New-York tribune., 1868-03-25
THE CURSE oFA DEPRECATED CURRENCY

From Occasional Correspondent
WASHINGTON, March %, 1863
There are some popular ideas ahOat, fayoring the
policy of deprecated currency, which are lnJurl
ously fallacious, and need exposure. One Is that
taxes are more easily paid under such system
Another is that the producer gets higher prices and
so makes more money. Let us look for moment at
these points.
Taxes are paid from two sources: the earnings of
labor and the earnings of capital, We have hitherto
given the reasons why labor is not well paid under
a system of paper money as in a currency of coin.
We have. shown that wages do not keep pace with
the enhancement of the cost of living and that the
interests Of labor are not therefore favored by sys
TEN of paper money but seriously injured there
by We have seen that ts.earnings are less and It's
expenditures more; that the imposition OF taxes
thus weighs heaviest upon the aboring class at those
periods when the currency is inflated they haying
at such times, more to pay and less to pay with
How it Is with capital, which represents the saw
ings of industry and tho accumulations of good for
tune there is no room for doubt. There is no pre-
tense anywhere that the property holder. who has
earned or inherited wealth and lives its income,
does not suffer from imitation. He pays more for the
cost of living more for taxes while his income re-
mains the same 1t is so with all who live by salaries
Great injustice is done TO- and great suffering is often
experienced by these two classes from depreciation
of the currency. They reap no advantage from. but
are merely innocent victims of the initiation policy
Their voice of complaint is seldom heard for though
numerous in the aggregate, they belong naturally
and by position to the quiet classes of the COM
munity. They suffer greatly, but they, for the most
part suffer in silence. The rush of enterprise IN this
country does not sympathize with them.
How isit with small capitalists of different class
Take the great producing agricultural interests of
the West These numerous Western farmers OF
moderate heans are supposed. of all others, to be
benefited by q redundant paper circulation. 1t in
creases the prices of their corn their wheat their
CATTLE their hogs, and their surplus generally But,
il the farmer gets more for that portion of his crop
that he sells, he pays more for everything he buys
lie pays for his groceries his clothing, his iron,
his leather his tools, and his labor. So that his
gains, at best are at last only on the final balance
saved after the years accounts are settled. That
surplus be it more or less is in paper money which
he must reduce onethird or one-haf in amount. as
the case may be- to get it into solid money And in
this way it comes to the same thing or moro often
to worse thing, III the end, than if his dealings had
all been in real instead of fictitious money.
But his paper dollar will pay taxes as well as the
gold dolar9 So it WILL But the tax is enough, and
than enough, greater to offset the advantage.
Taxes are imposed TO defray expenses, and expenses
are increased in proportion to imitation always, and
generally in greater degree for public charges OF
all kinds prices of oil kinds are not only calculated
upon the relative value of the paper issues to coin at
the moment, but upon the contingencies OF huctua-
tion which becomes an Important element in hXlng
values. The taxpayer in the end foots
all these charges lie first pays the ac-
tual money cost, then he pays tho differ
ence between that and tho sum it represents in
paper money and then he pays for The risk involved
of further initiation, and of speculative values Incl
dent thereto. But even this is not all. Whenever
people are spending money land it is especially so
with public expenditures) in debased circulating
medium, there is never that care or economy as
when they are spending hard money. Silver and
gold are never squandered as are paper promises to
pay WHICH are iyrsgsspabs spd sge constantly huc-
tuatlng in value. And thus expenditures, especially
public, increase just in proportion to the
debasement of the currency III which they
arc defrayed and not relatively only, but
actually as measured by the specie standard;
and thus are taxes multiplied and increased.
II is only by following out these details of the sub
jeet that able TO appreciate how it is that de-
preciated currency is q robber of the earnings Of
labor whether capitalized otherwise, at every step
and in every relation But patient reflection shows
that, view the subject in what light you will, de-
based circulating medium is of itself, aside from the
moral debauchery engendered by Its example, ser-
GUS and eyeracting mischief damaen TO the inter-
ests of the great body of the people in every walk
and pursuit Of life
But there arc those who reap great pro- tit from an
inflated currency. These are the largo capitalists
and operators, the spectators. the mdde-men; the
gamblers of the Exchange in stocks in god> >in all
the necesSaries of life. They are tho vultures ho
prey Oh an innocent public, They buy up and hossd