The Indianapolis daily herald., 1865-11-29
Contracting the Currency.

Callln. aIlfulon 70 II tllteTlAu1s
Contracting the Currency.
This Government has ceased 10 be the plain,
cheap, simple. equal Government II once was,
and has become a monster bank, administered,
II seems to US, with a. much abuse, fraud and
deception a. ever was the old Philadelphia
monster Of NICK BrDDLE. This Government
viii never be the just and equitable one il
once was, only through a terrible revolution.
just look at IL. Does the Government want 10
put down the price Of gold; The Secretary
steps forward into the market and offers the
treasury contents at a given price. Does he
want 70 put IL up. he horis. Those in his Sc
crct confidence profit both ways, and the IN
initiated are ruined.
Does he want 10 create fictitious currency
20 be traded on, he issues gold certificates, and
can do 30. whether there II really any gold de-
posted or not. Does ne want 10 expand the
currency, and Put up prices 10 enable his IA
yorites 70 sell on high prices, he issues green
backs. Does he want to contract, to enable
his fayorites TO buy at low prices, he contracts
he retains in the Treasury the greenbacks.
But the topic upon which we propose to say a
word, at this time, is the permanent, not tempo
rary contraction Of the currency, with view
toreturn to specie basis, or currency,
The Secretary Of the Treasury announced In
ms Fort Wayne speech that he proposed 70 re-
duce the volume Of currency; and the simple
utterance Of this indefinite idea by the money
king Of this nation, who holds the fate Of all In
his hands, gave a shock TO trade and business
Of very decided character. Everybody trcm-
bled with fear and staggered on In uncer-
tainty.
But the question naturally arises, how is the
Secretary 10 permanently curtail the circula-
tion7 We wish it could be done 1t must be
done some time or other, or the country will be
ruined; and II IL Is done rapidly. the country
will also be ruined. But how can the secre-
tary do IN lie can not do II by reducing the
amount Of our specie, because we have got no
material amount 20 reduce. He can not re-
duce the issues Of the United States free banks
without an arrangement with them, because
ne can not now compel them, as we are aware,
without their consent. 10 take In their paper,
only by redccming il in greenbacks. which
would throw out as much paper as was taken
In. But the Secretary can reduce circulating
paper. greenbacks, by inducing the holders to
take for them long bonds, which do not circu-
late; but can he find purchaser for them, on
such terms, in sufficient numbers, as TO effect
seriously the currency We doubt it. Further,
large amount Of Government bonds already
out are soon 70 fall due, and are to be paid in
greenbacks. If the holders Of these securities
will not accept long bonds for them, then a
further issue Of greenback currency must be
issued In their payment.
Another mode of reducing the currency is
talked Of, but Is certainly impraetieable, and
that is for the Secretary Of the Treasury to
destroy the greeubacks rs he takes them in,
20 that they shall not be reissued; but this he
can not do till the income of the Government
exceed its out-goes; until its revenues exceed
Its expenses, and that day is never again to ap-
pear. If the Government collectors walk into
the Treasury each day with two millions OF
dollars In greenbacks, and find there, waiting
for their pay, creditors Of the Government TO
the amount OF two millions, why, when the
Secretary takes in the two millions in one hand
he must pass ii right over to the creditors with
the other, and out it goes again into eircula-
ton. But, if the Government collectors could
only required two millions, then there would
DC one million left that might be destroyed.
The way, then, 10 reduce the currency is 10
increase the tarss so that the Government shall
take in more than it pays out, and be enabled
10 destroy the surplus. But the Government
can not increase the taxes. The people will
not long endure the present rates. We do not
have much faith In the idea that the G. )yern-
ment can raise, by taxation, enough to pay the
expenses Of the Government and the interest
on the public debt We admit, our financial
condition is continually befogged by deception,
so that the public are kept in continual ig-
norance Of the truth. But we are safe, we think,
in saying that the interest on the public
debt and pensions will require two hundred
millions year, and that the expenses of the
Government will be two hundred millions
more; that Is four hundred millions in all.
Now, does anybody believe the Government
can collect, annually, enough over four hun
dred millions year to greatly lessen the vol
ume OF currency? The only way, then, of re-
ducing the currency, Is by funding, that is, in
ducing the Government creditors 10 take long
bonds, instead OF greenbacks in payment.
VIII they do it, That must depend on the
two questions of whether there is surplus cap
ital TO be put into them, and whether the
credit Of the Government is like TO continue
good enough to invite it.