"A NATIONAL CURRENCY:" CONFIDENCE ITS BASIS. FREEMAN HUNT, Esq., Editor of the Merchants' Magazine, etc: SIR-Allow a constant reader of your valuable journal to offer some reflections upon the above subject. Though much debated, yet the many opposing theories thereon show how little it is understood. Some insist upon "a metallic basis," some upon "credit as a basis," while a late writer, N. F. C., in your journal, vigorously pushes forward his own favorite theory of "A National Currency: Real Estate its Basis." The first of these is no doubt a substantial basis, the second, with perhaps some support, is a very essential one, while the last, contradictory as it may seem, is not a real one. The views of Dr. Hall on this subject are well worthy of the attention of your readers, being clearly laid down, his elucidations being much to the point. The theory now offered is not proposed as a new one, but merely as the placing of the ideas of others in a tangible form, for in it nothing absolutely new is asserted, nor will it disagree with the ideas or opinions of any. N. F. C., in his paper, first pours a broadside into the banks, (well merited,) to whose parlors he traces the late panic in the money market, which appeared without notice and without apparent cause, for the country was everywhere prosperous, and the panic chiefly confined to the city and its immediate dependencies. N. F. C. then proposes that the money-making power should be taken from the banks and put with the State, that the basis of these issues should be the real values, or real estate of the country, that the State should give the owner of productive real estate money in "State notes" equal to a certain valuation on the real estate, taking a mortgage as security, without interest-the valuation to be made by "a board of value," and the sum loaned should never exceed the policy of insurance, the amount of which policy should be the touchstone of value. Now we have to inquire, Will these State issues have any more substantial basis, though it may be real estate, than “bank-notes”—is not real estate as fluctuating as other values? Can real estate sustain a value put upon it (against reverses) by this board of value and insurance policy or is it the indorsement of the State "bearing the proud name of Pennsylvania, New York," or Missouri, that is to sustain it against depreciation! (PENNSYLVANIA credit once fell to 37.) Real estate is valuable like everything else, only in proportion to the uses to which it may be applied, and like everything else depreciates in times of panic. Who is there who does not know of real estate which has depreciated 75 per cent, and of insurance policies on which, after a loss by fire, payment even of 50 per cent, on a just and bona fide valuation of damage, has been stoutly disputed, and that too by the most RESPECTABLE companies? There is a specu lation in real estate as well as stocks, and a much greater uncertainty in its value. See what vast changes have taken place in value of real estate even in this city of New York in the last few years; depreciation in some situations, increase in others. Who has forgotten the condition of real estate in 1838 and 1840 houses vacant, and stores to let. Value of real estate and business prosperity rise and fall together. If this is so, and that it is so no one can deny, upon what must these State notes depend for their value but State credit and what is that worth in hard times? Then the notes will certainly come back for redemption. Redemption in what? real estateor gold? Whether they are backed by real estate or not, the only way to give value to these State notes is to induce the community, and the world at large, to believe they have equal value to gold, or to beget confidence in them, for without confidence, in a commercial point of view, there is no real value in any thing, except such things as are absolutely necessary to our existence. Water and air exist everywhere, and can be got without labor, therefore they may be said to be without value. Bread to eat and clothing such as is necessary to keep us warm cannot be bad without labor, therefore they are of value, they have intrinsic values. Bread may increase greatly in value, but does not depreciate greatly in value. One country being at peace while the rest of the world was at war, would of course alter the relative value of things very much. But in a state of general peace, if there should be once established a general confidence in the commercial circles, there would be a great increase of value both in commercial things and real estate; but once destroy that confidence, and real estate will fall as rapidly as other things of value, and the absolute necessaries of life would fall less than real estate. In fact, the value of real estate depends on the general prosperity of the country, and the foundation of THIS can always be traced to confidence. Upon this also depends a merchant's credit, for let his wealth be what it may, if the commercial world have no confidence in his business ability, his industry, and integrity, he can get no credit, and so with corporations and communities of all kinds. Upon this is founded the progress and prosperity of the great city of New York; the promptness, ability, punctuality in meeting engagements, fear of dishonor, and great energy of this business community are known all over the commercial world. By these means New York might gain so reliable a basis for its currency, that if it only so restricts its issues as to keep within bounds, and not get to overtrading, she may become before many years the regulator of the money markets of the world. The misfortune, however, with this theory is, that when once a community has acquired such a basis for its currency, if it should be without restrictions, credit becomes so expanded, and there is such a vast issue of promises to pay, that overtrading follows, which brings about, at the will of the banks, a curtailment of credits, panic, and collapse. This is an evil, but it is an evil which belongs to every currency. It is one, however, which can be guarded against, and here the State may do some service, not by making issues, but by passing laws which will prevent them. Until the State does