feasible, which we should be glad to see tested by the government in the first issue from the National Department. The bank teller detects the worst alterations from association, and if the chief engraving of a note is well remembered he will not be deceived. If, for instance, the vignette of the one dollar note is known always to be an engraving of the Monitor, the first glance at the engraving will convey to the mind its value, let the apparent denomination be what it may. In engraving a set or series of bank notes, the vignette and every engraving on the one dollar note should uniformly consist of one and only one prominent object, and the two, three, and five, in like manner, always of two, three, and five prominent objects, and no matter what these objects may be, if they are always uniform in bills of the same denomination, the poorest judge of money cannot be deceived with regard to their value. The portraits of the first five Presidents or Secretaries of the Treasury, of five gold dollars, and hundreds of other devices, may be so designed as to beautify the national bank note, and at the same time to indicate the denomination.

As the eagle is the sobriquet, the nom de plume of the ten dollar gold coin, an engraving of an American eagle should always represent the ten dollar note, and a device of a double-eagle should represent the twenty, while larger designs of public buildings or from historical paintings should always be found upon the notes of larger denominations. The border of the one dollar note should be narrow and its designs small, while those of the two, three, five, ten, and twenty should gradually increase in size, that for the fifty cover one-half of the length of the bill, and that of the thousand dollar note cover its whole extent; and every engraving, whether large or small, at the end or upon the border should indicate the denomination, until to alter a note will be to deface its whole appearance. With beautiful designs, thus gradually increasing in size, the engraver may produce a new series of bank notes, and by association hereafter prevent all alterations.

The first uprooting of the present system of the issue of bank notes by the different State Legislatures, and the establishment of the national system at Washington, which shall include the uniformity, the safety, and the convertibility of all currency, together with the certainty that hereafter the amount shall not exceed the debt of the general government, will form a new era in the history of the country. The blood which circulates through the whole system of finance will be comparatively pure; the machinery of business now retarded by friction, will buzz as under the influence of the most perfect system of lubrucation, and by its increased facilities, a large part of the cost of the present rebellion will be returned to the people during the next half century.

The fact that one-half of the currency of the Union is now discredited, that the present exigency and needs of the government will justify the taxation of all bank notes now in circulation, and that the people in the midst of the derangements of the times are more than ever anxious for a change, make the present the time when the Congress of the United States should place under the control of the government, the issue of all bills of credit, as was originally contemplated by the Constitution.

THE CURRENCY.

BY A. W. STETSON.

"THE currency" is a subject of vast importance; but, woven and interwoven as it is, into the whole fabric of social organization and life; its alluring prospects, tempting offers, and seductive charms, often beguile the unwary, while its varied and complicated effects insiduously lead reflective minds to form erroneous opinions in reference to it.

There are, however, some facts relative to paper currency which are well established by past experience. 1st. History records the fact that paper money has been tried in almost every country, and has in every instance and every where produced mischief. 2d. That neither State nor Bank has ever had the unrestricted power of issuing paper money without abusing that power. 3d. That no authority, however absolute, can ever succeed in fixing the general ratio of value. 4th. That the expansion of the volume of a national money, whether of metal or paper, is sure to be followed by a dilution of its value. Yet, notwithstanding these, generally admitted truths, the issue of paper money by government in emergencies is absolutely indispensable and justifiable to prevent much more disastrous results, provided it is placed under proper restrictions and limitations.

Our able Secretary of the Treasury, under the force of circumstances beyond his control, was obliged to recommend and to issue paper money to a limited amount; but now, as is evident from the whole tenor of his report, sagaciously discerning the disastrous tendency of a further issue, wisely recommends a resort to other methods for raising a loan. Secrery CHASE says, clearly and emphatically, that " a further issue would be as injurious as it would be easy;" the addition of so vast a volume to the existing circulation would convert the currency into a positive calamity. Its consequences would be a large diminution of exports, inflation of prices, increase of expenditures, augmentation of debt, and ultimately disastrous defeat of the very purposes sought to be attained by it."

Never were more truthful words uttered, or words more worthy of the thoughtful consideration of the American Congress. Nothing is more essential to the welfare and prosperity of any country than a well regulated and uniform volume of currency. Let the currency be disturbed by inflation or diminution, and a violent dislocation of money prices, of stocks and commodities will inevitably occur. The whole fabric of soci ety is shattered, and people's ideas of value become confused and deranged, whereby knavery obtains advantage over honest simplicity, the debtor over the creditor, and the rich over the poor. When we say paper money is depreciated, what do we mean?

As ́I understand it, we mean it has fallen in real value, from a fair and nearly uniform standard of value.

The acknowledged standard, the world over, is a metallic currency, not only because of its intrinsic worth, but because of its uniform and almost invariable value as compared with any other ccmmodity. How is it with

paper? It has no inherent value, and is only worth the amount of that commodity for which it is exchangeable. No one will pretend that any legal enactment can make a piece of paper worth a dollar. The Continental dollar always passed for a dollar for the first issue, until it took one thousand to buy one of gold. So that however great may be its depreciation, an intangible standard of value never changes its name.

Now, as a paper dollar is only a nominal dollar, so long as it is the legal tender and currency of the country, it must and will pass for a nominal dollar; therefore, if we wish to ascertain the fair estimate of its value, we must calculate it by the value of the articles which we can exchange for it, or in comparison with gold and silver, the universally conceded standard of value.

