New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-01-22
mir frSSrycT AND REDEMPTION
wANrNGToN, Jan. II, 1867,

49, = Len heads the following observations are
Mt addressed such persons can pass on to the acct
dents and other easy reading
s In order 10 proper understanding OF what 10 10
tb our paper circulation, it is necessary to perceive
ar rrccise mart it has played during aud since the
war and what has been said on this head hitherto
las been uttered mainly with view to show what
st has NOT done, but what has too often been I'M
rnted 10 it. Whether we have had too much or 700
{ittle during the war is not now practical inquiry
II ia enough to know that more or less was mus
nensable That mistakes were made III issuing IT,, on
moro than one occasion, we have now no heeu "
AFFIRM or DENY. The question for solution now 49,
bat 70 do with what we have Shall we leave 1t asst
q shall we add to it, shall we diminisli1u Shau We
continue TO govern the supply by aruhclal roS' OF
shall we place it under the natural laws OF supply ana
6emandi ,,r.-
We NAV say here that we do not hold the property
.rs.ed NV the war 70 be bubble which is to disap-
100 in some coming financial collapse. The fact
1d,its az M doubt that there has been an immense
accumulation of private property during and since
{be war arising directly and Indirectly from the
pigantioexpenditures of theGovernment, which have
overf,ewed the country like freshet leaving Its
debris everywhere. This property exists and VIII
continue TO exist without any reference TO whether
4be currency is increased reduced, or remains as IL Is
This wealth is no bubble lit has taken form III stocAs'
bonds real estate, establishments, money NasV
number of people have been made rich, and some
nor,no,sIv wealthy. These riches are diffused all
over the country They are real, and will remain TO
= greater or less extent depending on the care and
orudence with which they are husbanded, OF the
prodigality and extravaganza with which they are
eauandered. But the real value of these accumula-
Mons does not depend on the volume OF paper
money.
Whether the property thus accumulated Is not
represented by national indebtedness Weighing
ANON the capital and industry OF the country, ana
(which is more than offset for these accunuauohS
ouite outside of the fact alleged. Let it be adj
ntted that II is the visible representation of the
Earnings of coming generation. 1t is none the less
heal and TANGIBLE TO the holders of II for all tnat'
bnt is dangerous mistake suppose 1t is the IrV
hf An inflated paper currency, and that the eX-
periences of it's accumulation can be repeated Oy
simply keeping up or adding to that initiation.
We have then, seen what paper money has not done
md we know there are things which 1t cannot 40
Ut cannot create markets or consumers IL Govern
Anent should begin the reissue of paper money ana
continue till it had shingled every acre III the
county with it. il could not thereby create market
for single extra dollars worth of the products OF
Industry, 1t is only when it becomes consumer
dhat it does this
The same NAV be said of an excess of circulation
of the precious metals. And thus it is the paper
money men impute to paper currency degree ana
quality of efficiency impossible even TO coin itself.
but specie has at once an intrinsic value and com
snercal value being susceptible OF export when III
excess and thus never clogs the wheels OF traffic
hud unsettes values, as an excess of paper money
does.
| The error of the inflatiOnists arises from mis-
taken view of the functions of money itself which
merely an agency of traffic and lever Of industrial
DEVELOPMENT limited in this latter function by its
profitable employment which, in its turn, Is obedient
40 those laws of supply and demand which have the
whole commercial world for their theater and con-
clude their circle Of operations In any gwen instance
by settlements in the universal standard OF value
1 Thus the coin circulation of no country can ever
Be too great because the excess is always drawn
away by the regular operations of trade. But there
Is no way of getting rid of of paper money,
or of measuring the excess except by its conversion
snto gold and silver obligation like bills OF
exchange representing gold and silver in some one
f the great financial marts of ewOrd-it matters
little which. Those persons who are always teihng
ns that we need this or that sum to supply the
wants of trade, talk without certain knowledge
Hhey may be nearly right or they may be very
wrong. There is only one way of asceItaining how
much our currency, Orrather circulating medium,
s. in excess This is by subjecting it to the touch
Stone OF redemption. If there is now none too much
paper money afoat for the demands of our crcula-
ton as is sometimes alleged then, with all our nU-
nerous agencies Of supply ii is impossible it should
De much diminished by bringing it to this test.
The true measure Of our circulating medium is the
requirements of the business Of the country. These
requirements vary from month to month and from
season 10 season. and from year to year is impos-
Bibe for mortal man, however knowing or wise he
may be- to state with any precision what is requisite
FOR this country at this moment or for year or for
years to come. Our only guide is in the statistics Of
The past and this guide is fallible. Those who be-
leye we require very great increase above any pre-
kiOus period and those who believe we do not, can
never settle the question by argumenatons, by sta
tstics OF by any other method of exposition salts
factory to the disputants. We have just way to
come to a sound conclusion and only one, and this Is
By bringing our paper money to the test of Tedemp-
tICn.
The one practical point which these remarks have
been tending, is the question, "What shall be the
the limit tof our paper circulation" Shall the
answer be left to A. or B, to your Committee of Ways
pDd Means or your Finance or your Banking Com
uittee your Secretary of THE Treasury or your City
bankersi Who knowsi Not one of them. There is
only one answer-leaye it to the laws of trade.
But hOw,' Somebody may say, Congress in its
wisdom has limited the volume of National Bank
issues to 800 millions whereas agree with Mr. Thad-
deus Stevens, or Mr. DusenberTy, that we ought to
have 1000 millions YOumust not limit the supply to
sny arbitrary sum the laws of trade are to govern"
To this we might answer In the present state of
the supply and diffusion of the precious metals the
cOuntry has no need of banks of issue and would be
better off without them But this Judgment is in ad-
Vance Of the public sentiment, and forbear there
FORE to make any such reply. We prefer to meet it
by saying the objection Is well taken. On the basis
On which the National Banks stand rotten as many
OF them undoubtedly are, there should be no limita-