The Portland daily press., 1865-11-28
Am I Right p
1.-THE Editor of the Press:

uhe Editor of the Press: 4.tl slititi
: My three reasons given for the scarcity of
money, your correspondent ''#" says are not
correct. In fact, his whole article implies
that there is no real scarcity of money; that
currency is as plenty as ever, and that high
prices maintain which they would not if mon
ey were scarce.
hold, first, that the funding of the $50O0O,-
900 OF compound interest notes &C., was in
tended by Secretary McCulioch, as one step
in advance towards contracting the inflated
currency of the country. A small amount, to
be sure, which had been running for year,
was held by bankers, but the bulk of them
were received and paid out as bank notes. If
they had been originally intended to be held,
and not circulated, why were many of them
issued in denominations as low as twenty dol
lars? Again, why were they never quoted, as
other Government stocks and certificates of
Indebtedness? l answer: because they were
in circulation, at their face like other bank
notes. The Secretary could have had but one
object in funding them, and that was con-
traction of the currency, and it is universally
admitted that their withdrawal from circula-
ton did contract the currency and tighten the
money market. At any rate, if the Secretary
issued these compound interest notes, not for
circulation, but as an investment; or in other
words, as funded debt of the Government.
why should he go to work and fund them over
again? Now here is plainly a fundamental
question for ~" 4er.s.E
Secondly, I hold that there has been diver
sion from the North of a large amount of cur
rency to the Southern states, within the past
few months, which has materially contracted
the circulating medium of the North: lust as
water, when it is spread over large surface
is diminished in depth in proportion to its ex-
pansion. 7si s
The Southern states have been impoyerish-
Gu oy four years devastating war, and dur
ing That time have been shut out from COM
inerce out they are now open once more to
commerce, with an almost perfect destitution
OF money; and their confederate scr;, Iii,
former circulating medium, is not worth the
paper it is printed upon. There was A nerfect
vacuum OF money, which is, and is to he flied
by currency from the North. The country 10
to be built up again, principally NV monou
from the North, and their cotton. tobacco
rice &c. is being bought for the North with
currency heretofore circulating in the North
To be sure, there have been a few nationa,
banks established in the South, but not half
enough to supply the demand, and half the
capital for these few banks is Northern CAPT.
tai.
Again, banks cannot be established there in
day, or week. This thing is a work of
time.
take issue with your correspondent also az
to the truth of my third reason for the search
" ofmoney, to wit, the withdrawal by nation
a banks, formerly State banks, of their old
'o'al issues. 1 maintain that at least three
Quarters OF million of the old local currency
HAS oeeh ret'red in this city, and that the va
CUM mas not been filled by corresponding
increase OF national currency. Take for in'
stance national bank, with a can;toI s.oa,. -
S65O,OOO, with circulation of national cnr
rency of half million, and of its loo.I -
of 100000; now such bank is en,it,o5
but ninety per cent. of its capital stock IN
national currency, viz: $5S5,OOO. 1t is EMIT
led therefore to but $S5,0OO, in addition to
the half million it already has in circulation.
How is this $4,000 to supply the vacuum oc-
casionedby the withdrawal of 100000 local