The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-12-28
COMMIssI ONER WELLS REPORT
The Currency-Specie Payments.

In the able and comprehensive report of Spe-
cal Commissioner Wells, for ls59just published he
considers tile subjects OF our excessive paper cur
rency its disastrous effect upon our foreign trade,
and hence the desrableness and necessity OF con-
traction and 4 return to specie payments by that
agency. lie shows that the foreign balance
against us will probably average now about
s21o OoO 900 per annum, including the merchandise
account, the movement OF specie and bullion, the
obligations for interest, excess of freghts carried
in foreign bottoms, and expenditures OF Ameri-
| cans in foreign countries. To meet and settle
this constant increasing and adverse balance, un-
der the present condition oIprices and cost OF
production in the United States, there is but one
resource, that is to remit certificates OF indebted
Less, national, State or corporate.
The commissioner, therefore, points attention to
the fact that, while before the war we were
able to wholly pay for our foreign imports and
services with the products or our own industry,
including, after the discovery OF California, and
up TO the beginning OF the war, such proportion
only Of our product OF gold as 1t would have been
practically useless and even mischievous for us
| to retain. we are not now so doing and this
latter circumstance would SEEM, to prove beyond
mcstion. thai The aggregate OF national produc-
tion does not maintain the same proportion
as formerly TO the aggregate OF nssiona! con-
sumption.
| Coming TO the currency question, the comhiis-
sioner truly remarks, that not only III me lhiteu
States, but In all other countries cursed with an
| irredcemable paper currency, the rates OF IN
tercs, arc always the most advanced when there
| il the largest absolute amount Of currency in
circulation. He then proceeds 10 consider the
EXCESS or THE PRESENT CURRENCY.
That the present value OF currency Is in excess
| is proved .. ,, ororo,
scale Of the prices OF domesuc colIn1ui.cs COLI i nS
| measured by the common standard OF inlcrna.
| tlOual commerce, is greatly in excess oi Ihe
| nrlces Of other countries. and out OF all natural
| propor;i0n to the prices OF the same coni'houl-
| lies in the United States before Inc war.
, The excess of the present currency Is also
proved by the further fact that the amount ol cur
rcncy in circulation has been arpitraiy @
| during the past eight years conslucraoiy in0le
| than twofold although the increase oI PopuIu-
tinm nrodnciiou and accumulated wealth during
the same time has been, by general agreemen,,,
| in very much smaller proportion; ana altnouSh
at the former date The amount OF currency III cir
cuIoiion was not limited by any serious restric.
tions unon the creation OF hanks or the issue OF
| noncr really or nominally redeemabe In specie;
| Furthermore the tendency OF all cohmerelai
rency. ,,,o. Nv orow.
ing the present volume OF currency 10 remain
unaltercd, the Increase IN business anu .n ;.I
| ish and finally remove all redundancy 10 ths
Il may he replied, that the retaining OF tne pres
ent amount OF currency IN circulation tehus W
increase no business but what Is specuatNc, uiiu
| IN check the very development which s expected
| TO prove remedial. In the lWehty-nNc y yc,tis
which elapsed from 1885 10 1850 tie paper cliCu'
latOn OF the country, lett lree anu untIa,nlVnie,
TO eNpand ITSELF increased from one huhulSu M 'ilu
three millions to two hundred ana seven millions
| or NJ the rate Of a.36 per cent. per annum Now
should the future demand continue 10 increase III
the same ratio 1t would require .e ,s. Vi hin
wears from 1890 or until the year l9Oc TO brlne
| Inc wants of the country up TO the present sup
ply. In the meantime the currency wOulu pro-
| bally reman as now, irrcdccmaoe OF ihcoh-
vertbe. ,,,.c,
are then considered, and the commissioner de-
clarrs that tile simple reasonaoc remedy 10! 1mc
evils Of imitation would seem 10 De contIac,ton'
pure ana simple, without art!hce CT niu.Ice''ui'
u answer 10 The opposition 10 contraction ol aC-
| rouni oc tnc immediate distress Which IL Is sup
posed wOud follow the adoption Vi suc:i poley,
il is declared that Ii requires no gHl OF pror'cc.
