The New York herald., 1867-04-06

n ov~slsr '1o0o 40
CON- saa ssss,assss: ss al 10 per- cen.
premium ..... ......................... 3S,O19s762
ros., currency q the United States lcr - i. -. !.
ceiaaion and dspoefsl 81, ,lo0, ,o72006
The compound interest notes arc included in the fore.
going calculation for obvious reasons among which
may slate the improbahy OF their being funded, and
she probability that they win be in actual circua-
ton again OF legal tenders In their place Nothing in
cuded Or allowed for deposits in tho old STATE banks
and We may reasonably assume that they amount 70
twice the circulation nearly Nor any
thing allowed for deposits with private banks and nnan-
cal institutions, on call at short notice. drawing
interest or not But without making any allowance for
The last mentioned Items win assume to be within
bounds that the total currency Of the country & cir
culaton and deposits neen hundred milions OF dol.
lars in nominal value ~. 800. .ooo. ooo).
This currency then II WIN be observed s an rredeem.
able paper currency. having no intrinsic value. The
way then far cleared a. 70 enable us 70 state that
The value Of an irsdeemabls paper currency depends
entirely upon the supply We that this point
viii be disputed by some either honestly or otherwise
We can only dwell briefly on IL uaaion needs Ger.
tain amount Of circulating medium - effect ts domestic
sxchaDges while it, foreign exchanges be effected
by bills Of EXCHANGE drawn against merchandise in
transitu or by the precious metals--ths common
circulating medium Of the world The circulating
medium Of nation cannot be permanently increased
in value BY banks or the government II the
circulating medium Be wholly Of coin, and there
bs more isued than ~ needed the price Of Ill COM
modities win be high and merchandise will How In
70 the dearest Market and coin will dow out tin the cir
eula,ng medium Is reduced 70 the natural or needed
ssansisy. Bat n the circulating medium Be irredssm-
shss paper and moro Of IL be issued than b needed II
Dust inos Il cannot 60 abroadj dsprscats In vaus to
" nesded Or natural poisk John Adams staied she
Dnsipe nearly century aso with pssfsca couscsness
and give his voFds THE amount Of ordinary
oommsrcs external and internal Of q country may be
esmpussd q fired sum certain sum or money 10
nseaasy 20 circulate among ths socissy In order 70
carry on thsir busnssA This precise sum 10 discover
able BY cAcuation and reduceabs 10 certainty You
nay emit paper any other currency for this purpose
until you reach this rule and il will not deprsciate
Afer you e1osed this rule viii deprecias and no
power or any oct Of legislation hthsrso invented can
prevent il In The case of paper IL you 60 on emitting
forever the whole mass will b. worth than that
was which was emitted within the ruen California and
Aps5aa and al gold producing oommunitses are evt
asncss q The corec.ness Of tnis princips In beth g
q. .ci.ealaaiae medium, snd thU fMsaly our judg-
nsn nee COIN almost sxcIysivsly whom their cifcua
and hs remainder expelIedn obedience p this nxed
Nv me only pasions exempt from the operatcn Of
sanding hey shesslves posssses Of valuable mines
n eod ana dver constantly hoard Che precious melas
and consequently the balance of trade (so cailod-per
haps balance Of account would be better term) al
ways ID their favor Why the Asiac nations hoard the
precious metals, and whether they will not some day
Voluntarily otherwise dsgorge their vast stores thus
lendiug general enhaucement Of money prices all
over the world, we need not now inquire. We have
dWels longer than Intended upon the calculation Of
shs pnucpls and yet not longer than its importance
demands for our whole argument hinges upon II And
oil The mystery and want Of comprehension regarding
our finances arise from ignorance or this simple prnci
pie which al past history has demonstrated again and
again This priuciple f. gradually coming 70 assert
eef In this country and the Socrery or the Trcasu
will Be obliged 70 succumb TO IT, even Congress do not
by appropriate legislation, relieve him from the danger
ous dilemma In which he viii shortly end himself In
volyed We that there those protesting 70
know who declare that the vaiue Of our currency Is
regulated by .conhdence,v and BY the measure OF
is volume. This argument put forward sometimes 20
beeve for sser purposes 10 too absurd 70 need serious
attention II is simply, contemptble We are
then brougM TO this--that our currency 10
Of iuedeemabls paper, having no intrinsic value
md that It's natural true money value depends en-
srsly upon tho supply The question then confronts
Ns-How much currency do We need In this country
We pus the question this form at present. though Is
"a che proper form In order AZ satisfactory
70 this question We mus back in the history
81 the country and Zee how much we have hitherto
useded, and how much was more than We
seeded We shall select the years Immediately pre-
esdng and succeeding the epochs that marked by
the two most deastous financial crashes IN the history
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