Sioux City register. [volume] (Sioux City, Iowa) 1858-1871, 1864-04-02
RESUMPTION OF SPECIE PAY.
MENTS.

Is the suspension Of specie payments =
merely temporary accident of war finance,
or is it to be regarded as q chronic de-
rangement Of our monetary system
The most thoughtful observers and
sagacious fnanciers are coming to regard
US delusion the popular notion that the
close of the war will inaugurate return
to specie payments, unless through repu'
diation. For eighteen months gold has
been gradually rising in price, until it has
reached premium Of over sixty per cent.
and should the war continue for twelve
months longer-as there is every prospect
It will-.he further issue Of Government
notes may force up its price to two hun.
dred, or even more The probability Of
the price reaching that point is perhaps
greater than is generally credited. The
process of imitation at first was slow; two
hundred millions Of specie currency Lad
to be forced out Of circulation-and the
first two hundred millions of paper cur.
rency was absorbed in filling up the vac.
cum thus created, without increasing the
volume of actual circulation-when the
issues Of paper had exceeded that limit,
then began the real excess Of money over
the want Of it as medium Of exchange.
The total issues Of National paper money
Of all kinds at present aaoa: amounts to
about FIVE hundred and fifty millions
Deducting from this the two hundred mil.
lions required to supply the place Of the
retired metallic currency, it would appear
that we have aAoat an excess OF three
hundred and fifty millions Of currency
over the total specie and bank circulation
before the war. The question then occurs
If with an addition to the actual circu.
la.ion Of three hundred and fifty millions
we have gold at sixty per cent. premium,
what may the premium be expected to
reach il Mr.. Chases necessities should
lead to a further issue Of two or three
hundred millions of Government notes?
In the event Of such an increase of the
paper currency, it does not seem unreas.
enable or disloyal, to anticipate that gold
may reach premium Of one or even two
hundred per cent. In order then to res
tore paper money to par value, the aggre-
gate circulation must be reduced to the
old standard. 1t is idle to argue that tho
high price Of gold is produced by specu.
latior. The truth is, that there is now
little speculation in the precious metals
hoarders treasure up specie because they
End it to be worth more than paper mon>
ey, and they will maintain their grasp up-
on it until by some extreneous cause
paper money is restored to the same
standard Of valne.
The only way in which specie basis
can be restored, is the retirement of all or
at least four.ff:hs Of the national cerren.
cy, either by its redemption or its CONVEX
sion into bonds. The former would be
almost impossible under the present dis
ordered state Of finance, while the latter
would be rendered equally improbable
by reason Of the depreciation Of govern.
ment securities consequent upon the issu.
ing Of an amount sufficient to absorb such
. sum.
We see nothing before Us then but an
indefinite endurance of the evils of de.
preciated currency, or still greater evil Of
reputation.