The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1866-11-21
Financial Matters.

In yesterdays issue we gave briefly
our views of the present condition of
business and monetary. matters. We
took, what seemed to us, the proper
grounds in regard to the present huctu-
atoms, and the projects urged upon the
Secretary of the Treasury in favor of a
resumption of specie payments. We
find in the Cincinnati Gd=ette of Mon
day an article quite similar to our own.
We believe that it embodies the views
of business people generally in regard
to the present condition of the currency,
and also in regard to all projects look
ing towards resumption of specie
payments. We, therefore, quote as fol-
lows:
"The downward tendency in prices of
produce, dry goods and general mer-
chandise, coupled with the heavy de-
probation already experienced, is the
cause of the trouble that borrowers ex-
perience. In regard to the supply of
money, the decline in value increases
it relatively. The decline in prices gem
erally is from 10 to 20 per cent. In some
articles it is much heavier, but our fig
ures indicate the average. The effect
therefore must be, when matters be-
NOuAC SCGIlGNS " ALCAOuoC tAlG supply vi
lOanRble funds. But the danger is that
this ease in money which is soon to be
experienced again, will lead to re-
neWal Of the speculative mania. Prices
of commodities, whatever the ups and
downs may be, always adjust them
selves to the volume of money aflOat.
So long, therefore, as we have a
large supply of irredeemable pa
per money, business will be I'M
settled. We are now having series
of rumOrS as to what Mr.. McCulloch
| will recommend iu his annual report,
and the people are frightened by the
| report that he will name some time in
1867 for resuming specie payments, Just
| as II that officer had the power to re-
sumo Mt any time, while the fact is he
has no power except what may be con-
| ferred by Congress: and everybody
knows, that is capable of forming cor
rect financial opinion, that the curren-
cy must be contracted at least one-half
| or two-thirds, before specie payments
can be resumed. Such a contraction as
that would be impossible within one or
| two years. lift can be brought about
in five years, we shall be Rgreeably dis
appointed. There is an idea in some
quarters that If the premium on gold
| could be forced down, n resumption of
matter of course. Mr.. McCulloch
gold, and he put the prem
ium of 20 per cent, and put of the re-
sumption of specie payments one year,
at least. Let 1t be borne in mind that
we never had over $3.50, ~, 600 OF paper
money in the United States on specie
basis, and that the imitation of the cur
rency to that point was nearly always
followed by a commercial revulsiOn,
and a suspension of the banks. An at
tempt now to contract the currency to
even $500, 100000 suddenly, or by any
time in 1867, would break three-fourtlis
OF the banks, PROSTATE the business of
| the country, cut down the revenue, and
knock 20 per cent of the price of Gov
eminent securities. In order to reach
specie payments successfully, the ap-
prORch must be gradual through a con-
traction of the currency. There is no
other way that will not lead from,
rather than to, the desired OBJ
tect. But the unsettled state of
business, the heavy fluctuations
in values, the recurrence OF speculative
mRnias and panicS, and the sensitive
ness of the public to rumors that are
constantly being set afioat relative to
what the Secretary Of the Treasury is
saying or doing, show the necessity for
well defined, practicable and judi
cious financial policy, under which the
currency will be gradually but steadily
contracted, and in the light OF which
business men may conduct their affairs
with a reasonable degree of safety.
For such a policy the people look to
Congress, and they will not, we trust,
look In vain. Meantime let no one be
frightened by reports of a violent con-
traction OF the currency on the reSump-
ton ofspeCie payment tat some period
in 1857" The danger is that Congress
| VIII favor a too gradual rather than \
too rapid contraction of the currency -