step in we never can have a secure basis, not even if that should be real estate or gold. Establish confidence, but not unlimited credit and issues. Now this, it ap pears to me, can only be done by putting in force the old fashioned Democratic doctrine, responsibility of Bank Directors, by requiring security, or making them individually liable, or some such restraint; and in place of overtrading and panic we will beget CONFIDENCE. THE DIRECTOR OF THE MINT ON THE GOLD COINAGE OF THE UNITED STATES. The following letter from the Director of the Mint at Philadelphia to the Treasury Department explains itself, and fully disproves the complaints which have occasionally been put forward from Europe of a want of uniformity in the value and fineness of the gold coinage of the United States: MINT OF THE UNITED STATES, PHILADELPHIA, April 2, 1852. SIR: In the Appendix to a Report relative to coinage lately made to the Senate by the Hon. Mr. Hunter, Chairman of the Committee of Finance, I find two letters from the Hon. Abbott Lawrence, our minister to England, one dated December 13, 1851, the other dated February 19, 1852, in which assertions are made tending to discredit the accuracy of the assay of the gold coins issued from this Mint and its branches. The statements made are so injurious to this department of the government, and indirectly to the government itself-and are, moreover, so entirely at variance with the facts as officially ascertained by me, and heretofore communicated to the departmentthat it becomes a matter of great regret that they should have found publicity and apparent countenance, in a document of such authority and importance. I feel it to be my duty to seize the first opportunity to make a concise statement of facts bearing on the subject, from which you will perceive that the highest credit is given to our assays in London and Paris. 1st. In a statement prepared at the French mint, it appears that there were deposited there, for coinage, in the year 1851, over seven millions of dollars in American gold, of every denomination, which were received at the standard of assay required by our laws, viz., 900 thousandths. 2d. By a circular of the Bank of England, dated February 4th last, American, French, and Dutch gold coins, are purchased by weight at the same fixed price. The standards of fineness in the gold coins of those countries being the same, it follows that the assay of American coin is held in the same esteem as that of France and the Netherlands. 3d. Dr. Joseph W. Farnum, of the United States, now in London, who possseses unusual facilities to obtain information on the subject, in a letter of April 7, 1851, writes as follows: "A few days since I had an interview with Mr. Hazzard, the chief of the bullion office of the Bank of England, who informed me that the results of the assays of United States coin were more uniform than those of any other coin received by the bank, not excepting even their own. He showed me the reports of more than one hundred assays of United States coin, giving one uniform result of W. 18." This is the fraction by which coins of 900 thousandths fine would be reported by the bank as says. 4th. The same correspondent, in a letter of November 26th last, states that Messrs. Sharps & Wilkins, and Messrs. Butt, Son, & Co, bullion dealers, of London, report, that the assays made for them of American gold coin averaged W. 1, corresponding to our standard. He adds: "These latter gentlemen, Butt, Son, & Co., to-day inform ed me that they believed the American gold coin to be more uniform than any other, with the single exception of the Russian." 5th. In consequence of the large fraction used in reporting assays for the Bank of England, (namely, the eighth of a carat grain or 1 3-10 thousandths,) a very minute variation from our standard of 3-10ths of a thousandth, causes a report a fraction below W. 1, viz., W. 14; which could not be the case if a small subdivision of assay were made use of, say one-sixteenth of a carat grain. From the same cause we, on the other hand, gain no advantage if our coius are slightly better than standard. I had occasion, a short time since, to make some remarks upon this point, which were submitted to Messrs. Mocatta & Goldsmid, melters to the Bank of England. In their reply they concede that, by the present custom of assay for the bank, a variation from the true quality might be reported; and they add that, if a more minute subdivision of parts were made in reporting assays of gold, they "think it most probable that the average quality of United States coin would be found quite up to the legal standard." I think no further evidence can be necessary to show the entire credit given to the assay of the coins issued from the mints of the United States. Other statements could be furnished corroborating this fact, but they are withheld. Very respectfully, your obedient servant, Hon. THOMAS CORWIN, Secretary of the Treasury. GEO. N. ECKERT, Director. STOCK SECURITIES OF NEW JERSEY BANKS. A STATEMENT OF THE SECURITIES HELD BY THE STATE OF THE BANKS ESTABLISHED UNDER THE GENERAL BANKING LAW OF NEW JERSEY. Mr. Bourdelon, State Auditor, in his report on the receipts and disbursements of the revenue during the years 1850 and 1851, gives the details of the State debt as follows: Of the trust funds the largest item is one of $479,919 14, due the Government of the United States, it being received by Louisiana under the deposit act. The seminary funds in the hands of the State amount to $120,038 14. Of the trust funds, $756,411 are due on demand, and the rest of these fall due at different dates between 1855 and 1872. COMMERCIAL STATISTICS. COMMERCE AND NAVIGATION OF THE UNITED STATES IN 1850-51. PART 1.-COMMERCE. The Annual Report of the Secretary of the Treasury, transmitting the Report of We now proceed to record, in the pages of the Merchants' Magazine, the tabular VALUE OF DOMESTIC EXPORTS OF THE UNITED STATES. SUMMARY STATEMENT OF THE VALUE OF THE EXPORTS OF THE GROWTH, PRODUCE, AND The crowd of valuable matter prepared for the present number of the Merchants' Magazine, VALUE OF DOMESTIC EXPORTS TO EACH FOREIGN COUNTRY. Prussia. 5,152 75,317 80,469 80,469 Sweden and Norway Swedish West Indies.. 821,957 |