The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-02-25
Description oFsPEcIE rArMENrs
TO THE EDITOR OF THE NEWS.


This subject is much discussed in Congress!
and in the journals, but not with that agree
ment in principles which is necessary to il:
intelligent investigation. I have just peruse(
Mr., Morton's speech in the Senate, recent,
made. He is favorable TO resumption, bat sets
out with tho assumption that our paper cur
rencv is not excessive. [ would suppose tina
the answer to this assumption would be the
premium on gold, which is 80 per cent; but 9
few figures will show this error OF Mr.. Morton
on the subject of redundancy Of the paper
currency.
The amount Of paper money issued, lnclui.
ing legal tender and national blnk notes, is
in round numbers, $3.50 600 600. Our popuia-
ton is estimated at $4,000 600, which is Il trac.
tioa over Serenteen dollars per head OF pa
per currency for the whole population. The
paper CURRENCY of the United States IN 1860
was 500, ,00n 900, and the specie in cir ulatior,
between $50 900 600 and SS4 000,0 900. making III
the aggregate about $500 0000O0. which, in
proportion to the population at Ina: time
81, ,000, ,00J-was fraction over 81 per head for
the bank note and 81 80 Ter head for the specie
part of tn. circulation. The b : note cur
rrency Of Great Britain s f30 900, LOO-$15O 0UO,
OOO.which is 81 81 per CAPITA The paper
currency Of France is 120.0O0,0OO francs
S24, ,0O0, ,00G-about 81 per head.
Let us adopt another mode of calculation.
Allowing for an increase of population, at the
next dpccnnial period, at the rate OF 81 per
cent. per annum, and that the population CT
the United States will at the next census, 1870,
reach 40 000 900. at this rate otlncrease the cur
rency ought to be S400 0C0 0OU or $40 per head or
about 81 80 for the pap rand $3.50 for the specie
portion. Pursuing the samo mode OF calculation
at tic census of 1881, Nh"i: our plumbers Will
be 81, 900 900, our whole currency, pa CT and
specio, would be $40 600 900, and, in the same
proportion as in 1860, f1r specie and paper
about s4OO, 600 600 tor the latter ami S1O0,0OO,-
600 for the former portion OF it.
MIR. Morton is opposed to the mode of COM
mencinS the payment of the national debt, as
suggested by the Secretary OF tho Treasury.
Mr.. McCuloch proposes to commence with the
funded - Dir. Morton wishes to begin With
the floating debt, in which VIC sgree with him.
The 1oating debt is the greatest OF the two
evils. The tunlcd debt is not payable until
1881. The floating debt dlsturbs contracts, and
by leading to depreciation and an unfavorao!c
balance OF trade. carries our bonds to Europe
with our gold. Mr. Morton is. however, not 4
little inconsistent in this part of his speech.
He is opposed 10 contraction of the currcncy,
unless by plocemeal, bit by bit.
Now, what is reduction OF the floating
debt, iu other words, cancellation Of the legal
tender notes, in the way he proposes, but a
postponement to an almost indefinite period or
resumption? He is the advocate Of paying of
the floating debt in preference to the funded
debt, because It will be the means OF improv-
ing the currency, and leading necessarily to
resumption, and yet he proposes to cancel one
hundred mliionS OF that debt as IN ehectdal
means OF returning to specie payments. Does
he imagine tha~ oancclllug one part out u
seven, when the excess Is about four parts out
of seven, will accomplish his object? He SUP
poses that retiring 100000 COO Ut legal tender
notes will bring the remainder to levol OF
value with gold. Vain expectation
In speaking OF gradual reduction, is he not
aware of that law OF currency which prevents
currency of a higher value circulating with one
OF lower value? Would not gold be still re-
garded rs merchandise and re-exported oven il
brought in by q balauce oftrado, until the excess
of paper monsy had been reduced? The course
ofoolcy is very plain IN this ex remiiy. 1t is 10
reduce CIR foatins debt as rapidly as possible,
consistent with safety and not too great reduc-
ton of prices, uutil We have Thought 1t down to
somewhere in the nelshborhood Of $3.50, ,000, 600,
and then if our exports exceed our imports,
and the balance Of trade is i'll our favor, We
shall be abb. to return to specie payments, but
not before. II tho attempt is made to resume
unless VIC gre in due preparation to do so, by
reducing the pres mt ctnora OF pancr money.
there will be inevitably another Suspension, us
WAS the case in this country in 1889, after the
suspension OF 1887.
In fact this subject cannot be intcliSently
discussed. except in connection with the pub.
lIc expenditure aud the state Of our fnrclgn
trade. and to these aspects of tho subject wc
will address ourselves Ill future communica-
ton j. NC.