The New York herald., 1869-11-30
jonathan OldhuclS on the Currency.

To THE EDITOR OF THE HERALD:-
Am ] and the public to infer from the large
amount OF space and the prominence you are giving
to yonr eccentric correspondent, Mr.. oldbucR,
you endorse his remarkable views on the currency
question: As your correspondent writing to cor
rect the mistakes" OF the Treasury, ask permis-
sion TO correct some few OF his very glaring and pal
paDle errors. MIR. Oldpuck set out with the very
remarkable piece Of information that the difference
In the exchange between this country and England,
Of 9 23-4O is caused by that amount OF alloy being
added TO our gold con and this great discovery he
POUNDS most OF his arguments against the policy OF
the Treasury, and in favor OF what he calls coned
paper" Before man sets 10 work to correct the
''mistakes Of the Treasury" or OF individuals, ne
should be quite certain Of his facts.
SO far from there being nine per cent direre nee
the "ineness' Of English compared with American
gold con It ID in reality less than three per cent ana
the difference in tho rate OF exchange between the
two countries has nothing whatever to do with the
'adueration" OF the Of either country, as win
appear by the following explanation, which every
well Informed merchant and banker will understa and
II Mr. OdDuck does not. quote from Gilbert on
Banking:-"Under certain acts Of Congress the Eng
lsh sovereign was made legal tender tue rate Of
"a $40 cents per pennyweight Hence the full
weight OF the sovereign beng penny weights 3.274
grains, 1t was made equivalent to 81 SO, or 81 81
equal TO 81. But according TO rule established
In England in 1889, and ever since retained In ex-
cnange operations, the par OF the dollar paid at
g. Cd. sterling. which gives for S4S7 f103 lis 6d.
The nominal par thus exceeds the real par co lis 3d.
or 23-io per cent. In this way when the exchange
Is nomtnaly 23-4o premium It ia really at par. The
above calculations are subject to slight modin-
cation by an act OF Congress- fxIng the amount OF
alloy In both gold and silver coins az onetenth: but
commercially tho par OF exchange between England
ana America Is usually quoted as equal TO 80 per
cent"
There being, therefore, no such difference in the
degrees purity OF the gold OF tue respective
countries the assumption that 'he quotations there
nave uniformly been made np0n foreign standard'
II Will he scen has no foundation But the fact that
the quotations relate to the gold coin OF the United
States Ia daily stated In tue Official reports OF deal
IL "Amercan gold coin.n Yet your correspondent
asserts that "tne quotations OF gold since the
adoption OF the Legal Tender act have been based
upon the value OF English gold coin. Gold Is never
spoken Of" he goes on 10 say, with reference to
our coin, because there are no sales made In public
with reference TO It, The quotation oil l26 IL accord
ing TO the standard OF gntneas or pure gold. Our
gold nine parts alloy, and therefore the quotation
should be as between our coined gold and our
coined paper. The difference to-day between our
gold and our paper is seventeen per cent? What
preposterous nonsense The writer must surely be
member OF Congress His argument To prove that
the paper currency Is not deprecated worthy OF
the times which preceded the English bullion report
ol hr. Horncr, report which forms the founda-
~ ,vVery modern European authority Hansard
- ncu win similar arguments, elaboratey gotten up
bu,R M members or Parliament, TO prove that the
.n. Dao" Ieport was wrong In attempting TO Demon
.e 5nAee tnat tne paper OF the bank was deprecated
ibese Rehtemen asserteu that the true standard OF
M vaue WAS Tue Dank note, and that gold at pre-
England. 49, 'es
Tnc mistake" OF Mr.. Oldpuck arises from ns iQ-
o,ans assumption me charges others with igDorant
together In our countryr Now II ia ono az the re-,
cognized principles or laws of CURRENCY mat when
=" "'oi'or vi depreciated currency made a LEGAL