The New York Herald Newspaper, January 5, 1869, Page 10

10 a THE NATIONAL FINANCES. Letter from George Opdyke te Senator Conk- Mng—The Proper Time for a Resumption of ‘Brecie Payments Uonsidered—How it Can be Safely Done—Currency Statistice=The Circulation of Colm=A Plan tor Solving the | Financial Problem, nee New York, Jan, 2, 1869, Hon. Roscok Conkiino:— Deak Sin—Again availing myself of the standing Privilege you have accorded me, I herewith submit for your consideration a few thoughts on the present aspect of our national finances, Since I last ad- @ressed you on this subject @ new administration hap been elected virtually pledged to the following ‘nancial policy:— Pirsi—That 6) Payments shall be resumed at ‘he earliest period consistent with the healthful ac- avity of Deere Second—That the bonded indebtedness of the gov- ernment shall be in cola or its equivalent. Third—That oficial corruptton shall be suppressed poy strict economy observed in all departments of government, Fourth—That taxes shall be caatanly distributed and limited to such rates as shall suffice to pay the current expenses of the sores: and a interest on the public debt, together with a sm ‘annual instalmert of the principal of that debt. ,This, though not the letter, is clearly the spirit of ‘the financial platform on which the dominant party ‘stood at the late elections; for it is only through a ‘Policy lixe this that the sentiments expressed in that platform can be carried into practice. Should you, however, doubt the correctness of this interpreta- tion of the financial issues of the late canvass I am sure you will agree with me that the four proposi- ‘tions I have given express our true financial policy. For it seems to me that no other line of policy will 80 Well protect the national honor from reproach, strengthen the public credit, lignten the burdens of ‘taxation and secure for our country a prosperous future, Assuming that this geheral line of action either thas been or should be definitely decided upon, it only remains to inquire by what measures C ongress an most effectually and safely carry it into practical effect. These inquiries can be best prosecuted by pop pore | the subject under four distinct heads. ‘The fi18: will embrace all questions relating to legis- lation connected with the currency; the second, to the public debt; the thira, to frauds upon the rev- be economy and retrenchment; the fourth, to ion. ‘The questions which properly come under the Srst head transcend in importance and intricacy all others combined. I shall, therefore, for the present, confine myself exclusively to their con- sideration, leaving the other three classes of ques- ‘tions for brief discussion in a subsequent communi- cation, Lele agha it devolves upon Cot to decide upon the proper time and the best means of return- ang to specie payments. This is the great financial problem of the day. The public weifare depends pon its proper solution, and such solution is con- ecded to Le ax dilticult as the question is important. It will require a1 the wisdom of Congress to decide it aright. The pubitc mind is alive to its importance and the press teaming with suggestions on the Subject. ‘There appears to be 8 growing dissatisfac- tion with our present inconvertible currency. Some are rea: My to hazard the consequences of immediate Yesumption. Others insist that it shall take place Within six or tweive months, and so on up to two or three years. The last named period seems to be diate that public sentiment is now disposed You are aware that I do not share in these senti- ments. Noone more strongly desires the eartiest retum, consistent with the pale good, to a sound, convertible currency. But I must again express to Fhe my conviction that all efforts to secure that end immediate or early resumption must prove abor- ive. Our currency is yet too redundant to attempt it with any hope of success. We have to-day a cir- culating medium, exclusive of bank deposits, of not Jess than $17 to 1 of population. This is about 70 per cent in excess of the volume of convertibie cur- Tency ever kept afloat in this country. It 1s 70 per vent in excess of what the natural laws of trade will permit of such currency, as I will proceed to show. Before entering upon the discussion, however, I desire to — that deposits in bank constitute a ef the circulating medium, They perform the office of money as effectually as or bank notes, and more effectually than either. They are usually em- ed in consummating the larger or wholesale sactions of commerce, while coin and notes are ‘used in retail transactions. And as retail x tions are Ty the resale of commodities that have ‘ween first sold by wholesale dealers, it follows that there is about an‘ equal amourt of money used in ‘each of these two forms. In other words, the gross mount of bank hee ovwres is always about gat to ‘the gross amount of circulating notes and My omitiing them in my estimate 1s to discussion of asubject that is intri- Cate enough without that useless addition, foney 18 an instrument of commerce or exchange. ‘Tita ofice is to effect the exchange of other property and to measure its value by given in exchange for it; for it is known that every Lapeer