The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-02-25
r EsUMpTToN oFsPEC1E PATIENTS.
TO THE EDITOR OF THE NEWS.

This subject is much discussed in Congress
! and in the journals, but net with that agree
ment in principles which is necessary to its
intelligent investigation. I have just perused
Mr.. Morton's speech in the senate, recently
made. He is favorable to resumption, but sets
out with tho assumption that our paper cur.
rency ls not excessive. [ would suppose that
the answer to this assumption would be the
premium on gold, which is 80 per cent; but a
few fguros viii show thi. o1ror OF D1r. Morton
on tue subject Of redundancy Of tho pap er
currency.
ing legal tender and national bank notes, is.
in round numbers, $3.50 600 600. Our popula-
tion is estimated at 80, 900 000 which is frac-
ton over seoenteen dollars per head of pa
per cui rcncy tor the whole population. The
paper currency of the United States IN 1860
was $207, ,00l. 000 and the specie in cir uatior.
between S83 000. 600 md $84 100000. making in
the aggregate about $500 100000, which, in
proportion to the population at hat time.
81 900 0OJ-was fraction over 81 per head for
the bank note and So 50 per head for the specie
part of tn, circulation Ia The oo bank note cur
000-which is 81 "a per capita. The paper
currency Of France is 120 900 francs
$4,000, ,O00-about 81 per head.
Let us adopt another mode Of calculation.
Allowing for an increase OF population. at the
next decennial period, at the rate OF 81 per
cent per annum, and that tho population ct
the United States will, at the next census, 1870
reach 40 100000. at this rate oflncrease the cur
rency ought to be $409 600 600 or $40 per head or
about 81 SO for the pap and 81 so for the specie
porti on. Parsuing the same mode Of calculation
at Il Q census of 1880, when our Plumbers Will
be o., 600 600, our whole currency, pa er and
specie would be $40 900, 900, and in the same
proportion as in 1860, for specie and paper
about $400, 900 600 tor the latter ana $1OO O0O.-
600 for the former portion Of it.
Mr. Morton is opposed to the mode Of COM
mencing the payment of the national debt as
suggested by the Secretary OF the Trea- ury.
Mr.. McCulloch proposes to commence with the
funded bt. MIR. Morton wishes to beg in with
the floating debt, in which we rgree with him.
The floating debt is the greatest OF the two
evils. The funded debt is not payable until
1881. The floating debt dsturbs contracts, and
by leading to depreciation and an unfavorable
balance OF trade, carries our. bonds to Europe
with our gold. MIR. Morton is. however, not
little inconsistent in this part Of his speech.
He is opposed to contraction Of the currency
unless by plecemeal, bit by bit.
Now, what is reduction Of the floating
debt, in other words, a cancellation Of the legal
tender notes, in the way he proposes, but a
nostnonec,eH. sc aI almost indefinite period OF
wresumption? re He is the advocate Of paying off
debt, because 1t will be the means of improv-
ing the currency, and lead ng necessarily to
resumption. and yet he proposes to cancel one
hundred anlutons of that debt as an effectnal
he imagine tina, ;ancelliug ono part out of
seven, when the excess ls about four parts out
OF seven, will accomplish his object2 He sup
poses that retiring 100000 900 Of legal tender
notes will bring the remainder to level Of
value with gold. Vain expectation
In speaking OF q gradual reduction, is he not
aware of that law OF currency which prevents
currency OF higher value circulating with one
OF lower value? Would not gold be still re-
gardeda as merchandise and re-expo1t ted even if
ofpapcr money had been reduced Tie course
ofd9oley is very plain N this ex remty. 1t is to
consistent with safety and not too great reduc-
tion OF prices, until we have brought 1t down to
somewhere in the nelghborhood OF $3.50, ,OOO, 900,
and then il our exports exceed our I'M ports,
and the balance of trade is in our favor, We
shall be able to return to specie payments, but
not before. II the attempt is made to resume
unless we are in due prepardt,o7l to do so, by
reducing the pres mt p etnorn of paper money,
there will be inevitably another SUSPENSION. as
was the case in this country III 1899, after the
suspension OF 1887.
In fact: this subject cannot be intelligently
discussed, except liz come cton with the pub
lie expenditure and the state Of our forelgu
trade, and to these aspects of the subject we
will address ourselves IN future communica-
ton.. j. G..