The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1866-04-20
NUMBER IL.

currency. then Il ought, taking the price on 'he
lst of july 1864, rs basis, TO be now over three
hundred per cent. and IL gold has declined fum
one hundred and eighty to thirty. per cent l'es
MUM under an actual AMI considerable incrasc
OF the currency. what should prevent It 'rom 20
ing to par within the present year thereby chab'
ling the Government i,sclfto resume specie w
nents and as u consequence carry ms WIN " =
similar resumption by the banks OF the couhtr! /!
In addition to the many advantages and great
superiority possessed by the lecal.tender curen-
cy as a circulating medium, there is another ch'
vantage accruing to the Government from lis use
and to this point wish TO call the attention OF
the gentleman from Ohio, tMr. Garfeld.l who
thinks the Government should withdraw its eli Gu
lation and leave the entire currency Of the coun-
try In the hands OF the banks. SO long as the
Government issues currency Of this character It
can control the matter Of specie payments, AMI
the danger which attends II when left entirely in
the control Of the banks Is removed. II the banks
control the entire circulation We can never rely
on the permancy Of specie payments: they will
inevitably consult their own interests, bnl they
will suspend whenever dangers threaten ihcui. No
matter what laws may be passed regulating tho
subject. for the laws Of the country must c"ni,rm
to the laws ftrade. Give the banks the entire
circulation and they might laugh at an attempt
TO close them up on account OF a Suspension;
they are "masters Of the situation;" the country
cannot get on without currency.
but the permancncy Of specie payments may
be greatly Increased II the Government stands
ready, anchored in the confidence OF the people;
TO pay its paper dollar for dollar in gold, AMI
this simple knowledge ON the part OF the people
that the greenback passing through their hands
day after day is the positive equivalent Of dollar
in gold In the Treasery will make one of the ca
est blessings which could be conferred upon the
people. This sentiment Is even now rap dy
growing. Let us once reach specie standard
f,rt tbo ba, % nd thp M ettla
will never consent 10 have Withdrawn from circu-
lation currency so well adapted TO all their
wants and so we'll grounded in the first principles
of security and confidence.
The practcability OF an early resumption Of
specie payments and the yoad thereto involves
many serious considerations. IL has been
strongly urged tha. there Is no way Of reaching
such n result except through the policy 0f con.
traction; that To make money scarce and dear
You will approximate specie standard morec@r'
tanly than IN any other way. lquestion the core
rc:tncss Of this theory.
As has already been shown, gold has declir'l
from two hundred anl eighty to one hundred aud
thirty per cent under mn absolute increase Of the
currency. viii some one give me a sound nr,-
onng why the decline should stop at this particu-
lar point2 Will not the same reasons which have
forced IL from its highest altitude 10 its pres,ht
point operate to drive II still lower? II we should
double our imports tomorrow would not the
DIlCe VI Holl uuNutCC, tNtn tUOuEU NJ hHWC
time We withdraw one hundred millions Of greeu-
backs from circulation II, on the contrary, We
should reduce our imports and double our exports.
would not the price OF gold decline without cun-
trac,ing our currency a single dollar? IL th'le
any more certain way Of paying our debt abr al
az of keeping our gold ut home than by incrtfs-
inc our experts? Aud IL there any more certain
way of increasing our exports than By stimula'-
lug productions? And Is there any more certain
way cf stimulating production than by cmpl -
ns this very circulation, the capital Of the coun
try, in developing, its vast resources q! rytiy
character; in chelpcning the price Uf food BY in
cre,sing the production uf food: in inducing i'm.
miGration by opening new AMI vast fields for de-
yelopm,ut. and in adding 10 the production uf
the Country 90 RAPIDLY that few years will gl,o
us q muuop0ly OF the lcaling agricultural stapl,s.
bringing the whole world 10 our doors 10 iuy
what we have 10 sill, and lecping the balance Cf
trade ne constantly IN our favor in the future AZ
il has so uniformly been In favor of England IN
the past? Instead Of disturbing the entire busi.
