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


as fully and IS clearly as he was able to do,
DIS views upon the subject Of the currency.
and the necessity ofacion for the purpose of
bringing abouta return TO specie pay ments.
The views thus presen ted by him were APP
proved by the House Of Representatives on the
sth December, 1855. by the adoption Of the fol-
loving resolution. BY the decisive vote Of ia
to
'ResO,rsd, That this House cordially con-
ours IN the views OF the Secretary OF the
Treasury in relation TO the necessity OF q con-
traction of the curreacy. with q view TO as
early resumption Of specie payments az the
business interests Of the country wall permit
and we hereby pledge cooperative action 20
this en as speet lily as practicable" 80
These views were lot only approved by the
House of Representatives, but they seemed at
the time 20 be heartily responded to by the
people BY the act of April ~, 1896 the Sec
retary was authorized TO receive Treasury
notes and other Obligation of the Government,
for bonds, with q pro viso that, of United States
notes, not more than ten milf Jns OF dollars
should be cancelled within six months from
the passage of the act, and thereafter not M are
than four millions Of dollars in any one N onth.
This proviso, while II fixed q limit TO the
amount of notes which should be retired Der
month, so far from indicating an abandonment
OF the policy Of contraction, confirmed and
established 1t To this po ICY (although for
reasons that seemed to him to be iudicious the
regular monthly reduction has not always
been made) the action of the Secretary has
been conformed, and the effect has been so sal
utary. and the continuation OF it would be SO
/ OBVIOUSLY wise, that he would not consider 1t
necessary to say one word in It's favor were
there not Indications that, under the ,sac hines
OF the advocates of large and conseq uently q
depre ciateo currency, such views are being
ineu Gated Is, il not corrected. may lead to its
aba ndonment.
Money is simply q medium of exchange aud
measure OF value. As q medium il facilitates
e e And BY doing this necessarily slim
ever, that exchanges are facilitated and pro-
ducuon stmulated II proportion to its in
crease 1t 10 measure OF value, but il does
not necessarily creste values. 1t 10 an inds-
pensable agent in trade be tween indi yiduals
and In commerce between nations; the great
incentive to enterprise and labor in the wide
as ID Its power, and essential as il is to the
progress OF the race In civilization and refine.
ment, there are limits beyond which its vol
ume cannot be exteu ded without dimin ution
of its usefulness. A certain amount is req uired
for facilitating exchanges and determining val
mes The exact amount required cannot Of
course be accurately determined, but the ex-
cess or deficiency OF money in a country Is
always pretty accurately indicated by the con-
dIuon OF ito industry and trade. In all coun-
Tries there Is Just as much money needed as
VIII encourage enterprise, give employment
10 labor, and furnish he means for q ready
exchange OF property, and no more. Whenever
the amount In circulation exceeds the amount
required Tor these purposes, the fact will
become apparent by q decline of INDUSTRY an
advance OF prices, and a tendency to specuIa-
non: Especially will this be the case when
oard Of value by beIBe N ade a legal tender
COB, being the circulating medium Of the
World, novs from one country 70 another in
Obe olence 10 the law of trade, which prevents
II from becoming any where for auy consider
able period, excessive liz amount when tins
law is not inter;ered with by legislation, the
evils of an excessive currency are corrected
bN the law Itself An increase of money be-
yonu what is needed for the purposes above
named according TO all experience, not ouIy
initiates prices. but diminis hes LABOR: and coin.
r swnrp ha
WIiCh the e&ceS exists, to some other where
IdDo' II more actIye and prices are lower; 10
now rex again when the loss by ore country
ana Toe gain by another produce tAe nafursf
res UIts upon industry and productIon Tbus
com Is Ioi only the regulator OF commerce.
but he great stimulator of industry and en-
e. teIprlse. =. -
The sane may be said of a conyertible paper
currency, which by being convertible viii not
lor any ccnelderab!e period be excessive; bur
IL Il rarely II ever true OF an lnCOnVeTtible
CuTrenCV-Whlch IL necessarily local and Womb
no be Likely 10 be inconyertibIe II II were not
excessive, and By beng excessive ana inc,n-
SeIuDie, is Hue uatIng and uncertain in value
Inc only possible exception TO this rule would
be found IN The limitation of the amount m
circulation 10 what might be absolutely re-
qulreo In the pay rnent and disbursement OF The
public revenues. No matter what laws NAV
re enacied TO give credit aud value 10 It. an
lIreoeemabie currency must, unless limited as
ahOve stated, always be a deprecated cur
rency- The attempt 10 give value 10 paper
promises by making them lawful money Is
not original with the United States. The ex-
pertinent has Deen tried by other nations and
generally with the same niurions If not a isas
trOus results. Indeed, with rare exceptions
nations that have commenced the direct ,ss ne of
paper money. nave continued TO issue IL until
prevented by It's utter worthlessnPss There
may be 10 danger that this will be true of tho
United states; but there will always be ground
Tor apprehension as long as an irredeemabie
ana oepIeciated currency is not regarded as
an eviI-an evil 10 be tolerated only 80 long As
may be necessary to retire 1t witho NJ great de
s N or n n anlf % kyA.
ibie and deprecia'ed lawful money is an
agreeable but demoralizing deception II is
agreeable because il is plentiful. and because
~ oeiudes by the creation OF apparent wealth
II Is demorsliziBg by fsmiliarizing the public
mind with dishoDored obligations The
prices OF most kinds of property in
IN" Chlted STATES advanced near three
told during the war. but It's advance was
mainly The result of the increase OF the clrcu-
iatLe medium, ard in reality only ind icated
us depreciation. The purchasing power OF
the money in circulation was diminished i'm
the ratio That its volume was increased The
FARMER ior example, received three dollars a /
bushel for his wheat. but, except for the paw.
meIt OF debts, these three dollars were OF no
more valne TO him tn IN dollar was before
the suspension OF specie pay ments. The sane
was true OF other kinds OF property and of |
Ieoor The advance. except so far as IL was |
the result % an increased demand was appar
ent only and unreal The same cause IL sus
taihihg prices at the present time. and Will !
continue 10 DO so rs long the ca Sc exists but
me Advantages resulting from IL are merely |
imaginary. " lille the evils are positive ana ac-
tual No sane man suppOses that his own |
wealth, or the wealth of the nation, is is-
creased by the depreciation OF the standard bv |
which IL Is measured. Ii the paper circuIa-
ton OF The United States should be doubled /
during the next year. and the prices OF prop !
erty should be likewise doub led, would il na |
imagined that the real value OF property would /
oe thus advanced Or, If The paper Gu renew |
should, during The same period be reduced |
nfty per cent. and prices Of property shouid /
decline correspondtngly. would II follow that /
the real value OF the property would thus de. |
cline In the one case the value of the cur /
reney would be reduced in proportion TO its |
increase In amount. In the other the curren
cy would be increased in value as u was dimin
ished in amount. The increase or decrease Of !
prices would. If NO counteractInx causes in |
tervened, be the natural result OF the in C rease
or decrease OF the measure OF value while real |
values remained unchanged.
Inc nited States notes were made a legal |
tender and lawful money because il was
mought that this character was necessary 10
secure their currency. BY reference to the first
ueoaies OF Congress upon the subject il will
De noticed mat those who ad vocated their is
sue insured themselves on the ground OF ne
cessity No one who spoke in favor of the
measure, favored Il upon principle, or hssi-
lated 10 express his apprehensio that evil
consequences might result frsm il. but the
was In peril, the emergency was
pressing. necessity seemed to sanction a de.
Psfture from sound principles of finance IL
from the Latter of no yops