Year: 1863

Rise or Go,d-Yt. Cause snd Conseq usncc.
Hon JArxs A. ucpouoAI1 tnited States senator


DxAR SR-In compliance with your request, WIZ now
uresso st facts and opinions have herefoe slated
% you on the rise the price os goa "nen congress
declared the nes of tho Treasury "esa 'enuer 'ney
rasvaa ha bass and business of the country from the
necessity OF holding using gold or snser Inc conse


a,ce vas thai cold and silver, for domestic business


aasea 10 be money They became merchandise. and took
ma same position country iron copper or other
metal So far as renttances and payments have been


made abroad or outside Of the Unon it has influenced the
price Of bills exchange The importance and price OF gold
have been mainly sustained by the demand Tor export
for customs duties and boarding mif or dsoyal per
sons This plain statement sufficient to show that any
Of currency issued BY the banks or government
has very little influence the prics OF gold, beyond
what is produced by the public clamor against
the further issue OF illegal tender" notes.


AS soon as. the rebellion became 'fxed fact" we
found that the English government and capitalists were
determined to destroy credit abroad and at home In
pursuance or this plan newspaper attacks were made
upon us without any osensble object but TO induce cap
tasts TO return country all the stocks and bonds
held in England and refuse lend money. This has
led to return here than hundred and twenty
seven millions OF dollars these securities up the 3lst
day Of last December This is very large additional
amount to press upon the exchange market in any one
year It, however becomes still more formidable In
consequence the ss for export Of the great cotton
crop and demand produced by ue war, for many arti
cles manufactured in Europe.


These three great naturally affected markets.
put up tho Of exchange and caused largo shipment
OF property from this country including gold and silver


We're any Of the above for the price or gold and
exchange produced by increased issue Of "lega
DER notesS


The above facts will deny. The issue Of ''green
backs" rendered the payment OF gold domestic trade
unnecessary and gave up gold to the OF
Since then its price has been influenced by the
of exchange without injury to our internal trade
property The demand for gold to export and pay
ties the Custom Mousse produced speculation CON-
and this action upon the minds Of mid and disoya poo
pie carried up the price OF gold and this again. induced
merchants ship to Europe almost every article pro-
duced in country, at price that would not only
the producer but afford profit 70 the shipper
Thus 1t will be seen that the English government and
capitalists, while clamorng against and sending back
the and bonds OF country that owned
England assisted very materially raise the OF
change and In doing increased the price Of all pro-
duce sent abroad and sold in Europe. is well known
fact that shipments Of grain, -four, lard, beef, pork,
cheese butter &C., &c. have from this cause during the
past been sold at larger price and in vastly
creased quantities over any former years.


These facts while they show the fer the rise In
the price Of gcld and the great profit afforded
farmers merchants and shpowners add another volume
Of evidence to prove that the rise in the price Of provi
sons and other results Of productive labor
by the issue OF 'egal tender" notes.


The laws of trade which being SO beautifully illus
rated in the present condition Of the country all
favor The great balance against Europe and
the desire Of Enghmen press for payment created


domind for god and thus put up the rate Of exchange
This high rate OF gold and exchange enabled
chants to pay high for produce here ship Eu
rope, and this high rate OF exchange has decreased
portaons much that goods bought this year in
Europe than heretofore Consequently the whole
trade gravtates towards equilibrium SO that 1t is
highly probable the rate OF exchange and the price gold
will be higher than they at this moment and
probably be par before the expiration Of another
year.


You will perceive that the same well established rule
Of "suppy and demand holds good here as in all other
cases, and that gold article of merchandise
much subject TO IL 1t also the only legal stan
dard for payments.


And now let ask all who SO anxious to dscredt
legal tender notes. what would have been the condition
OF the country without these greenbackss While gold
a, premium FOR shipment to England. and while Eng
land by returning stocks and bonds has tho
take from all gold how would IL have been posi-
BILE for people get money pay their debts And
II there had been furnished substitute for gold
domestic trade property and the produce
would have been sold at ruinops prices pay
foreign debt, while gold would have been worth 200
cent and universal distress aud bankruptcy would have
fallen upon All this widespread ruin would have
taken1s IL had possessed ingenuity and pluck
enough TO make the promises OF government
legal tender among ourselves The "egal tender" note
so far from having caused rise in the price OF gold has
actually reduced 1t, by rendering the Of gold n
banks and domestic trade and exchange unnecessary
Indeed the "grcenback so sneeringiy referred to by
many persons has placed the disposal Of foreign ex
change than two hundred millions of gold so that
IN place of advancing the price Of god has actually
kept down the price more than fifty per cent When q
people become demorazed not place confidence in
the promises they make themselves and prefer
security, they have reached point debasemcnt
that renders them unsafe political
power. Every obligation OF the people should be illegal
tender" because is the highest evidence Of debt and
the best secured II undcrics all other cncumbrances
liens property, and II is the joint promise OF every
man, and child in the community. From all pre-.
indications the legal tender note have been the
great means, under Providence OF sustaining the country
this its day Of trial, and should he honored and
spected such by loyal and intelligent people.


In my next propose TO show that require more L.
gal tender Also how determine the quantity
need. Yours. truly, 5. N. s.