The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-17

mighty changes wrought by the war is the revolu-
ion IN the character OF our currency. The war
found us with gold and silver part OF the clrcu-
latng medium and with convertible cur
| by the authority OF the several States. When
u hoe ended gold and silver and this bank paper
their places substituted the notes of the
government nei and OF the national banks. The
TO reintrodnce into the currency gold and silver
which can be done only by making the notes OF the
government and OF the national banks convertible
into coin at par These notes are now greatly depre-
cated and since the LIST OF July gold has uctuated
between thirtytwo and half and forty nine cents
premium These fluctuations In the value OF the
currency affect every kind Of business dsastrously
me prices OF provisions, goods and labor change
| from month TO month. Every branch OF legitimate
business which depends upon small but regular pro-
nus Is greatly impaired with such fluctuations in the
value OF the currency in the cost OF living IN the
profits OF business and the value OF everything that
enters into trade, together with the painful uncer
tainty that hangs over the whole financial policy
| OF the country. Men hesitate TO engage In new
enterprises or to make new investments In business
Inc prudent capitalist Is standing still, awaiting
definite financial policy by which he can judge of the
future i Is impossible TO calculate the aggregate
things, or to estimate the suffering and destitution
produced by this stagnaton OF business and the
want OF employment for labor; and II Is only the
business but the imperative duty OF Congress to ad
dress itself to the great work Of reform by adopting
sucn legislation, II possible whereby the currency
snail DE made good and business be made to now on
prosperously through It's regular channels The
business transactions OF the country, amounting
| to many Thousand millions OF dollars in the
course OF the year, are conducted through
/ the medium OF the currency; and II the
currency is deprecated, nuctuatIng and deceptive,
the prosperity OF the country inevitably be ser
ously injured and its general progress and develop
ment delayed. me question TO which invite the
latlon may be had and q plan adopted whereby the
currency can be made good and the government
return to specie payment without producing q crash
or great commercial Distress
| First, win consider some Of the difficulties which,
II Is urged will prevent return to specie payments.
IL Is said by many that the currency is redundant
ana tnat we cannot return to specie payments until
contraction has taken place we are referred to the
f8ct tnat before the in 1850 the entire bank cir
culation was but S202 00O and the specie in the
vaults OF the banks about SIS, 900 900 making less
than $500 600 900; but at that time gold and silver
were In circulation part OF the currency, and 1t
Is probable that there was more than $780, In
the country besides that which was held In the
banks This would bring up the mixed currency to
| nearly $450.000,0O0. The Director Of the Mint In
Philadelphia in 1861 estimated the amount OF gold
and silver In the country at $275 600 000 which Is
nearly $50000,0OO beyond my estimate; but there
| was another form OF currency then much more in
considering the aggregate currency of the country.
The paper money consisted OF the issues Of local
! Of the banks by which it was issued. Then
| the paper money OF the Northwestern, Southern
| and southwestern States not current
| in New York and was not received there in
| payment Of debts The bank notes of the Northern
States were not current II the Southern States, and
| cice UerSd. Hence the payment OF debts and COM
merclal transactions between different parts OF the
| country were conducted by bills OF exchange and
promissory notes. which amounted TO many hundred
millions Of dollars during the year. This form Of
currency is still used but not nearly TO the same ex
| tent as before the war. Now the greenbacks and
national bank notes OF equal value in every part OF
the United States, and transmitted In payment OF
debts and transactions OF business from one part OF
| the country to another by means OF express COM
panles and otherwise to the amount OF many hun
dred millions every year. The books OF the express
companies show an immense transportation OF paper
| money, the amount OF which cannot be accurately
ascertained, but It would be moderate computation
to say that slOo0O0,ooo Of our currency are now
| used in that way which were before the war
| supplied by bills OF exchange and promissory
notes; and when we consider the progress Of the
country since 1850, the rapid development and
opening up Of the Western states and Territories,
the vast extension Of business the magnitude OF the
national debt the necessary collection Of large reve
eminent In its general administration we may rea-
sonaby conclude that there is an actual demand for
an increase OF the currency over the wants OF 1860
to the amount OF at least one hundred and fifty mil
lion dollars Therefore, when you add TO the actual
currency OF 1860 about four hundred and fifty mil
lion dollars, the amount Of the currency now used
In the place OF former bills OF exchange and prOmis
sorry notes. and the increased demand for currency
otherwise growing out OF the causes referred TO- is
| doubtful whether the currency Is more redundant
now than 1t was IN $780, when the banks We're pay.
not . necessary preliminary measure to return OF
specie payments.i
| Again, It is said that the government cannot re-
specie payments until after we have checked
the now Of our gold to Europe by largely reducing
PpsnS the S REMEDY
like every other commodity Is governed by the great
commercial law OF demand and supply. IL goes
where it is needed and leaves the country where 1t
is NOT In demand. In this country there Is now but
one demand for gold, which Is TO pay duties on Inn
plied-tO constitute a currency and medium Of ex-
change-has been cut on for i've years ana our gold
has steadily flowed into other countries, where 1t is
demanded for a currency. In whatever country
paper money has been made legal tender 1t has IN
variaby driven gold and silver from the circulation
and in great part from the country. Thus it
Is that Canada Is now flooded with Ameri.
can silver. Thus Il Is that "a. American r.san gold
i've years. Thus 1t was during the French revolu-
ton, when the assgnats, a legal tender currency
like our own, drove French gold into all Of the
neighborng countries so that when the assgnats
finally collapsed, as they did in single day. France
found herself almost destitute OF coin. And thus 1t
was during the long suspension OF the Bank OF Eng
land, when English gold went steadily out and
only recalled by the prep arations made to return TO
decade ending June 80, 1868, our gold exports
s26 during the last five years or the decade,
while specie payments were suspended, our exports
s413, $780, 00O-showing increase OF $751;, 422
600. During the first. five years. our imports
years sle,ss9,OoO. which, added to the $751;.
422, 000 would make Sill, 600 OF increased
gold loss during the last five years. We
demand for 1t. The holders OF II are not patriotic
enough to keep 1t here for nothing. II We would
withhold the gold with which they are purchased;
and this we cannot do except by making u more
Until create this home demand the annual pro-
duct OF our mines In chief part will go to England,
France and Germany To swell the rich volume Of
their currency.
Again, II Is said that specie payments cannot be
brought about by special legislation or materially
aided thereby, but can be produced only by the
operation OF general causes such as the increase Of
the tari, the increase OF population and the de-
velopment Of the resources OF the country, where.
by the general credit OF the government VIII
be improved. To understand the merits OF this pro-
position we must consider what are the causes OF
the depreciation OF the currency and this will do
In answering another proposition which IL said 10
present the best and reades method Of returning to
specie payments. IL Is alleged that we can only
raise the value OF our currency by raising the value
price Of our bonds we shall thereby bring up the |
value OF greenbacks; that we can only improve the
value OF the currency by improving the general
credit OF the government as shown Dy the value OF
stocks; and TO this end the surplus gold In the
Treasury and that which Is TO accrue should be APP
piled to the purchase OF bonds In the market to
be cancelled, thus diminishing the number OF them