The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-27
TREASURY P8LlCY-TaE MISTAKES.
To THE EDITOR OF THE HERALD:-

To THE EDITOR OF THE HERALD:-
An evening newspaper OF this city contains the
following paragraph:-"rhere IS vast deal OF non.
sense in this phrase or elastic currency. What
means itP Money Is the measure OF valucs.u We
ad supposed until that the great law supply
and demand measures value, and that money was
the convenient medium used for the exchange OF
property. The only standard OF value the want of
thing. II one horse is offered for sale and Ave
want the horse. then the one who wants the most
and has the ability to buy wiz get the horse When
the purchase Is completed money or some other
thing that the seller wants most VIII be received in
payment. The price OF property is made by demand
and supply. Again, the paragraph says:-"We have
been standing In the air now since 1861 and blown
about by every wind that came along, with paper
changing from $50 to 1875. No man now knows In
the morning what he may be worth at night"
This Is o fair sample or the lack OF knowledge OF
many who attempt TO lead public opinion. This
editor says he has been standing upon air since 1861
He certainly deals in airy nothings, and is very
windy If not gassy. lie had better come down 10
earth and learn ponderable facts. Does he know
that the quotations OF gold since adoption OF the
Legal Tender have been based upon the value OF
English coin, not upon American coin. Gold is
spoken OF with reference to coin, because there
are no sales made in public with any reference 1t.
The quotation OF 126 s according to the standard of
gulneas, or pure god. Our gold Is nine parts alloy,
and therefore the quotation should be as between
our coined gold and our coined paper. The differ
ence to-day between our gold and our paper seven
teen per cent and II the editor Will step into bull
lion once In Wall street he will learn that he can
purchase our coined gold with our coined paper by
the addition OF seventeen per cent This editor
can learn from this TACT That the purchase
aud sale OF gold at the God Exchange
SINCE our suspension has had no reference to our
coined paper. but entirely TO foreign standard.
And because there Is difference OF seventeen per
cent between our gold and our paper this editor has
every wind that came along" And he asserts that
In consequence of this premium on gold mo man
now knows IN the morllng what he may be worth at
uight.n
AS the quotations have uniformly been made upon
foreign standard, Is u not evident that our gold
coin has been Ignored altOgetber2 We have dealt in
gold for Europe, not for America therefore, as
Europe will not take our paper, but VIII take our
gold the price Of gold varies WIN the foreign de-
mand, while the currency remains quiet aud sta
tonary IN our country.
For the information OF the editor we Will tell
him that since gold sold In Wall street for $50 to
the time 1t had declined TO l26 the currency
has been doubled In volume. He does not
remember this, or he would not make such baseless
assertions. doubling the issue Of currency reduces
the price OF gold from $50 TO 126 then addition OF
twenty-five per cent OF currency WIZ reduce gold 10
par These inconsistent and absurd statements
arise from ignorance and presumption. When two
currences are foating together IN our country the
supply and demand must oe perfectly equal, and
then the relative value Will be equal. But when
there shall greater demand for one than the
other then an inequality Is produced. II q demand
for one currency comes from quarter where the
other Will not be received then this extra demand
advances the price, but 1t does not affect the value
OF the other currency, provided shall be Increased
10 the extent that the exported currency Is with
drawn. Before the war our paper currency was
one OF sufrerance and Its value IN business
was based upon Its instant convertlpty INTO
! gold coin: therefore the withdrawal OF gold de-
stroyed this convertible value ana produced what Is
properly termed inconvertiDe paper. But our Con-
gress changed all this. They found by sad expe-
rience that an alloy OF nine per cent would not pre-
vent our bankers and merchants from sending this
deprecated gold out OF our country. They there
fore determined that as they had the power adui
terate our coin nine per cent, to retain IL IN the
country for currency, they had the power 10 adu-
pose; they therefore issued coined paper and fixed
or regulated the value tnereof.n This made our
coined paper money independent OF gold BY max
ing legal tender they conferred upon IL all the
essential qualities that gold possesses Tor currency
You may thuS see That the taking from US one cur
rency does not necessarily decrease the value OF the
other.
There is no relative or convertible character that
connects the legal tender paper win the legal tender
gold in our country. They act separate and fnde-
pendent OF each other IN all business where cur
rency Is used. Thus you Will see that the disparity
In price between the gold for commerce and the
paper Tor inland trade does not Imply depreciation
III the value OF our currency Your persistence In
this matter reminds me OF an anecdote told by cell
ebrated traveller who was trying TO illuminate
HindOO by telling him that he was deceived by
appearances; that the sun did rise or SET but
that II remained stationary and the earth turned
round. Ills listener remained silent for moment,
then said, NO. no. you cannot CHEAT me. Do | not
see the sun rise every morning set every eve
ming; and do not know that II the eartn should
turn over would fall oifr
As soon as the people can understand that our
coined paper has not deprecated, then pro-
pose plan 10 utilize our DEBT so as 10 remove the
burden from the people.
JONATHAN oLDBUCK.