Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1869-12-02
ISKEsUmPrIoN PRACTICABLE.

There never was strictly specie pay
ing currency and there never will be. If
there was as much coin in the country
as was needed for circulating medium,
there would be no necessity for any
other currency, and there can be, strictly
speaking, no specie paying currency
unless it is one which can all be redeem
ed by the person or corporation issuing
it. at any time, on presentation. The
amount of coin necessary to make cur
rency practically specie paying or to
carry it as circulating medium, de-
pends upon its volume compared
with the wants of trade and the
amount of confidence the people who
use it have in the honesty and solvency
of those who issue it, and are responsible
for its ultimate redemption. Our pres
ent currency, unlike the currency Of
1860, is not dependent for its value
upon the solvency of the corporation
that issues it, for whether the banks
flourish or fail, the note-holder is secured
against possible loss. 1t is not, for this
reason, fair to compare it with that, or
to argue that because reserve in specie
of one-third the volume of the currency
was then necessary, and in financial
crises proved insufficient, to make the
currency specie paying, that a similar or
greater amount is necessary now. When
the people knew that the honesty OF the
stockholders and the gold in the vaults
of the bank were their only security, the
first breath of suspicion against the
credit of the bank was the signal for a
"run,' and that run was continued
until the public confidence was restored
or the bank was declared insolvent
With an amply secured currency, and
one that is in all parts of the country
uniform in value, there never can occur
such want of confidence, as under the
old currency; and, where there is so lit
tie danger of loss, the convenience ofthe
currency will keep it in circulation. In
order, therefore, to make it practicable
to resume, it is only necessary that there
should be coin enough in the country to
do the business for which coin is abso-
lutely necessary. The Secretary of the
Treasury by his weekly sales of gold
seems to be able to so far supply the
demand that a constant, steady reduc-
ton of its market value is going on, and
this, too, without reducing the amount
in the Treasury.
Many very able writers, and among
the number the editor of the Cincinnati
Gazette, argue that return to specie
payments would be disastrous to every
branch of trade or manufactures, be-
cause it would produce an absolute re-
duction of all values twenty-five or thir-
ty per cent. How this is to be done they
do not very satisfactorily explain. 1t is
true that there would be an apparent re-
duction of all values, except debts not
specifically payable in coin, but in fact
there would be no such reduction, but
an appreciation of the value of the cur
rency or an increase of its purchasing
power, for all purposes except the pay
ment of debts not specifically payable in
coin.
That the proposition is true that the
real value of property, aside from the
circulating medium and non-specie pay
ing debts, will not be effected by re-
sumption, may be demonstrated in this
IL &c, 1,a c%o do ri of uc -
: The supply of AID the demand for any
article determines its value according to
that standard. If the circulating medi,
um in which business is transacted varies
from the gold standard, the commercial
or exchanging value ofthe article is reg
ulated to suit the changed value of the
circulating medium. If, to illustrate,
a merchant buys Cashmere to-day with
currency at 81, ,25 yard, marks it fol
sale at S1,50-twenty per cent on cost
and tomorrow a resumption of specie
payments should occur, his cassimer!
still unsold, he would be compelled tt
mark it down to s., 90 which would bt
an apparent loss of his profits. We say
apparent loss" because that is all i
would be, for he would have taken 81 q
in coin before resumption, and he nov
gets that amount in currency equivo
lent to coin, and equal in purchasing
value to the 81 so in currency asked be
fore resumption. After the merchan
has sold his stock ofgoods at the reduced
rates, he takes out his twenty per cent.
profits and with the balance he is abl
to replace the goods sold he could hav,
done no more if the deprecated curren
cy had remained. If the merchant wa
in debt for his stock and intended t.
quit business as soon as it was sold, tn
case would be different, for the increas
ed purchasing value of the currenc,
would not enable him to pay his debt
with any fewer dollars, and the enhance,
value of the currency would inure t
the benefit of the creditor.
The relative value of labor and its pre-
ducts will not be changed by return t
specie payments. The purchasing pow
er of the proceeds of days labor,
yard ofcloth, a pound ofiron or bushe
of grain, though twenty-five per cent
less in quantity, will be just as great a
it is now, because it will be increase,
twenty-five per cent. in value, and n
real change will occur. The experienc
of the past four years is full of instruG
tion upon this subject; and such writer
as are constantly avering that a retur
to specie payments will produce loss c
twenty-five to thirty per cent. of all va
ues, and result in ruin to our industria
interests, shut their eyes to the teach
:. ings of this experience, and will not b
instructed by it. Fluctuations in th