Bradford reporter. [volume] (Towanda, Pa.) 1844-1884, 1866-01-04
8radford geporter.
Towanda, Thursday, January, 4, 1866.
CURRENCY.

while treating of the Currency, says that:
Five years ago the bank-note circulation of the
country amounted to not much more than two hum
dred millions now the circulation, bank and ma
! tional, exceeds seven hundred millions. The SIM
pie statement of the fact recommends more stfong-
ly than any words of mine could do, the necessity
| of our restraining that expansion. The gradual
reduction of the currency Is the only measure that
can save the business of the country from disaster
GUS calamities and this be almost inpercept-
! IDLY accomplished by gradually funding the
tional circulation in securities that may be made
redeemable at the pleasure of the government"
1t is doubtless true that there is great
difference between the circulating medium
at present, and that five years ago but it
is not exactly fair to compare the bank-note
circulation five years ago, with the present
currency. Then we had large specie cir
culatiOn, which, with the bank-note circu-
latiOn, made up the currency, the two max
ing together over two hundred and fifty
millions. Besides most of the two hun
dred millions oflegal-tender Treasury notes,
and the compound interest notes of over an
hundred millions, are locked up III the banks,
saving banks, trust and insurance compan-
les, and the Controller Of the Currency act
ually estimates the entire circulation of
currency at less than four hundred and SIR
tyrone millions, thus making it nearly three
hundred millions LESS than the amount sta
ted by the President vast difference-not
very far from one half
But there is another consideration which
should have great weight in reducing our
present currency, for that it should be re-
duced no one will deny; but the extent of
the reduction is the question
1t is well known that five years ago the
business of the entire country was at a
stand-still point. Every where the cry of
stagnation in business went up The price
of labor was fast approaching the European
standard, and many of the workmen Of the
J country were out Of employment These
are stubborn facts and this is the healthy
condition of the country which is sought
: after. The truth is, that five years ago the
circulating medium of the country was one
third short of its real wants, and we depre-
ciate the idea of returning to that standard
o If people have forgotten the crushing infu-
: ence Of the insufficient currency, which
8 weighed upon the country five years ago,
they have only to look at the effects which
5 our present surplus currency produces on
business. Everything is stimulated, too
much, to be sure, but a moderate, or sound
stimulation, would be produced by mod
crate increase of our circulating medium.
One great mistake which most of our cur
, rency writers make in applying the rules
Of political economy to our country, grows
out of the fact that these rules or laws,
Y arose out ofthe experience of old dccuntries,
a which are not always applicable to new
: ones. In the one, every thing is developed,
in the other, almost all is yet to be devel-
: Oped. In the one, there is surplus of la
$ bor, and it is consequently cheap, and makes
every thing else cheap. In the other, labor
is high and other commodities are high il
3 proportion, consequently, more capital is
required to perform the same amount of la
Dor, or to manufacture the same article
Hence it follows, that we have. in this new
+ undeveloped country of ours need of more
capital, or circulating medium in proportion
: to the amount Of business done, than in an
D older one. Again, labor makes all capital
D and as the rear~ wealth of the nation in,
creases, the price of labor decreases, SO
:, that there is not often any need for increas-
ing the circulating medium for an old and
fully developed community; but this will
not hold good i'll a new one. There the con
4 slant demand for capital to make new de-
J.. velOpments, makes constant demand fol
an increasing circulating medium If there
s fore, redundant currency could be left un
disturbed, without any additions, or mater
. ial reductions, it would in five years be a
n redeemable currency, adapted to the bust,
ness wants of the country, so rapidly does
4 the increasing demands for capital absolve
0 any surplus with us. We have before as
: serted, and now repeat, that the present
high rates Of commodities, is not all at
tributable to the redundancy of the curren.
cy Scarcity of labor has had its full share
V Ill plouutluS tHIS result dhu SO soon as Ia
: Dor falls, commodities must fall We have
: no capital only as labor creates it, and il
i regulates it as well. If farmer raises
one hundred bushels of wheat, and wheat
: is worth one dollar per busheI, that farmer
has created one hundred dollars in capital
4 carpenter who builds a house with one
thousand dollars, creates a Thousand dollars
2 and so on, through all the mutifarious pro.
$ cessess of labor, capital is created When
therefore, the war Withdrew one million OF
: this wealth creating power of the nation, il
: was at once supposed that pecuniary ruin
must follow. But it did not, and why Be-
1 cause, that number Of laborers were ont OF
+ employment whel the war broke out, and
were not creating capital. This is clearly
demonstrated in the fact, that after the ar
my had absOved million of our laboring
men, the products of the Northern States.
were nearly equal to any previous year ;
and it is this consideration which has made