and sale as deemed by the parties thereto to be an exchange of equivalenis. en money consists of coin alone fe value in Leecnys od or #9 gy power ts Ps patch dom yo “opie ion. That 18 to say, will exchange for other things in proportion to their relative cost of production. True, tie law of supply and demand Keeps the market value of coin, ‘as it does that of all other things, constantly fluctuat- ing. We all know that when a supply of any given article exceeds the demand for it its market value falls, and that whenever the demand exceeds the sup- Ply it rises. Coin is no exception to this rule. But ‘We must bear in mind that miners of the precious metals, like the producers or all other commodities, ply their vocation for the sake of gain, and that they will abandon or slacken the production whenever their etjorts prove unremunerative. Consequently, whenever the market value of coin becomes, tarough an over supply, depressed below the point of average remuneration, @ portion of its producers desert Vy munues und enter into other pursuits. This, of cou, Jessens tie supply of coin, and thereby enhances its market value or purchasing power. So, on the otuer hand, whenever a deficient supply of coin 80 enhauces its purchasing power as to bring the profits of iis production above the average profits of other ursuits, it promptly stimulates enlarged produc- omg through whl the demand and supply are wi th sand thi it the hasing power ewe is find tha average purchasin; -of coin is measured by its cost. In other wor it exchanges, on an ave for other things of an equal cost. In the light of this fact we may readily perceive the principle or natural law that governs ‘me volume of a circulating medium consisting of on alone, It is this:—it must be neither more nor Je-8 than is sufficient to eifect the exchange of all other property in search of @ market, on the prin- ciple of true equivalents or cost of produc- tion. This is the point to which its volume ever tends. When temporarily driven from it by varia- tions in the supply and demand principles which I os noticed atart Into activity to bring it A circulating medium consisting of coin and con- ver.ibie paper Is subject to the same law, and is of precively the same volume as it it consisted of coin gone, | am aware that this assertion is not in har- mony with the general belief; but it is trae neverthe- les. ‘This is obvious from the fact that ina mixed ency of coin and convertible paper the pur- Ms power, or value in exchange, of the coined ris bo greater than that of the paper dollar. The two exchange for one another, and each will purchase an equal quantity of other articles, Now, if the coin portion of a mixed currency did not, as it does in a metailic currency, exchange for other things in pro- Portion co their relative cost of production, it is evi- dent that it conid not be retained in jotnt circulation with paper at all. it would pica NO profit to its producers, and hence it would soon be withdrawn from a circulation where its value 1s depreciated by Tis Connection with paper money, to be used where Sts value is equal to its cost, either in a purely me- ‘tallic currency or in the manufacturing arts, Its withdrawal would, of course, divest the currency of whieh it formed a part of the attribute of con- vertibility. In a word, the issue of convertible © merely changes the form of money without eting ite yolume or its parohasiee power. It Grives from the channels of circulation to bank vaults and the arts an amount of coin equal to its own porminal value. The paper money awhile othples its place and performs its oflice in the cir+ culating medium, «+ The Etecned of these views is amply verified by ou eo po hg Xperience, Whenever our banks have are thei es above the Ordinary ‘level there a8 quickiy ensued an enhancement of priced in our home mark which of course invifed enlarge? woports and checked xports, and thus promptly de- veloped an adverse baiaace in our foreigp yout, The shipment has never win to pay such bal faiied to compel our banks, wuen Swing specie, to contract their issues, and sometimes so suddenly as 30 produce @ panic and @ suspension of specie pay: ais. It is scarcely necessary to say ‘hata incouvertibie paper is not subject to wich control a metallic ora mi i, not by nat sence of all law wenlly its v 2 depends 1 . eities oar ee of the or authorizing its iasue. In buenos Ayres e' have i+ved #0 much that it excuanges ior coin et the rate of twenty-five for one. Having shown that the nataral laws of trade de- termine the yaantity of convertible paper that can be kep\ in cirentation without losing ite quality of currency of © principles curreney. Its law, but by vy chaace, Upon the overntmeat issuing converiivility, it remains to ascertain what that quantity ac'nuily ta, It is evident that it depends in some smexsure on the cost of producing coi ue cause the lower (he cost of col the less its purchas- TiS. casa een iw qonatity eCeSK: effect Gie exehan, other properi: offered for suie. It is also trident that tte Eri uty mus’ be proportioned to the extent of cot. merece, but to deternine dednetively the exact quantily that these laws award, we should have to know the present cost of producing