New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-03-13
ON CARONDELET STREET.


The last week has been, perhaps, the
most remarkable since the war in the finan-
cial history of the country. The events Of
the celebrated September Friday were
more startling, but as they arose out of the
efforts of individuals to thwart the opera
ton of great natural laws, they were with
out permanent effect, except upon the for
tunes of the persons Immediately con-
nected with that extraordinary specula-
ton. The phenomena presented by the
course of financial events during the last
ten days, however, are the manifestation
of irresistible influences, and they have
been SO marked as to form an epoch in
our monetary history. The depression in
gold which commenced in September last,
and has continued ever since, with slight
fluctuations, has finally reached a point
which, in the opinion Of many we'll
informed and sagacious persons, is within
sight of a specie basis. For the first time
in many years silver has made its appear
ance as currency, and, although its use
may be only for the present device TO
attract patronage, the mere practcability
of such an experiment, and the haste with
which competing tradesmen have availed
themselves of it, proves that We have at
least come very near to the desired goal.
In New York silver is quoted at about So,
as compared with gold, and greenbacks,
by the same standard, were worth about
50. Hence, the difference between green
backs and silver was only six cents. 1t
is easy, therefore, to see thatretailers can
afford to pay silver as change, if
they can thereby attract custom, and
maintain prices during the depression.
On this subject the Chicago Tribune has
the following suggestive remarks:
The gold and silver coinage Of the United
States were originally fixed by law TACT OF
April 2 1872 at 1 TO l5--one pound Of pure
gold being declared equal in all payments to
fifteen pounds Of pure silver. This was an
undervaluation of gold; aud, under the ope.
ration of the law, the gold went to foreign
countries, or into the melting-pot, it being
worth more as bullion than as coin. Ac-
cordingly, in 1916 the standard was changed
and fixed at TO l6. This was an undervalu-
alton of silver, (the true standard being
about to l55,) and the latter went out of
the country very soon after it came from the
mint. In 1887 the silver dollar was reduced
from 4l6 grains of pure silverto 4l25 grains,
and the lesser coins in the same proportion.
This was still an differentiation of silver,
and il continued TO leave the country. In
1853 the silver halfdollar was reduced from
ina IN Int
dollar remained unchanged. From this
time forward the American silver dollar dis.
appeared entirely, being worth y per cent
more than the silver coins, aud two or
three per cent more than the gold dollar.
The debasenent of the smaller coinage of
denominations less than one dollar was
made expressly for the purpose of retaining
it in the country, and, up to the time of the
suspension of specie payments, and, indeed,
for several months after that event. it had
that effect.
During the war, when paper money be-
came deprecated, the silver coinage OF the
United States was withdrawn from crcula.
ton, and has found its way in large amounts
to Canada, where, being comparatively
debased coin, it is regarded and treated as a
nuisance. We have some $4,000, 600 OF
fractional paper currency in circulation,
which has been largely increased by coun-
terfeit issues; the good and tine bad circulate
alike, but eventually the public must sus-
tain the loss of the counterfeits. Gold yes
terday touched 1924. Greenbacks are worth
eighty-nine cents in gold, and ninety.four
in silver coin. When greenbacks shall have
advanced to the value of silver coin, the
latter will come into general circulat'on,.
unless it is kept back by the presence OF
q more deprecated currency like the nickel
coins. The longer continuance of the frac-
tional notes can serve no practical use,
other than to keep the silver COIN out, and
to afford counterfeiters protracted harvest.
If Congress would order that 10 more trac.
tional currency, be issued except in ex-
change for torn bills, and that all received
should be cancelled, we might resume
specie payments so far as retail business is
concerned, Immediately. On February 26,
greenbacks sold in Montreal fer $50 in gold,
and S91 in silver; small silver was one per
cent lower. Gold was then lie. The silver
when it ceased to be an export, is in excess
of $4,000 600; and, allowing that one-hfth
of this amount has been used for other pUr-
poses,I il leaves a sum yet available for cur
rency far in excess of the genuine fractional
currency, and probably greater than the
genuine and counterfeit together.
The production OF silver in the United
States has increased very greatly since the
beginning of the war, and is still rapidly on
the increase. 1t is to be hoped that some
portion of the enormous product of the Ne
vada mines may now come into use among
our own people, in place CT the ragged, fl
thy, and infectious shinplasters that have
long vexed and cheated the community.
The passage of various bills in the
Legislature has had decidedly strength
ening effect on several of the street stocks.
Petroleum has gone up, but does not yet
seem to realize the golden hopes of its..san-
guine possessors. Ship Island is hanging
on the verge Of promised land; but al
though holders are firm in their preten-
sions, buyers seem to be wary. The bill
has passed, but it is not signed; and, till