New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-12-29
WALKER on THE CURRENCY.


pendx to his report as Special Commissioner
OF the Revenue, an essay on the currency OF
Great Britain, France, and the United States,
by Mr.. George Walker, late Bank Commits
sioner of Massachusetts. 1t does not discuss
our present currency OF greenbacks and ma
tional bank notes, bat compares the amount Of
bank-note and specie currency in existence IN
the United States prior TO 1860 with the same
kinds of currency now in existence In Great
Britain and France, with the view of arguing
that the amount of currency in the country In
1860 is sufficient for the present wants of the
country, and that therefore the road to specie
payments lies through contracting the present
volume Of the currency to the dimen-
sons Of that OF 1850 This, however,
with Mr.. Walker, would be merely pre-
liminary TO still further contracting the cur
rency by the abolition OF all paper
money-he being one of that antediluvian genus
of economists, gradually becoming extinct, who
regard a currency entirely of specie rs the
cheapest one possible. Whether, when he had
reduced our currency entirely TO specie, he
would put hoops on every gold coin to prevent
il from expanding. he does not inform us. Mr.
Walker begins by defining the term currency
ing all forms of private notes bills Of exchange,
and bank deposits. He claims, in opposition
10 the decisions of our Courts throughout the
country, that note is not currency, because
it cannot pay n debt but only transfers it. He
should. to be consistent, have excluded bank
notes ALSO as they transfer instead of paying
n debt in every sense in which private notes
do. The true definition of currency must in
Glade whatever is currently accepted by
creditors from debtors, and by sellers
from buyers, IA a means of paying debts
or transferring property In cancehng our
balance of trade with foreign countries,
not only gold but our bonds become currency.
In California, where. few grecnbacks circulate,
an extensive system of private notes. accounts
which offset each other, store-orders, and long
credits, is in vogue. Contraction of the cur
rency in the Atlantic States would lead TO the
substitution very largely of individual notes
for those of Government rs means of ex-
change The power of Government TO contract
currency is, therefore, ut all times, power only
to contract currency of one particular kind. II
cannot prevent the people from substituting their
own extemporzed and inferior kinds in its
stead. In England, in consequence of the
strictions ON the volume of bank notes. il is
estimated that over f2OO,0OO0O0, or 81 ,O00OOOOOO
of private notes circulating from hand to hand,
often with twenty or thirty Endorsements,
illustrate the freedom of people to adopt n
lower kind Of currency, when restricted by the
Government from the use of higher Accept
ing Mr.. Walkers definition of a currency, it
results in an estimate that Great Britain has
now a total currency in specie and bank notes
amounting to SIS 80 "a head. France has $lS 81
a head for her population, while the United
States had Ia 1860, only 81 40 a head being
"A per cent that of Great Britain and 63 per
cent that of France So Ear as currency ought
to bear any proportion to population, MIR.
Walker succeeds in proving that we had n de-
fciency of from 20 to 81 per cent He states
the total amount Of currency in the country
then ut
Gold and silver. tAO,Q 100000
Bank nples'' ~'oOofO
Votal............ ............ .sO 100000
Our total circulation to-day, Excluding gold,
which is, in our domestic exchanges, II COM
modify merely, and the $2O0,OOOOOO of legal
tenders required by law to be held in reserved
amounts TO about S520000,00O. The increase
twenty-seven per cent, has barely made us
equal to Great Britain, and has still left us with
ton per cent less currency per capita than
France. III the per capita question is "of no
"consequencc,n rs Mr.. Walker goes on TO argue,
ho would have expressed his disregard for it
with more effect by not entering upon It. So
far M it has any bearing whatever, its whole
weight, assuming his figures to be true, is
against his conclusion. But some of Mr,
Walkers figures are not true. For instance.