Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1870-03-12
vernments closed irregular:

An editorial article in the new Ut
leans BuUetiH, under the @plOn o.
Money More Plentiful" cas- upon
those who have associated the ideo<s OF
high prices expressed in a deprecated
currency with plentifulneSs of money,
and the idea Of monetary famine with
large appreciation of the same cur
rency, TO take comfort. The country
has at this moment not less than one
hundred millions more money, not
counting gold and silver coin, than it
had SIX months ago, or at any time
previous to that date within the last
nve years. And yet the quantity of
the currency has not been increased.
Indeed, it has been somewhat dimin-
ished. But its quality has been en-
HANGED at the rate Of about fifteen
cents on the dollar, and therein lies
the key to the whole story. OF course
money Is nothing except in the sense
OF purchasing power. While the pre-
MUM on gold ranged through figures
that OfIener touched 40 than lbs, ii Is
safe to say that there did not reside in
the currency dollar an average pUr-
chasing power, as measured by gold,
greater than seyenty-tive cents. But,
with gold selling down to III and Ill,
the purchasing power Of the currency
dollar becOmes nearly fifteen cents
or, ~ater. Hence this dollar is now able
70 relNder commercial service assay
Tor the 1ake OF excluding fractions
ninety cents, instead of Only seventy
five cents as formerly. Extending
these ratios to he whole volume Of
the currency. and suppOsing this vol
une to be $675. 900. OOO, We find that it
denotes at present a purchasing power
of G6G7 100000, against S5O6, go, 900, the
purchasing power which it denoted
formerly. We find, in other words,
that there is at this moment upward
Of one hundred millions more money
in the country, not counting gold and
silver coin, than formerly. If il be
objected TO this statement of the mat
ter that no account is taken Of the
amount Of legal tender notes tied up
in national bank reserves and in the
surplus Of the treasury, still the objec-
ton may be conceded without altering
the proportions. Let US suppose that
$75, 100000 have been thus tied up.
This places the purchasing power of
the currency, outside of the bank re-
serves and of the treasury surplus, at
$40, 0,O00at present, and S450,000 600
in the period TO which this comparison
refers; and thus il appears that in the
Light Of mOney-Which, Let it not be
forgotten, is purchasing power OF
nothing-the currency actually diff
fused among the people at large, and
available to them for purposes of
trade, has had a growth Of ninety mil
lions.
In alluding to the "silver change"
movement now going on throughout
she country, the New York Tribune
says: "These acts of small dealers and
acknowledges may be mere
sGvewd devices to gain popular favor, |
but not SO with the banks, some of the
WealtGiest and most prominent of
which, il is said, are earnestly cOnsid-
ering the prOpriety of making an end
of the unsettled condition of monetary
Affairs by boldly prOclaiming resump-
ton. 1t was whispered on the street,
with much of a tone of authOrity, that,
In the event that no reaction occurred,
t,Ne Chemical Bank would next week
the resumption OF specie
Davm ents. This institution, however,
hss never, a. a matter of fact, sus-
peDded sDScie payments; il has no
Cremation on its own, and when gov
eminent suspended it began paying
currency instead o. coin, but without
any formal act or announcement Of
suspension. Should it return TO specie
it lnust Of course make special ar
engagements with the customers to pro-
tect itself from being made a mere
medium for exchanging currency into
gold at par, which no bank cau afford
70 do so long as there is any premium
on gold. But their purpose, il is sup
posed, is to merely proclaim resump-
lion as a theoretical practice, which
will not be without great influence.
Several other banks which have cir
culating notes ahoat also were men
toned as preparing to resume Re
sumption by such institutions mean
the subsequent redemption of their
in gold; and when that is pro
claimed ~ a few of the leading banks
the whole question is settled.