ness interests Of the country by an attempt to
compress the currency into channels In which IL
was employed prior to It's increase, would II l OF
be more natural, much easier, and far safer to Gu
large those channels 10 suit its present volume
The business interests uf the country are fast nc-
cOmmodating themselves TO It's new financial ctIi-
dition already nrc matters 70 settled that contrnc-
ton can scarcely be talked Of without advancing
the rate OF interest one or two per cent, anil
ask gentlemen which is the true policy for the de-
yolOpment ut this country, 10 make money dear
or to cheaper IL? Which most stimulates the tir-
plNyment of labor aud the development Of capital,
and thus adds most to the wealth Of the country,
money plenty or money scarce?
After comparing the predictions Of England IN
regard to the issue OF the war, and the state If
our fnancies, with the real condition OF affairs.
aud claiming that the laws OF trade and the 10.
stora,oR of confidence are steadily and surely
bringiugus to o resumption Of specie payment.
he adds
Il is almost universally admitted that the return
TO specie payments must bo gradual. Suppose.
then, that the Government Of the United States
takes the initiative; not by q contraction OF tho
currency, but by announcing, at as early do! ~
Is practicable, that Its lcgal.tender currency will
be redeemed in gold on presentation ut the Treas
ury, and then, to aid the banks Ia following its
lead, let the national banks be allowed to reJe NJ
In the lega.tendcr notes thus put on par with
gold by the Government. With the basis Of ic-
demptlOn thus broadeDed II could not be long lc-
fore the business and the money Of the country
rested as firmly upon specie basis rs ever.
| do not assert either the necessity or practics-
bility of doing this Immediately. The haryests uf
the present year are necessary to assure us that
the production Of the country has been resumed
with greater yigor than ever ; with the volume
OF our exports unlll increasing, tncy nluet To
greatly augmented a year hence; with the A. W
of specie from the Pacific steadily gaining; with
the national debt securely NJ rest in Its present
position, undergoing no increase, aud with n uh-
teral reduction OF taxation already rendered
possible by the condition Of the cOuntry's fnRu-
ces, can see no good reason why, under the
present able management Of the Treasury, tho
Government may not before all the Treasury notes
now outstanding mature--if not within a year
from this time -stand ready to redeem Its own CIR.
cuation In gold.
Specie payments, except TO comparatively lim-
tied degree, never have rested upon the amount
Of specie in tho country, but suspensions have al
ways occurred through a lack OF public CONT
dence, which is the great underlying principle "f
specie payment. Except ~. from 30 10 co.
period Of 80 years. the banks Of the country hrl
not specie enough 10 redeem ono third OF ih'i ir
circulation, proving cODclns'ely that paper cir
cuation does not rest upon an actual specie bats
The sneaker furthermore showed that the increls.
inc amount uf currency over that Of 1850 was No
more than was needed TO do the basness Of tie
country which has increased with increased fac
ili,ies for carrying II on.
Iii assumed that the redundant currency IL
the cause of the high prices of merchandise. aui
that reduction Ut the currency will bring down
prices and also enable MS to return ~ specie pay
nents. But the fact il that gold has fallen from
80 to 100 while the currency has been increased.
AMI meichaDdiSe which, according 10 this theorI.
should have both alvanced with the increase rt
the currency and fallen with the decline Ia gold.
has upset both theories by following gold down
for time and almost Immediately returning w
the point at which 1t stood when gold was az r'
highest, then falling again until II spprSh,mau'
old values. l. il strange that merchandise, th.
nrnJnct of Isbor. should command high prices In
View of the enormous decrease In the productive
;rJ".,rv ~ the country for the last four years.
IT, ne,rlv one bIlf of tho country. the entire
sn.tba the population wa: during the war almo.,
nhnllY chanEed from pinuncelj " tOnsumers anil