, 1865-10-19

tend that the fneatton or contraction or tho c1r-
rtncy has no eject on prices. md they quote Homo
Toole, Joseph Hume, Goblet and othets, to prove
what they eay ia truei Whatever may have be:n
lie st1te Of facts in'Kngisnd during the period
or .rtpcrsfon Of specie payments, Is neither hero
uor tlere The caso Is too plain 10 require demoa-
sstatou by historical quotations.. Every operator
in stocks On Wal street, evezy grain speculator on
'Chcuec In Chicago, knows that when money is
close quotations fall, and when 1t Is plenty they
riee. II Is An iuIautable law Of tnde and com
nerre, That when currency is plenty md cheap,
goods will rise in value I'LL the currency Is absorbed
md RIGS rtTsa. II Is astonishing that tournalats
who have been couizant OF the movements OF trade
during the past four years, should PROFOUND such
dicu1ors theory "a tho set forth in The columns
of the papers named nbore.
: The funding Of the Compound Interest Notes u
Etep toNatd contraction; but this measure was
not adopted till stocks, grain, real estate, rents,
and almost every marketable article had risen In
value even beyond the prices which ruled when
gold Was 200 mud upward, and the very ides OF
contraction frightened spectators out Of thelr
wits and prices fell. The money markets all over
the United States became siringent-the banks
which bad been expanding, commenced to pursue
an opposite policy, and the papar-money organs OF
the speculators rushed 10 the rescue. But this
stdngeney IN The money n1zxet Is q healthy align,
and We trust It will continue. There Is too much
currency In the country for legitimate trade and tar
prices, and unless contraction fstolIowel up both
By the Government and the banks, there Will bc
another seses Of psnics and failures srch a we have
olteu experienced under simll circumstances Sup-
pose Government was to issue tomorrow three
hundred millions Of dollars more paper mercy, tho
evil would only be aggravated; prices wonsd i'm
mcdialely advance, and the grain dealers or pork
packers who now require only one hundred thou-
eand dollars to casry on business, wonh speedily
require probably one hundred and ffty thousand
dollars. The dry goods merchant who now finds
ty Thousand dollars sufficient to carry on bis busi
neee, would be forced, from the advance in goods
to use perhaps tevcntyhve thousand dollars and 30
1t would be throughout every branch Of trade aud
commerce, till the extra Issue OF three hundred
millions ot dollars Was entirely absorbed. Then
would follow close money market, md the p1pe.-
money Journalists would again clauor for mors
currency, and w1ite eaeays on the danger to trade
and commerce which ensues when contraction
takes place.
These paper-mouey theorists eeem to urge The re-
peal Of the Legal Tender Act, under the plea Of
desire to rcturn to specie payments; but This Is
mere 'roo1back." They know, and every business
INN knows, that we cannot arrive At epecle pay
ments till the volumo OF tho currency Is reduced;
and tho best and balest mode OF arriving at this
0efuHO4e poAk - " S4p40a4 @oAt4uI+lOH, auCQ as
Secretary tcCulloch recommends.
While on this subject Of contraction and exp.n
sion, it IL our duly to urge upon Congress the i'm
pottance Of carrying ont the ncasntes recommend
ed by the SECRETARY Of the Treasury with regard to
the contraction Of the currency OF the country, II
II should be thought necessary to amend the Ma
ttonal Banking Act, 20 as 10 allow the Southern
States 10 have share IN the issue Of National Dsnl
currency, We trust that for every single oar thus
authorized ono dollar OF legal tender viii be ,riih-
drawn. In this why, the evils Of an inaated cur
rcLcy may be urerted, md values will not bo affect
Cd materially by tho change.
To-Day the money market WIS still close End
stringent, abl although the demand was less ur-
gent, borrower found great difficulty IN procurin,
accommodations. The rate OF discount Wus stratiy
at 10 per cent per nnnnm; but private bankers
charge per cent commission extra, which makes
tte latc chout 10 per cent per annum.
We referred fow days since to the fact that some
o! our bankers were embracing tho offer mada by
the Secretary Of The Treasury to fund The Com
pound Interest Notes. We trust all Of out bankers
viii speedily follow their example. Al present
there arc held % reserve funds not Iess than
Of these uotes, and for all practical pur
poses they nrc as useless F1yeTwcnties or Scyeu
1hirtiee. They have long since ceased to be s.cur
rent" and the banks ought TO reduce them to |
greenhncks or National Bank currency As speedily |
possible. Culcss they do this, theJ Will p.oba-
bly be rnable 10 accommodate the pork and beef |
packers during the coming season, now cloze at |
hand.
The market for Eastern Exchange to-day was a
shade almer, bpt there Is no material change in |
quotations Ihe rates at The banks are generally
KICK discount buying and 1-1O discount TO par
selling. The banks generally sold to each Other at
15 discount.
The Produce markets To-day were uuse.t1cd and !
irregular, but generally lower. Flour declined &c
per bfl. Wheat fell eG4c per bnshel- Corn opened
e lower, but recovered again before the close.
Oats advanced H@1c per bushel. RE was oute,
md unchanged. Barley declined 4asc pc4 bushel.
1iehR ines wcTc more active md G1mcr. PsoyIsions
we're stagnant and nomlnally lower.
Gold opened In New York to-day at 1l0h and
:losed At 1i61<. The following are the quotations
eleeFaphed 10 James boyd l. brothers, gold