New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1866-01-01
observation-disclosures.
To The Editor of tn. N. y. T,i5ua.

! To The Editor Of The N y. Tribune.
SIR: Does The TRIBUNE say that Govern
ment Legal Tender Notes initiate the value OF every
thing Or that the abundance Of paper money has that
tendencyp If paper money does the mischief where IS
the consistency of redeemng gTeenbacks aud putting
out National Bank notes, The nation saves the inter
est on the legal tenders The last account we have IS
that thero are t232 Co., 600 in National Bank notes
aoat the interest az six per cent amounts to nearly
$4,000 OC0 which might be saved, with the cost OF Hs
collection L. not the manufacturer compeiled 10 puI
on the five per cent tsI on ms eoods anu uo'S '
80 aP'' "''' 10 p'' " AsuHioa PAGES
PHILADELPHIA Dec. g. 1905.
Anslcer-1. IfTug TRIBUNE had ever intl-
mated that making Paper Money Legal
Tender was the only cause OF high prices, then
il would have been in the wrong; but it never
dreamed of such thing. Tie havoc and waste
of War; the diversion of Labor from production
to destruction; the borrowing OF vast sums by
the Goyemment-nay, the collection OF vast
sums by taxation-would have considerably in
nated prices even though Paper Money had
been unknown: much more though it had never
been made Legal Tender No intelligent
person attributes the aggrayation OF prices to a
single cause. Il is the result OF many con-
curing causes.
.. Bur what use in reiecming Grccnback'
with National Bank Notes? Simply 70 get
back, so fast as may be, io0 Currency rede,mdbie
in Specie II the Greenbacks were withdrawn,
every dollar Of paper money III the country
would be redccmablc in specie and would at
once be at par with specie In other words:
the prices OF all Goods and Products would be
reduced below the present rates by the
difference between 100 and 10. Sub
stan,ially, Butter now selling FOR - cents
would be- worth 80; Pork worth $40
per barrel would be $50; Coal now held at SIP
would sell for 3; and 80 with everything else
We quite understand that Labor IN general
would fall couespondingly; hence, house that
would now cost $4,000 copld be built for
$40. 600: and 50 with Railroads, sc, &c. To-
day. works Of permanent improvement are par
alyzcd By the consideration that thay can be
prosecuted after Resumption at tTo.thgds the
present cost, In other words, be who has
$40, 600 that he proposes TO employ in building
in improving, making a railroad, or anything
Of The sort, may wisely put his money out at
al interest and wait fox Resumption before be-
ginning has outlay.
3. IL sc are forever 10 rest content with a
Currency OF uncertain, Guctuating value, We
readily admit that it were better composed
wholly Of Grcenbacks than Of Bank Notes. But
VIC want Currency of stable, uniform value;
so We desire a speedy Resumption. And this is
20 be obtained through withdrawal Of Legal
Tenders; whercupon every bank note becomes
payable in coin.
i. As 10 contraction ". expansion, we ex-
poet that 10 take care Of itself We only wish
the Government 10 see that every dollar is
good dollar, and then we presume that the
Paper Currency Of the country will expand and
contract as the eyieeuccs OF Industry and Trade
shall dictate. Whether the country wants
more o. les Currency. we expect il to decide
for itsclr--by expansion whenever il has too
little: by contraction whenever it has too much.
Il the Government will but so regulate the
value thereof that every dollar in circulation
shall be- worth exactly ten silver dimes, we do
not care whether more National Currency shall
be authorized or not; since, though Billions be
authorized. no more can be kept in circulation
than the business of the country demands.
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