coi, its circulat- tay capacky and the value of all the property trans. jesred in a given time, Such knowledge is clearly uniitainaine Fortuna however, we Rave with- iu our redcll @ practical ‘od of detormiping this Point, noncly, by the teachin experience, Whieh are geueraliy regard @ more re- Habie evidence than the deduction of logic, however sound, A carefal examination of ont currency statiaties Wil slow: = 4. That while we bave never attempted by egg: NEW YORK) HERA, TUBSDAY, JANUARY 5, 1869,—TRIPLE, SHEET. lation t @x the limits of. our total circulation, natural have established: those Tita and nie aa remarkable uniformity mainiained between our convertible currency and, our popula- 2. That this ratio, which has been slightly widened the cheapened production of i, 8 now about of circulatiog tg one of epee eters e by any other ‘cabe, the natural laws of trade ‘have promptly re-established it at its gayi. our coun! r th 1834, ate mea- 1 iMerfore owt tesa, although, and py Ya perfect mae 80 far as they are complete, they’ mony on this point, with the mre ample statistics ey 1834 to sass tactusty zr oie and the m @ popul bank circulation of the ©: ate have been in round numbers as We 1835. 185 1836, 156 Ho Pd 1839. ‘Tsao. M5 1841 Ww 1842. 17 1843. 155 18H. 193 ine Pa 184! 1s 148 These figures stow the average bank circulation to have been, during the period embraced in the table, $6 06 3S capita. But, to obtain the total cur- rency of that period, we must add the coin, There are no data for determining this amount. We have always had a full supply of paper money in $1 bills and above, and consequently there has been no absolute need for coin except for frac- tional parts of a dollar. We know that $33,000,000 of our present frac! currency, although depreciated: about 26 per cent, now sumices to supply this want may infer that ah average ctroulation of $14,000,000 may infer that an av. n of coin would have met the absolute wants of the comm during the em! in the eo mn was but 20,500,000. But that many prefer coin to paper money, and that during much of a mer we had in our oircu- lation a Hberal infusion of gold coin as weil as silver. It is impossibe to determine with any degree of accurary the total average coin circulation for that riod; but, from various considerations bearing on question, which I cannot stop to present, I feel warranted in saying that it could not have exceeded Poop ae which 1s about $20 per family, or $3 21 cap! In this estimate I do not include the coin held by nor that held bj he circ! ive credit and currency to their circulating notes and to be given im exchange for them when pre- sented for redemption. That held by individ as permanent hoards is not only withdrawn from cir- culation, but is totally idle and unproductive. Adding this liberal estimate of the circulating coin to the ascertained amount of circulating paper it gives a total aver circulating medium for the twenty-eight years of $9 27 per capita. This is the on important fact established by the foregoing ble, ‘The next is the general uniformity in tne ratio of currency to population during the whole period of seh ee years. If we except temporary varia- tions, which were promptly corrected by the natural laws of trade, the increase of currency kept even pace with the growth of Ue pee There has been a signs preponderance in favor of the currency since we have become large producers of the precious metals at diminished cost. Dividing the table at the year 1850 we id the average of the subsequent years to be about thirty cents greater per capita than that of the preceding years. 1t 18 probable, however, that there was even greater preponderance of circulating coin iu the latter period. Putting the two together it would be fair to estimate that the total circulation for the earlier period was about $8.77 per capita, and for the later period about $9177, the diiterence being caused by the cheapened pro- duction of gold. The.table also shows that from 1884 to 1862 there ‘were but two periods in which the total circulation, Including coin, exceeded $10 per capita, These were, first, the years 1836-1839; second, the year 1854. The first period embraced the years in w) ‘the bank expansion took place, and which culminated in 1837 in the most disastrous suspension known to our banking esa ‘The mt con- traction immediately preceding and following that suspension cauaed distress and pecuniary em- nt throughout the Union. paralyzing were ils effects on that it juired @ con- traction of the currency to less than the volume it reached in 1836, and seven years of industry to re-establish our prosperity. Severe an ruinous as this reaction proved, it was caused by ‘an inflation of the currency, which reached at is highest point aay $13 per capita. In the secon of ind ‘1854, the total etrculation reached but $11 per ita; but even this small excess brought about a sud contraction in the following year, when it was reduced to $8 50 per capita, The banks having escaped by this contrac- tion the perils of late suspension, azain en- larged their discounts and circulation, and thus brought upon themselves the suspension of 1857. You will thus perceive that the natural laws of trade, which