New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-01-25

other PIEes o s largely used BY BANKS and by i'm
porters 60 pay for foreign ep of e gold Coinage from
being wholly demODetzed ghe copper ana nt t com
~ at one cent Of real value, or unt Il Is almost a.
iight as any paper whiCh can DO ~ nenaTr
g en ~ A. o1ee more rises and floats trunphanty over
the dirty sea of paper currency III Euigar be to
yyell our circulation, being conveniently auH uiIJ w.
for many purposes especially to pay Ior ~ one
liquidation foreign accounts anu aOng s1l
RMS OF exchange are in fact currency ana inc amount
afoat is enormous The COMPOUND HgaeS eo
tboy take the place Of United states aender notes
Y the reserve often take tile place of lawful
Money and are given aud taken in financial transactions
a than current value To extent the coupon bonds
f t limited States are used money and RENTED
10 pay balances due, especially balances OF uaae que
abroad To the circulation already mentioned u tar
them to add the most considerable part OF the following
items 10 , s,o,o, mn
Gold certificates Of l i n2S
Speee I'M actual circulation the Pacific. p600OOO0
Specie IN actual circulation in the Atlantic -
lopOogVo
Copper and nickel. 100000
Total, .s2lO,O2s6lO
This added to the first series OF Items makes the whole
OF our present currency S963 05l o. in round numbers
nearly 81 100000 do actually less business than we
doing six years 9gS when we did not have nor re-
Of Government paper authorized to be retired last year
has been moro than by the increase OF IA
supremest bulk The amount OF notes authorized to be
issued by the Bank Of Is siio9GOS or SSCtPG
tam intending private and ointstoek banks rs estab
s S So a0 Some Years Il has been rS more than
this and years tre less but IN 1855 strained as
thew were for capital TO buy and hold cotton at its adj
yanced price the amount did not go beyond Rs91291s9
Beyond doubt the trade and commerce OF Great
Britain vastly exceed that Of our own or any other
ton It's exports 1904 sass 10000 and yet they
find OF paper money equal TO all their ordinary
demands Moy Drns may be WS claimed that the
Enormous transactions OF the Government absorbed hund
armies in distant fields did not find its way to
cal centers as quickly asst woudt had flowed through
ebsnSed business did not Increase it. and If il did the
war has ceased and the Government s no longer the
II can law Its hands 1t is an absurdity suppose that
require live times as much paper money as Great Britain
70 do less than half much business But the facilities
for the transaction Of business by houses en-
any kind, although known are generally vastly under
rated member Of Parliament recently declared t1aI ~
required no more currency ynT years G0 aeo When the bn
ness only half as large There VIII De ionhd IN one
fi tRS sTon by Mr Slater member Of firm IN Lon
don largely engaged in commercial transactions ranging
their receipts and payments IN the ordinary course Of
business when carefully analysed, held the following
ratio for one hundred p S5tsia,,
Bank of England notes. per cent.
SS Sd srS drafts drafts and 20 Per cent
Total. per cent.
Payments.
Bank of England notes.....-.......... 2per cent.
BIS Of S Exchange and o. per cent
Total 100 per cent.
The business OF this firm analogous TO that of any
OF S sS hat The eed and capital Of tho
people used to extent OF 90 10 % per cent IN or
silver nor paper convertible into gold and silver is used
for a circulating medium beyond nom TO 10 per cent
exchanscs or money transactions for single day;
ample take one in the year 1868, amounting to 99lf3
which was performed by the use Of S2S0i5S IN money
In the year 1854 the bank exchanges were 1892 O93
and the balances money used daily were under 1900
member OF this House Col stebbns This experience
Of NowYork talies very closely With the testimony N
8 per cent in money 20 liquidate all payments IN
ridiculous 20 claim that there IS necessity for the CON
tnuance OF our present excessive amount OF paper money
Mr. Charles Buer in the House Of Commons stated that
aud s27OOOOO, while the amount OF bills OF exchange In
five times the amount of bank notes On the ist day Of
January 1866, the whole bank capital OF the country
larger capital was made up OF individual deposits which
at the same date amounted 70 t5lSeossss y means OF
daily and by checks o. other deposors or other bank
same time n Is perfectly safe for any bank calculate
that az the close OF business each day the sum total OF the
BASIS Of discounts is very much enlarged Thus the credit
Of individuals at the banks plays by FAR the most import
away with the necessity Of large volume OF bank note
circulation, besides moro than doubling the aggregate
working capital OF the banks An unyaryng standard Of
money has been the deSderaum Of The world but has not
yet been found Gold aud silver have been almost upiyer
sally accepted the approximation TO that end
because these metals have great intrinsic value In proper
ton 10 weight and arc portable and durable; But
bushel OF grain in old and ongsotcd countries has been
considered unvaryng standard OF prices than even
gold, on the ground that ~ requires more UNIFORM
amount OF labor 20 produce n. But uniform standard
however desirable, appears impossible. Labor In one
country Is worth than In another ana worth moro
I'm cities and towns than in rural districts because money
Is there abundant and purchases less OF the absolute
necessaries OF nfe Educated and skilled labor Is more
valuable than the uneducated because more productive
labor : worth more IN the Spring time and harvest than
clothing food and exposure because In tho Winter UNI
employed labOrcrs become abundant Agricultural labor
sue the trade OF artisans during the Winter and thereby
depress the prices OF such labor In towns and cties
Prairie lands combined with labOr-sayng agricultural
Implements have reduced the price OF grain In the West
prevents any large reduction In the prices which the
world at large continues 20 pay. A Days work IN the
United states may be worth twice MS much as IN mexico
but II 1000 men IN the United States produce LOCO
ounces OF gold or silver for the same amount 81
labor II requires In M0xico TO produce 250
ounces, transportation no longer inteTieres, and
as much gold silver to make the purchase as be-
fore IL Is TO be noted however that Chinese labor be-
ing that largely employed In our mining regions Is quite
cheap as that employed IN MeXcan mines In point OF
especially that OF gold discovered within the last IS years
California being already ccpsed by the Colonies Of
Great Brtain-and the facility and cheapness with which
they are obtained has oheapened the markets OF the
where purchases much as 10 would In 1880 SO cOp0us
the supplies, multiplied suddenly at many differ
en points OF the globe that IT may be expected ut an
early day TO be valued like any other article, at omore
than the cost OF extraction whether the enormous In
OF the precious metals may not ultimately destroy
them as measure OF value rs was apprehended upon
California and Australia, remains yet 70 be seen.
The extraordinary drain Of silver 10 tho Aslatio