The Portland daily press., 1868-03-18
Terms $500 et.anm,.,,s, In advance.


| the time we passed the loan bin ap,hor.z.rr
the Secretary OF the Treasury to contrei = - % :
| currency, we had about nine hundred TniI,joo
! dollars Of the same kind OF paper in cjrcnIa-
| tion; and S12G in paper would buy one dollar
In gold; consequently the paper dollar was
! worth at this time seventy-nme cents. Our
currency had been increased fifty per cent,
ana IT'S value had appreciated one hundred
per cent On the 1st day OF April, 1867, with
the currency reduced to SS00OOO.0O0, it took
Sl.33 in paper to buy one dollar 10 gold
Thus we see, in point OF fact, within this
range OF three years, our paper dollar was
worth the lowest price In gold when we had
the largest amount OF paper currency in cir
culation.
Now, sir, if these facts prove anything, thoy
prove that the premium on gold neither meas
ufes the excess of the volume of the paper
currency nor establishes the fact that such
excess really exists.
SIR, alter this signal failure OF the gentle
man from Pennsylvania to establish reliable
standard by which to measure the amount of
currency required by the business of the
country, wiipot undertake the task olber-
wise than by The bill which have introduced
for that purpose, and to which propose to
call the attention OF the House before con-
clude; and this bill does not undertake 10
regulate the currency, but to allow it to reg
time to time. will, however, suggest some
facts which prove conclusisely to my mind
tnat our currency is not now in excess of the
business needs of the country.
We have mrch less currency Der coDitd
than England or France, while the capacity
OF our country TO absorb and proftably en-
ploy capital is immeasurably greater than
either England or France. The immense
extent OF our territory; its almost exhaust
less. undeyeloped resources; the active, anil
tlous character OF our people; the more equal
diffusion of capital, and the correspondingly
greater ability OF all classes to obtain the
comforts and luxures OF life, aud 10 engage
in enterprises Tor the improvement CT their
condition; the rapid increase OF the country
in population and wealth, are all advan-
taSeous circumstances over European eoun-
tries favorable TO the safe and profitable en-
ploymer OF capital, and necessitate the we
OF large amount.
admit that Europe has, under present cir
cumstances. more currency than she needs.
Whether, ii her wealth were as equally dis
tributed as ours, and all her other conditions
were as favorable TO the profitable employ
ment of capital as with us, she would then,
with her present amount, have surplus, 10
matter OF speculation. That she now has
such surplus is evident from two facts:
FtrSt. The rate OF interest, that almost in
tai lble barometer for measurement OF the re-
lations between the supply and demand 1or
money, Is in Europe generally low.
Second. European capital is constantly
seeking investment in other countries.
Large amounts OF this capital are invested
in this country in raill oaus and other public
works, as well as in the securities OF our cit
les, States, and Da;ioH. We are generally
largely the debtOr-a circumstance showing,
not that we are absolutely poor, but proving
concluSively that we lack active capital.
And this lack on our part, this want Of
ayaiiab lie capital, has many Manifestations.
The active demand Tor money, The high rates
OF interest which 1t commands iD all Ialts OF
the country outside OF the financial ctnters;
the TACT that our best securities, many OF them
payable, principal and interest, in coin, land
selling at discount in paper,) are allowed 10
go abtoad; and there Is an mdisposition TO
make permanent investments even when such
Investments will yield large returns; that
short loans are preferred TO long ones, and
that the rate OF interest is increased with the
increased time on which money Is loaned;
that the dispostsion is to turn capital as rap.
idly as possible, are all evidences OF a lack OF
money in our own country rather than of q
plethora. Capital here is not seeking en-
pioymeDt, but business is seeking capital. In
Europe, the reverse is the tact.
1t is true that at times money becomes
plentiful, particularly in the large cities of
the United ates, and that then The rate Uf
interest is comparatively low. But this con-
dition OF the money market is exceptional,
and consequently there Is no disposition to
make permanent investments on long loans.
At such times money is loaned at low rates
on call or short time, that 1t may be recalled
to m ,et the active demands oil business when
reqnired. That scarcity is the rule and plen-
ty the exception are facts never lost sight Of
IN the American money market-ruling The
hour even when money is most abundant II
supply and least in demand.
Continued tomorrow