The national Republican., 1866-12-04
p473,s75,oje
Total domestic exports. valued in soid... 4s0sS $50
Apparent balance Of trade valued in gold, ssoos07

But these figures, taken from the reports Of the
houses, do not prsssnt the whole truth. For
many years there has been systsmatio undsr.vai-
uation Of foreign merchandise imported into the
United States, and large amounts have been snug.
glsd Into the country along extended
and frontiers. To make up for under -valua ations
and smuggling and for cost Of transportation paid
to foreign shipownsrs 20 per cent at least should
balance for the past year against the United States
nearly 500. .ooo 900. II 10 evident that the bal.
ancss have bson largely against TIE United States
for some years past, Whatever may have been the
sustom.houss returns On no other ground can the
fact be accounted for, that very large amount Of
American bonds 10 now held In Europe, which are
estimated as follows, to wit:
s,s.. Ss,ss ~ y, ss bond, Coo @
RAILROAD and other .tosT. and joni:. iSSSSoSSS
esoooOo.ooo
II 10 evident, from these figures, that the bal.
aness are against ne. and chiefly BY the sxporta.
tlon Of our aovsrnmsnt bonds, are being tsmpora.
rily and improvidsntly arranged; temporarily, be-
cause large portion Of these bonds have been
bought on speculation, and will be likely to b 70.
turned Whenever financial troubles In the countries
10 which they are held shall make II necessary for
the holders TO realize upon them, or whenever salts.
factory profits can be made BY returning them,
which will be whom they nearly approach their par
value In COIN improvidsntly, because they ars be-
~ Nory low pficest because tnoif
expectation stimulates imports, and thus oripplss
home industry. Nothing 10 more certain than the
fact that there can be no permanent resumption Of
specie payments In the United States until the bal
snces between them and other nations shall be
made easy by an expectation Of commodities in
cludng the products Of the mines equal at least to
our importations and until provision shall be made
for returning bonds or for preventing their return
at unpropitious times This state Of things, 1t 10
conosivsd, cannot be effected without change in
| our financial policy.
There being but one universally recognised meas.
urs Of value, and that being value in ITSELF cost.
ing what II represents In the labor which ID required
to obtain It, the nation that adopts, either from
choice or temporary necessity an inferior standard
violates the financial law Of the world and insvita
bly, suffers for Its violation. An irredeemable, and
| consequently dspreciatsd currency, drives out Of
circulation the currency superior to itsslf and II
made by law legal tender, while Its real value 10
not thereby enhanced, II becomes Q false and de-
moralizing standard, under the influence Of which
prices advance In ratio disproportionsd even to
its actual depreciation. Very different from this 10
that gradual, healthy, and general sdvancs Of
prices which 10 the effect Of the increase Of the pre-
oious metals. Tho coin which Is obtained In the
gold and svsrproducing districts although 1t first
Affects prices within such districts, following the
course Of trade. and in obedience to ts laws, soon
hnds Its way to other countries, and becomes part
| Of the common stock Of tho nations, which, in.
oreasing 10 amount BY the regular product Of the
mines, and In activity by the growing demands Of
| commerce, advances tho price of labor and COM
moditiss throughout the commercial world. Thus
| the products sf the American, Austrian, and Rus
sian mines tend rst to advance prices In their
spectve localities but tho operation Of trade soon
distributes these products, and enterprise every.
whore feels and responds to the increase Of the uni
versa measure Of value All this 10 hsalthful, be-
cause slow, permanent, and universal. The coin
produced In any country will be retained there no
longer than Its productions and sales keep the bal
I - L. l.. H. r.. A. -
cheaper III this word can be properly used In re-
gard to the standard Of value) In the country in
which II Is produced than In other accessible coun-
tries or rather when 1t will purchase In other
countries adding interest," the cost of transporta-
tion duties and other necessary expsnses) than In
that in which Is produced or when IL is required
to pay balances to other countries 1t Aows to them
| by q law regular and as certain as grayitaton.
Hence, although the precious metals are produced
In considerable quantities In but few countries,
they Affect the prices In all. Not 90 with . paper
currency, which Is local In Its and In Its inau
enes. It's advantages, when convertible are admit.
ted for, II convertible, although II swels the vol
ums Of currency II rather increases enterprise than
prices Its oonvsrtiblity prevents expansion, while
lager volume gives impens to trade and creates
greater demand for labor. Buk when paper cur.
rency 10 an inconysrtible currency and especially
when, being SO, II 10 mado by the sovereign Power
legal tender II becomes prolific Of mischief Then
specie becomes demonetiIed and trade Is uncertain
4 Deohu1e tne ID uuctuAting; thon
prices advance - the volume OF currency increases,
and require a. they advance further additions to
| the circulating medium; then speculation becomes
rife, and the few are enriched at the expense Of
the many" then industry declines, and extIaya-
ganes 10 yaptonj then, with diminution Of pro.
ducts, and consequently Of exports, there Is an in
crease Of imports and higher tariffs required on
acoount Of the general expansion to which they In
their turn, give new stimulus and support, while
the protection intended to be given BY them to homo
industry Is in great measure rendered imperative
BY the expansion. This, notwithstanding our large
revenues and the prosperity Of many branches Of
industry, 10 substantially the condition Of the Uni.
ted stats', and the important question arises what
are the remedissf
with entire Difference to Congress, the Secretary
| suggests that they arc to be found
!, In compelling the National Banks to redeem
their notes at the Atlantic cities, or, what would
be better, at single city.
J. In cnrtailmsnt ofths currency to the amount
required by legitimate and hsalthful trade.
3. In careful revision Of the taria, for tho pur-
pose Of harmonilins 1t with internal taxes-re.
moving the oppressive burdens now imposed upon
certain branches Of industry, and relieving alto
gothcr or greatly relieving, raw materials from
taxes, in order that the product Of labor may be
enhanced and production and expectation increased.
I. In the issue Of bonds, payable in not over
twenty years and bearing interest at the rate Of not
over five per cent, payable In England or Germany,
to m amount sufficient to absorb the six per cent
bonds now hold In Europe, ana TO meet the demand
there for actual and permanent investments and
8. In the rehabilitation Of the Southern States.
First. The utility Of compelling National Banks
to redeem their notes at commercial centres, as
we'll as at their own counters, Is apparent. The
object Of Congress In tho establishment Of the Ma.
tional Banking System, was to furnish the people
with q solvent currency Of uniform value through
out the United States. Tho solvency Of the notes
Of the National Banks Is secured by 4 deposit Of
bonds with the Treasurer at Washington; but, as
the Banks are scattered throughout the country,
and many Of them are In places difficult Of access,
o redemption Of their notes at their respective
counters il not all that is required to make them
throughout the United States a par circulation II
Is true that the notes Of all National Banks are
cevable for oil public dues except duties upon I'm
ports, and must be paid by the Treasurer In case
the Banks which issued are unable 10 redeem them,
but 1t will not be claimed that the notes Of Banks,
although perfectly solvent. but situated in interior
towns are practically as valuable as the notes Of
Banks In the seaboard cities.
II may be urged that, TO compel remote banks
thus to redeem, would be hardship; but as very
few wel.mansged banking institutions In the Uni
ted States fail to keep accounts and balances in
some Of the Atlantic cities, this hardship would bs
found, upon trial, to be imaginary rather than
real. But II II should be q hardship II would be a