Mr. Perry to Mr. Seward
Sir : A miserable copper currency was put in circulation last spring in this regency despite the earnest protestations and warnings of consuls and merchants. The desire for immediate gain prevailed over the fear of ultimate loss; or, perhaps, I should better say, that ignorance of the laws which prevail in monetary affairs was the grand cause of this change. The Bey supposed that his authority was sufficient to regulate the value of his coins, and with this belief he made a bold experiment, even imprisoning those who refused to accept his spurious metal in discharge of their debts. Foreigners at first withstood this change of copper coins, but were soon compelled to yield to the usages of the country or to have no further business transactions.
The intrinsic value of this new coin thus forced into use is, I am assured, only one-sixth of its assumed value. Its depreciation commenced on its introduction, despite the threats and violence of the government, and has continued, in disregard of all arbitrary rules, varying from 10 to 300 percent, discount.
The consequent confusion, disorder and strife, have become fearfully great. Contracts which were made for grain, olive oil, and other products of the country, to be paid for, according to usage, in copper, have been disputed and brought before the courts for adjustment. Business is essentially injured, and embittered feelings are engendered on every hand. Those that have money fear to employ it in business lest they may be cheated out of it by some trick or indiscretion of the government. Laborers and poor people are reduced to a state of distress for the want of bread and oil, and I am assured that many cases of actual starvation have occurred and will continue to occur without some radical change of policy on the part of the government.
This spurious coin, in connection with the famine, the evils of which it aggravates, is causing some very deplorable results. Robberies and murders have commenced, as at the last breaking out of the rebellion in 1864, and a few days ago this city barely escaped a serious émeute planned by some cutthroats of Europe, combined with Moors, shouting for bread and oil. The Bey was visited by the consuls and steps were promptly taken for the sale of bread and oil, and a strong police force was established to maintain the peace of the city.
Now, the importance, if not the necessity, of getting rid of this copper coin, or of reducing its nominal to nearly its intrinsic value, is acknowledged by all. The only question is, how to do it? The government gained a million and a half dollars by its introduction, thus relieving for the time a pressure upon the treasury. But private speculators, it is said, have been as sharp as the government, coining this money, smuggling it into the country and making great profits; so that now the restoration of the currency to its normal state would incur a loss not alone of the million and a half dollars which the government put into the treasury, but of nearly as much more gained by enterprising speculators and smugglers. Thus has this pitiful measure to replenish the public [Page 104] treasury by indirection resulted in a great loss and injury to the best interests of the government and country. And how the evils are to be obviated is still a problem not easy to be solved.
Very respectfully, your obedient servant,
Hon. William H. Seward Secretary of State, Washington, D. C.