, 1865-04-14

being gain In value Of two hundred and
twenty five millions in gold, or I've hundred
md forty millions 10 currency. Al 1t WAS val
ued on The nrst of December. In other words,
when gold WIRE quoted at $40, 1t would h&ye
required an emission Of $40 oooooo OF
additional greenbaeks to have made the
rhu1e currency worth Us much In gold ~ 1t IL
to-dny. The decline in gold Is, therefoe,
equivalent to An expansion of the currency
Of i've hundred and forty millions Of dollars,
because nine hundred and forty millions Of
currency on the 18th day Of April Is worth In
geld as much as one thousand four hundred
and forty millions would have been on the
first Of December. Last winter 1t took
forty dollars of Ereenbacks to purchase
barTel Of pork ; now t.enty-six dollars per.
forms that service and leaves fourteen dol
lars employed in Japna,y, idle in Ap.u.
Nine bundled millions in gold Is more uoaey
than this country needs to transact its busl-
ness. ncurrency should rise in yaluo t. par
itwould be the Same thing as If nina hun
d1ed mill ons of gold we're in circulation. In
that cate either q part Of the gold would
have to be retired or .e1psr'ed else every
commodity must rise in price, perhaps one
hall, until The just proportisn is ro-es.ab-
Hshed.
Suppose the Government had adopted tho
policy Of Issuing more greenbacks last win.
ter, and Lad poured them out Just fast
enough to prevent gold from falling, the
probability is, that It would Aars required an
emission OF oyer FIVE hundred millions 10
hare kept gold ut 30 in the fac: Of The rapid
succession Of victories won By our troops
and fleets, and the certainty Of speedy peace
At 81! eycnts an immense amount mi gbt have
been injected into the circulating medium
without fully preventing the decline In gold,
But there a1e limits to ths quantity Of cur
rency ut given value, the country eau ;ab-
eorb, and that point seems to ,bs reached
even IN tho facs Of the collaps, Of th. rebel
lion.
The Fresent currcnc5 at La is greater than
the business wants Of the county require.
The tendency VIII therefore be for gold to
,ise, unless part Of the currency il rotirci.
and ~ the National banks a.e adding tvs
millions PEI wcex to It, .hcrc Is not much
likelihood Of 4 contraction. Tue South,
however, Will make N outlet for considerable
car1eniy. It will rush in there like air into
vacuum to take The place Of the d.fuact rebel
th;a.plsste1s. But the people Of the South
sre poor and destitute 1t this tine and will
not be able to hazdle much money until a
new crop IN gathered and sold. Yet IN hun
dtcd millions Of greenbaek1 and National
bank notes will fnd their Way Into the con.
quc1ed States within one years. time, and
t1ls will help t. prevent gold from -islns
much aboys its present pstnt, or III other
words, to prevent currency from depr:ciatins
| muck below sixty-six cents on the dollar,
We think We hava given the main solution Of
The question, why gold does not continue to
fhn now TINT Ii. rebellion l. o7er and
peace 10 nczr At. hand. TAcro are various
minor eauses in operation, but tse main oas
! il, That the purchasing power Of the currency
has already 1eached ppiat where it i, actu-
Sly s7e&ter than the commercial require
ments Of the country where it IL more than
Gblc TO pay all balances between purchaser.
and zcllerf. Tirae will prove whether this
view fs fcCn3 ard correct