The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1868-12-22


But, while it is true that the dis.
count on our bonds has little, if
anything to do with the depreciation
of our currency, it is also true that
the depreciation of the currency has
the bonds. [ do not believe that
our bonds will ever reach par, or
approach it nearly, until the curren-
cy IS made good.
The legal-tender currency of
country bears an intimate, and, per-
haps, mysterious relation to every
form of credit and security, both pub
lie and private. and. if IL be depre-
ciated, inevitably drags them down to
its own level. This [ state as a general
proposition, to which there may be
few exceptions, dependent upon
grounds which can be readily ex-
planned. The legal currency
is at par In contemplation of law
and in the payment of debts, though
it may not be worth six cents on the
dollar 1t is the par" and measure
of price and value recognized in all
the ordinary business of the country.
The prices of property and all arti-
Giles of trade are not given at 50 much
in gold, but Ia greenbacks, and the
| legal tender value of the greenbacks
is so identified in the public mind
with the measurement In price Of
every species of property, merchan-
| disc, and labor, that it assImilates to
itself as well as the price Of seeuri-
ties, even though by their terms they
may be made expressly payable IN
gold.
We find a full illustration of the
operation OF this principle IN the his
tor OF the five twenty and ten-fOrty
bonds. These bonds were sold at par
by the Government for greenbacks,
when the greenbacks ranged in value,
at different times, from ninety TO
thirty four cents on the dollar. What
ever might be the value Of the green
back dollar, the bonds were still sold
at par for that dollar, and such is the
measure of value to-day In the mark
cts of the world The five-twenty
| bond is sold at ITO, Ill, liz and lib
in greenbacks in the New York mark
et The premium grows out of the
semi annual payment of a large in
terest, and it is hardly so large as the
premium which was paid on United
States six per cent. stocks, before the
war, In gold So that, In point of fact,
TIE par value of these bonds In
New York is measured by the
legal par" of the greenback cur
rency. The value of the ten forty
bonds in the market, although by
their express terms, payable in gold.
Is governed by the same legal par,
and what is true of the market value
of these bonds in the United States
is equally true of their market value
in Europe. Here their price is calcu
lated in greeBbacks, and there In god.
There the price has ranged from sixty
to seventy-two cents on the dollar IN
gold, and is always kept within the
gold value of the greenback currency
in New York, perhaps with the addi-
ton of two or three cents, growing
out Of the premiums paid for them at
home on account of the large interest.
They have not been able to escape
from the thraldotB Of the greenback
currency, either at home or abroad,
and never will while it remains in cir
/ culation. As the value of orr legal
tender currency goes up, tho price of
our bonds will go up with it, and
, what Is true of Government securities
is equally true of the great mass OF
American securities. public aud pri-
vate. State stocks that were at par In
gold before the war are now ut
par in greenbacks, although they
are certainly as good now as they
were then. Their gold value
, has fallen off twenty five to thirty
per cent. To this statement there are
two exceptions-the stocks of Massa.
, chusetts and California. which have
maintained their former price IN gold,
, because the interest has always been
paid in gold, and few, if any Of them,
, are on the market. Railroad bonds
, which, as a general thing, are worth
more now than before the war, Le-
cause the floating debts Of the COM
panies have been paid off, aud THEN
| business generally improved - that
, were about par in gold before the war
now command about the same price
{ in greenbacks, showing that their
gold value has been reduced from
twenty FIVE to thirty per cent. OF
course the relative prices of bonds
are not entirely uniform, because
various circumstances enter into
} them; but it will be found on exam :
nation that they bear about the same
general price IN grecnbacks that they
did In gold before the war. Another
obstacle to the adoption of any plan
for returning to specie payments is
the cry that the right way to resume
is to resume at once.
I have labOred to find that this
means anything but the indefinite
postponement of resumption. Every
one must comprehend that the Gov
eminent cannot redeem the greenback
currency without first collecting the
gold to do it with; that it cannot re-
turn to specie payments by contraction
without taxing time to contract, with
all its attending calamities; that, in
short, there is no process by which it
can be done, however ruinous, that
does not involve time. If the Govern
ment should pay out the seventy mil
lions surplus gold now Ia the Treas
ury, in the redemption Of an equal
amount of greeDbacks, the whole
country would know that it was not
prepared to redeem any more. The
gold paid out would not pass ia circu-
lation, but sink back into an article
of merchandise, the balance OF the
greenbaek. currency be but little ina
proved. and the net result of the
operation would simply be the con
traction of the currency TO the extent
of seventy millions, and the indefinite
postpanement of the redemption of
the balance.
But the great obstacle to the return
to specie payments, and the one
which we will have the greatest diff
ficulty in overcoming, is the interest
against 10. The premium upon gold,
aud the advantages it gives to certain
classes over others, was unavoidable
IN the beginning. but should not be