The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-03-04
THE CURRENCY.
TO 1HE EDITOR OF THE NEWS.


In some remarks made by us a few days since
we assumed that the paper currency OF the
United States was excessively redundant, and
that the best test of that redundancy was the
premium on gold. This test is invariably ap-
piled in England. Wheh the Bank OF Eng
land suspended its specie payments in 1877 both
those who affirmed and those who denied
that the paper currency was redundant and
deprecated admitted the accuracy of this test.
We also stated that until the paper currency
was brought TO q level Of value with spocle
every attempt to secure oecie payments would
be futile, and, consequently, that the idea OF
sending bonds to Europe with the expectation
of negotiating them at par and bringing the
proceeds to the United States in gold until
that level was restored, would prove fallacious,
and that, if even there was on influx of gold in
consequence of favorable balance of trade, it
would be only temporary; the gold would flow
out again to be re-exported as commodity,
seeking better market, according to that we'll
established law of currency which precludes
superior and inferior circulating medium to
circulate together, in the sane manner precise.
ly as de5ased metallic currency would take
the place of one of standard weight and fine
ness.
We also entered on an argument to show that
it would be more expedient. in order to bring
the paper portion Of the currency within its
proper limits, to diminish the hoatlng debt
with whatever could be spared from the sur
plus OF gold ii the treasury and what can be
We argued that it is q less evil to pay one hum
dred and forty or one hundred and fifty millions
OF interest on funded debt, payable IN 1881,
th IN to have in circulation an amount II paper
currency greatly IN excess, reaching the enor-
nous sum OF betW cen three and four hundred
millions Of dollars. For redundant paper cur
rency not only destroys the validity OF con-
tracts and lessons the revenue Of all those who
I've on fixed incomes, but dlminlshes the COM
fo-ts and necessarIes Of life OF the laboring
classes.
We know that there is large mass OF per-
sops who are apprehenslve that II the curren-
cy is contracted in ever 30 slight degree 1t
will 30 depress prices generally as to produce
more embarrassment and distress than any
probable advantage that will arise from re-
turning to specie payments. We would fortify
our conclusion that gradual return to the
standard OF gold will notproluco any injurious
effects by the evidence OF facts and the weight
OF authority. Mr.. Wclles, the special commls-
sioner Of the revenue, made report recently
To Congress III Which VIC fluid the following
passagc:
''As bearing on the proposition OF ccn:rac-
tion as method OF arriving o. resumption,
the commissioner believes that no man con
look back to the period when moderate con-
traction was authorized by Congress, and put
his finger on Que sInglo bad result TO have
q Iwn from Sroh contraction. WHICH was not
duo IN the first instance TO wholly inlaSlna-
tive influence that no one can review the his
tory of prices then without foeling convinced
that there was during such time, 2. G. from
March. 1856. to January, 1858, tendency 10
gradual and healthy shTlnkdse or values; mo
that the shrinkago Of prices which actually did
occur was equivalent, through mn increase IN
the purchasing power OF money 10 us1, 20 Il
practical increase and not TO dimlnution or
the power of the currency to effect exchanges.
This increase was estimated by the oomu,s- oss
sioner in his last report during the yenr 1867,
to at least S10o, 900 900. Tue mo lerato con-
traction" to which the commissioner ailudes
was 81 600 900 per month. which is jus. about
the extent OF the contraction suggested by US,
to vii: $50 600, 600 annually; TOR 1t will be IT
collected that the application OF part of the
surplus of cold received from the revenue OF
custo ns, fifty million more, forms 20 part OF
the actual circulation, but is held III reserve
by the Secretary OF tho Treasury for the double
purpose OF paying the 9old interest on tho
public debt and keeping down tho premium Oh
gold; but the f'ct that tho surplus on 4 low
average amounts 10 eighty billions OF dollars
annually, affords conclusive proof tina we arc
losing the interest OH this sum unnecessarily,
nnd that after the appilcn ton of hhy millions
of this surplus to tho pryueut OF an equal
amount of the floating debt thcre vii! still TO
main thirty millions for contingencies.
j N. c.