New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-12-04

become apparent by decline Of industry an advance OF
prices am ana tendency to speculation Especially w
the standard Of value by being made legal tender
from one country To another in obedience the law OF
trade which prevents IL from becoming any where for
any considerable period excessive in amount when this
law not nerfered with by legislation the evils OF an
excessive currency corrected by the law itself An
increase OF money beyond what is needed for the pur
poses above named according all experience, not only
Initiates prices but dimnishes labor; and coin, con-
sequence, flows from the country which the excess
lists 20 some other where labor active and prices
are lower to How back again when the loss by one c0nn
try and the gain by another produce the natural results
upon industry and production Thus coin Ia not only the
regulator OF commerce. but the great stmulator of indus
try and enterprise. The may be said OF conyert
paper currency which by beng convertible viii not
for any considerable period be excessive but It is rarely
II ever true OF an ineonyeruble currency. when
is necessarily local, and would not be likely to be
inconyTuble II u were not excessive, and by
being excessive and ncOnvertble Is huctuatDg ana
uncertain In value The only possible exception TO TINS
rule would he found in the limitation Of the amount In
circulation 10 what might he absolutely required IN inc
payment and disbursement OF the public revenues, No
What laws may be enacted 20 give credit and value
above stated always be deprecated currency The at
tempt to give value to paper promises by MAKING tHs b
experiment has been tried by other nations, ana gener
ally with the same injurious not disastrous results In
deed with exceptions, nations that have commenced
the direct issue Of paper money have continued TO Issue
It until prevented by its utter worthessness There may
be no danger that this VIII DO true OF the uhted states
hut there will always be ground for apprehension as long
rIcdeemabe and deprecated currency IS not re
gardcd civilian evil 10 be tolerated only so long az
may be TO retire it without great arrangement
-
lawful money Is an agreeable Dut ucmoIalAhB ueccp-
iion. II agreeable because IL is plentiful and because
it deudcsby the creation Of apparent wealth IL - de-
mowlzlngby fainlharAng the puDnc nlhl WIN ulsnOh
ored obligations The prices OF most KINDS OF prop
thrce-fold during the war, but this advance was
mainly The result Of the increase OF the circulating me
dunn and IN reality only indicated its depreciation The
purchasing power Of the money IN circulation was dlmn
ished In the ratio that its volume increased The
farmer for example received s. bushel for his wheat
but except for the payment OF his dents these - "eG vi
no yane 20 him than VI was before the suspension
property and OF labor The ADVANCE except so Iat ~
the result Of increased demand was apparent only
prcstn m., ana VIII continue 70 90 30 a. Iols So 10
exists hut TIE advantages resulting frQW are mercy m
aginary, while the evils positive ann actual NO sane
suppoCs that his own wealth or inc wealth. Oh INC
nation, Is increased by the depreciation OF the standard
United states should DC doubled durng the next year,
and The prices OF property should he likewise doubled,
would DC AUS adNahcthi W II tho pal ~, ooay
should during the same period be reducedh Iy per ce
and prices of property should decline cOrrespOndhgy,
would follow that the real value OF properly woua mus
decline IN the case the value ofthe currency wond
be reduced 10 proportion "a rs increase IN amount IN
the other tho currency would be increased In value as II
diminished in amount The increase or decrease on
The natural result ~ the increase or decrease OF the
Of value while real values remained unehanged
The United States notes made legal tender ana
law fu money because was thought that TINS character
was necessary their currency by reference 10
the first debates OF Congress upon the snec IL VIII De
noticed that those who advocated Their issue JuSuned
themselves on the ground OF necessity NO one WHO
spoke u favor the favored 1t upon principle,
beated 70 express his approximations that eyll cose
quonces might result from IT, But the Government was
in peril emergency pressing necessity seemed 70
sanction departure nom sound principles OF hhahce II
The letter Of the Constitution ana an lhcohVer
