Evening star. [volume] (Washington, D.C.) 1854-1972, 1867-12-03


maintained and bon rs been sold at discount
for real money tnfre would have been an
economy IN all the branches of the public ser.
vice Nnicn unfortunately was not witnessed
and the country would have escaped the evils
resulting from disregard Of the great inter-
patona law, which no nation can violate
win impunl'y. the one that makes gold and
SILVER the only true measure of value. The
npancfai evils unCer which the country has
BEEN suneripg for come years past, to say
nothing OF the dangers which loom up In the
future. are, IN great de gree, to be traced to
the direct issues by the Government of an in
converneie currency with the legal attributes
Upon the demorasIzing influences of an IN.
converuoie doverItment currency is not me-
cessary 70 enlarge. i1hey are forced upon our
attenuop oy every klys obeerv alton, and We
cannot DC oiind tvthem il We would. The
Government Is vir 17sily repudiating Its own
ooheAuons ~ fAiliilg to redeem its notes ac-
coroing 70 their tenbr These notes are DAY.
able 70 bearer on d. nand in dollars, and not
one OF them Is bel G so paid. 1t Is not to be
expected that the Isople will be more honest
shan the GovernmEnt under which they live
and while the Government OF the Trni,ad
States refuses 70 $y ite notes according to their
TENOR, or AZ long as it fails TO make
proper ettortf to do so, it practically teaches to
tne people the doctrine Of reputation.
The general financial legislation and the ad-
ministrauon OF the finances during the war
renect the highest credit upon Congress and
the distinguished gentleman then at the head
| OF the Treasury Department They have
| commanded the admiration Of intelligent and
impartial men at home and abroad. In speak.
ing thus plainly Of the legal tender notes, the
! as INDUCING in the language at criticism. His
| object Is neither to criticise nor to condemn
what mas been dcne, bat TO express his decided
OF vbst 81 hss "So OF
| nave been, IN single but important matter
unfortunate legislation.
~ the views, thus presented, are correct,
there can be no question that there is still an
excess OF paper money in the United States.
and that the legal tender notes are an obsta.
cie' ana, unless reduced In amount, must con
tinue to be an obstacle, to return to a stable
currency. =
In opposition to these views 1t is urged by
many intelligent persons thar as the credit
! system has been very much curtailed since
! 1851, and sales are made chiefly for cash,
much larger amount of currency is required
than formerly for the convenient transaction
money in the United States, but that, on the
contrary, an In crease Is required to move the
crops encourage enterprise, and give activity
! TO trade. As an evidence of the correctness OF
this opinion, referen &c is made to the "tight.
ness of the money market" in the commercial
cities, and the scarcity OF money In the agri-
Ii 10 undoubtedly true that the effect of
curtailment Of credits would have been TO in
crease ths legitimate demand for currency, II
no other means had inter yened to coupteract
the effect of 1T. But such means have inte
yened. In all the cities and towns throughou
the country. checks upon cred Is in banks and
oliis OF exchange have largely taken the place
OF bank notes. Not hfrieth part OF the bust
ness OF the large cities is transacted by the ac-
tusl use of money, and What is true in regard
10 the business OF the chief cities is meas urably
Z tTre In regard TO that OF towns and villages
throughout the country. Everywhere bank
credits and bills of exchange perform the Of
fces II currency to much greater extentth than
IN former years. Except In dealings with
the Government, for retail trade, for the pay
ment OF labor and taxes, for travelling
sxpen the purchase of produces first
hon de Co.'S n 49,
hardly necessity The increased use of bank
checks and bills OF exchange Commentaries
The increased demand for money resulting
from the CurtaIlmeBt of mercantile credits
That money Il in demand. and Is commanding
full rates OF Ipferrs, is true, but this does not
lnolcate scarcity OF H. The IN IS OF Interest
IN England and France have rarely ppen so
low as within TIE last four months, and yet
for commeTcIsl or N anufac'uriug purposes
money haf not of'en been 20 difficult 10 be OBJ
taineq- The pe1uIa,ive reaction or over pro-
dncIIoD CT man fractures. together with an.
preher sions Of political troubles have caused
business 10 be sluggish aud unprofitable. and.
mace capitalists cautions and, tIInid Thus ip
tnosttcountries. money was NJ yer more pIeu-
utU!, and yet apparently never more scauce
It's apparent scarcity in the United States is
attributable TO high prices. to its uncertain
value and 70 its inactiv ity.
money by no means becomes abundant by an
increase, or scarce by dimunition. of its
volume The reverse rs more likely 10 be
irue, especially when, as is generally the case
hleh prices are speculative prices, and pre-
vent activity IN exchanges. Money is In de-
mano at the present time. not SO much 70 move
crops as 10 mold them--nOt TO bring them AT
reasonable prices within the reach Of con-
sumers, but TO withheld them from market
, nntii a large advance OF prices eau be estao-
lished. Lei the great staples Of the country
come forward and De sold at market prices at
spch prices as, while the producer is fairly
Temunerated, will increase consumption and
exports-let capitalists be assured that pro-
eress towards a stable bass is to be uninter-
rup'eo-and money, now considered scarce,
VIII DE found to be abundant. The actual
lsgi'lmate business OF the country il not
larger than II was In 1860 when three
hundred millions OF coin and bank notes
were an ample circulating medium, and
when an addition OF fifty millions would have
made ~ excessive. Throughout CONSIDERABLE
portion OF the best grain growing sections of
me United States there has been, during the
past year great complaints of a SCARCITY of
money, and yet no single article OF asricultu-
raj produce, except WOOL, was 70 be so d there
Tor which there was not a purchaser at more
IMAM remupeTating, il Tot eXorbitant prices
There was no lack of money in these sect ions
Dul lack OF pToducts to exchange for It. The
bard times complained of were the conse-
quence OF snort crops. and not of deficient cir
culauon- To the farmer who had little To eli
and much 10 buy, an increase Of the cir
culatCn would have been an Injury
d eurtaliment OF IL q benefit And vet
by men in such circums tances the poiicy
OF contraction has met with condem
nation second only 70 that which II has
received at the hands OF Spectators in stocks
Next 10 The stock board of the commercial me-
tropolis. the opposition 10 the policy OF con-
traction has been most decided in those sec
lions where, by Ieason OF short crops the peo-
PIE nave been less prosperous Than herr
lore. Unfortunately. IN The same sections the
harvest has been again unsatisfactory, and the
demand, not only Tor cessation of contrac-
tion, but for al increase Of paper money. NAV
mus be more pressing than ever This de-
mano, no matter from what quarter u comes
or oy what interest sustained, should, in the
opinion of the Secretary be infexibly resisted
by Congress. To increase the volume of paper
money for the purpose OF giving relief 10 the
country. would be to foster the cause In order
10 cure the disease. To stay the process of
construction this year will but prepare the
way for an increase OF circulation the next.
p" henever the policy OF reducing the pa.
per circulation OF the country. with
the view OF return to specie paw
mems shall be abandoned, il is to be
apprehended that the demand for
an inclease will be Irresistible, and that the /
country will plunge into bankruptcy The
specie standard must be sooner or later re-
stored. Whether this shall be accomplish he'd /
py eievatiDg The currency by lessening its VOL /
ume, or after lessening its value by increasing |
us Votume, II 10 for Congress to determine
NAT ,his question will BE- determined prompt.
~ ara wisely, the Secretary is not permitted /
10 DOUBT. Some progress has been m ade in the
rIeht dlrecuon during the past ear, but there /
Is sun In me Unlteo States plethora OF pa.
per money. II this is not so, how happens IL
mat coin commands a premium OF some forty !