New-York daily tribune., 1865-11-17
CURRENCY PR.CEs-REsUmPT


SIR: In your article on Debt, Finance, Cur
renoy last week you say: "And all this need not very
seriously diminish the volume Of our currency" &c.
cannot understand how the prices OF hour beef coal
dry goods groceries labor and everything else, are to
be reduced without reducing tie thing that We give
for them. 1 have supposed that currency or money
was the measure Of value. and that tho "volume" Of
money ives what affected prices Please explain, 30
that 1 may comprehend what in reality rH affect
prices and what Is OF vastly more consequence than
bringing down prices viz SGT people to work again All
bo do not now feel rich b. the great price they put
upon their property expect to be rich in some quicker
way thnn by patient labor at whatever price.
Why NAV not the Secretary Of the Treasury with
draw from circulation BY holding Legal Tenders winch
come into the Treasury, two millions daiy' Withoui
whiting Tor Congress. and thus compel banks to ourai
their notes QOr l suppose Banks now look to legal
tenders to redeem their isSues) and thus approach
specie standard OF value. n D CASL'
S-I have supposed a reduction Of the currency
by at least three hundred millions necossary-nbsolue-
y neccssa!yto set people at patient labor and also to
bring down prices of amost everything from what
consider great irh1tion and agree with you that II
is best to do this speedily.
Maawce Cuy Ohio. Nov. H. 1859.
Ansrer.-Rcsumptiou would reduce prices,
even without material reduction in the vol
umc of the Currency, by reducing The current
rates Of eIchargc. At present, Pork, Hams,
Lard, Butter, Cheese, Wheat, Flour. and almost
everything catable, command cxorbitant prices,
because the are ,cortk such prices (or very
nearby for expectation. That is to say: the
British pound sterling is equal to seven (Green-
back) dollars: hence, Bacon that will sell for a
shilling sterling per pound in Liverpool Is
worth thirty cents (Grccnback) or over per pound
in New-YOrk for expectation. But let us resume
Specie PAYMENTS. and our dollar must command
four shilings sterling or il will be converted
into coin and exported: so Bacon, Lard. &C.
must sell here at 20 to u cents per pound or
they will not bear expectation. and the eihuA
of coin will soon compel their sale al theiI
specie value. Hence, even though there Shoula
be no reduction in the volume Of our Currency
Resumption would force a reduction OF currency
prices. OF course, We know that Resumption
,,oud force some contraction Of The volume OF
our actual Circulating Medium; but even
though it did not, it would reduce prices
essentially.
Mr.. Case don't see Why Secretary McCul-
loch can t lay aside Two Millions perday oi Tie
Legal Tenders flowing into the Treasury, and
thus contract the Currency without awaiting
the action of Congress- The reasons why he
can I do this are as follows:
|. He isn't receiving Two Millions per day,
all told, nor nearly that sum;
.. lie is required topay ont very nearly so fast
as money comes in-thc interest on our Public
Debt alone being equal to Half Million Green
baek) Dollars per day, while paying Of soldiers
and paying mp War bills Of all sorts require
about One Million per day, TO say nothing oI
the ordinary Civil expenses Of The Government.
Do you see now Id.