Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1875-02-02
ooMMUNIoATEp.

DEAR SIR As there are great many
persons who advocate as relief for the dis
tress of the times an imitation of the currency.
among whom the financial sage of Sunni,
Point is the Corypheus. 1 would be glad if
you would publish the following ex,rast from
the message of Gov. Tilden, of New York, to
the Legislature, which. in my humble opinion.
kills dead the doctrine of imitation as .
measure of relief. Tildsn's ability, integrity,
and democracy loom up pre-emiuently in these
rare times. A TRuE DEMocRAr. /,
For the fallacy rlufksein many minds that
the quantity of the currency, even when 1t
has become stationary aud quiescent, creates,
by its direct action, state of prices proper
tionate to that in quantity.
Relation Of the Qaehfay Of Currency to the
Range IF Prices.
Butsthis fallacy is confuted by our own ex>
perience. The premium on GOLD fell from
1S5 in July, 1864, to 90 in May, 1865; or.
rather. the currency rose from SIS cents to n
cents in gold value, while tbs amount of the
currency remained undininished. The duan,
tity OF the currency in the hands OF the pub
lic-.taking the aggregate of the legal tenders.
and the bank notes.. aud excluding all of
both which are held by the Treasury or
by the banks-is now larger than at any
former period. The existence of such a
quantity has not arrested the tendency to
general fall of prices. The present iucon>
veDiences in business, which it is proposed to
remedy by new issue Of currency, have orig
mated and gone on to their maturity, while
the currency was being 'distended to its ereat>
est volume.
Excess fC~rrency, .Eet Failing Prices.
An excess beyond what ia capable of being
used for the business of society is now. for the
first time, distinctly indicated. The moves
ment ofthe crops in the last autumn-which
requires something like one tenth addition to
the ordinary amount-created no stringency.
The banks have voluntarily Withdrawn some
millions of their circulation II is probable
that the amount capable Of being absorbed by
the business of the country will continue to
fall for long period.
When Ln17aiion Cannot Initiate.
In such a condition of business, of credit
and of the public temper new issue Of cnr-
rency would not cause rise of prices, unless
1t were 80 excessive as to occasion speculative
depreciation, or dstrust of ultimate redemp>
ton Il could not reanimate the dead corpse
of exhausted speculation. A period of aui.
escence must ordinarily precede renewal of
the spirit of adventurous enterprise.
Distress from Failing Talues and Lacking
Gophmz.
The Distress now felt is incident to the con-
tiuued fall of values, which is the descending
part of the cycle through which they must
pass after being forced up to an unnatural
elevation. The want felt is the want of capi-
tai which the party does not own and has n6t
the credit to borrow not lack of currency
Ii Is caused by investments in enterprises
which have turned out to he wholly or partial
ly bad, or which give slnwerremrns than was
ant'cipatcd-hy ton much conversion of crcu.
lstIng capital-by excessive undertakings or
engagements, induced by reliance on a credit
that was transient. In period Of falling
prices good property becomes less convertible
1t Loses its ciTculatnry qnaIity. 1t almost
s'to be a resource to Obtain money.
Ho1o Distress sCnnnst,6c Cured.
These inconvenences would not be removed
ii the Government should put out legal
tenders and take in a corresponding amount
OF bonds. or if bank should deposit bonds
aud receive notes in exchange Still the in
dividual distressed for the want of eapital
would have no additional means 'to buy or
borrow these new issues which the new owner
would obtain only by paying ftr them. A
dimlnution ofthe government bonds outstaud
ing is a condition Of the increase of legal
tenders or bank.notes IF an embarrassed
person could obtain the government bonds
surrendered or deposited, he would he rs much
relieved by his power to dispose Of them as he
would by power to dispose of the legal
tenders or bank>notes. His difficulty is that
he is equally unable to obtain either. He has
not the means to buy or the credit to borrow
them. What he wants is something to make
his bad investments gond-his slow invests
ments current; something to make his prop
erty convcrtible-to impart to it circulating
quality. as when there is a general rise of
values under a speculative excitement. and
everybody is di.no:cd to buy, and everything
finds ready market.
Increase Of Currency Cannot Cure Distress.
He wants something to create in others
disposition to buy. in order that he may be
able TO sell. This is what in the present state
of things. an increase of the currency will
not do. II would not act mechanically on
prices. 1t does not operate by physical means
1t simply influences the minds Of men, It
induces them to buy, and in the effort to do
go they bid MP prices. It is only when the
minds of men are disposed to receive an iu,>
pulse forwards buying that such an effect is
produced. When spectators go into the
market to influence others to l'uy in order
that they may SELL the conference usually
ends in fall. Even when spectators go into
the market to sell on an event expected to
cause rise, the result is commonly fall
Everybody cannot get out at once at the ex-
pense of others
A NEW SENATOR ON FINANCE.
General F. NJ. Cockrell, the newly elected