Year: 1862

From the Norfolk Day Book, Jan. -


We have already taken occasion in these columns TO
show the prepos,erous the charge originated
by Mr. Seward that Mr.. Memminger was buying up gold
at an enormous premium in order to initiate for moment
the national credit. And yet preposcrous as was the
charge, regret TO know that gave rise 10 some
duous debate and ignorant anxiety The premium, too.
in the warmth OF Mr.. Stewards fancy exaggerated
twenty per cent and the discussion conducted
on that basis But also happy to know that the
creduious are limited in number as they were In nfor
nation. There is however another very absurd popular
deson which II is our present intention to assaa de-
uson far general and far excusabe than that
to which have referred The misconccpton OF which
speak exists in the impression that inasmuch gold
and silver are bought at premium hitherto unknown,
paper currency is Of just that much less value the
depreciation in funds This far pardon
able than that already alluded to- but it is not less
an error for all that rs we shall endsavor to establish
The argument, however, to overthrow this fallacy
Is somewhat subtle, and II employed 20 its
full extent would involve the statement Of prla-
cples for tho proper elucidstion Of which we have
not the necessary space, even II readers had the
patisnce to follow absruse specuations But fortu
natey for our present purpose. the condition Of affairs
enables TO illustrate the truth OF position and il
exhibit the fact against the assumption that
the present premium gold shows depreciation in
paper currencyf We repeat Il can be shown that the
well afford to dispense with the principle. Arguing the
question upon this basis readers will pardon for
rostating what we have previously advanced.


AZ necessary in fact an indispensable preliminary
to explanation, remark that tho abnormal rates
prevailing in the bullion market indications Of





might be characterized cool assumption VI the
point Such nevertheless the fact that II IL


matter OF notorety that vast sums are sxpend
ed in the purchase OF articles not only prime necessity
such qunne and other drugs but OF such minister
either to vanity appetite For this trado the precious
metals only available and 1t this tralc that the
brokers act agents for the merchants Now here i:
the point We design making. The merchants in turn
the agents OF tho community. 1t is in obedience i'
this demand that they send coin the Po
toniac in payment OF articles OF general consumption
The community in tie meantime has, to a great extent
parted with its gold to the brokers' taking paper in cx
change and consequently when they present themselves
consumers they have nothing but this sucy Il
give in exchange for the commodities bought by the
agents, the merchants, in obedience to their demands
The picture then presented the purchase gold BY
the radcsman for the simple purpose Of reconvsrting
into paper And hence, as We have remarkcd the fact
is against the popular assumption. For very obviously
the consumer only buys with paper the mcrchan,
would not exchange hrs gold for II he felt any appre
henson OF instability in the basis of value upon which II
rests But in reply TO this it might be urged that tho
merchant allows in his transactions for the depreciation
and includes that also in his charges.


The reply to this is still ustraton:-Go into tht
market vf great staples, and allowing for the eec
that disorganized prices in department necessarily
exercise upon all other departments you can submit
paper currency to the practical test Of ascertaning b,
actual purchase what value II represents. TIE result
such experiment is here suggested will be TO dis
cover not depreciation Of value but appreciation
price. And in fact the quotations Of Confederate stock
are conclusive against this idle and perncious talk abou
deprecated currency.


The Sl5 900 900 loaned stands 1O1 and interest Will
the 800 900 600 is at 100 and interest Now with thi
confidence in the government popular faith in the State
remains unshaken and it only remains for the people
exercise prudent economy at the end Of the war-toab
stain from reckless expenditures-for to gold
ample abundance for all banking necesstie Let
fore ign debts be contracted with the economy hav
suggested, and great staples will bring in upon
tide of coin more than necessary for all wants. And
until ports again opened paper will quit
vol any other mcdumalways excepting irres pon
sblc personal notes, which we most earnestly com
mend to the attention of the grand uries and the
picious regard OF the community.


"a af a,Ia
expenditure of ink not be tolerated and earnes
hope that they will all be converted without delay int
pipe lighters for which purpose they better adapte
than any other.


Let have Moscow Of these little cents and tn
pockets OF the community will be all the better for tn
the confagraton.