Ia fore, oil that the country must soon experiences
all the harlshipS which contraction coui'l cii''il,
whether contraction and It's ultimate Dchehts oc
secured or not. The commissioner 81! llaG ''''
rho incidents and all the effects ol c0hirac,iol'
go far 90 II luyQycs commerca uisas,er ai" mI WI
dustrioI distress. are iiGiVaoy cohine, ;! unu
snccdily. II Is evident That the process Q. -ett!ihs
lie annual adverse balance of trade by the lraia
| mission OF national or othcr securities caii.os nv
continue Indefinitely, anu lnc lhulcatioiis a.. ~
that Tic cad Is not distant. BUi our iorrlSh iii'
nori atoms cannot be largely checked, ~ many
are necessary 10 domestic CONSUMPTION, LOT oui
| manufactures, nc. To check tic'ii wouiv sllip'.
hn ia destroy 4 much larger value OF our domestic
| industry Hence u speedy exhaustion OF the sup
nly Of bonds or bullion available Tor export III
,oIvos serious depreciation 0i Tie prices VI do-
| mcsiic commodities and general CONFUSION ol
| trade-,hc very effects on account OF WHICH COIL
traction is opposed and deprecated.
,,,o,.yr OF GOLD NEEDED FOR EEDEMrrloS.
The question how much gold Is needed TO begin
and s,,stain A stem of redemption depends
| wholly upon tie answer TO the prior question,
how much currency there shall bc TO reueen.
seven hundred millions of paper could NOT oe
! kent rcdecmablc with less than seven huadreu
miI;ons Of cold. because with such an amount
| or currency il would inevitably be deprecated,
! and hence gold would bear premium winch
every holder of paper would be dcsrous 10 realiHe.
With four hundred millions ol paper, ON .nc o.,en
hand hundred millions OF gO!d woGld proDaoiy
| be ample because the currency, not n'ihg III cA-
cess OF the wants OF commerce, would not suller
! depreciation, and gold and paper beng on other-
| wise equal terms, paper womb DC preler1eu iDi
lis rrcttrr convenience In use, just rs In 1850 hc
! hangs we're fully able 10 redeem all OF their cir
culaiiul which was presented lOr payment W
| though having but eighteen cents OF specie OH
| each dollar OF immediate liabilities. 1t Is no. Tue
| ratio between gold and paper that needs 10 be
! regulated but the ratio between the amount oil
papcr in circulation and the volume OF national
| production and exchange, Of which Il Is The IN
| strlmcat. - 49,, 49,.
Much criticism has been passed upon the treas
ury for not adopting the policy OF boarding gold
with q view TO returning 10 specie payments, hut
If villa: has hccn stated above IS tI;ic such pol
lev rould lead 10 no good results unless acc0lnpa-
nicl Iy Il measure Uf contraction; while cpntrdc-
lion would uhyaic the Necessity q! any sUc'i po!-
lev inaenluC a. guid would tEcr come 20 Us, OF
h. retained ny Usour currency pclll" w ncai'l-
fl,l coYduiou--io list that extent to which IL was
nrc,I.rl chewing the sane laws rs AM other COIL
modify. EQuaily uatcnabc Is II To suppose 'raI
| any Progress can he made towards resumption ny
! y reduction, through government purchase anu
r1ucc';a.. on Of lie principal Of :ilc funded dcl'
TwehnI no national dch,; il the two thouIaE'!
| m!lliou1 ng n;lic bonds were by some process 10
be Transformed in:O al equal amount oi ihIV",e
"strmri;icsr exchanged between c.tiIciiS. The
nrcn,iiln "a .0i'. Word EpI lie a.prcclahiy ~
iccied. .,.,....,.,;. -, ,,,o
marion which causes gold 10 Uc ~ premium. "S
Is proycd ly the fact that in Italy ,s1Ga.ri! ANA
Eus,i4-cu,nir;cs maintaining strzDeiahdii'E af'
mics constantly threatened with war. whose
,lcb;s ayc larger, relatively 10 their resources
Than orr own :llIi are in no respect III inc pGo
cos. OF c%t!n9aishncnt, ana whose annual N
ne;t,. res. ~ u rule, ere III excess ~ tlc't ulV
! nary rtycrHes-in none of these three Countries
has The rc.cn. depression OF the paper iInlicy
neon NOR. :han Onc-halI as great aS III the uhite'
SiaIcs. ,hc reason bcing that the paper mchcy
is no. as much in excess as ouri.
| I;ut il is urged 10y some t.iat no rcslrc'loi!
| IL ln -