New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-08


prove themselves his most faithful disciples.
OUR CURRENCY AND SPECIE PAYMENTS
What is meant by depreciation in the
value of paper money! Simply this: Each
dollar of legal tender currency issued by the
United States is promise by our Govern
ment to pay specific quantity of gold to the
holder of the note. But the fact is that
neither in the United States nor in any other
country in the world will this paper promise
to pay exchange for the weight of gold cor
responding to the number of dollars expressed
on its face. Hence the paper is truly said to
be deprecated in value. Hence all articles Of
commerce have with us two values, paper
value and gold value. Hence all prices eX-
pressed in the deprecated currency, with
scarcely an exception, show a great increase
over the gold prices of the same articles be-
fore the issue of the legal tender notes.
What is the cause of this depreciation in
the value of our paper money! Beyond a
doubt there is now no reason for 1t, except
the excessive quantity of paper which has
been put in circulation. When we say that
the quantity in circulation is excessive we do
not mean that it is in excess OF the amount
reauircd to do the business of the country with
prices at their present level. We say that the
prices are not gold prices. Every man who
has reached the age of thirty years knows
from his own experience that the present prices
are. ON the average, much higher than the
ante-war prices. He knows that five dollars
will hardly 90 as far as three dollars used to
before the war. The Superintendent of the
Census reports that the average prices of
manufactured goods in 1870 were more
than fifty per cent higher than the prices
of 1860. Prices of labor, real estate,
rents in cities and many other important
elements in the cost of living have risen in
the same proportion. Resumption of specie
payments means q restriction OF the quantity
of paper in circulation sufficient to equalize 1t
in value with gold, with the necessary effect
of euualzing the prices of commodities in
general with the prices ruling in countries
which use gold and (other things being equaD
with the prices prevailing. in this country
before the war. Without a general fall in
prices and such restriction of the circu-
lating medium we shall never, in this genera
ton, have anything worth calling resump-
W
resumption which will last.
What is the measure of the depreciation
Certainly not the premium on gold. Gold is
nm article for which there is now but limited
nae. and limited demand, in the United States.
As a general thing tho market has been over
stocked. 1t has been the policy of both
Messrs. Richardson and Boutwell, to keep the
cold market glutted. No sooner do any signs
of scarcity appear than the Treasury increases
its sales Hence for three successive years we
have been exporting much more gold than
our mines produced. The stock in the Treas
ury has been greatly diminished by the con-
test of the Secretaries with the natural ten
dency of the price to advance by reason of
the diminishing supply. Without doubt in the
last three years our currency has somewhat
;mproved in purchasing power, on account of
the growth of the country, but nevertheless
tbe tendency of the gold premium has been
to advance.
But if the gold premium is not the measure
of depreciation, what is the measures We
should say prices III general, as compared
with our former gold prices and the present
cold prices Of the rest of the world. EnglanPs
nrices within the last two years have risen
above the average gold level; what is the
consequence England's exports fall off, her
inports increase, and gold begins to leave
the country. The contraction thus produced
in her currency will inevitably bring about
lower prices, and restore the equilibrium to
which gold prices tend iR all nations closely
united by commerce.
We are now able to expose the radical error
Of most Of the plans recently broached for
the resumption Of specie payments. Resump
tiop OF specie payments, if Ivy that is meant
the degradation of the stock of gold now In
the Treasury to the value Of greenbacks, and
the addition OF one hundred millions TO the
present volume of currency. will surely be
failure. 1t is true that Mr.. Greeley proposed
immediate resumption, and in the circum-
staaces then existing tue plan could have been,