The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1865-10-25
The Rcturn to a specie RaSIs:.-som G
EOFclble Financial Views.
(FTOm thc Cincinnati Gdzctte,) =

(Fr0rnt The Cincinnati GFazehe1 gsg
In n previous article we have argued
the following propositions in regard to
reducing the currency to II specie basis:
i. The policy of contracting the cur
rency by funding tho circulating notes
will defeat itself y -l-! ~ tHF
It Will create money pressure that
Will cause the national bonds held for
the investment of surplus capital TO be
trown upon tho market, which must
depreciate them just in proportion to
tho pressure created by tho contraction.
Thus the funding loan must be put ON
q declining market. Tho amount of
these stocks held as convenient securi-
ties for surplus temporarily linemploy-
ed capital, is large enough to break
down the market If u severe pressure
should be created. =
2. The contracting of tho currency
would Immediately cause the with
draw0l of all the temporary deposits in
the public treasury,
When the amount Of these is us large
as ut present, the operation would leave
| the Treasury with less means than be-
deposits would replace the currency
withdrawn, thus leaving the distur-
bance tho only result. s4ql5 zat5.lG =,
8. Funding the treasury notes would
be no permanent contraction If the cir
culation of the national banks shall in
would be merely a periodical distur-
bance followed by n slow recovery. -
4. A heavy decline i'll the national
i stocks would cause alarm for the secur-
| ity of the circulation of the national
banks, which, added to the money pres
sure created by the funding loan, must
cause run upon them for legal tender
notes, that might ondanger The whole
| financial and currency system.
5. A rapid contraction of the currency
| would cause n still more rapid fall in
4 prices, which, coming upon expanded
credit, would bring general ruin.
@. The pressure created by rapid
contracting of the currency will tell
heavily on thepublic revenue, both from
| internal taxes and imports, thus COM
plicating the difficulties of the public
i finances. ~
a. The reduction of the currency to a
/ specie basis, would add from thirty to
/ fifty per cent. to all the public and
private debts that are payable in cur
rency. fz1ul .tfs -, III ssh
1 Saying nothingof the consequences to
| private creditors, it would nearly
double all Clneses of the public debt
that are payable in currency.
s. Funding the Treasury notes while
4 increasing the National Bank circuln-
4 ton, would exchange n debt without
\ interest to one bearing interest, without
| contracting the currency. 1l3
Tint our objections do not leave the
cnse without remedy, VIC argued the
following propositions ]. The evil OF
the disturbance, of values blythe infl0-
ton of the currency is done. Even the
most rtlpid contraction cannot prevent
that, while 1t would nggravate the con-
sequences. s1fl gs3f. - A3EE
Il Tho great evil consequences ofeXpan-
sion do not begin to he felt until We
come to the inevitable contraction. 1t
Il is not the ascent but the fall that hurts.
| Prices have unprecedented to the
amount of the currency. The losses
fell chiefly on creditors, capital in mon
ey and fixed incomes;p and in the case
Eof n large portion of these classes this
l WINS great Y compensated by the OppOr-
tunities that rapidly advancing prices
| give for speculation, and by the stimu-
lus it gave to trade. Contraction Will
reverse all this. Its evils will full on all
fclasses except creditors, who are ade-
quately secured, men with money cnp=
ital and fixed incomes! Debts, money
and liked incomes it will enhance.
2. With limit to the amount OF cur
rency, prices will adjust themselves to
it, contracts can be based upon 1t, and
4 the business of the country can be car
ried along prOsperously on the higher
level.
We do not pretend that there are no
/ evils in an inflated currency, eyen1f 1t
has become fixed ut the distension.
4 These are minor evils. Although the
general average may not he effected, yet
/ prices will be more 1luctuating, and be-
fsides the other incOnvenienees ola cur
/ rency on a scale different from that of
/ the commercial world, the ctrcum-
stances do not so readily respond to the
laws of trade. But with a currency
/ limited in amount, contracts can safely
I be based upon il, credit can have a
standard to calculate upon, enterprises
can be undertaken with the usual reli-
ance on the future, prices will equdltze
themselves, and every element OF pros
4 perity can 60 into nun operation. s1
4 8. All the floating debt of the Gov
4 eminent, all itSrdeposits, and all the
debt that was contracted onan expand
ed currency, and is ayable in currency
should be paid of on the present cur
lTenCy basis. tr5 ~ Jf-rffH u = ~
Il 4. When this is done the Treasury
j notes should be slowly and gradually
withdrawn by canceling q stated
10 Mt tho LFana.