The New York herald., 1867-02-20
NEW YORK HERALD, WEDNESDAY,

We have ysrp thascfsrs that The gSy<nme,s can AXE
.sfa.s r. esssan q ne ssssaa sspnai 4 ,as ma
feeder ralns uagspeslrd the rsper dollars though
sbey h oaT worth shy cents wiil be available
Y, shsA. lhs crcaiasina capital 30 reduced by con-
scsion % TIE earTency, re receipts from axes viii be
Isaaest 10 na.,sss how p.ssperoas the condition Of
ksps a al 800 0o ooo aud Industry Is prosperous the
people pay foy pr ecntan N iaxes or 5000 900 oo0
tf the clrcga ng capital be reduced to 800 600 600
vita tntnry n ths ~Ame condition of prosperity, the
poegle sil pay forty per Of ths circulating
cArsi and no more bus In this case u VIII amount to
Bul ths industry q the country Is prospercus-it
pronn.ied TIE Lccntkns of our industry are being
being diminished dsy by day; public credit is being
steadily undermined and destroyed by tbe gradual
srs throxn out o. employment ana obliged to sell the
securities of the government that they love- and for the
i've, need s.a II. ssoa.s 70 hsSs sy ssns Sora
aud Eoins. into the hands Of alien people and
ssor We have bee. eompssa % o' whose
Why. then, is our industry pros,ra,cds The money
value u the currency excessive This the reason
the only reason. We the money value OF the cur
rency because In,r nslcav II has no value ard W vsue
. currency n indicated by the ri-c and fa Of the
hen. rnass be CONTRACTED How can his "a dcnes I;
can be tone sepposns the cebs fy dsd by curtailng
sas ibis MI ss, Ss sc 'as X. yca%a
tho circulating capital of the nation aud .i consc-
qaen'iy reduce tho receipts nom ases This is not
taxes; We wish 10 duce the burden OF taxation II pos
sibc-oat above all, we wish 70 pay debt We wish
Of taxation al the least possible ca K real money % tho
people Let az suppose that the people 900
cent prsmium the dollars worth eighty cents each
and the 60oooo 600 paper dollars would be equal 10
sgaon "a a. would res ioa ae~n %
breaking them down. And the more gold goes down
the higher the paper dollars rise Ia vanc and the worse
II becomes But suppose the premium on gold Is one
hundred. Then tho paper dollars viii DO worth
my cents each, and the 5000 oco. 0oo paper
would not b. distressed by such taxation as this u
industry IL prosperous, II they can ind ready market
vented from underseng them II foreigners uneersel
them they will stop producing and beein speculang II
they will ouy and and sell the products Of foreign industry
until their means are eaten up by taxation What good
purpose then can bo effected by contracting the volume
The barrel Of pork win stl be worth barrels OF
-four Tho days wages will stili give the lAborng
a living. And here lot Us say that the eternal law OF
supply and demand governs ces The real price OF any,
ducton nor can tremain permanently below the cost OF
prod lcton And IL Is the real pricc we mean when wc
any argument upon prices when the currency
Itself has q fictitious and arbitrary price,
Since II would be inJud'cIous tevcn n II were
posbe to contract the volume OF the currency then
contract the value by deprecating raising the
premium on gold Let us SEQ what effect this viii have
win II enhance the price or domestic prodactss Here
again must plant ourselves nrst principles
Tho lmmutable law Of supply and demand governs
prices We p must keep within the ,si radius Of these
unless the supply Of circulation and deposits be
increased. unless the circulating capital be increased
business men will not put out their paper when gold is
hghl The currency price OF doesc products cannot DO
materially increased until tho specie price has fallen
tIcrc will be export demand Then, indeed they may
ADVANCE and then II will be Sat the balance OF rde be-
comes changed In Sur favor practical illustration Of
the cost Of living is not materially lower than when gold
was eco the difficulty o. procuring the necessary means
OF living have been immensely Increased and the profits
m mechanics , have dWiadea down u very small point
There Is an IT.. exception keel 70 s pns II the
Is rathcr confirmation Of the principle. Supply and
ssa % 1H for sss
the specie price In England will depend upon
the demand thsFe and II the price Of cotton is fifteen
ponce sterling u WIZ sell lot ina. sum segsrae,s o. sne
duction England fixes tho specie price Of cotton IN the
American market % the same IS shs docs the price Of
production. America nxes 70 great extent the price Of
cotton in the English market the as China nxes
AXIOM It may DO laid down that at above the cost OF
production the price Of any article Of commerce egu
country And at or below the cost of production the
price Of any article Of commerce ID regulated By the
market q s; s Of s only y &c so Il
benefit the Southern people especially II gold should
60 % one hundred premium !. would probably make
pie In the remainder Of their crop and they WIN ,hen be
enabled 70 their portion cf the taxes e well a. Their
have lost money % far and thai cotton IL beIo~ the cost
Of production and Offers no inducement for cultivation
= com but The specie cost Of productson
here high In consequence o! the Inflated value OF
our currency that cannot be sold for fifteen pence In
the English market at . profit Il may also well be
doubted whether We shall be able 70 work gold and
silver mines, the remains long In il present
win the r,se In the premium on gold check importa
tion Nhnifestly Will, for the currency price OF
ucss advance Win shs caency price Of gold in equal
proportion The OF this Is that tho currency Of
foreign nations is currency Of intrinsic value, while
our currency II Of credit value devoid OF intrinsic
win the rise in the premium gold check specua-
tonf Manifestly wii for the rise in the premium
eoId b depreciation Of the currency, droct and
Immediate contraction Of the value OF the currency
foyssn = labor viii have ceased 70 dpaeo .bs products
Of American labor, and the hum Of industry will again
be heard 70 drown the slamor o. sPcculaors why 40
s sSs dsss wosfsnopS Why are our people dief Be.
duoed cheaper abroad
win the riss in The premium on gold facilitate and
Il viii for Il viii instantly change tho relative values c
the sevsn-thiIes and nve-twenties and enhance the
cusrency value Of the latter notwithstanding the supply
WI What are shs effects Of low premium on soids
low premium gold prevents the rapid conversion Of
uop prostrates the industry Of the nation throws
OF people out Of employment promotes idancss specu
iation, poverty and crins and brings about the bank
Fhe amount Of circulation and deposits just be-
fore the wat broke out was 500, 900, ,000 against
ess 600 900 specie held by the banks spd perhaps
S17o00000 specie trrobsbly overestimated! BY the
people Now we suppose the circulation and deposits
amount 500 900 900, against 500 100000 specie
Tns currency problem then, may be stated 10 mathe-
matica formula thus .. t
Specie in Bsnhs ana
CYrculcfsow and Dsposua hands Of People
Currency value SO, ,o00. .oo0 spscis valus
el00, Ooo
Currency value q, 500, 900 900. specie value,
gold - is4 s5o ooS So ooo 90 :::cs vsia
gold a $50, $ooo. .ooO oOooo..s........ AoO'v0VOV0
supposins eooo 900 specie value q oircela-
tou ana deposits for about thirty per cent more than
before the war) be sucient for sound healthy and
active condition of trade and industry then osyona
Aspute the gold should DC 100 or thai
sulrvnuy sn0uo dcprsoias to about forty cents on
the dollar In order 70 n the nation out Of the slough
a. eks euva