prescribe the limite of a convertible el , not only enforce their own decrees, but in- ficta ity for their violation. You will also per- ceive that the statistics embraced in the table fuliy sustain the three propositions in proof of which they were submitted, Let us next glance at the currency statistics of Great Bntdin. The annexed table gives in round numbers her total bank note circuiation in each year, from 1834 to 1859, inclusive:— 1834. , 1847. £39, 600,000 82,300,000 34,600,000 geanacsees 525522255 8328222222 g 3 Estimating t Period at 27,000,000, and counting the pound sterling equal to $4 we find the overage pene circulation to have been §6 63 per capita. m this, however, must be deducted the Bank of England notes that were withdrawn from circulation by other banks att oie patos to meet demand lia- 5 We have no reliable statistics of the circulating coin of Gi Britain. Professor Jovons, of the Eng- lish Statist it y, has recently shown by © Most ingenious method that it cannot exceed £80,000,000 of gold coin, and £14,000,000 of silver. It 18 satisfactory to know, in view of still more ex- travagant estimates made by other writers, that this is it@ maximum; but this fact affords no reliable eyi- dence of the actual amount of such circulation. In arriving at this maximam, Professor Jevons makes no deduction for the com melted up tnto bullion, or consumed jn the arta, nor for that which is hoarded or carried out of the country by private hands, These important omissions render his efforts of no practical value, save as a demonstration of the falsity of all higher estimates, By cousniting the currency statistics of Great Britain for the years in which her banks were sus- pended we may gather facts that will enable us to make an estimate on this point closely approaching the truth? During the ter part of that period goid, night, in his history of England, in to circulate. commenting on the depreciation of her paper cur- rency in 1412 and 1813, says “that gold was bought up and sought for at @ constantly increasing price” and “that a gainea, @ half-guinea or a seven shilli piece had become a@ rare sight in Great Britain.” Une and two pound notes had taken the place of gold. Of these about £15,000,000 were in cireuiation ut that period, equal in value or purchasing power to £12,000,000 of gold coin, There was alsoan circu- 3 about £4,000,000 of silver tokens in the form of Sfiabish dollars, stamped and made redeemabie at the bank in paper, at the rate o| ‘. 6d. each, or one shiliing above (helr vaine in gold. Teese facts show that silver tokens and bank notes to the amount of 215,000,00 goid vaiue then 4 formed all the service now required of gold avd ail ver coin in great Byy and wut at a tue of great | cqumumercial activ” 1 the same ratio to popula | ton £25,000, a Fdirculating com would do it how, Add to thls 't £10,000,000 for the preference Ven to gold over cnr paper why | ave liverty of choice and deduct £5, n, # A gent “mall nore circular of frei an ot find and we have the é ach foun of on oe ry i | culation th Great Hy at th Smt time, nameiy, £90,000,000, OF $4 84 per capita, Adding this to the paper circolation, as shewn in the table, we have @ totalef $11 47; but deductin: £4,000,000, or 4 {9 per Capita for Bunk of ‘kngland notes held ii by other banks, we have as the fom nad circulation of Great britain $10 88 per capita. Fie approximate acouracy of this estimate ts proved by the following facts:—1. It coi \s with the volume of controvertible currency that the Jaws of trade have awarded to the United States, tire diference in favor of Great Britaua merely indicat lng the degree Mm which she is the more commercial of the two nations. 2 The total cireulation of Great Britala when ber currency Was inconvertible and its total 4 iantity dednitively Knowa from the records of bank issues, never exceeded $13 per capita. This quantity was shown to be redundant by the deprecta- tion Of the ev'rrency, and by the fact that the banks fownuc it impossible to resume unt they had largely contracted their issues, - bee hy ed table, showing the movement of the agland during the period of suspension and for two years preceding it, will throw additional light on tuts poiit, and alwo prove the fucility of all eforts at resumption wiule eilorta at renuiny the currency contiaues BANK OF ENGLAND. Circulation. — Deposita, Builion, + £14,018,000 — £5,975,000 £6, 127,000 10,730,000 6,502,000 9,689,000 9,075,000 4,802,000 4,080,000 ++ 18,096,0V0 6,449,000 5,829,000 | | Deposits, Bullion, . “12,960,000 8,132,000 1,664,000 844,000 7,063,000 6,144, 16,213,000 10,746,000 4,640, 16,187,000 6 4,153, 320, 8,050,000 3,777,000 17,078,000 8,077,000 3,372,000 17,871,000 884, ( 5,884,000 17,730,000 9,981,000 5,987,000 16,951,000 11,829, 6,143,000 8, 189, 11,962,000 7,855,000 18,543,000 9,983, 4,489,000 21,020,000 12,457,000 8,501,000 23,360,000 11,446,000 8,350,000 23, 408, 11,596, 2,083,000 23,211,000 11,268,900 2,884,000 24,801,000 = 12,455,000 2,204,000 27,262, ‘11,702,000 2,037,000 27,013,000 389,000 4,641,000 27,898, 10,826,000 9,681,000 27,771,000 7,998,000 10,065,000 25,127,000 6,413,000 4,185,000 23,484,000 4,004,000 4,911,000 23,885,000 6,623,000 11,870,000 665, 