ISSUES.
Bearing Interest. Total.
1 and 2 years 5 per cent. notes $32,954,230 00 $32,954,130 00 United States notes, old issue 392,070 00 new issue 427,768,499 00 Compound Interest notes, March 3, 1863 15,000,000 00 15,000,000 00 Compound Interest notes, June 30, 1864 202,012,141 00 202,012,141 00 Postal Currency 9,034,151 64 Fractional Currency 17,456,603 06 $249,966,371 00 $704,617,694 70 Of this $249,966,371, interest-bearing, $50,000,000 has since been funded, and the balance, except probably $10,000,000, is hoarded, and not in circulation as currency: therefore we de duct from the total issue 239,966,371 00 Which leaves in circulation $464,651,323 70 National bank issues, October 31.. 204,000,000 00Estimated issue of State banks, October 31 .. 60.000,000 00 Total currency, October 31, 1865 $728,651,323 70"The statistics show that the value of the property of the country, under only a moderate degree of prosperity, from 1850 to 1860, increased annually at the rate of about 8z per cent., or a little more than doubled in the ten years, independent of slave property. We can safely estimate that the actual value has increased 50 per cent. within the last five years, notwithstanding the destruction by war in the Southern States, and without taking into consideration the increased values caused by an inflated currency. This would give the value of the real and personal property as follows:— December 31, 1865, at $18,846,188,258 $1 currency for $30 in property would give currency 628,262,752 Amount of present circulation, as above 728,651,323 Making a reduction of $100,388,571 "A gradual reduction of this amount of currency in the year 1866, allowing for the annual increase of property, would bring us down to peace prices, and would give us an ample currency for all manufacturing and business purposes, and for the develop ment of our country, without making money either too cheap or too dear, or disturbing the relative value of property and money.
"It will also prepare the country for a resumption of specie payments after another crop of cotton is raised, without destroying values or causing much disturbance in money matters, with the tariff adjusted according to the foregoing recommendations.
With the State bank currency removed, and all our currency national, based on all the property of the country, there would scarcely be an ignoramus found who would run a bank when his paper dollar is equal in value to a gold dollar.
"The State bank notes will be taxed out of circulation after the first of January, no more legal tenders will be issued by Government, and Congress will have to increase the volume of national bank currency to take the place gradually of the withdrawal of State and national currency. In doing so, they can fix the limit proposed for the issue of paper currency in connection with the present Government currency, on the basis proposed; and if Congress should hereafter provide for the gradual funding of the Gov ernment issues, the same law provides for the increase of the national bank currency up to the limit fixed. When the period for resumption arrives, and all the channels are gradually filled up with coin below one dollar, which would give an addition of coin of about $30,000,000; and eventually below $5, which would give coin to the amount of about $120,000,000, the issue of national bank currency could be suspended during this process, except so far as to equalize the amount due to each State, until the vacuum caused by the withdrawal of fractional currency and the issue below $5 is filled up.
"High prices, of course, require a larger volume of currency to transact the same amount of business than if prices were low. But lower prices would not affect the pros perity of the country, but rather increase it, by the stimulus given to industry in the increased consumption of the country ; and, notwithstanding the clamor of speculators, non-producers, money-changers, and shavers in favor of an inflated currency, the great mass of the producers and consumers will demand a gradual reduction to a specie basis in our currency as rapidly as prudence will permit without deranging values to too great an extent; and this can be accomplished better now, with small stocks on hand, than at any other period. The recent remarks of the Secretary of the Treasury on this subject meet the approbation of the business community and the public generally.
"Currency questions are generally intricate, confound the minds of those who have not given much thought to the subject, and are difficult to understand; but this plan, which covers the whole ground and controls the whole question, is so simple that any legislator, of even ordinary abilities, can easily comprehend it.