The New York herald., 1877-09-17
TOO MUCH MONEY.
business MANS IDEA or THE FINANCIAL
SITUATION.

A BUSINESS MANS IDEA or THE FINANCIAL
SITUATION.
NEW YORK, Sept 10, 1871
TO rnx EDITOR or THE HERALD:--
II is vory desirable that tho people should know tho
exact nature Of the currency problem from scientific
point OF view and therefore ask leave TO state the
through your widely circulated columns. and be-
wish rescue tho science Of political econ
ony from the rcproach which 1t would merit II It
failed to furnish complete solution Tor this or any
other social evil which falls within its scope
First-The total circulation previous to 1850 did
not average two hundred millions OF dollars, or what
Is tho same thing, paper convertible into coin.
throw out bank deposits, specie reserves Of banks
and subsidiary coin nothing material to tho discus
sion. also consider that there wcro metallic
monetary units actual circulation 10 bc worth con-
sidcrng. do not dcny that gold ooIn carried IN
the pocket occasionally passed In pay mont. but
say that tho circulation full Of bank notes OF tho
denomination OF ST. 81 So and IS, and We know that
paper certain dcnolnin ,ton always drives out OF
circulation coin OF like denomination.
.yecond-This Is tho limit which imposed upon
by the law OF distribution OF precious mcssls
throughout tho commercial world. Up TO this limit
par even though the banks prohibited by statute
irofA cashine them a; par Beyond this limit
they must deprociao, and II wc must issue paper for
ever whole would not bc actually worth more
than $780, 900, although tho government or banks
might sell down tho price Of gold 10 par. This law Is
perfectly explicable, but viii no: undertake ''s
TIi,d-This limit has not increased because, not
wstandns the Increase OF population, tho large io-
egn interest account and 0thor influences Keep IL
down
Fouras-Any volume Of circulation that represent:
moro than about 500 600 900 Of coin Of tho present
stan dard is'a deprecated currency
Fyh-Wo have 5000 900 900 or S700 900 900 OF paper
In circulation, ana tho government has sold down OF
aided SPECTATORS In scng down tho price OF go'u on
an uudiminished volume OF papcr 80 that the circuia
ton represents moro than thrcc times the amount Of
gold or silver that Is allotted TO US ny tho law OF us
SirM-Hcuco tho currency is fearfuly deprecated,
and the circulating capital OF the country has occn
and is being rapidly consumed converted into hxed
capital and process may go on theoretically, tIi
thcro Is nothing but land and buildings lett and the
for supporting nxcd capital comes from the ErOnts OF
circulating capital The frequent bankruptcies oil in-
dividuals and corporations prove all these p,oposi
tons. Universal bankruptcy must ovcrtnke tho na-
ton II this state Of things continues.
SercnM The only remedy for existing OWLS rs to
reduce tho circulation that 1t shall reprcscnt total
oil about $500, 600 900 coin OF present standard
Eighth-Papcr mover be Withdrawn from circu-
laticn TO any considerable extent unless comes
into circulation take the place OF the papor with
Drawn.
N,nM-Co,n cannot como into circulation to re-
main in circulation because we have already in cir.
cuation the equivalent OF moro than three times our
allowance
Tenth-The so-called Resumption net docs not touch
the dscase except TO aggravate II and make It per,
manent because 1t cOntcmplatcs the couvertiblty OF
5000 900, 900 or 500, 0Oo, 600 OF paper
Eierent- The only remedy which political economy
supplies Is advance the prcc OF gold until the whole
circulation shall represent only about $500 OO0 oo0
Ia coin.
Tue Uh-Thcrc Is no instance In history whore an
excessive issue OF bills OF credit have ever been with
drawn from circulation or paid at their nominal face
valuc In coin.
II these propositions startling In Wow Of tho un
parallelcd profgacy of fiscal administration In this
country they arc nevertheless, tr1o and strictly In
accordance with the teaching Of science The present
deplorable condition OF this country Is triumphant
and complete vindication OF science. Snail VIC so on
to the end until humanity rcvots at unbcarabe wrong?
em, sir, your 0bedicnt servant, G. A. +.