Year: 1868

| In the early part Of this session Of Congress,


selves for speeches on the subject Of our ma


tional finances. These gentlemen believed


that they had arrived at the true plan for


settling the financial policy Of the country,


but their superior wisdom, as elueidated in


their speeches, failed to have the desired


effect. Their various plans contained many
| good and wholesome suggestions. while the


Presidents Message was equally lucid on that
point, pretty clearly stating the issue' between
those who are in favor of further expansion


of the currency, and those who insist upon the
praoticability Of reducing it. This he does by
showing from the reports Of the different
treasurers that. during the past seven years
the paper circulation has increased from $780,
100000 to nearly $70O,0OO,O00, the latter
sum, he says, being worth but one-half that
amount in coin. While, in commercial point
of view, spectators SO calculate its value. we
think it is q mistaken idea The same power
that gives Congress authority to regulate the
value of coin gives them also authority TO fix
and regulate the value of currency. Therefore.
if Congress by law places the value Of one
hundred cents in gold or silver dollar. and
the same value In paper dollar, it follows
that one is just as valuable as the other and
no speculative or commercial computation can
change their relative values Were it other-
wise, there never would be settled financial
policy. and no weight can be given to any law
on the subject, because the law gives value to
each. Hence dollar is dollar intriusicallv.
whether it be represented in piece of gold or
silver, or whether it be printed properly upon
a slip of parchment paper. Of course, we all
know that the Constitution makes gold and
silver the basis of our currency, but it no.
where gives authority for any interest of
trade or commerce, under any contingency
whatever, to impair the value of one legal
form of currency from that of another. And
here is the very point where spectators come
in with their premiums on gold and silver.
contending that, as this premium rises, the
paper dollar depriciates in exact ratio This,
then, is the point where legislation is needed
We want that Congressional interference which
will stop the bulls and bears in our large COM
mercial cities from trafiicing in the coin of the
country to the injury of business and the de-
probation of legally stamped paper money.
If Congress would pass an act making it a
punishable offence fer any one to exact more
than the legal rate of interest on coin in ex-
change for paper money, the same as is al
lowed in matters of debt, there would soon be
no necessity for foreign loans There would
then be two classes of circulating medium,
each holiing the same relative value to the
other, and each performing its appropriate
functions in the commercial world. An eoai-
librium in value on all the marketable pro-
ducts of the country would, in short period
of time, give activity and spirit to the various
business interests.


This policy strikes us as eminently feasible,
but, it is averse to the plans proposed by many
others who are trying to control the matter.
Adopting the plan we have indicated, with all
the vast amount of precious metal now in the
country, return to specie payment would be
speedy and certain. The money editor of the
Ledger says:


ssThe feasibility of resumption, or of equal
izing the currency under the Constitution, is
strengthened by official statistics showing that
the production of the precious metals in the
United States from 1919 to 1867 amounts to
eleven hundred and seventy four millions of
dollars, and the total coined in the same time
to eight hundred and seventy -four millions
The excess of product over export in the same
time is four hundred and thirty-three millions
There is now of coin in the Treasury one hun
dred and eleven millions, more than forty mil
lions in circulation on the Pacific coast, and a
few millions in the banks-in all, about one
hundred and sixty millions. Beyond the
amount here enumerated there were some
three hundred millions ia the country before
l849, which have not been accounted for by
expectation, and may be yet in the country


The same writer, with view, evidently, to
mystify the masses of the people on the SUBJ
ject, asserts that the above ssare important
facts, and show how completely cheap cur
rency removes from view one. that is more val
liable, vindicating the truth of the theory that
two currencies of unequal value will not cir
culate together. The coin can only come back
as currency, and the measure of values when
the DEPRECATED paper is removed or deprived
of those functions" This is very true; but,
instead of paper being, under present circum-
stances, cheap currency, as the writer as
serts, it is the dearest currency in the world,
and, according to his theory, is invested with
no value at all, except that given to it by
spectators in keeping up the premium on
gold. Now, if these two currencies were
alluded to endorses also. there could be no
speculation in these currencies, because there
would be no premium on gold and silver


The views of the Secretary of the Treasury,
as well as those of the comptroller of the cur
rency, are favorable to the contraction of the
currency, in rapidly Withdrawing it from cir
culation. Mr.. McCulloch says:


s'Money is simply medium of exchange
and measure of value. As medium it facil
itates exchanges, and by doing this necessarily
stimulates production. 1t does not follow,
however, that exchanges are facilitated and
production stimulated in proportion to its in
crease. 1t is measure of value, but it does
not necessarily create values. 1t is an inds-
pensable agent in trade between individuals,
and in commerce between nations; the great
incentive to enterprise and labor in the wide
range of human energy and skill but, great as
it is to the progress of the race of civilization
and refinement, there are limits beyond which
its volume cannot be extended without dim
mutton Of its usefulness. certain amount
is required for facilitating exchanges and de-
termining values. The exact amount required
cannot of course be accurately determined
but the excess or deficiency of money in
country is always pretty accurately indicated
by the condition of its industry and trade. In
all countries there is just as much money
needed as will encourage enterprise, give en-
ployment to labor, and furnish the means for
a ready exchange of property, and no more.
Whenever the amount in circulation exceeds
the amount required for these purposes, the
fact will become apparent by decline Of in.
dustry, an advance of prices, and tendency