New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-06-17
LETTERS FROM THE PEOPLE.


ICY OF rHE GOVERNMENT
20 the Edltor OF rae Trfoh"e'
Sp. If in 1880 the question had been ASKED
wbat amount of money for Circulating "euiu va
,couired by the people OF the Onl'eu e"''es " ~
a,a,,on shau nave reached forty millionsi what
poit Gov obtaining an answer would 1t have been
sned most reasonable and sensible to have employedt
woud the financial statistics OF England, France, or
Germany have been examined and made the basis Tor
the calculation, rather thoee OF the United states
themselvest There be no donht that the STATISTICS
of our own country alone would offer trustworthy data
for the purpose II had been rebellion, II peace
bac prevailed during the past IA and II our popu-
lation had only increased TO its present number, what
would money in the country used as circulating
medium have amounted tot The answer to this ques'
ton Will give al least approximately the answer TO
another question What amount of circulating me-
dinm or money would country now require IL we
were working upon coin bassf The answer 70 this
question will enable TO arrive at the so
luton OF still another important one, What is
the gold value of present entire rredeemable bank
note creenback clrculation In the bank note
circulation OF the country % 60 capita of our
population. During the preceding fifty years 1t had
averaged about &c per capita, aud during the twelve
years preceding 1850 and inclusive lS9lS It averaged
less than 81 per capita. Thus that upon "a spe-
eie basis" the business of the country transacted
with 81 PEI capita These the facts but for con-
venenee sake let as am literally inclined, assume
per capita the circulation prior 10 the Re-
beOn We then perceive that for a population OF
sOOc0Oo0 require upon specie basis 100000 in
coin, Which is the TO the first and second ques
tons and startling to the third question for
by this perceive that the true valueof "green-
back" dollar circulating medium is forty cents in
coin, aud II important that this fact should be gener
ally recognized. Fatal mistakes in legislation, and in
public aud private monetary and trade calculations
particularly when extending into the future, will then
be less likely 10 be made.
The amount OF money required to transact the bust
Of country bears fixed ratio to the amount OF
the commodities circulated When the true relation
exists between money the circulating medium and the
products and services necessary useful agreeable to
man" which 10 is used to circulate the money performs
It's mission rapidly, and prosperity prevails When the
supply excessive, its circulation becomes sluggish
at present, and trade languishes During the WIT and
at Its close, prices high and business w&s pros
perOus because the relation between prices and cir
cuating medium then approximately correct under
the operation of natural laws but when the Govern
ment began its sales of gold the natura relation estab
lished 1y trade ceased anu an -''i+''' V"e V'sen'
and forthwith the currency prices Of our products de-
ened, the purchasing power Of the paper money
being increased: that constantly widening and I'M
natural effect thus produced in the relation existing
between the circulating medium and the prices OF pro-
duets and labor which circulated by It, Every OBJ
serving business testify TO the decline IN the
eounrvs prosperity during the progress OF ne godse
Government. The prices or cotton anu
breadstus established in the markets OF those eon
tires where they are PTnepa G eTn Nv b Quota
mons of London ana Liverpool where coin alone Is con
siiered money. To our redundant and incOnyertiole
paper currency has been given unwlsey purchasing
power compared with gold greatly dsportOnate 10
It's real value. and those whose eapta is 10 currency
have gradually obtained vast and unjust advantage
over all producers OF the country. particularly those
S ShD,T rnrsnt n instead Of the $500 $4,000
OF paper in circulation and provided ior ny
Congress had that amount Of coin IL would rapidly
flow from US tO other countries, until its amount de-
the true wants OF the eOuntry-Inat IS 10
about S32oOOOoOO Our paper money cannot now from
US. hut remain confined within our own bound
and blight upon the producing interests
of the contingencies circulating at depreciation
from face value propOruOnate TO Its excess IN guam
tty. The gOG-selng policy OF the Government mas
also by depressing me premium on eolu eauseu .ne
country 10 be flooded Win iorelgn inahuIaetres;
has likewise operated complete prohibition TO tue
expectation of nearly al our domestic @
estimate Of the damaging influence OF the a-seIng
tompute the damage which the agricultural manufac
rurng and trade interests OF the country nave sus-
tanned by tbis policy and ts continuance Will as Ger
dpstry as that an effect follows the cause.
Congress IN expectation that its action will decide the
value OF our paper money W aie tne laet Is ~ VIII
not make much difference whether congress provinces
for the paper money OF hi or one hundred
millions or not The laws OF trade and finance OF sup
ply and demand. VIII regulate values DeS.eI nan ay
special egsatOn ia any country Inc mani thiu1 IOr
legislators TO DO IN reerehce 10 a s SnJ in ~
meuts secure and promote ther free ahd lnuepenu
ept action should not be forgotten that our present
not the requirements OF trane ana Is oe
ar It's fun face entitled TO be considered az proper
iionae requirements OF irade All enorts OF the
Government 70 give IL purchasing power greater than
IL possessed when issued. are acts OF oppression
such efforts must eventually fail. and Will be
prol hc national disgrace misery, anu mpoyerIsn-
meut If indeed the damages produced by the trai 40
not ultimately prove irreparabie The bringing OF trade
10 a specie basis means rot only reduction IN Tue
prices OF commodities 10 coin standard but likewise
reduction the purchasing power of the redundant
cp ,or ms pnrpose should not be arbitrary but
a for the laws OF trade 10
act freely and naturally An act OF congress promote
all sales Of gold by the secretary OF tne ITeasuy
silver coin legal tender at their currency value LOT al
debfs due ana psyaDe IN euTrency; anu anotneT, re-
constantly sixmonths supply OF coin aud TO us any
surplus that may at any ne ne received IL
them These three would be practical aud effective
In bringing the trade and monetary interests Of the
country back to a sound basis.
since the war closed national question has eqnaled
IN Importance financial one. Its neglect mas been
detrepral TO our morals national character. our
true happiness, and the pecunary welfare Oh the pro
oncns classes Including ali engaged in the production
and .isrihuiion of supplies necessary, useful, and
agreeaD ole 20 man. To redeem the " greenDack WIN
cold al par is Improbable. The Government cannot
aceupuiate nv loans otherwise sufficient sum OF
god Tor Tie purpose IL cannot DC "ithursNu IfoI
Europe and mines could not produce u ior years. ~
IL not practicable TO provide for the receipt OF green
backs for customs, because our custom revenues are
secure the payment OF the interest upon the bonds
aud, IN the maintenance Oh sooa ,od lam t o
creditors. nothing D1t com ought W DC IeceNeu
customs To provide for the exchange OF our paper
money ior Sther psls SE any other nawe !. Of no
nrao;ice,e value II would still be PAPER, and the SUP
feet would be kept open, unsetteu anu " -.
Tor years 10 come. II IL nonSensca V e1cnahs
ing paper for paper The ereenbacks" should be re-
deemed coin at the marketaoie value OF ,ne pape
be accomplished gradually. ANY other sXarse WIZ pre-
eterests 20 anguish die and bring usc6uragem-u,
and the people with the danger that, when
@ ,hcnSH then a5ayo,isble would result Tue longer
that measures for the redemption OF the greeHDacX