The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-01-05

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but simply from Its redundancy. The general belief
Is that such currency Is In all respects vicious. and
tnat y te1ds 70 the nan A' rs esS rss
effects are, while the process OF imitation contin.
ues to enhance prices, to stimulate commercial
portion OF the wealth Of the creditor class to the
debtor class. These effects, although the enhance.
ment of prices leads the community to believe that
they are growing richer, are unmixed evils On the
other hand when contraction ID in progress, the
erects are TO depress prices, to paralyze industry
and to transfer portion Of the wealth Of the debtor
class to the creditor class thus making the rich richer
and the poor poorer. These, again, are unmitiga.
any given point and steadfastly held there the cur
rency, although as redundant as ours, would per-
form the office OF money In all respects save one as
well as coin or convertible paper and In many re-
spects much better. It would, for example, be
more uniform In its measurement OF values, be-
This above all other qualities Is essential to good
circulating medium, since without It no man can
safely enter into time contracts It would also De
more convenient for use than cOln and more cneaply
transported and its loss or destruction would noA
with coin, be loss OF real value, since It costs
by its destruction what its owners lose. To these
advantages we may add the profits which accrue to
those who issue It, as for example the annual saving
OF 360 900 In coin by the government OF the United
States on Its outstanding issues OF 1885, 900 green
backs, for which II has received value but on which
fhe evils Of infiation we have already suffered.
These, therefore, cannot be avoided; nor can they
be repeated we seadiassly resist every attempt at
which are OF . stu more serious character think
may be in great measure avoided by remaining
comparatively passive relying mainly on our grow.
value between our paper money and gold. as they
certainly will do In due time.
The proper legislation on the subject 1t appears to
me- would be this:-Let Congress by joint resolution
DECLARE. That there shall be no further perma-
nent Issue OF paper money ny the m nor
culaton. 2 That the contraction Of the legal ten
sumed, be strictly limited to SO, 900 900 per an
the q the q me Treasury WIN
F ss gss' the sn be sss already q
hold in reserve $4,000. 600 Of greenbacks, to
be temporarily used IN case II shall become ab-
soItey zee for tn Of the public
rdcates, or in payment Of other demand liabilities
banks In case financial panic should produce run
upon them which threatened their suspension Of pay
Dents in greenbacks said notes to be Withdrawn
from circulation the moment the stability Of the
money market Ia restored.
The advantages OF such legislation are obvious.
The declaration that no further permanent issues of
paper money shall be made would strengthen pub
lie confidence In our currency by rendering 1t GER
value The declaration that the contraction OF legal
tenders shall hereafter be Sl0,000,000 per annum
would show determination to press forward slowly
taken together would establish policy for the future
that would insure to currency the qualities OF
Constant appreciation. The knowledge they VIC would
thus fmpart would be OF fnestimabe value to the
future Of Our currency and thereby dves
and all other productive pursuits OF an element Of
uncertainty which now renders them analogous to
gambling.
Placing in the hands Of the Secretary Of the Treas
ury $50 100000, to be temporarily used In critical
emergencies, would prove an invaluable safeguard
against financial DaQICS and bank 9llsueuaOuA.
Such safeguard cannot be provided under convert
ibe currency and the want Of 1t has led to most Of
the bank suspensions that have occurred here and
elsewhere
Taken together, these simple provisions OF perma-
nent law would secure stability and uniformity Of
value TO our currency under which all productive In
dustry would go on confidently and prosperously,
until our growing commerce through it's large en-
paper dollar up TO that OF the gold dollar. Then
specie payments could be resumed without effort
and without the hazard Of revulsons But the I'm
portant question Is how long would 1t take to bring
about this resulta Let us see.
It is known that our population increases in the
compound ratio OF three per cent per annum. But
the employment Of money depends on the amount
OF commerce, and 1t Ii known that the pre-
impetus to our commercial transscso ai'' 0onse
quenty our commerce az the present time Is grow
g more a se ss n
would give such increased security and prodf to ali
industry as to still further augment commercial
1t would be unsafe to estimate that our commerce
would grow during the next few years at the COM
pound ratio OF i've per cent per annum.
nTbis, in eight years. would add ASK per cent to our
commerce. The colncident contraction of green.
backs would be Ss00Oo,00o, with probable loss of
900 more, thus reducing our aggregate crcu
lation TO 1864, 100000.
To meet the wants Of our present commerce re-
quircs at $10 per capita $3.50 900 OF convertible
currency. With 4s1s per cent increase in that COM
merce 1t would require $564, 0O0, 0OO or $4,000 900
more than we should then have. Consequently
resumption would be safely reached by this method
In o shorter period than eight years. My belief Is
that 1t would be thus accomplished In about seven
years. This belief IL grounded on the conviction
that the market value OF gold has not yet felt the full
effects OF Its enlarged and cheapened production.
It's value In exchange Will PROBABLY still further d.
minish within the next decade at least ten per cent
II so, 1t win produce Q corresponding enlargement
ia the volume OF money, which have made no esti-
mate OF in the above calculations.
without trespassing furthef respectfully submit
TO your Judgment whether such'a contamination Is
not the best we can hope for in view OF the extreme
lnDation OF our currency No other nation that has
departed thus widely from the true measure OF value
has ever returned to 1t at all except through the In
fanny OF repudiatlon II we can reach 1t at the end
OF seven years OF prosperous industry we shall be
most fortunate and our material condition Infinitely
better than II marred BY premature efforts 70 reach
1t earlier. Yours truly, GEORGE OPDYKE