4,690,000 11,067,000 n 18,892,000 7,181,000 10,384, Anexamination of the table will show— that aernabed bance of the bank seeetee el Beco ion, which compelled @ contraction of the circu- ‘This Soontiaee ae to 1797, when the bank suspended, hay meantime contract per aene| from £14,018,000 to £9,675,000, and re- See ara ieenmanee et sme 8 4 "a rapid increase of circulation until 1815, aie eee ts preciat Rotes more than kep pace with the increased issue, being, no doubt, augmented at times by the threat- ening aspects of the war. But immediately after the peace the belief in an early return to specie pay- ments was so general that without any contraction of the currency the larger share of the gold pre- mium soon disappeared, a8 it did with us on the surrender of Lee. Ent by this reo appre. ciation of its paper ana accumulation ot \- lon by purchase and otherwise, the Bank attempted to resume specie payments without taking the nec- essary precaution of first contracting its Se eral ‘The effort, as be prove r= tive, Mr. Frans in his “History of the Bank of England,” in recording this oceurrence, in sub- stance thatthe Bank gave notice that after the 2d of May, 1817, 1¢ would coin for all 1ts one and two a i notes mt. nee prior to i ing in ‘tor redemy for the reason that they were in active ation among the poor, the bank was lve notice that on and encouraged to after the 1st day of October of the same year, it would be ready to gold for all its notes issued prior to January 1, 1817; that the bank had fortitied ie a. — collection of apres pe inlied ion, Ww! owever, no avail; for when the aot October arrived the bullion dealers took Serer of the exchanges and be it remembered, was after the large accu- mulation of bullion in Great Britain had effaced the gold premium; and yet, from the redundancy of her paper money, which Alison estimates for that period at si eae fd Million pounds, the Bank coffers would have mn emptied of their last n t within a week but for the prompt interposition of Parliament. It was not until three agers later, when the Bank had contracted its issues by the withdrawal from circulation of upwards of seven million pounds, and the country banks probably in like proportion, that the Bank found it feasible to resume and main- tain specie payment. To accomplish it even then required, during the three iotervening. in a de- gree of contraction so rigorous that it produced great distress and innumerable bankrupteles. And Yet, Irepeat, the currency of Great Britain, at its highest degree of expansion, during the Bank’s sus- pension, did not exceed $13 per ge while ours is now upwards of $17 per capita, as I shal show pre. sently. What could more clearly demonstrate the impossibility of anearly resumption here? A word to the circulating medium of France. That nation is less’ commercial than either the United States or Great Britain. Hence she needs less currency. Her mone! statistics within my reach are too meagre to afford an accurate estimate. I find, however, that the average circulation of the Bank of France from 1848 to 1866, when it issued no notes of a less denomination 100f., Was but 575,000,000f., equal to $115,000,000. Smee then the manufacturing and commercial interests of France have been much developed. The bank, during the same time, has accumulated a large reserve of bul- Hon and has received authority to tssue fifty franc notes. These causes combined have expanded the bank’s circulation to 1,200,000,000f., equal to $240,000,000. But even this, combined with the most Iberal estimate for her circulating coin, does not bring her total circulating medium up to the level of ours before suspension, nor to that of Great Britain, though I have no doubt that the large in- crease in her circulating paper will give activity to natural laws that will svonter or later enforce its cont Trusting that I have now sufficientiy demon- strated the existence of principles which effectually confine the volume of a convertible currency within the limits of about $10 per capita, | will next pro- ceed to show the present vorume of our own cur- — on Of a8 great measure arrested by the depre- Clation of our paper money, but not allogether. It still constitutes the en- tire cireulat medium of the Pacitic States and of Texas. The amount thus employed cannot be less than.......... $ It ts also used by the rninent in pay- ment of interest and by merchants in ent of duues and in settlement of other business engagements to an ex- tent that would require of active cir- culating money at Jeast...... 25,000,000 Total of paper and coin...........+....