, 1869-08-26

The United .%afes Etonomitt prints a
great many figures to show that since May
LIST, 1861, the total quantity OF our papcs
currency {inciuding legal tenders, fznction-
ais, 1nterest-bearing Treasury notes, CON-
pounds, md National Bank notes) has de-
creased from Ss07, ,als, 100 to 1856, 500 ,s:a
"A total contraction Of ;sl.o.aas7, 1861, or by
ahont one-eighth Of their original quantity,
md yet TINT, during this period, gold hns
advanced from 1881 to 133.
The truth Is the depression down to 1894
was spasmodic, lasting only one day, nnd
caused by the excitement attending the
final surrender Of the rebellion. But
during the years 1891, and TO May, 1865,
gold averaged at least l75. Since then it
has several times reached 1888, hat soon
went up again to the general average Of 40,
tho tnnge being between 1888 and $50.
With gold ct 1888 our currency is worth
Just thrce-fourths OF its face, or Is per
cent II Congress should issue new
greenbaek currency, redeemable at par in
gold, not like the present at the pleasure
Of the government, but on demand OF the
h older, the old currency would bo quoted
in the new at Is per cent Of its fnce.
There Gre two ways Of arriving ut q cuz-
rency sedeemable in gold. Both have been
thoroughly tried in Europe. Austria has
resumed three times, md Russia once
since lslG, In neither case case did these
couu tries grow up to specie payments.
frryN %1
fund herself growing no nearer nj the end
Of that time than she was in the beginning.
One mode Of resumption is to contrnct the
volume OF the currency now out until it is
worth par. This is severe, but il
continued long enough it would prove
effective. The other is to issue new pa
per. rcdecmable On demand in gold, and
therefore ct par with gold, and allow the
old currency to be funded into the new at its
actual value, i. e., 800 Of the old for S75
Of the new, and SO retired from cIroula-
ton. OF course, in the latter mode all
contracts now payable in the old continue
payable in the old only. New contracts
mny lie made payable in tho new currency,
md ns last rs business men choose to make
them 80, and pay them when due, specie
payments are resumed Russia resumed in
this mAnner In 16i3, and Austria subse-
queuny. Tho Eeonomiat is sadly ut fault
in supposing TINT because we haro only
| Sl4o,000, 600 Of gold in the country, there
fore our paper currency must be reduced to
$4,000, 900 before it can bo redeemed in
| gold. About 81 in gold to 81 in paper is
us much as our hanks during specie paying
times have ever found necessary for main,
timing redemption. With 5l40, 900, 900 oi
en1d In the country, rightly managed. We
onght to he able to maintain redemption al
tl4;s ratio for SGao, 100000 OF currency oi
C"ld value. OF rs much as VIC now have
aaoat, worth but three-fourtks as much a.
| gold. But the obstacle to redemption ol
either government or private notes in spe
Gle. at present is their difference Of ono
fourth in commercial value. Remove thil
difference. and issue a new government AMI
bank note currency, and authorize existing
contracts to be liquidated in the new cur
rency, without change Of their actual va}
!: ucs, and it dtes not follow but that cur
reucy MS large can be sustained ct PAT witt
gold Us We now sustain at rs per cent.