, 1861-06-25
FINANCIAL NOMENCLATURE.

l
The plea for the integrity Of language,
in protesting against the misuse Of the
term par funds, is Of great significance.
The power Of an idea is overwhelming.
It is to the power Of the false idea that
debt is money, that Illinois owes the pres
ent confusion IN her financial affairs, and
tie world the era Of debt in which We
live. Had the people Of England COM
pretended the truth at the founding Of
their National bank, that the seige OF
Namur would be paid for out of their |
earnings during the year, IS efectua]ly, in |
the money-gold and silver-transmitted
to Flanders for that object, as il no Bank
Of England notes were created and substi-
tuted for it, and the sum required had been
obtained by direct taxation there would
have been no occasion for the Bank Of
England, nor for the British National debt,
nor for the huge mass of public and private
debt then and thereby inaugurated, that
presses Like an incubus upon the CONNER
cial nations. What stupendous folly it
was to build up 3 straw corporation to
pretend to take up government loan
when they had not shilling to do it with;
permitting them to substitute moonshine
for value; send away the peoples money
and put their debt drawing interest in its
p1aces All this was accomplished by
calling Bank Of England notes money, and
making the people believe it Precisely
the same thing has been done by Illinois
and many Of the other States Of the Union
To this atrocious violation of language is
due The cankering anxiety in financial af-
fairs, and the cruel bankruptcy, which poi
son the commerce Of Europe and America,
more or less, according to the degree Of
expansion of the debt currency every
where. Illinois has pushed this thing to
The expulsion and absolute loss to her citi-
zens Of almost every dollar Of capital be-
longing to her currency; n other words,
almost every every dollar Of her money !;
by which operation she has ruined the
debtors within her borders, and cost the
nation as well as herself q heavy loss Of
gold and silver in the substitution Of debt
for capital
II the Chicago public permit the term
spar funds" to become fixed upon such
paper currency as will be accepted in re-
tail transactions, because it can be con-
Verted at per cent discount it will next
extend to 2 per cent, and then to or s
per cent discount, or anything that ira
der will accept rather than miss sale,
till finally the purchaser for gold will re-
quire q premium on it, and there will be
no such thing rs par funds in the city.
People will imagine the gold to be above
para preposterous idea once seriously
entertained under similar circumstances in
England. The currency will thus become
demoraljzed end depreciated again, and We
shall lose the favorable opportunity 1e
now possess to establish an absolute specie
medium Of exchange. Such is the power
Of an idea, and the necessity for faithful
nomenclature in reference to money ant
currency.
The only possible couector and pro
tector Of the currency is BULLION BASE
"a thing that declares its purpose in it:
name. Doubtless this will meet with ont
prominent objection from those who have
never given the subject any scientific at
tention, i. C., the specie in reserve, to cove
undrawn leans and circulating certificates
will be considered idle. Many an anxiou.
1oxT ~-f11 Al hat ~t>r - $,3r
il done him in Withholding it from tb
public. All We need say in reply Is, tha
- thepublic possessit it; the specie 30 reserve
no longer belongs to the bank funds;
belongs to the borrowers and others hold
ing the credit and certificates, and it mus
be kept from them at any cost, OF It vii
be thrown away and lost by the commu
nifty in expelled capital, ultimately Grip
ping the needy borrower all the more L
the absurd attempt to accommodate hitr
There must be no mistake about this, fo
it is precisely the point in question betwee
thetwo systems Of debt banking and none
banking. It is 10 the fallacions public opi1
ion that the people can eat their cake an
hate u TOO, in money affairs, that the Ban
Of England owes lis existence: and the III
mitigated heresy that It economises the III
ofgold and silver, has cost the world mo,
wretchedness than any other idea afIectiu
the civilization Of mankind. It is Ada,
Smiths great teresy; he says: 1The SUI
sututien Of paper in the room Of gold AZ
silver money, replaces very expensivei
strumezt Of commerce with one much le
=, costly, and sometimes equally convenien1
And among the expenses peculiar to
bank he includes, ''the expense Of keepir
at al times IN its coaers, for answering Il
occasional demands Of the holders Of
!. notes, large sum. Of money, of which
loses the interest,"" Both these ststemen
ara: unqualified. mistakes, and had b
--smith written -after- the suspension Of IA
ment by the Bank Of England in 1887,
): would probably not have made them
20, this matter Of Loss Of interest On the spet
reserve Immediately concerns our subje
itnay be interesting IS well IS instruct