Lamoille newsdealer. [volume] (Hyde Park, Vt.) 1860-1877, 1866-04-18
From the Scientific American.
THE CURRENCY DELUsiON'

government contracts the currency. by
drawing off the currency the common
people are oppressed, and the interest OF
the money lender is EXCHANGED. In ere
atinp the interest bearing United States
bonds was legislation enough in favor OF
the capitalists for one generation.
If forty.fve years experience IN met-
camille. manufacturing and farming dust,
ness has taught me anything, it is that
men prosper best when money IS lnoSs
plenty; and always run down. become
poor, or break down when money is scarce
In this I find but one exception, ana tha az
is the money lender. We need sl,loo'
600, 900 of currency. to do the business
of the country this year, and as fast as
the United States interest bearing bonds
fall due pay them also off in legal tenders
together with the premium on gold, If
need be; and induce the, capital now
boarded in bonds, by suitable perman-
ent protective tariff, to 60 into manufac-
turies and to developing the vast resour-
ces of our country. II. IL. M.
Galesburg, H., March 20, 1866
It curious fact that while no one pre-
tends to understand geometry, chemistry
or geology, without methodical mastery
of the several orders, most people suppose
that they are masters of political economy
without any study of it whatever
10 give a complete answer to our cor
respondent it would be necessary to write
n treatise on the science Of political econ
omy. In the limited space at our com
mand we must content ourselves with re-
minding him that capital is not the same
thing as money. The capital at interest
in the country is twenty times greater
than the amount of all the money in the
country. Cattle, sheep, swine corn,wheat
and all those forms Of wealth which are
employed in the production of more wealth
If we had 81, 100 100000 Of currency in
the country--if it was in the form of gold
we should send all bat 200, 100000 of it
abroad, and exchange it for iron, copper,
tin, cordagc, and other kinds Of capital
that would be more useful to US than an
excess of currency if it was in the form
of paper notes. il would be worth not more
than 20 cents in the dollar, and would 90
no further in accommodating any man
with the kind of capital that he needs in
his business than S200,000000 of cur
rency would The use of currency is to
effect the exchange of commodities, and
the same dollar is used over great many
times 500 of money may be employed
in loaning, or $4,000 worth Of capital.
The rate of interest depends upon the sup.
ply of the aggregate capital in all its va
ried forms, in relation to the dcmaL d.
not to the desire, but to the commercial
demand-by those who not only desire
more capital, but who are also able to give
satisfactory security for its repayment. In
1850 the people of California had more
money in proportion to the population
than any other community ever had, but
the aggregate capital was so small in pro-
portion to the demand, that the regular
rate of interest on perfect security was 0
per cent a month.
The money of this country is not more
than two or three per cent of our aggre-
gate wealth, but it is very important
part, for it is the general measure of val
ne, aud therefore, an element in all pecu-
mary transactions Every man in the
community is interested in having this
measure always of the same capacity
The fluctuations inseparoble from an in
Hated paper currency are disastrous in
thousand ways-they impair the obliga.
tions of contracts, they rob the workman
ofhis wages, they check the growth of
our towns and cities. they infuse uncer-
toiuty and distrust into all business rela-
tions, and they materially diminish the
production of wealth. The tendency of
an imitation of the currency is to increase
the difficulty of hiring money, and to
raise the rate of interest on all ordinary
securities.
The most disastrous measure that Con.
gress ever adopted was the initiation of
currency, and every months continuance
OF that imitation is costing the people of
this coutry untold millions of dollars.
AFFAY AT THE DEpoT. 1.-Two butter. Inv.
ers, u. L. Hubbard. Of Franklin
and VIM. Mitchell of Sheldon, got in.
IN a lItilo J;ao,,.o.n. -