New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1866-03-07
Contraction Of the Currency.
To the Editor Of The ". y Tribune.

To the Editor of The ". y Tribune
SIR: 1t appears to me that you are TINS tiihe
wrong in advocating contraction OF the currency anu
a return TO specie payments As your paper exercises
very great influence. 1t is most important that yo"
should be right on this point. Allow me TO state my
reasons why the currency should be maintained ms IL H.
You can Judge whether they are worth anything.
l. The amount Of currency in circulation is not
too great for the immensely extended business opera
tions Of this country. We have not much more than
France Henry c. Carey says less bat think he must
be mistaken on this point. Tho amount OF specie In
France is about $500 900. Now. nearly twice rs
large volume Of currency is required in this country
as in France owing the extent Of business transact
tons and the greater distances causing slower cireu
lation.
q A portion of the currency which has heretofore
been in circulation in the North mainly, will be gradu
ally withdrawn and employed IN the lar west ana
South. This will establish an equilibrium IN year OF
two more even If we now have too mnch currency.
g. The greenback circulation saves US large amount
Of interest which would have be paid II replace
them by bonds - .
4. The premium on gold is equivalent to tariff Of
like amount IL prevents IL is true the export Of some
articles but this disadvantage is more than balanced
by the former. II we get gold down to par, we must
increase tariff reduce the tax on home manuac-
lures. | do not well see how we can do either
s. We want present volume OF currency Ito
float, so 10 our taxes III We cut down the cur
rency and return to specie payments II Will be mpos
sibe for the people 10 pay the present tariff Of taxes
g. The country is now prosperous, ard industry IL IN
n good condition. There is very little speculation no
serious overtrading. and not much credit. We had
perhaps better let well enough aoDe' until We have
settled all political difficulties. which may yet be
serious if the Southern members get into Congress and
attack they probably will the national deot aud the
tariff.
T. II the Government contracts a hundred Millions
the capitalists will get alarmed and contract one or
two more We may then have very serious crisis.
which will stop business reduce the revenue greatly.
and probably sweep the Republican party out OF
power.
e. Thirty per cent premium on gold-that is 30l00
difference between the currency Of this country and that
u EuTope--is more tbsn fair coUnerpolse 10 the
difference in the price Of labor. While are becom
ing accustomed 10 state OF things IN finance
and taxation il Is best TO maintain cOunterpoise Of
this kind.
Lastly Il seems TO me that the desire Of returning to
specie basis Is suggested by kind Of veneraion for
the precious mctasa conservative sentiment for what
il old and held 10 be true as a standard Of values
Now, We must not let ourselves DC governed IN our
opinions by our feelings. We must reason practically
codly without any preconceiyed ideas auy bias
II do So shall see that, we have ono imitation
of taxes and in the price Of labor and Of cOmmod
tiles want In the currency 10 meet this state Of
things If we 10 contract let us begin elsewhere.
and perhaps first In taxation. We ought To reduce
State and National expenses. II by good tariff We
could increase home manufacturing and home markets
for agricultural products. the result In all opposite
way, would be attained Alb.