent speeches. BY sove
reign DEGREES and by the safety OF the State But, in
spite OF all that Congress, Washington and Franklin could
do pair OF boots sold for hundred and eighty thou
sand dollars supper for four persons for which
dollars the usual price, cost two hundred and fifty
thousand dollars the United States government paper
currency"
The three millions or dollars issued in ITS was fol-
lowed by issue OF twenty millions 10 1910,
and OF twenty six millions four hundred and twenty
nix thousand in 1777. The depreciation was then SO
great aha four paper dollars the equivalent o.
one in silver. IN ITS Congress added sixty six millions
nine hundred and sixty three Thousand hundred and
Sixty nine dollars to this inconverble mass the
consequence that at the end OF that year frtyfve
paper dollars constituted the equivalent Of in
silver. In 1850 eishty.three millions more was
issued to swen the incubus, and then hun
dred dollars 10 paper money was the price or one
In silver. IN 1871 the currency was increased
by only twelve millions Eve hundred and eighty seven
thousand dollars; yet in that year the depreciation
OF paper, compared with silver, had progress
ed so far that before stated amounted TO thou
sand to This about the value Of the French
assignas long period from their original ntroduc
zion. The entire issue or Continental money three
hundred and sxty-,so millions hundred forty
six Thousand eight hundred and twenty-five dollars.
The population or this country at that time about
four millions and its trade and commerce OF trng
Importance. This enormous amount Of paper currency
therefore vastly Of the wants Of the peo
pie and its issue showed the straits OF the community to
make temporary provision for their needs and the lack OF
good fiscal management in their affairs.
The people who thus made their estate bankrupt
could, by proper foresight and correct application OF
the principles OF political economy, have maintained
themselves in solvent condition. They could have
limited their paper issues TO comparatively small
amount fundable into long stock, and
interest on that by tax which the OF the
country would have allowed them conveniently raise
but which It would have been just then unpopular
enforce.
There was no provision made either for the redemp
tion OF the principal the payment the interest,"
consequently the public credit capable Of
sustaining itself than tub without bottom could hold
water. Now, although we have base OF taxation, on
which the national credit rests, vast aud indefinite
expansion Of that credit would end that insufficient
o. sustain it, Our national debt Is increasing rapidly
that the danger arising from OF legal tender
money Is becoming imminent, and the question to
how much further 70 in increasing the
volume Of the currency without producing ap.
proxmate results TO those just detailed becomes of
grave importance II Is true that il the increase
Of our currency should still continue in It's former ratio
since tie commencement OF the war, it would be long
time before its volume would average much per head,
s. comparison w!th The total population did in I7sl
"; we mus, remember that the same immiiab!e laws
Sach governed nnance ,aen now, and that any
q, preach 70 q similar state i dangerous.
No powerful argument than the early history
OF these United states affords necessary show the
disasters to which imitation OF the national currercy
beyond certain limit woad inevitably lead That limit
iIusi he proportion to the base which supports It, and
this s -capabe Q. indefinite extension. With regard TO
financial iuture therefore cite stronger
Historical warning for the guidance Of the Secretary Of
the treasury aud OF Congress when It assemblies.
q dy Tie Daaks not free lenders, unless to FIRST
cas houses good stock colaeras but good deal OF
private capital : Offering Al that rate.
The siecuative spirit on the stock AID Produce Ex
changes somewhat stayed by the expected, but |
nevertheless deferred, presence Of Mr. Fessonden in
town, and the uncertainty or the future OF the money
ket prevailed that he would probably offer
tie remaining thrtyihree millions OF the six per
bonds Of 1851 b this would involve the utter failure
81 he
loan time 10 come, this hardly suppcsabe.
OWN. - tic IN favorable add the decline in |
government; securities to-day, the loan for the time
being Of dead but all hope OF its immediate
resusciia,on vii be destroyed the Secretary
60 the other expedient. This however, would be OF
material consequence he afterwards persevered in the
policy Of contraction such act would tend towards
but thus led Us to look for inhaton would
not be giving him credit FOR consistency TO suppose that
be will revoke arst publicly official act.
The bank statement, compared with that OF last
week, shows q decrease OF than ave millions
IN leans, which IS chiefly attributable the further
withdrawal o. temporary deposits from the SubTrca
sury auich viii doubtless lead 20 OF the
The lead OF circulation in the weekly
statement Of the national debt Tne deposits show an
Of nearly Eve millions. The balks are, there
fore, in much stronger position than they have been
for nonths past and they stand ready either 10
meet their dep3s:s in consequence Of govern
loan subscriptions, 10 increase their ordinary
line o. loans and discounts.
Exchange is dull. Sterling bills range from 100 20
Ioss Tor gold francs may DO quoted at from s.l3 TO
J.1a, according 70 time.
Nj. Cisco having retired from the Sub Treasury, rs
understood that he will be temporarily succeeded by Mr.
Jacob Russell, who has been long attached 10 the Depart
ment
The sock market was worry much unsettled and weak
70 day the decline ranging at the FIRST session OF the
Board OF Brokers between half add three per cent.
Compared with he beet cash sales Saturday, Erie
Hallway fen Of X, Hudson River B. Eeading u, MIwau.
kcc and Prairie du Chico . Michigan Central Michigan
Southern 3R, lllinos coatral III Cleveland and Pitts