Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1866-01-04
The Currency Question.
To Me Editor Of Belmont C1,on,i;oJ

Germs the country more at present than that
Of the currency, and none which is perhaps
less understood BY the masses of the people.
We have yoluminous report from the
Secretary Of the Treasury-Mr. McCul-
lough-in which he states with ability the
condition of the Treasury and argues co
pously the currency question generally. The
position of the Secretary, and his acknowl.
edged ability as fnancier, enttle his opin.
ions to great weight; but we should never.
theless examine his theories carefully before
reducing them to practice. A mistake
made.at this period ofour finances might not
easily be remedied within the present gen
GRAFTON, and might defer the payment of the
pubic debt almost indefinitely. Such
calamity, with proper management on the
part Of our financial agents. may undoubt-
edly be avoided
The public debt, we are informed by the
Secretary, is near three thousand millions
of dollars about four hundred and fifty
millions of which is in U. s. notes and frac.
tioDal currency, and not on interest. The
whole amount OF currency in circulation, on
the 3lst Of October last, was estimated at
about $734, 100000. This included u. s.
notes and fractional currency, notes OF Ma
tional Banks, notes Of State Banks, five per
cent. Treasury notes, and that portion of
compound interest notes supposed to be in
circulation as money, 1t will thus be seen
that the money circulation Of the country is
unprecedsntedly large but its creation, like
that of the national debt, was a national
| necessity. 1t enabled US to carry on the
war and save the nation, without the hu.
initiating necessity of applying for means
to those Of the Old World who were not our
friends, but in this contest our enemies
The large amount Of means thus furnished
to the Treasury Department for immediate
use was not the only benefit resulting from
the issue ofa Government currency. 1t was
largely felt in the general prosperity OF the
country. The producing classes Of all grades
were enabled to invest largely in Govern.
ment securities, and this furnished the sim
ews OF war for a successful prosecution and
termination OF the contest. Can any one
suppose that, with currency limited to
what it was in 1860, and a consequent strin.
gent money market for the past four years,
this great end could have been successfully
uCOotophSuCul LuO OeCT6IdTY QOcS not
claim that it could, but argues that the Gov
eminent currenc,S has already performed
its functions, and should be speedily retired.
LIS this true? Let us examine some of his
arguments and theories from which he
comes to this conclusion.
The war is over, the Union is saved; thus
far the great end of this excessive issue of
currency has been accomplished But is
there nothing yet to do, that we should,
seemingly, become Indifferent to the gener-
al prosperity of the country2 The Secre-
tary says: Nor need there be any appre-
hension that reduction of tho currency
unless it be a violent one--will injuriously
affect real prosperity. Labor is the great
source of national wealth. and industry in
verlably declines on an inflated currency. !"
Mr.. McCullough's theory is that real pros.
perity will not be injuriously affected by
putting down the price of labor and he ar
CUES assiduously to this end. His theory
that industry invariably declines on an
initiate currency, is not founded in truth
it is fallscy. 1t is contrary to both reason n
and experience. The history of the North.
ern States for the past three years puts to
flight such an assumption. Never was great
er industry displayed by any people than by
the producing classes of the Northern States
during the last four years, and that, under
steadily increasing currency, or, in other
words, ian inf ated currency.
But is the Secretary fairly represented,
in his desire to reduce the prices of labor
by his funding policy? Let US. quote from
his language
Not only do tho interests, but the abso.
lutte necessities, OF the masses require that
the price Of articles needed for their use
should decline.
'There is an immense volume Of paper
money in circulation-under the influence
of which prices, already enormously high,
are steadily advancing, and speculation is
ncreasing-which must be contracted if sim.
liar disasters would be avoided The ex-
pansion has now reached such point as to
be absolutely oppressive to large portion
OF the people, while at the same time it is
diminishing labor. and is becoming subver.
sive OF good morals There is no fact more
manifest than that the plethora of paper
money is not only undermining the morals
OF the people, by encouraging waste and OK.
travagance, but it is striking at the root Of
our material prosperity by diminishing Ia.
Dor. The evil is not at present beyond tho
control of legislation, but it is daily increas
ing, and, il not speedily checked, will, at no
distant day, culminate in widespread disas
ter, The remedy, and the only remedy
within the control of Congress, is, in the
opinion Of the Secretary, to be found in the
reduction of the currency"
The Secretary is correctly represented in
the assertion Of his anxious desire to reduce
the wages Of labor. both directly and indi.
rectly; that labor, which is the great
source Of national wealth." may Be stimu-
lated, and the morals Of the producing class
cs be thus iucidently preserved. What
sublime thought But, then, it is not al.
together original. We find in the sacred
scriptures an account of the dealings Of Pha-
roah with the Israslitss, in which it is re.
lated that, "Moses and Aaron went in and
told Pharoh, Thus saith the Lord God Of,
Israel, Let my people 90, that they may
hold feast unto me in the wilderness.
And Pharoh said, Who is the Lord, that
should obey his voice to lot Israel 90? l
know not the Lord, neither will let Israel
go.