The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-08-20

- -sie"or@Wel from Ctroula-
uon-specie the only Recognized stan-
dard Of Value.
from me Bankers Mo0ozfne FOR A,toust
Two simple, old-iashioned proverbs covar Tho
iS wnole nhancai question:-'Honesty is tbe hest
gbe nuu ano9s1 is as good as feast"
dollars, payable on demand in ",',,Un ,
which II has the means of nrnr,n,,v Ioin' '
sna py tn9 ss,e OF Its bonds, but winch Con
most Insignificant instalments, even from The
ofdinary revenue. So much Tor honesty. In
aoultl0n 70 thls, tue very notes OF tue Govern
ment have been made a lepal-fendsr for oiII
debts, thus driving out of cIrcnlation noy ont
all specie, but all forms OF credit conyertibie
INTO specie. Ine amount OF this Iegaltender
currency issued has SO far exceeded The yVants
and the ability of the people TO keep i'm circuiS-
ton on par with specie, that the whole scale
of prices has been deranged, and no reliable
star dard OF values exists among us. So much
for disregarding the second homely adage we
have quoted. ......
In private mercantile affairs this problem
would be easily solved merchant whose
checks and due.bills were circulating at heavy
discount, simply because his neighbors could
not el the money for them, and could not afford
TO hold them ior future payment, while their
confidence in bis Ultimate sOlyency was un-
doubtec, and their ability to loan on interest
was ample, would at once bring his checks up
TO par either by paying them OFF, or (Which
comes TO the same thingJ by receiving them as
cash loans to be repaid hereafter with interest.
But when a nation instead of an individual finds
itself in this pTedicament, it would appear that
the whole aspect is changed And for the last
two years every effort and device of sophistry
and falsehood have been put in play to make
honesty, which Is the best policy TOR the indI.
voual, appear the worst policy for the State.
During the war, indeed, it was generally ad-
mited that the depreciation of the currency
was great evil, and that return TO specie pay
ments would be indispensable after the return
OF peace. The people generally doubtless think
so STILL But the whole race of gamblers sDecu-
lalOrS. an int
rest TO defeat the just demands of the people,
and this they can do only by false assertions and
| false reasonlngs. Let US see what They have to
say.
The boldest of these men go so far as to as
sert that their is in fact no redundancy OF legal
tender currency To be sure, tney are com.
PEELED to admit that 1t is not and cannot be re-
deemed in specie, and that 1t is at large ois-
count as compared with specie. But this fact
they ascribe to the war, or the export; and as
they make no attempt at proof one assertion is
as good as another.
II is true that we have had wars and debts
and short cotton and grain crops before and
these causes and others combined have even
produced temporary and parual suspension of
specie PAYMENTS; but they have never perma-
nently atec ed the specie standard of value and
When The temporary crisis was over, specie pay-
ments have been resumed easily and promptly
Dor is there anything in the nature of these
alleged causes calculated necessarily to produce
the effect ascrbed to them. The war Is over
and with 1t the arrangement OF industry and de-
8.
may be, transferred to those who can afford to
wait tor payment of the principal, and the inte-
rest is punctually paid. There is enough grain
and cotton to feed and clothe our people, and
we need not export these or lmporC other mer-
chandlse, mole tnan we choose, or more than
we can afford. Why is it, then, that all prices
are doubled, and that gold is no longer the
standard OF value?
Another set of men tell US that it is true we
have too much paper currency to be at par with
specie, out that 4 we VIII only be patient till
and wealth OF the country win grow up to it.
and specie will again be at par. This is like
advising a navigator, who has incautiously
Veered out his cable, and let his ship drift high
and dry on the beach, to keep the cable slack,
and wait till the rising tide shall float him of,
he will have to wait long time.
specie currency is accommodated to the
amount OF wealth and population, by the pro.
duction, importation, or expectation of gold in
precise analogy to any other merchandise. But
there Is no such elasticity in irredeemable
paper. The first severe crisis will lead to a
clamor for increased issues, which will not long
De resisted. And the next step will be to COM
plete or partial reputation 40 leave an ire
ueemaOle currency to take care of itself is like
leaving broken bone or a dlslocated Joint to
1eser or swell till some happy accident shall
slip II into its place.
Another enterprislng genius has proposed to
lei the Government hoard some two hundred
millions OF gold and then both announce ana re-
sumo specie payments without attempting any |
previous contraction OF the currency. There
put tney are important. The gold would be ex-
hausted long before the demand for specie was |
met, ana the contraction OF currency, caused by |
the immediate withdrawal of S2O0, 900 600 from |
clrcula'lon, would produce a most destructive |
imam cal crisis. "
Some tiLanciers do not see this. They argue
mat as therels plenty of specie in Europe none
would go there while tor domestic PURPOSES the
noles OF the Unlted States are good or better
But they do not consider that dollar IN specie
Will purchase double as much of food, clothing
ana other Decessaries, as well as luxurIes abroad
as paper dollar will at home Even with
specie at premium OF nearly forty per cent,
importers are successfully competing with do
mestlc producers, though protected by exotbi-
tant duties. But with specie at par domestic pro-
duce would be driven from the market until the
supply OF specie was exhausted; and this fact
combined with the great reduction of currency !
would cause such a great and sudden fail OF
prices as to ruin every one at all in debt and to
paIalyze the industry OF the country Such a
sudden influx OF specie might prove a great
curse to Europe, but it would co. and would be
taken as money when 1t got there The ooera-
ton would resemble the sudden union of two
canals constructed on different levels one
would be drained, the other sWamped; and
specie, like water, will lind its level. = 80
But what then is to be done, and how can it
be doney These are PLAIN questions and can
easily have plain answer.
In the hrst place, we must return 10 a specie
OASIS as soon as possible. Specie is the only
standard OF value; and paper, when
permanently irredeemable, is worthless. Money
payments are mere transfers of value or credit
measured III gold coin. Take away that measure
and neither value nor credit will remain.
But what does this mean? 1t means that
everything processing to be a dollar should be
at Will for dollar IN coin. This
can only be done bv greatly diminishing the