Year: 1868




and the greatly increased expense of the
Government in it's general administra.


ton, we may reasonably conclude that


there is an actual demand for an in
crease of the currency over the wants


of 1880 to the amount of at least $780,
600, 900. Therefore, when you add to
the actual currency of 1860 about $3.50,
600, 900, the amount of currency now


used in the place Of former bills of ex-
change and promissory notes, aud the


increased demand for currency grow
ing ont of the cause referred to, it is
doubtful whether the currency is more


redundant now than it was in 1860.


when the banks were paying specie.


And if not redundant, then contraction


is not a necessary preliminary measure


to return to specie payments.


Again, it Is said that the Government
cannot return to specie payments until
after we have checked the flow Of our
gold to Europe by largely reducing our
importations Of foreign goods. This is
q clear case of putting the disease for
the remedy. Gold, like every other
commodity, is governed by the great
comm ercial law of demand and supply
1t goes where it is needed, and leaves
the country where it is not in demand.


In this country there is now but one de-
mand for gold, which is to pay duties
on imports. The great use to which it
is ordinarily applied to constitute
currency and medium Of exchange, has
been cut off for five years, and our gold
has steadily flowed into other countries
where it is demanded for a.currency.


In whatever country paper money has
been made legal tender, it has invaria
bly, driven gold and silver from the cir
culation, and in great part from the
country. Thus it is that Canada is now
flooded with American silver. Thus it
is that American gold has gone to Eu
Iope in steady stream for five years.
Thus it was during the French revolu
ton, when the ass;gnats, legal tender
currency like our own, drove French
gold into all the neighboring countries,
so that when the 1ss;gnats finally col
lapsed, as they did in single day,
France found herself almost destitute
of coin. And thus it was during the
long suspension of the Bank of Eng
land, when English gold went steadily
cut, and was only recalled by the pre-
parations made to return to specie pay
ments.


During the first five years Of the de.
eade ending June 80, 1868, our gold ex.
ports were 8261. .268, 1877 During the
last five years of the decade, while spe
Gle payments were suspended, our ex
ports were S413,69O. COO. showing al in
crease of sS152, ,422, 900. During the
first five years our imports of gold ex-
eeed those of the last five years $40,
3s9, 900, which added to the S152, ,422 900
would make S171, $4,000 of increase OF
gold loss during the last FIVE years. We
can not retain our gold at home except |
by making a demand for it. The hold |
ers of it are not patriotic enough to |
keep it here for nothing. If we would |
reduce the importations Of foreign goods |
we must withhold the gold with which |
they are purchased. And this we can |
not do, except by making it more profit
able to keep it at home than to send it
abroad.


Until we create this home demand,
the annual product of our mines in chief
part will GO to England, France and
G Germany to swell the rich volume of
their currency.


Again, it is said that specie payments
cannot be brought about by special leg
islation, or materially aided thereby, but
can be produced only by the operation
of a general course, such as the increase
Of the tariff, the increase of population
and development Of the resources of the
country, whereby the general credit of
the country will be increased To un
the merits Of this proposition
we must consider what are the causes of
the depreciation of the currency, ani
his I will do in answering another
which is said to present the
best and readiest method of returning
70 specie payments It is alleged that
we can only raise the value Of our car
,ency by raising the value OF our bonds
N the market; that as we bring up the
price of our bonds we shall thereby
bring up the value of our ereenhacks;
hat we can only improve the vaine OF
,he currency by improving the general
.redit Of the Government, as shown by
he value Of our stocks, and to this end
he surplus gold in the Treasury, and
lat which is to accrue, should be ap
)led to the purchase of our bonds in
he market to be Cancelled, thus dimin-
81 ing the number Of them and improv-
ny the value of the balance.


This view Of the question l hold to be i
total misconception. / do not believe
hat the existence of our bonded debt
las anything, or scarcely anything, to i
10 with the depreciation Of our currency. {


believe our currency would be depre- I
stated as it is if the Government did {
ot owe a single bond, or if all our i
'onds were at par. Why is our cur t
ency deprecated And why would it I
'e deprecated if the Government did
ot owe q single bond ? Because the I
.reenback note is promise by the Gov {
rnment to pay so many doliars'on de s
nand, which it does not pay. The t
romise is daily broken and has long 8
cen dishonored. The note draws no in i
crest and the Government has fixed no c
me when it will pay it. Under such {
the note must be depre t
Aol r,l.x or thu ialfI m q 70 =