$744,000,000 I nave not included in this estimate the three 30,000,000 cent legal tender certificates, compound interest , aren and coin held by national ban! for the rea- son that they are not in circulation. are held im reserve, under legal requirements, and to give currency to the circulating notes iasued by the banks. For the same reason we must, in order to ascertain our actual circulation of paper and coin, deduct from the total, as given above, the amount of greenbacks held by the national banks, The re- port of the Comptroller of the Currency shows that these have a’ for the last calendar year $100,000,000. Deducting this from the above total leaves, as the actual volume of our present circu- ioting medion. $64,000,000. r Ti estimating our present population at 38,000,000, gives a circulation of $17 per capita, or 70 per cent in excess of what I have wn to be, for us, the je limits of a convertible currency. ‘These are somewhat startling, | confess; but no one will venture to that | have overestimated the demand for With the demand thus we without BS, corroepending abeterment tu ‘supply, our su a3 Leen mainly gath- eeTTP Nhe United Buatce Treasury: wile caer bal ance has remained on the market a glittermg en- ticement to speculat But for the Cy ous diminution in the demand for gold we shduld have seen its premium Sra t ‘the enhancement of in other tings. aiai yet see the present tween them effaced, either through a contraction of the currency, which will reduce prices, or through a4 ingreased demand for gold, which will enhance the premium. That demand is ai Strengthening {rom abroad. During the calendar year just closed we have ex! of the precious metals, in excess of our productions, pot less than $25,000,000. In fact, our exports of coin have lurgeiy exceeded our actions for the whole period 01 suspeusion, The Commerciol and #inanvial Cheonicio, in able Caito- riais, has recently shown that, notwithstanding our large production of gold since 1962, our stock on hand has been reduced about $100,000,000, eee writer estimates, and I think correcuy, that we now but little gold in this country aval mercial purposes, except that ty the go ment and the banks of this city. Oniess there nm enlarged demand for our securities abroad or a con- traction of the currency We may expect this excess of exports to continue ane? vy @ material enhaacement of the premigt. i RESUMPTION—HOW AND WHEN iT CAN BE BEST AC- COMPLISHRD, Flaying looked at our financial situation in all jis material aspects, Mud having shown by relthbie staUstics how far our paper issues im- ee _— Rageae bi io, we repared to consiier BS ubie us safely back to ath. gosta wel any ope _otid it wil be readily seen oe ggder i edfort at resumption must ene, BESSPE"". oy @ contraction equa sont exe es of currency, or miust be T™poned wth, ous commerce rises to the le¥él of sur currency, ‘until the equalization ls brought wut by tbe intiuence of contraction and if the joint a growth, No other means or device, lo wih secure permanent regumy t be made without first enforce’ ite contrac: luon, specic payments Calinot bo maintained jor a week, as is proved by the signal failure of an edors at resumption made by the i of Gogiaud tn 1817, under sitiar but far less unfayorabie cir- cuwstauces. I, on the other hand, te reavisite contraction be made suddeniy, with a view to early pep nw would produce @ monetary airingency and a shrinkage of values before whici the wealth of the country would disappear like the scenes of @ dissolving view. {t would block the wheels of commerce, paralyze mdustry, overwheim the country in financial embar- rassments and force the overnment, tie banks, and the whole debtor elass into a common insolvency or suspension of payments, This, as L have shown, bas been the unifurn experience of the nation# making like efforts wider aimilar citcam- Stances, THe citort, therefore, wouid produce itce- Ee ‘able injury, and at the same tic fatl in securing its object. Kesumption, instea of being hastened by it, would be indefinitely postponed. What, then, is the proper ren fects in our currenvy? 1 enawer .) Lcaunot join Mr. Mecutio. ¢ munclatiou of that currency. It has but two serious derects—vanieiy, iis depreciation and the wncertain- ty as to the future action of Congress in reference io bo ie | yest sake aaet may be justly reyarced ren medinm ves poten iat any nation has There is @ general misapprehension as to the COMRMMT EEE OF ® OUToyRY depreciated ap oUIP not from distrust of its ultimate Bis luply tou ts redundaney, The ‘that such a currency victous, aud that it tends to ira) the jun that resorts to itor tolerates it, This is error, Its firat effects are, while the process inflati contin- eEe8. ie Ss3e88 sé * <i 35 § more conve transporte of real nothing to produce, and hence vant we those who issue it, as forexample the annual Cm | of $21,000,009 to coin by the government of the Unit pia 8 on its outstanding issues of $356,000,000 green- te Phish at has received value but on which vis of ind y at of inflation we have already suffered. te repented i we sleadtuuny reelt cvery altempt st Te] ry ev Turther inflation, The evils Incident to Pr oda which are of a stili more serious character, I think— time e, relying wey on our grow- wealth oe eas to efface the difference in jue between our paper money and gold, ag they SR Pa ala ho art, appt 0 1e pro) o me, woul be this:—Let Congress by joint resolution declare—1. That there further perma. nent issue of paj ne cua solut necessary credit Or the interests of wents in greenbacks ; sald notes to be withdrawn from circulation the moment the stability of the money market is restored. The advantages of such legislation are obvious. The declaration that no further permanent issues of paper money shalt be made would strengthen pub- lic confidence in our’ currency