Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1864-06-23
High Prices and the Currency.
From the Washington Chror

The cause of the present high prices is
too much money. War in itself is not
the cause nor is it that paper money is
worth less than gold. nor that the people
have no confidence in the Governments
promises to pay; the great evil is too much
money.
Spain. during q period Of profound
peace, accumulated vast treasures in gold
from her American possessions. and having
experienced crisis such as we are now
enduring. finally sunk from first to q
third class power under the inevitable re-
suits OF plethora of coin. Before the
panic of 1887. during the period of peace.
we experienced an unusual expanse of pa
per money. which brought with it an
inevitable rise in prices. Soon after gold
began to pour 10 from California, the
banks began TO secure it and issue paper
upon it. and the same expansion. with q
corresponding rise of prices. followed.
And now Government is compelled TO be
a customer to the nation to the extent Of
millions where it before spent hundreds.
and this producing an increase OF money
causes also an inevitable rise in prices
Bu' the Government only increases the
circulation of the country by the amount
which it promises to pay. or by the amount
of its fresh issues in notes and bonds. II
it were to collect in taxes each day
enough to pay it's daily expenses. it would
be bnt circulating with one hand what it
received with she other. without increasing
the amount in circulation and then, unless
from other causes the imitation Of the
circulation was increased, it would COM
! mence to decline, and prices would decline
with it. So the seeming paradox would
prevail that the more taxes we pay the
cheaper things wouil become. Yet this
wouldd be trne to a certain extent.
1t wonld be true il the nation was not
deprived Of its rights. 1t is tho right Of
every nation to regulate its own currency;
it is a nations special prerogative. But
this right is now so severely infringed that
the whole nation suffers by it.
The amount of money q nation requires
! for its use bears as regular and defined a
proportion to its industry as does the
amount of food it reqnire7 bears to its
population, and as . nation would be
vitality injured could it be possible that il
could bs compelled actually to eat more
food than it required. so that it would be
seriously injured by being compelled to
have more money in circulation than il
actually nceied and this latter case is no Z
our own, and we are all now severely
feeling the pressure OF too much money.
Were the Government in possession o.
its rights. it could regulate the amount
supplied to the necessities of the nation
j but this is now rendered impossible by ths
action Of the State banks. An examina'
tion Of the report on the condition of the
banks for 1868 will show that in tht
Eastern States there are over two hundred
banks which have All aggregate circulation
in excess Of their aggregate capital BY
nearly one hundred per cent. and thas In
many cases this circulation is two, three
four. and in one instance over eight hun
! dred per eeu Of their capital. Nor is thit
all. Z While the circulation OF many banks
| in Maine. Vermont, New York, New Jer.
sey and Pennsylvania was largely in excess
Of their capital about the lst of January,
1868, the circulation Of those States has,
during the past year. increased by a,
aggregate of millions Of dollars-manv o.
the banks already in excess adding to th'
! iahation. And the other New England
States. with Maryland and Delaware. hav'
been scarcely less active in initiating ou1
currency, as the increased amount Of cir
culation in ell OF them will amply prove
It may be claimed that in many Of thes.
States the circulation is based upon Stat,
stocks or Federal bonds. dollar for dollar
This may be partially true. but il does no
alter the fact. The fact is. tie State bank
are flooding tee coustry p;th their money Il
the derangeneRt of the nations fnances
! Properly used. the bonds ofa GoverHmen
are as beneficial to Government as il
credit toia fair dealer. But let rs suppos'
} that an individual were compelled to g
: in debt, that his creditors then took hi
notes of hand. and so used them that the.
compelled him to increase his liabilities
aud that With every fresh promise to pa,
r they obtained further facilities for iorcinl
!. him to increase his notes of band; hov
long could su individual thus placed ex