New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1848-08-09
VI. Proudhons. Plan Of Currency.

project Of Banking and Currency, which naturally
attracts much attention aud is destined, If adopted
10 produce vast results for good or evil Believing
that it contains the germs OF benehcent reform
we give place to synopsis Of it which we find IN
the Pans Correspondence Of The Chroaofyps VIZ
At present the standard Of value IL gold and -isei
coin This rules the world with fatal tyranny tna,
tyranny must be destroyed. How sha this % ~ L.
BY making the actual product OF the inousti! ~ "a
country the basis Of lie cireuistionf L' -.
make this idea Of NJ PrOudhons Gear - YOU ~
for il is fruitful one and as good IN We" anu a.
IN France ,,L...,s a.. thousand
-uPpO' e .,r sboernaker. blaeksmiths, msnuisc-
80 Rcsboud combine % form BANK Of *
chance each pledging himself to the others iGr tne
payment Of IL notes that Is 70 iake mem pa 49,
| estsbIshed A and B apply for discounts and IN ex-
change for their notes, properly guaranteed, receive
the notes Of the bank alter dcductnz the discount,
an amount sufficient TO meet the expenses 81 the Dak
Here Proudhon would have the bank which should
he the sole bank the country, though formed BY indi
,iduss under the surveillance Of the government ana
also when All things prepared its agent for the
collection Of the revenues necessary for ~ support
These revenues Il would collect IN the shape Of an ad
dton It's rates Of discount which a. the opeTauos
Of the bank would represent only the actual product OF
the country. would be equivalent 70 dTec tsN o VI
current product 10 the amount Of the current expen
diturcs Of the Govenmeut) But 70 recur 70 our mus
trstiOn and receive the bills o. tne oSiA ~
exchange for their own securities IhDee Dlis ~
not promises 10 pay mucn specie on PiesscnSra
ton al the counter OF the bank they are slinPy
me promises Of each of the thousand Ineihoers VI
the bank indorsed By al the others 70 Poy ~ ~
dasfrai products the value they represent among the
thousand members they circulate and except 70 pro-
cure such articles as they wish that are not produced
BY any Of the they discharge all tne functions
before filed by gold and silver or common pans noes
By-and By the people in the neighborhood discovering
that the bills are good for articles OF which Trey stand
In need begin to take them In the course ei things
new members into the bank in order 70 ENJOY the
advantages Of us discounts which are only maoe 10 mem
hers the bank not being money jobbne concern Jul
only the agent Of the community 70 facilitate me eN
changes Of its products. Gradually It extends u al
last there is branch in every town in Massschnseus
then il spreads into other states and hnay the system
| Is extended over the whole country. The wider inc
territory combined under the better Of course ior nen
greater variety Of products are prOcufaDe ny te hov
Of the hank When il covers a whole country It's bills
viii begin 10 have a value abroad, for then All VINO
wish 10 procure the products OF the country Will
take them. From one country the system goes 70 an
other til at last all civilized nations are united IN hs
vast scheme Of reciprocal credit specie then ceases
entirely 10 be the standard and agent OF exchange and
the precious metals fall 10 their actual value as objects
Of consumption.
What are the advantages of this systeml
Instead of artificial currency which has no hXed
proportion 10 the actual production Of country and Is
liable 10 al sorts Of fluctuations should nave cur
rency representing actual productions and liable TO no
irregularities We should then have no such thlng as
ertradng balance Of trade against US panlcs ana CT
ses How could we Oyertrads when we bought no
more than we paid for the spot with products OF our
own How could the balance Of trade be against us,
when we gave promises 10 pay anything except
something had raised made, aud had ready to de-
liver The we had to pay the better Tor 70 pay
would be simply give what produced Tor what we
consumed and would indicate the greater comfort ana
elegance of our style Of living We should never have
20 sell ourselves 10 the mOneychangers and usurers ID
order to get the specie TO pay our debts with when al
the while we were rich in the fruits OF the earth or OF
mechanical industry.
There would be no more panics, because there could
scarcity Of the circulating medium there
would be more expansions and limitations oil anars'
such as now take place when the banks discount very
largely above the specie they have on hand because
tine circulation being based the industrial product OF
the country and the bank never issuing more than the
country produces never promises to pay more than
the country IL able 10 pay
Now, are these bank notes paper money Are they
even bank notes in the ordinary sense OF the word
No. says Mr. ProudhOn They are simply bills OF ex'
change falling due at the pleasure of the holder drawn,
accepted and endorsed by every member OF the bank
Bank notes based on specie he says, represent mo
narchics and mOnopolizng commerce the plIs OF tns
Bank OF Exchange represent equal exchange and true
commerce "This," says he, is the idea which all the
economists have pursued who sought with such oosu'
macy 10 solve the problem OF circulation and OF credit
but in always taking the precious metals for the stand
ard of value and in resting now on the soil and now
the they have done nothing than to create
paper money under one disguise or another, and thus
they have simply organized bankruptcy
Finally we should have a currency good everywhere,
having all the cOnvoniences OF specie paper money and
bills OF exchange, without the nconvenenees OF either
NJ Proudhon is leader of the Advanced or
Social Democracy of Paris, and favors Govern
ment interference with the rights of property
virtual though limited confscation. 1t is quite
probable that his project viii on this account be
rejected without thought by the Assembly
though it ought not to be. A plan very similar to
this has been set forth through our columns, in
pamphlet and otherwise, by Godek Gardwell,
an experienced merchant of our City Kindred
suggestions have from time to time reached us
from other quarters. These ideas will ultimately
force themselves upon public consideration.
1t is remarkable that the Progressive Democra
cy of France and that which aspires to the like
distinction in this country at direct issue on
nearly every element Of practical legislation
The anti Tariff Hard Money sntPublic Works,
LaisSe- Fare notions of our seli-styed Democra
cy have scarcely an adherent among the Progress
ives of France. Indeed, these latter are far on
the opposite tack and, instead Of haunting the
People with an inclination to expect too much
from Government, they are inclined to expect
more and demand more than has ever before been
required of any Government. They have reflect
ed ON the subject, and are entirely untrammeled
by party traditions and party necessities. Can
the same be said of one Progressives