Bedford inquirer and chronicle. [volume] (Bedford, Pa.) 1854-1857, 1856-06-27

cunning medium, that we may Know whether
there is an excess; and, second, does paper
necessarily create an expansion, or unneces-
sary enlargement of the currency, that we
may judge whether it ought to be abandon
ed. These matters, which are assumed are
precisely what ought to be proved. The
Senators assume, as evident truth, what is
not apparent. They affirm that paper be-
comes redundant, excessive and inflated. -
But they do not attempt to establish the
fact by any proof, since the FIRST of Jann-
airy, 1898, our circulation has not exceeded
one hundred millions; ii may, at some peri
ods, have reached one hundred and twenty,
inclusive of metal aud paper. Is this ex-
eessivef Has it reached point above the
urgent necessities of business for two years
pasii Ifit has, how much is enough2 Some
days ago put this inquiry distinctly to the
Senate, aud it remains, aud will remain,
unanswered. If it can be proved that we
have too much, it is not difficult to ascertain
with sufficient exactness, what amount Is
necessary. | desire Senator'S to make
known the process by which they arrive at
their conclusions in so vitality an important
matter. They seem to take it for granted
that there is no evil but expansion to fear;
while nothing is more certain than that too
small circulation medium works out as
great, if no. greater injuries, than one too
large.
We have heard much defamation about
bloated credit, gambling and speculation,
but ii the existence of all these were estab-
! lished at This moment by unquestionable
proof, it would have little tendency to estab-
lsh the fact of excessive circulation, for
they have no necessary connection, but each
may exist independent of the other.
VIII the Senators maintain the proposition
that paper cannot and has not circulated
without imitation or excessive credits in
trade generallyl 60 further, and ask him
if excess is anything more than an occa-
sional occurrence, growing out Of markets
qu;ekened into activity bJ events rather
casual than permanent Is there any cx-
cess of paper in the casual course of busi-
ness from sound Banks who redeem and are
able to redeem their rapcr at sight, dollar
for dollar, in metal, Its not easy to see
how excess ever exists under such circum-
stances. | can 20 to-day INTO any Bank in
/ Boston or New York, and draw out doi-
| lar with the same amount of paper, and that
dollar is as good, and will buy as much in
France or Germany, as any dollar there
The paper, then, is clearly worth as much
as the silver, for it buys it. If the paper
of banks is maintained at this value, and
so redeemed Mt all fines, it is not easy to
comprehend how it is inflated, or that more
! is IN circulation than is needed for use. The
! idea of initiation presurposes some unsound-
ness. All money, metallic as well as pa
per does and will auctuate in value, and, If
this be imitation, then gold and silver is no
more exempt from it than paper. 1t is by
no means easy to determine which auctuates
often-times, money or property. Cotton Is
forty dollars bale to-day, Tomorrow IT IS
thirty Eve, and next day forty-fve; 1t does
not follow that the cotton alone has finctu-
1 ated. or that it has huctated at all: for gold
and silver may be so abundant as to depfess
the value of property, or so scarce as to
raise it. 1t is every days occurrence to
find gold and silver fuctuate IN value, COM
mandine at one time premium, aad ;hen
none. nav. under some circumstances, fall
ing below good paper. No matter what we
have for currency, there will be fluctuations
IN its value greatly affecting trade, as a cir-
culation medium Of uniform amount cannot
be maintained any more than you can limit
business to an exact amount.
This all proves what seems not to be well
understood, or Senators would reason differ
{ ently--that there is but one way to deter
. mine how much circulation is necessary. II
is impossible to ascertain how much money
may be necessary for each member OF the
! Senate for the current year, and It Is equal
, ly impossible to anticipate the wants OF the
great public. The question is left, there
fore, to be settled by the laws of trade. as
all other matters of business. We learn
how much -four aud corn are required annu-
, ally, by the demand for them. just SO W.
learn how much money is required to carry
j forward business, BY the ability OF men e
buy it. So much is necessary, be thu
, amount great or small, and in growing
: country It would be just as wise to limit tht
amount Of produce as the amount Of none
tary capital. Surely nothing can be more
absurd than to attempt to determine thf
t amount without reference to the exigence'
to the country; to say that o0,oOo,Voo o.
any other arbitrary amount, IS enough
1 -. hsTt tNsr