ble currency became the lawful money OF the country
While the act ION of Congress In authorizing tue huc OF
tbrse u,ta seemed necessary at the time, aud
d0ubtedly approved by q large majority ol the people,
there now In the light NJ experience, be no question
the measure ~ necessity we're wen rounded
Had they not b,cn made legal tender tne amount
ia circulation would not have boon excessive ahI us
national dcbt would have been hundreds OF mil
lions Of dolfrs less than 10 D. Inc issue Wouih nave vee
as,on not scearss the notes would have been really
nore dopreciate ny not being made iawiu mogey pnt
bsuse fheir depreciation would have been manifest Hy
beng made lawful money they became the legahLed
OF yaues substitute for the precious me
into sryicier of trafo. BY sttnte legal
deb. a. paw or property se costing nothing. and yet
seenlny adding TO the value OF property supplying the
decisive prosperity II evidence OF the wisdom Of
Congress that the Issue stopped before the notes ad
become tinously deprecated and the business OF the
couutry involved IN ineXtrcable difficulties. But al
though the issue Of those notes was limited ana we ,s
the country without such limitation u can haIdy
be doubted that the resort 10 the T"s NM nn,
been adopted, bonds would have undoubtedly been
sere thus soM. without debasng the currency,
would have induced greater economy IN the use oi the
while the discount ON the bonds would scarcely
have exceeded the actual depreciation of the notes below
the coin standard A. long notes could be issued ana
bonds could be sold AT premium par, for what the
,erai If NOT unnecessary expenditures Had the specie
,anSr been maintained and bonds been sold az dis
connt for money there would have been a economy
all the branches Of the pubic service Whlch 1iYr.u.
natcy not witnessed, and tho country would nave
e.raped the evils resulting from disregard OF the great
international law, which no nation can violate WITH I'M
punjty the that makes gold aud silver the only true
measure OF value The financial evils under whlch the
country has been suffering for some years past 10 say
nothing OF the dangers which loom up IN the future are
i'm great degree be traced TO the direct issues by the
Government of an incOnyeruble currency WIN the legal
tpoa the demoraii1ng influences OF inconyertibe
Government currency II IS not necessary TO enlarge
They forced upon attention by every day oDse
yation and we cannot be blind Ia them II we would.
The Government Is virtually repudatlng us own ophga
Ous by failing 10 redeem ls notes hccorung W tnelI
tenor These payable 10 bearer on demand IN
dollars and not OF them Is being so PAID III is not
To expected that people VIII DE more nonesI 'a nan
the Government under which they i've, ana Whlo lhe
Government Of the United states refuses 70 pay s no'so
according their tenor or at least as long as u ia 10
make proper effort 70 do So 1t practically teaehes 10 the
people the doctrine Of Reputation ,,.-,
THE general hnanca legislation and the administration
OF the finances during the war reflect the hghest cedt
uDon Congress and the distinguished gentlemen al the
head Of the Treasury department Ihey nave com,
manded the admiration OF Intelligent ana nparua men
at home and abroad In speaking thus plainly or the
cgaender notes the Secretary must not! therefore, De
Understood indulgng Ia the language OF CRITICISM his
Nm done INIT 20 express his decided conviction OF the
danger repetition or perpetuatlon OF what exper
ence ~ shown TO have been IN single but Important
matter, unfortunate legislation. . a., - =,
n he views thus presented are correct there can be
no question that there stu an excess ol paper money
an the United states and that the legaltender notes are
an obstace and unless reduced IN amount must con
M ,sttion 10 these views 1t Is urged by many intel
that as the credit system has been very much
amount of currency is required than formerly
for the transaction Of that there Is in
90, M ycess OF money the United States but that
S an Increase Is required TO move the crops,
encourage enterprise and give activity to trade As an
10 the ghtness OF the money market IN the com
cities aud the scarcity OF money IN the agricul
tis nndoubtedly true that the effect OF curallment
NJ credits would have been 10 increase the legitimate de-
mand Tor currency N other means had interviewed To
onteract the effect OF IT, But such means have inter-
nod In ali the cities and throughout the coun-