The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1865-12-29
what has deprecated the Currency p

k@OS<sSsNA q
Gold is now quoted at about Las, making
paper dollar worth intrinsically about SO
CENTS The difference in value between gold
and paper is really the depreciation of the lat
ter, as the former is the fixed standard Of value,
recognized among all commercial nations.
In 1881 paper dollar was worth its face in
gold, would command that amount in gold,
and represented that amount in all business OPP
erations. The simple reason for this was found,
not in a surplus or a deficiency Of currency,
but in the fact that the whole banking or
money-issuing business of the country rested
on specie, basis. Nothing but specie was
lawful tender, and no man was obliged, wheth-
er he would or not, to receive in payment of
debt anything but the precious metals. 81
During the war gold fuctuated, running all
the way up from par to $50. 1t was unsteady,
oltentimes going up or running down twenty
or even fifty per cent. in a single day. A
great battle or even threatened battle was
enough to unsettle the gold market. A
Union victory would send i9down; Union
defeat would run it up to a fabulous height.
Now all these changes were but indications of
public confidence or lack of confidence in the
stability of the Government, and in its ability
to redeem its promises. -,' '' %. /"
Who can doubt now that the great cause of
the remarkable fluctuations referred to was
the general doubt and uncertainty which hung
about all things pertaining to the then future
of the Government? Spectators in gold took
advantage Of this uncertainty, and were able
with its aid, to depress the markets or to in
fate prices. When peace came gold gradually
receded till it reached about LAS, and there it
has steadily remained, varying not more than
two or three per cent from that figure for a
series of months. Speculation in gold has
ceased no combination of brokers can control
IT, no set of "bulls" can toss it up; no effort of
clears" can press it down. There it seems
fixed, varying no more than do the English
consols or the shares in the Bank of England.
What now, at the present time, keeps gold
at las, or, in other words, what is it that de-
preciates a paper dollar and makes it worth
only SO centsa Is it the great volume the
currency afoat? We think not, and for this
reason. IF the currency were reduced from
$500, 100000 to $5o0,OOOOOO, paper dollar
could perform only the functions which 1t now
performs. 1t would still be irredeemable, and
the holder would have no power to command
the gold for it. 1t would no more pay duties
at the Custom House than it will now. 1t
would be precisely as worthless as now for
paying bills out of the country. Mere eolume
might slightly vary the depreciation by in
creasing or decreasing the conveniencies Of
trade, but it would have no power to remove
that depreciation altogether. What, then,
would do it? Hol3a Ls.... .La4sar b.. =
We answer: Let the Government abolish the
legal tenders act making paper money lawful ten
der in all business transactions except in paying
debts at the Custom House and in paying
debts out of the country, and redeem its own
non-interest bearing promises in gold on de-
mand, and Immediately every bill in the coun-
try, now worth SO cents, would be worth 100
cents. The moment dollar bill can be con-
verted at the will of the holder into gold dol
lar, that moment the paper dollar will be worth
its face in gold. Is it not plain, then. that
what now rainly depreciates our paper cur
rency is the act of the Government which
makes it legal tender thus placing it beyond
gold redemption, while it can be used for on
lyEhalf the purpose for which gold may be
used? " t ..sr- tEa 81.
We dare say the volume of the currency,
and the amount and form of its indebtedness,
may render it ifnpracticable for the Govern
ment to abolish the legal tender act at once,
and return to specie payments ITSELF but when
this can be safely done, we shall have no
more depreciation of currency, and the de-
rnands of business will soon regulate its vol
ume. No act of Government can force a pa
per dollar up to the value of gold one, while
the paper will not in all respects answer the
purposes of gold, or while it may not be ex-
changed for it at the will of the holder. IT.
therefore, the currency of the country is de-
preciated 81 per cent. or Whereabouts. It is de-
preciated by an act Of the Government: no.
by an excessive volume but by making it ire
deemable; and if it requires IS per cent. more
currency to do the same amount of business
now than it did in 1861, when there was no
depreciation, 1t is because the legislation of
the country, under the exigencies of state of
war, has rendered such condition of things
for the time being unavoidable
Let the Government reduce its own ex-
penses to the lowest practical figure and make
the earliest possible provision to return to
specie payments, making the precious metals
only the legal tender of the country, and when
1t shall have done this it may safely leave the
question of volume to be regulated by the de- |
mand of trade, and that aciH regulate a sub |
stantial .f1ed currency, and nothing else can
10 it,