, 1870-03-03
MONETARY end Ct}MiTERCIiL.
MONETARY.

The bus11efs p1onc and the press, in discussing |
the recebt decline IN gold frequently fall INTO the
error Of arguing that, because the de:line ID the
gold premium has increased the value Of the total |
volume Of the currency sixty or seventy millions,
1t should have the same Etmu!aulg effect upon |
trade AZ an II crcsse 10 the Eo DaI amount OF the
cufreocS- Tina, spHe argue that with gold at 1so
our SIoQ,e00,ooo OF paper currency represented /
$685. eco OF real money, and that with gold at
us TIC sane 500 0co0V0 Of paper moacy represents
ed sG9 000, 600 Of rcA money, sho xtnk an increase
Of SO, ,Q0o Qco OF money IN circulation, AID that,
uron The general principle that an In |
crease In ths volume Of money muat increase !
tie activity Of trade, this increase Of 80 o0O 90
ought to make trade Eore active. THIS giEd ol
reasoning, however, Il a incorrect as that which
a1gue5 thst further tnnadon of the currency |
would add to the prosperity Of trade. Men trade |
with view to making profit; but when gold de-
c.,ues as rapidly as II hiss for the l1st month or
so, thc1e Ia more prodt Ia waiting for prices TO
fail than there Is in buying commodities to sell
again. Gteeuhacks hare In reality Increased
from 2 TO per cent In vnlue during the last ten
Gays, which Is more than the ordinary profits OF
trade. Every decline in the price Of gold, there
fore, checks Sales AID depresses trade, and this
eject would be continued until no further de-
c!!pe WIS posaible-viz, u1ttl We
he'd reached specie payments-then
hut 20: untn ther, would the Eliminating effect
upon trade Of the increase In heamount Of money
IL circulation be experienced. II II shonId he
found possible to ualltatn specie payments upon
sec, eco, 900 OF paper cutreLcy, trade would be
greatly stimulated, because We should hase the
sane nominal volume Of paper currency In ctrcu-
la:ior, and as there would be NO chance Of tts
further enhancement In vslue there would be 70
prGnt In holding 1t. Specie payment u, IN fact,
tie only tht that Eill revive trade permanently.
The chief obstac' to getting down to that basis,
however, Is the desire Of erely man who has any
thing to eeli. 10 have gold go up htat,
IN order that he may Rer ont at prodt before
1t goes down. AZ there always viii be Just the
same Proportion Of the trading community IN
that posilon return to q specie bass will al
ways meet with opposition. Il the desire Of the
trading community OF the cSnnIy cou1d 70 ex-
pressed It would alwoys DC, Let Us get back to
specie payments, but let nj have m advance In
the price Of gold urst!'' 1t was the recognition Of
this contradiction In lne public mind that called
out nom the President when interviewed b. Flsk
last fall, the observation, both tezse and true,
that, " The bubble might as we'll be p1icked first
az last.''
There appears 10 be IN enteaycr on thepa1t Of
Eou Of the flnAr cisl Institutions il New York TO
tauctc the late decsiops OF the Supreme Court 10
regard to legal tender uotes> 1t may be safely
tuned that this policy has been adopted In the
1u;e1cst Of scme Of the oVergrouu railway OF other
corporations, considerable proportion OF whose
| outstandir debts were contracted PRIOR TO 1863,
| hr,ho tn nj. rora ma
..4s 49, W. 1at,oe nc, sna 1oc,t ,ans.s 49,.
s.",, ,r.s ~, a,.',xa =, saans tnst In,,t.,o.
se.a Rev nssa ~ ,nsnnrcc rnn,n,a,es .nd
o,rcrs IN New Yorx. a. to tner ac.ion 1r,at,re tn
the dec1sicu Of me sup.emo Court and. It
IL rcoortad, that tney have generally rep,,e1 ina,
| they we're psTlrc no attention TO the decision
ia uuest,ou. but were .ece,ytns snd pay,nr cur
rency AZ ususLn In this connection 1t seems
cuttous tha, apy such INQUIRY should have been
made at all The dec.s5on Of the Supreme Court
Of the Cn,,ed States Is fral npd ee,Ies the aues.
ron that every creditor may demand and eau col.
ec., III euld hY p1ccess OF law, the full deb. con-
t1acteo prior TO February. 1861. and maturing as-
Ter the recent decision Of the Supreue Copr:, II
,ne 1usnrarce compan1es are " paytng no attention
10 the decaton Of the Sapsene Court, 1: u proha.
! hly because they have no debtors whose dc5.a an-
tedase the Leeal.Iecde1 at. II is well knoEn
tsat there Is 8 class OF corposat!sn debtors and
cu11eccy tnlanonisss, who wero dissatisfied With
tie decls.on OF the Supreme Court, and TINT there
has been ZONE irresponsible talk about
.eorgamzlng the Supreme Court by the sddltior
! u o1her Jpdgtf, who Ee1e pledged 10 1he c11ol
that copg1ess might At all lines issue or Increase
the legal tender PAPER currency, and these un
necessary queries In New York aeen ike an en-
deavor 10 manufacture public opinion IN favor O
| that policy.