The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-10-09

fairly 10 acknowledge that Il IA impossible 10 account for
existence Of the for supplying the inordnse
extravagance OF the government except ~ snproenk
TO created BY OF tho depreciang paper Which
enabled the fruits OF fraud or secuauon 70 DO hp
beleye.n says Sir John q History OF the Revenue.
vod q chap 3 p 1884, "that out OF the eighteen mi
lions now annually pad 20 the puoa crednorS on me
fifth part ia annually reinvested IN The iunds more
especially in time Of war; when tne prons Is SO con
The great and ultimate effect OF this career of pillage
and gigantic fraud that all who dealt in pro-
duce-armers merchants, manufacturers and traders OF
all Descriptions: all who dealt in money-capalists,
bankers discouners, loanmongers, stockJobbers and
snecnlaors OF every conceivable kind and all ship
owners shipbuidcrs or persons connected With maritime
carriage as well spectators in canal shares and all
owning the instruments OF land carriage, were
suddenly put in position IN which profit and wealth
flowed in upon them; for the paper money sweed
the prices and rates OF everything grew and rose aace
tural and commercia-were gradually depressed, the
rates Of wages generally not keeping pace with the nd.
vance IN prices.
1t will be seen that the writer quoted is disposed TO es
innate the depreciation Of Bank of England notes by the
rise in prices which took place during the suspension,
taking the prices Of grain and rents his examples but
in thus particular he to overlook the effect (Which
he elsewhere decrbes of the large in the volume
of the currency then going forward in stimulating the
rise Of prices We have only to look back to the period
preceding the crash Of 1847 in order to the practical
effect Of bank expansion in Initiating prices even on
specie basis and we have equally prominent instance
In the Of England for year two prior TO the
great panic Of 1925 She had nominay returned to specie
payments but the amount Of currency outstanding was
large and the one and two pound notes still in circua
ton stimulated speculation until point Of Imitation was
reached when public conadenc, gave way, and with
distrust came the reyuIson If accept gold the
standard OF values must be governed by IT, however
false may prove under very exceptional circumstances
stable value universally acknowledged than any
thing else silver being next in stability and such II Is
well adapted for as a standard; but it is by no
means mmutabe, and there is nothing which can DO
used as money that absolutely is All exchanges are
practically the barterng of much of commodity
much OF another the values OF which known
by their general purchasing power at any particular
time. There may come day during the present sus
pension when gold will become to command
article OF export for tho settlement of foreign
commercial balances against US, price far above that
justified by its relation to the currency and national
credit Indeed, that may be said to DO
already the Gold therefore, Is strictly speaking,
only standard Of the public credit Of country when the
premium governed by public opinion. and when com.
mercal necessities such the demand for export
else no material influence upon it The prices Of national
securities constitute far better standard by which TO
gauge the public credit the face Of commercial DC.
mand for gold TO export and specie in that respect be-
comes mere article Of commerce, which commands
price commensurate with the to which IL can be
PIT. and the supply compared with the demand Yet
such is the influence Of gold standard that to dis
turb its market value in relation TO tho currency at
time like the present is equivalent to disturbing the
prices OF all foreign merchandise in markets. and
indirectly Of the price Of everything else But those
commercial mutations should not have tho effect OF
ating dstrust Of the national credit and tho the
latter and the gold premium dsassociaed the better
There is great'dea Of humbug about this gold ques
tion and because the premium may possibly touch high
figures again some day that il reason why |
any but importers and exchange dealers should trouble
themselves much about the matter Tho public credit
can in reality, be only affected by the fluctuations in
gold when they sufficiently serious 10 greatly disturb
other Values and create widespread pancs which |
generally the consequence Of mems fears than
anything else and therefore, Of the possibilities
OF the gold Market the less accept standard of
the national credit during the suspension the less
equanity likely 10 be disturbed and the lighter will
be the fluctuations we shall have TO record
The following table shows the quotations Of tho leading
shares Of the Stock Exchange At the
or oiaat frnr la.