The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-11-25

the currency has been or is deprecaca o. onepeneu
n consequence Of the volume quantity issued
During the period when the press say the nope Of
peace appreciating the currency, the quantity Of
until the present time During this period gold
instead Of paper has declined from IVY 70 iso per cent
parson with gold then the prioe OF specie should have
advanced 70 $50 per cent "a pape NJ. n s lacs
TIE pess ,ss The quantity Of
money invariably decreases It's current value Suh
fact this should cause reflection and inquiry This
destrovs ali the theory OF our hard money advocates
Tese same theorists tell that the quantity Of cur
rency and depreciation greatly enhanced the price OF
provisions and other tcles of necessity the Market
and that 10 bring down the price of everything We must
dasroy our currency gold and sill
yer BY careful OF the prices OF the products
or Northern industry IN our markets. in currency
there will be found great uniformity in values up to the
slose OF the war; and since 1868 There 80 much uni
formty that any candid viii attribute the difference
70 the great law OF supply and demand in the produce
market The examination into oil these facts can be
made BY every business man This AVERAGE value in our
currency during the eventual period Of the last two gears
prior 70 the close Of the aud during The fluctuations
N god both extraordinary and gratifying and prov es
e correctness and soundness OF the opinions OF those
wno In bringing forward and establishing this system
Oh currency secured the integrity Of our nation ana
sne prosperity and Independence OF our people The
facts above stated incontrovertible, and prove
shat while gold luctuatlng than two hundred
Per cent relative market prices Of currency and pro-
auce remained nearly the same II during the past two
years our currency had been gold aud silver who can
calculate the loss and ruin that this ucuaton in values
would have produced2 The produce market would have
The worst and disastrous daysof the Stock Exchange
with all these facts patent to the minds Of our business
eu, Is strange that they found advocating the
enactment Of laws 70 destroy national currencyf
3 q, GOOD LAWS THE BASIS OF GOOD rREDTT tl4
Our countymen are Justly proud Of our institutions
and laws They obey and respect the law, and hence
lows our system Of credit Credit is the offspring Of in
tsllig ncc and goodtaws The more law abiding any
people are the moro they win encourage and increase
credit When anarchy and outrage prevail, or when
evil men bear sway, credit disappears and a demand
tn md he In
question how safe and secure can the credit be NADER
This view or the condition OF our country actuated the
Banking law, we'll as the perfect Free Banking
law Of the State Of New York, OF which our national
Currency as won Il on RI cysu
not be made 70 apply 70 the quantity but solely 70 the
value and quality. 1.1
The object Of the Banking law Of New York was to
secure the quality OF bank notes. and restrict the
quantity Of currency. The law docs not limit the ISSUE
the security upon which the issue s authorized
placed In the State treasury The people of the whole
Hste are invited TO come, deposit their security and
sake circulating notes therefor No complaints have
BEEN made of over issues or imitation under this system,
and the amount Of currency taken out under this Free
Banking law has very little exceeded the unsafe and
bogus money that existed before this law enacted
Our legislatures had the evils u doubtful
sound currency and they directed their attention TO i'm
proving the quality or safety Of the currency. They
knew that II the issue Of bank notes confined to
Cad controlled by deposit Of good securities they had
done all that free and intelligent people could require
The value of this system OF currency wonderfully
and satisfactorily manifested in 1857 IN the city OF New
York. When the great bank panic occurred all bank
ana individual credits were greatly below par while the
bank notes secured In Albany par with specie
The legislation OF Congress, under the guidance Of
restricted the amount Of credit currency be issued
the country spon tho pledge and deposit Of govern
ment bonus. This great mistake must lead to great
complications and dissatisfaction, for il enectually do
nroys the free character of the law by making banking
once more monopoly, only 70 be enjoyed BY those who
Inst rush in to procure privilege under this exclusive
oct This is return to the old dogma, that 1t the
quantity of credit and not alone the quality that should
- made the subject Of legislation. Y. ga
* HOW TO MEASURE THE QUANTITY or MONEY.
The word "infaton Is applied to currency as II the
ssmbsr O. dollars and not the demand controlled the
slse connected With trade we have too much
via fan in price, and il. too little the prce win
mo SO II Is with money. Our legislatures have
po cent rsa q se es
money is abundant the rate OF dscounts below six per
can't When 1t is scarce the interest," value price will
Tso above Blk per cent and thus we have unerrng
and popular mode Of determining the quantity OF money
required in market and the business Of the people
IN England money is plenty that It is not worth,
for permanent investment, than three and half
pcr cent per annum. When we have, In proportion TO
Sdr trades, the same quantity Of money In sound con-
ycrblo securities the ruling rate of interest here will
hot exceed four per cent annun The Secretary Of
ths Treasury therefore, should furnish, through the
secure in the Treasury by deposit Of six per cent gov
ssnment bonds Make currency plenty and interest will
- low. Make " scarce and interest will be high Can
The Secretary tell which Is the best p0lcyf Trade and
thc loans Of government will be benefited Who what
viii be injuredf The Free banking law should be left to
0he control OF trade and not 10 the will Of legislatures
Individual intercs In NIL branches Of trade will, when
lef free, promote tho general interest Of our country
Congrss doubt the value o. government bonds
baAkA The tank currency should be safe beyond ques
1oa Tho banks can deposit d ty per cent more Of six
security large enough but do not make the Free Banking
NV monopoly by which TO call corrupt men TO Wash
hsssn 70 buy privileges under T.
49, oOoD AND RAD CRKDrTe.
be proper to lint the quantity OF the very best
convertible securities is not equally proper and neces
AID ve should attempt this, must not establish
mint 70 State and corporation bondss also bonds
snS - interfere with snd restrict 3. credissi This con-
6tion Of things WOULD In the most eectuh manner put
stop % nli trade and manufacturing In our country
ysrtihe property Of the country, and used 70 much
Iarger extent In tho trade q every section than
di.s may b. ipjurousiy used, 70 may these, snd il
should b limited should the other All these arc
lsonal property and may oe exchsnsed Or converted
Galy ana eheapk negotiated 10 looked upon By bust.
nsn men the bess and hence Individual credit
g Ss ss ss.sa :. q . e Js:
Avery large tsade n exchanging credits b eaRisd In
svsy business crcla The object Of, those who pay
sSi1 me vsscms Of The 80 credits cannot be too
Arg md he people are snttsd 70 have ths bsss Il Il
s :cu.s :: .d * nos 70
9 Is. ocnvssiSs shsr.sisr q shs credit Itself
Here lice the Because this paper a the banks
- well secured that It u better than bank credit and for
WAioh the people are willing 70 Give their individual
credit and large pgsmium for IL therefore the Lstsa
1uro win restrict tia quantity W w
TINE POPULAR HRn0a
The in the public mind arises from the former
practice d allowing banks 70 issue paper without giving
m equivalent special security 70 the government
when this system existed was necessary TO restrict the
sBaes 10 the supposed ability Of well and honestly
managed bank TO redeem This was an issue Of credit
that might impose upon the people, and frequently did
~ the banks engaged Ia lending 70 ndvdualg and
frequently irresponsible friends the property Of the
bank In some cases, was entirely abstracted, leaving
nothing wherswith 70 redeem the circulation Under
ths systcm common in this country 10 hear Of
ever issue OF bank paper But our present plan has
removed great temptation TO bank directors The CAPT
81 Of our banks being invested, II generally IL, IN
tho six per cent bonds Of the government is earning
dividend for stockholders without disconntng note,
And again. these securities TO large extent deposited
In the Treasury and circulating notes received therefor