Before entering upon the subject of depreciation, I desire to say that I am not one of those who would depreciate the currency from any personal, political, or theoretical motives; but, as a firm friend and supporter of the government, confident in its stability and eventual ability to meet all its obligations, I wish to express my convictions relative to the currency, in order to elicit the precise truth, and bring out the facts prominently before the public. If, owing to the present issues of paper, the currency has been inflated and consequently depreciated, the people ought to know it, even if it should affect their national pride. It is vastly better to admit the fact of depreciation, if it be so, than be deceived ourselves, and attempt to deceive others; for, instead of hugging the delu sive phantom of legal fiction, admiring the beautiful proportions of the magnificent bubble, and crying for more, we should then promptly and cordially sustain our sagacious Secretary in his endeavor to prevent the larger issue of paper money by the government, and frown upon all leg! islative action which would interfere with, and destroy the monetary equilibrium.

That the depreciation of paper is, as many assert, wholly owing to the inflation of the currency by the over issue of legal tender notes, I deny ; but that a large portion of it arises from that cause, I fully believe.

The Hon. Secretary in his able report, labors to prove that the currency has not been much inflated, in consequence of the demonetizing of gold; but his figures do not justify his conclusions.

For instance, he makes the increase in the volume of the currency, after deducting the gold, about $22,000,000. Whereas, if we include the increase of bank deposits, which constitute a part of the currency, and which, as the Secretary says, answer very many of the purposes of circulation, we have an increase of the currency, amounting to $102,000,000, viz.:

Showing and increase in the volume of the currency of 16 per cent, which in connection with other causes, viz.: the fear of further issues, and the lack of confidence in the power and stability of the government to fulfil its contracts, have operated silently, but forcibly, in causing the gradual depreciation of paper, and consequent rise of gold.

Our currency may be compared to a sea of values which has no outlet, excepting that which may be formed hereafter by public confidence. in funding it into 5-20 United States bonds; consequently the more that flows into it, the higher prices will rise, on all values, until the equilibrium is restored, and the prices of all commodities are brought to the new level.

I maintain that this inflation acts quite uniformly on the prices of all commodities or values, entirely irrespective of, yet in conjunction with the law of supply and demand. For instance: take the two articles of cotton and pork. The law of supply and demand has operated upon these articles conversely. Cotton has advanced from ten to sixty-eight cents per pound, while pork has declined to $2 50 per barrel.

Now, I hold that the depreciation of the currency is represented not only in the enhanced price of cotton, but also in the present price of pork. For in consequence of the immense supply of pork, and the very limited demand-arising from the Southern market being cut off, and other causes the price of pork would have been much lower than it now is, had it not been upheld by the depreciation of a paper cuffency-and cotton instead of selling at 68 cents, would be selling at about 50 cents.

Let us see: We are a producing country-cotton, wheat, flour, corn, and pork are among our exports. Yet, notwithstanding this fact, these commodities are relatively 30 per cent higher here than in England. That is to say-a laboring man in England can buy our production very much cheaper than we can-simply because our legal dollar is a depreciated dollar, and passes nominally for more than its relative worth. When we approach the real truth, we shall perceive that these productions move out of the country at their real value, and not at their fictitious value, as measured by an inflated or depreciated currency. What that depreciation is, cannot be accurately stated, because the depreciation is not fixed and permanent in its character, but liable to fluctuation from various causes. I am of the opinion, however, that although the premium on gold may not measure the exact depreciation of the currency, it will be found to bear a close approximation to it.

It is said that gold is demonetized, and is become an article of merchandise, subject to the ordinary fluctuation of supply and demand, speculation, &c. If this assumption is strictly true, why is it that the rise and fall of the premium on gold invariably affects the price of all our exports and imports!

As far as I am informed, no one article of merchandise can, or does produce that effect upon every other-therefore I think the assumption false.

How does depreciation affect our imports? Coffee, tea, molasses, sugar, spices, fruits, and hides-which enter into ordinary consumption—are not only subject to an additional duty, which is cheerfully paid, but in addition to that, consumers are obliged to pay the full premium on gold—the most, if not all of which is the actual depreciation of the currency.

This depreciation is not exhibited in the prices of commodities alone, for if we take up the stock list, we shall find the same reality there.

For instance: It will be noticed that government stocks have held at about par, while the prices of nearly every other tangible security have been greatly enhanced.

Hence, we see that government stocks have virtually depreciated, otherwise they would have advanced pro rata with other prime securities.

The government paper dollar, legalized, will pass, of course, for a nominal dollar; but when exchanged for any commodity, its actual or real value comes into consideration, and not its legal character; therefore, if we are obliged to pay a larger price for any value in consequence of its legal character, that amount is really the amount which paper has depreciated.

Gold has its intrinsic worth, and no more; any premium which buys it is therefore properly chargeable to the depreciation of paper at the time of the transaction.

The variability and fluctuation of the value of our currency is owing, in a measure, to the same causes which affect the government stocks; and when confidence is fully restored, the immediate effect would be the funding of legal tender, a decline in the premium on gold, a rise in government stocks, and a general fall in the prices of all stocks and commodities. Then we shall have a return to a sound, healthy, and permanent circulating medium, which is of such immense advantage to society. Now, it is the duty of all to strengthen the finances of the government by every means in their power, and to oppose strenuously any further issue of legal tender notes, which have the tendency to create confusion, disorder, and disaster.