The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-04

mare an actual addition q nearly two hundred millions
The effect Of this would be difcult 70 foreel but
u may b more appropriately considered hereafter
hs v no. Ss S ~sus S :, @
nom the general closing Of the banks Of the country
aSsS an. RDoa b n AZ s.y
traction Discounts would be suspended, accommoda.
sions would csass. and mssch.nss msaaf.9.arsn and
toned facilities. The bangs have over ave hundred
millions invested In the active business Of the coupy
active capital from the channels Of trade is always
sensbly felt In this the temporary withdrawal Of
o. o1 s ssss s
returned to the stockholders business or every kind
would be unsettled, trade would suffer and incacuabe
injury would be done revolution Of this kind could
not DO effected without serious damage TO the country
There IL doubt that the demand for banking facilities
Of transition these facilities would BE- suspended and
before capital could readjust itself 70 the new
ne .
proposed change which would s. prudent % consider
and one concerning which bankers and business men
would Do able TO furnish valuable Information.
The suggestions offered thus far designed to meet
the popular arguments advanced in favor Of circula
ton composed entirely OF notes upon the
score Of economy The sole claim advanced Is the
as security for their issues This has been shown 70 DO
An assumption not sustained BY tho facts;-
Evx-upon the merely technical ground Of amount:
but two millions will be saved to the government
Seoond.Takin these figures into sccount Il has
eminent 100000 600 ct less than three fourhs Of
per cent Per annum; and
IL psr , psr soo
that the interest on $780, 600 Of legal tender:
!. annually given 70 II. government which, added
paid by the banks to the government to t26 900
Of IS, 900 the interest received BY
Tnere are, however, other and in financial point Of
view wsghy, consideratons 70 be urged against
paper currency furnished exclusively BY the govern.
Such > currency possesses no inherent qualities
wnIsa noap % ne san,s 2. ads Goss not con
the demands Of active business.
Whatever may b said 70 the contrary, the fact
possible relation between the amount that may b.
the amount Of currency required TO do the business Of
the country Tho amount required BY the expenditures
but trade cannot enforce contrscto0 and must adjust
amount furnished By the government may b insuf.
ncient for the wants Of trade but trade cannot
mand further supply. There ID no relation NO SYM
pahy between the source Of supply and the business OF
Of that elasticity so essential in circulating medium
This has boon abundany proved BY the experience Of
So lar has the legal tender currency been from per-
forming tho eQuable and harmonious functions Of
money in us reat 70 trade and industry that has
values have been unsettled trade interrupted and in
dusry disorganixed to such extent that the whole
foreign and domestic trade has been compelled 10 adjust
ITSELF and again. TO the altered condition OF
the currency. Nothing has been permanent Violent
fluctuations have characterized the market for every
commodity and speculation has usurped the place Of
regular and legitimate traffic.
The Director Of the United States mint at
Philadelphia, In 1861, estimated the
OF gold in the country to be- $275 000 900
Product Of gold for six months ending Dec.
81, 1861. 20 600 600
Product for year 1861. Observation-Disclosures. 49, $4,000
Product for year 1858. Observation-Disclosures. 81 500 600
Product for 1864 Observation-Disclosures. g. 100000
Product for year 1865. Observation-Disclosures. 70000,000
Product for 1866. 105 900
Product for six months ending Juno 80 1867
Imports from 1862 10 1867, gold and silver. u.s. 5S7
Total. $685. 253,5s7
Deduct exports from 1862 to
1867. ............. S37l, 82O, l75
Estimated circulation In Califor.
mia and other god.producng
States. ...................... 30 000, 900
---- 421 s20,175
Balance. $S43 433, 4l2
Allow for errors estimates, &c.. $500. 4s4334l2
OF gold and silver in the country waiting to be called
into active service. Give these millions their place;
make room for them by calling in tho legal tender notes.
the great disturbing element OF our currency and the
most expensive debt the government has incurred
gradually II please but surely; rigdiy the
eral government supervision and control OF the
cy Of the country through the national banks and
may yet realize the great desdcratum-a SAFE uniform
currency convertible into coin at the win Of the holder
H. r. HULBuRD, Comptroller of Currency.
A mi