by rendering it cer- tain that there will be no further depreciation in tts value. The declaration that the contraction of legal tenders shall hereafter be $10,000,000 per annum would show & determination to press forward slowly but surely tospecie payments. ‘fhe two declarations taken together would establish a policy for the future that would insure to our currenc’ qualities of stability and uniformity of value, constant appreciation. The knowledge they would thus impart would be of inestimable value to the community. It would dispel all doubts as to the future of our currency and thereby divest commerce and all other roductive pursuits of an element of scorns which now renders them us to gambling. Placing in the hands of the Secretary of the Treas- ury $50,000,000, to be temporarily used in critical emergencies, would prove an invaluable safeguard against financial panics and bank suspensions, Such safeguard cannot be provided under a convert- ible currency, and the want of it has led to most of the bank suspensions that have occurred here and elsewhere. Taken together, these simple provisions of perma- nent law would secure stability and uniformity of value to our currency, under which all productive in- dustry would go on confidently and sly, until our growing commerce, through em- ployment for money, would bring the value of our paper dollar up to that of the gold dollar. shen specie enta could be resumed without effort and without the hazard of revujsions. But the im- portant question is, how long would it take to bring about this result? Let us see. It is known that our population increases in the compound ratio of three per cent per annum. But the employment of money depends on the amount of commerce, and it is known that the sent rapid extension of our railroads gives a impetus to our commercial transactions. Conse pry our commerce at the present time is grow- ing more rapidly than our yarns and there can be nodoubt that the policy I have eerie would give such increased security and pi toall industry as to still further augment our commercial transactions. Under these stimulants I do not think it would be unsafe to estimate that our commerce would grow during the next few years at the com- pound ratio of five per cent per annum. a This, in eight years, would add 483¢ cent to our commerce, The coincident cont ion of green- backs would be $80,0v0,000, with a probable loss of $10,000,000 more, thus reducing our aggregate circu- lation to $554,000,000. To meet the wants of our presént commerce re- quires at $10 per capita $3#0,000,000 of convertible peer G ny 435 Be ape caoree in that com- merce it would require , or more than we should chen’ have, resumption would be safely reached by this method iy & shorter period than eight years. belief is that it would be thus accomplished in about seven years. This beilef is groun on the conviction that the market value of gold has not yet felt the full effects of its enlarged and oa aged production. Its value in exchange will propably still further di- minish within the next decade at least ten per cent. If go, it will produce a co! jing enlargement iu the volume of money, which I have made no esti- mate of in the above colon 2 iad alt thou! bewagen 3 respectfully submit to your judgment whether such's consummation is not the best we can for in view of the extreme intation of our currency. No other nation that has departed thus widely from the trae measure of value has ever returned to it at all, except through the in- Taniy of repudiation. If we can reach it at the end of seven years of bn gan industry we shall be most fortunate and our material condition ininite! beter than if marred by premature efforts to itearlier. Yours traly, GEORGE OPDYKE. SHIPPING NEWS. Almanac for New Yerk=—-This Day. PORT OF NEW YORK, JANUARY 4, 1869. Herald Packages. Captaine and Pursers of Vessels arciving at this port will please deliver al! packages intended for the HeaaLpto our regwlarly authorized agents who are aitached to our Steam Yacht eet, The New York Associaied Press do not now collect marine reports ner attend to ths delivery of packager, as will be seen by the following extract (rom the proceedings ofthe regular monthly meeting held March 8, 1868 :— Resolved, Tuat ou and after April 1, 1868, the Associated Press will disegntiaue the collecon of slip mews in the harbor of New York. Passed unan moualy, na Toe ofice of the Herald steam yachts JAMES and SEANNET EH int Whitehal slip. All cotamunioations from owners and consignoes to the mnsin.s jaward bouad ves- seis will be forwarded froe of charge. . wedias CLEARE la Sena Tota Dy ae G, Uunderson, ALiwerpoP rh & Chaun- “Finrk Helane, Jackson, cade pad SSE ota Bark Jacet Fi g Ayret Hay & Parker,” “alker, Montevideo ana Boence le i te Cen Drompots etese~1 8 Wat pee ) Hatiiiian, Norfolk—J B Ward & Co. a] acne Sass % Hobin, London—4 F Butley, é bat Ft Woorn, Whedler, Keplawall—8 L Merchunt & | . 