New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1866-04-17
THE CURRENCY.

THE CURRENCY,
What is called the Loan Bill, has, as it is wen
known, passed both houses OF Congress- ahu nstts
doubtless, received the Executiyes signature
This hill il Of much Importance, and we therefore
reproduce it in our columns II IS as follows.
All entitled q ss e
Re- y e,aeted h, he Senate and House q rep
,esenfatsres of NE United States q Ante.tc.; ~
G0ngress assembled That the ACT ~ az az. w
nrov;dasw ays and means TO suppors sne $500 $500,
eminent March &. iss9 ofthe Trea
49, N IN discretion to receive any treasury notes
81 otber obligations issued under any act OF ooh
rass whether bearing interest OF not, N exchange
w r dascription Of bonds authorized by the act
~ NH ts Is an amendment and also to dispose
~ "a any description of bonds authorized by said
aet. either in the United States or elsewhere, to
snch An amount in such manner, and at such rates
"a he NAV think advisable, for lawful money OF
he United States or for any treasury notes, GER
tcates of indebtedness, or certificates OF deposit
Or other representatives of value which have been
or may be Issued under any act Of Congress, the
proceeds thereof to be used only for retiring
treasury notes, or other obligations issued under
any act of Congress. But nothing herein contained
shall be construed to authorize any increase Of the
public debt: provided, that Of United States notes
not more than ten millions Of dollars may be re-
tired and Cancelled within six months from the
passage Of this act and thereafter not more than
four millions of dollars in any one month. And
provided further, that the act to which this is an
amendment shall continue in force in all its pro-
visionsexcept as modified by this act. :,
SEC. 2. And be 1t further enacted, That the sec.
Rotary Of the treasury shall report to Congress at
the commencement of the next session the amount
ofexchange made or money borrowed under ms
act, and Of whom, and on what terms, and also lhe
amount and character of Indebtedness fetfeu
under this act and the act to which this IS an
amendment, with detailed statement OF the
expense Of making such loans and exchange.
1t is strange that much Of the opposition to the
bill was based on the objection that it places too
much power in the hands Of the secretary OF the
treasury. The alarm caused BY prospective
contraction Of the currency is 50 great, in some
circles, and among certain set Of politicians that
any tendency in this direction scenes to cause
tremor But certainly that is not very e1traordi-
nary mower which authorizes the withdrawal OF
| only eighteen millions before the reassemblng Of
| Congress next December. The withdrawal OF
| that amount would not probably have an appre-
ciable effect On the price Of gold. All that there
| is really important about this piece of legislation
| il. that it proves the government to have re-
nounced the policy Of expansion, and entered upon
| The polieyof Contraction policy which must
inevitably be adopted sooner or later, but which
| becomes the more difficult the longer it is de-
ferred. twill be seen that q reduction Of four
millions Per month, Or say fifty millions per an
mum, is permitted under the act At this rate Il
would take some years to cancel the legal tender
circulation; and even then, there would be from
two hundred to three hundred million Of nationa
currency ID circulation. But, as We have said, the
direction is right, although, for the time being
very slow progress may be made
The bill gives the secretary much less power
than he has asked for Intact, it invests him with
| no control whatever over the financial situation
It does not open the way for any speedy return to
| specie basis, nor does it contribute materially
| to meet the engagements of the government ma
| turing in 1868.
4 The great bugbear in this whole matter is the
| fear Of what is called the & disturbance of
values and the losses which trading people may
suffer from a depreciation Of the price Of gold,
consequent on o contraction Of the paper circula-
| ton But any one can see that $500, 100000 of
| PAPER currency is far more than the business OF
the country needs; and that, if we are ever
| to return to specie payments, the inevitable
| consequences must be borne in one way OF
another. Precisely the same argument against
contraction will exist next year, as are urged
with 50 much pertnacity now. The danger,
4
danger there be, must be met at some time, ant
the sooner we pass over the period Of embarrass
ment dependent on the return to o sound cur
rency, the better it will be for u.s.. IA.
Moreover, as the New York World very justly
remarks, Congress seems blind to the fact thatthe
country has other things to do than the purchase
and sale or manufacture and sale Of consumable
commodities. 4 There are thousands of enter
prises in the character Of permanent investments,
whose returns must come in future years The
opening of new mines, the building of new ma
ehinery the erection of new houses, the construc-
ton Of new railroads, are kinds of business which
differ from current mercantile transactions, in that
the money invested now will bring its return sew
eral years hence. If the currency were restored
to the specie basis, the house or railroad built now
would cost about the same as those built five years
hence, and there would be no great risk in the
undertaking. But if men build now what can be
built thirty per cent. cheaper in 1862 they would
do better to keep their and apply it to some
other use. The restraint put on the secretary is
purely in the interest Of the trading and specu'
latng clseses, who alone are benefited by con
tinuing the infation.n MI
I