224 Madonve (Ur) Jordan, Demarara—Miller & Hough- rig Silen G McLean (Br), Cook, St Jona: Bret © Co. 8 pocto (Br, Kennedy, Halifax—B F nie Clark’ (Br), Bow 29> “au Hener & ‘Scr Rebecca © Lane, Late, 4B Ameinok & Co, Sebr Anute Whitipy tivieyjpyo¥, DemararaIsd Rowe. Schr Auntie G Webber, Webch Mobic BF Mevatt % co. cht Hamburg, Sprague, Urvatwick—Laraway & Pirmor, Py ~* ahead hart, Mason, Wilmington, NC—Van Kroot | § | “Son Ve Ht Kinzel, Soper, Baltimore .N Bebr Sinaloa, bleele, Portlan.! -F Talups ARRIVALS, REPORTED BY THE HERALD STHAM YacttTs. LMeOrendy & Co, Steamship Flag, Hoffman, Fernan ' bay a Nol i ierte mm ee en ee insilyy SarMtoga, Alevander, Richmond, &e, w: and pasrengers, to the Old Dominion Steamship Co, ome i ip Jchn Gibson, Winters, Norfolk, with mdse io ire, Price, Washington and}Aloxandria, with Ship Samuel Russel, Lucas, Amoy, Sept 19, with wear A low & Bros. <tusaed the Equator m Chinn, Sen Oct & ia Jon 116 42, Anjier Oct 10, Cape Good Hope Nov 10; sir westerly nies ior 4 days, crossed the equator in the A Dee 12, 17 lon 87 48. Spoke in the Jack (Bt, fiom Suanghae for London, “82 i 24-0 panged silp Cordelia (Br), stuerio Wi) Int a5, 1o | apoce' hip Auten (Duveb trom Aatavin dor Rovtestam, 3 Gays out; int 448 8,lon BIW, paaged bark Andria (Dutch), steering SW ; Dec ¥, passed bark Ceror Hele). weering 8. . Phip Black Fawk. Crowell, San F cy, Sept 4, with mite, to W Co, ‘Passed Cape Horn Kor 1%, ana crossed the equator in the AWantic Dow I, in lon 8. Nov Vi, Jat 52.28 8, lor 65 W, pared irge icebery; Dee 4, lat 17 12 8, lon 51_W, apoKe abip Polline iS ecu Aatwerp, bound 8) same aay) iat 17 8, (on 81 Wy bare Brodrene (Nor), bound 8} tat 11908, lon 80 46 W, Hiippolyve (i'r), wound 35 ‘@jAvby, from Kuenos Ayres Torh, tas 14 X, ion 491%, Ft and malo topmaste; did, 4 ‘bri or New } orby with ious of Exs manta vane opp sow oat passed within & feet ts Sig por tor Bota, Jeveriand (Dutch), from RSs te EOP. om 5 oe rmdeer to Samu] @ Weed to Co. oor mdse, tooraer, Tada ‘Ship Quebéc (Br), C i £ Hi : : 3 i 3 He eS i i rh sEeEEES fel Pr z i Z i a a i i F i aH ! i : i Re : garam tey Mag ae 35 on eee en arene and NE gales. oa nections River. rae BELOW. Ship Columbia, Coldray, from Li Nov 11, with mdse and passengers to 0H Mataball & et 2 hip Alexander Marshall. Marshall, from Liverpool Nov 7, ‘and passengers, to C H Marshall & Co. ‘Bark Rochelle. from —. Marine Disasters. BARK SAREPTA, from Havana for New York, was spoken Dec 20, lat 85, lon 89, leaking; would goto Nassau to repair. BARK Anztiysr, at San Francisco from Bellingham Kay, wasstruck by a heavy sea on the passage and thrown on her bear ends. 3 Buia Evrvs, Willey, from Guadaloupe, before reported put into’ Gharlecton, pip (2 og is bound to St Mary’s Ga, and experienced heavy gales and put in with sails split, leaky and crew sick, Sour Joun R WATSON, Captain Allen, from Hobo- en Dec 99 bound to Providence, ey of 110 tons of fe! ke a cargo o| fron and 91 tons of coal, consigned to ies in Providence, lost her jib and had f¢ J forest epi during the heavy NE storm to run into Black Rock, Ct, ‘her tmme- Bison Rives, Je, about Dec 18—Sailed, bark Fenwick, qe itrax, Deo $1—Arnives, cake Florence O, Buckles, New LIVERPOOL, Jan 4—Arrived, ship Screamer, Young, Savan- Maymitrvs, Nov 18—In port ship Parrington, from Eaton, dncargdy \deail in few days lor Rangoon’ Pits, NYork (dnd put into Harane 24h fa gEExSOWn, Jan 3—Arrived, steamship Manhattan (Br), JouN, NB, Dec Smith, webinar Lyeor Mellon tor Sik onic tence ie Awerican Ports. ALREANDRIA, Jan 9-Arrived, steamer Valley City, Me- ORaloa -Bchr Mary & Tyler, Tyler, NYork. BOSTON, Jen Py Arrived, Prairie Bird (Br), ‘Cardenas: * RYore mgpdih, sis, Rew Ore. Crowell, idanite im. si failed stexmors Linda, Concordia, Heo ADpotds ‘saxon. cron ee Dark Fredo? i pare re Phllibed, Hlizabelhport. "Be: 4 ship Grahams Polley, Bergeng Artery are Tampuen’ Maitinigue’ scbr Jouad L Jan i—Sailed, schr Sea Bird, Battey, New JEORGETOWN, Arrived, brig Swan, Oharienou: 3am, agar Sogn, all, ‘parne Site Mary Simmons, Gandy, NYork; Suede Wright, Monat,’ do th, Daybreak, Blake, Searsport; 2913, orig Fanny Bu » Phila: eared'D4th, achrs Wm Slater, Slater, NYork ; 30th, George Albert, Motonald, do; Jou Se isred Weeks, sad Lk 0. NEW ORLEANS, Jun S—Arrived, steamship George Crom- well, Valll, NYork. Balled —Bteanebip Crescent City, Weir, NYork. REN PAINTED FROM Pain Paint, at Dr. WO! 0 Chatham aquare, N. Y., free of cost. BSOLUTF DIVORCES LEGALLY OBTAINED IN diferent States, No publicity. No charge divorce Notary Public THOUEAND LADIES Ht head to foot with Wolcott’ COTT'S oft chained, Advice free. Deada for A ue nw a . get Mens unGALLY OBTAINED IN Ye a stktes: ‘desertion, &e., sufficient cause. No Bn charge until divorce js obtained. bi same. - rian Advice trem. no eed Sere cea enee RO A -McINTIRE & CO., au. f BANKERS AND BROKERS, a he daly. promptly Information furnished cashed in Mie ‘and Kebtucky Lott: A 1, su AND DANDRUFF IN THE HAIR.— 4 1 Thousands of ladies and gentlemen who would Stberwite be up tothe mark tn every way, have thelr per: fonal arance completely marred by scurf end candrat Jn their hair. ott if ke more Coa ye! nothing is more onsily remover BARRY'S TRICOPHEROUS ie warranted f° the unsesmly trouble. Principal am TY WASH THE SLIME OF THE WORLD ON ary 1, 1869. Miseourt and Kentucky State Lotterier, Mh Be So dae a ae 10, jsovint. 1a gang 4, 1880, ak aoe ge Ch,a88 wo. 103, JANUARY 4 180. 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