Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1869-01-27
From the Ohio State Journal
BCTLERIS SPEECH.


From the Ohio State Journal
BUTLER'S SPEECH.
The speech on finance of Mr.. But
Ter, of Massachusetts, a copy ofwhich
he kindly sent us several days since,
has just been delivered.
1t is not usual for General Butler to
make speeches that are not worth
printing, but he has done so in this
instance. Lest there be some who
may think it presumptuous to criti-
ciZe one of Buffers reputation for
aeumen, we call attention in the out
set to one of the most egregious blum
ders we have ever known n public
man who had any reputation, to COM
NIT. In the course of his argument
he twice or three times alludes to the
fact that our bonds sell at "A in Lon
don and at 7S in Frankfort, and upon
this supposed difference of four per
cent. between the two places, he bases
one of his arguments TO sustain his
currency theory,
Now we suppose every bankers
clerk or ordinary business man in this
community is aware that four per
cent. is about the average differencein
exchange between Frankfort and
London, and that therefore the differ
ence in the selling price of our bonds
IS an apparent, not a real difference at
all.
Butler with the air of Omnipotence
lays down the fundamental PROPOSE
ton that
'The currency Of highly CONNER
cial, expanding, industrious, and pro-
ductive and free people, by which
their values are measured and eX-
changed, should be uniform, sound,
cheap, stable and elastic"
To say that the currency should be
stable and elastic is the same as to say
that it should be uniform and not uni
form, sound and unsOund, or cheap
and expensive. The essential element
of the best currency is stability, which
implies freedom from fluctuations,
from expansions and cOntractiOns.-l
That is the best measure of value which
is the least variable in value ITSELF
To talk about an elastic currency is as
arrant nonsense as to talk about an
elastic yardstick, an elastic survey |
Or's chain, an elastic mile or an elas- |
tic peck measure.
The word, as applied to currency, /
has been long since discarded, except I
by those inspired BOhemians who I
write on finance, or any subject you I
may name, at two dollars and fifty 1
cents per column, or so much per hun /
dred words, in elastic greenbacks.
Butler argues that because money is |
enormously dear: or, in other words, |
the rate of interest high, the amount /
of currency in circulation needs to be 1
expanded, A very moderate know
ledge of Political Economy would /
have taught him that the rate of in
terest or the amount that IS paid for
the use of money, does not at all de-
pend on the volume in circulation
that interest has been highest when 1
expansion was greatest and lowest, /
when contraction has been carried to 1
the lowest limit. If every paper dol
lar were split into two dollars, inter-
est might be nOminally double, but in /
reality, the same, or less than it is
now. The rate of interest depends 1
on other causes than the volume of
the currency afioat.
This wonderful plan to wipe out /
debt, interest, bank notes and every /
thing else, Mr.. Butler unfolds as fol-
lows:
II propose that, retiring the present /
legal tenders without shock to the .
business of the country in the man.
ner hereinafter to be explained, the .
Government shall issue an amount .
equal to its taxes, say $3.50, 900, 900, of
certificates Of UdlIe, of convenient de-
nominations, not less than one dollar
which shall be lawful money and le-
cal tender for all debts, public and |
private, which, by the law creating
them are not made payable in coin,
and shall be receivable for all taxes,
duties, and imports of every kind .
whatsoever, to be reissued at pleasure I
under the conditions hereafterset forth /
or i'm payment of the debts of the Uni
ted States, and which shall he reeeiv-
ed for all public loans made to the I
United States"
sit is evident that $3.50, 900, 900 of
certificates of value" above proposed /
circulating as money would not be a
sufficient amount, of currency for the /
business purposes of the country |
therefore l propose to throw open the /
present privilege which the banks /
have of obtaining the money from the
Government to every man or assOcia-
ton of men who can furnish precisely
the same security that the banks now
do for the money so received from the
Government. Or, in other words,
that every owner of q Government
bond paying six per cent. interest in
coin may go to any public depository
in the United States, and, lodging it
there as security, shall receive ''certi-
ficates of value" f" 1. G., greenbacks, to
the amount of ninety per cent. of the
par thereof, to be at his pleasure re-
into his bond at any time
after thirty days, he paying TO the
Treasurer for the money he receives
at the rate Of .0365 interest per annum
in coin thereon until he returns like
of certificates to the Treasury,
when he shall receive back his bond.
Assuming 81, l,750, ,000,OO0 of six per
cent. bonds to be outstanding, and
every one should be presented to the
Treasury and currency demanded,
would give 81 $50, ,000, 900, being nine
ty per cent. thereof, as a possible
of currency to be issued"
After this prescription from this
criminal court currency doctor, Mr..
will hide his diminished
head and gracefully retire from the
paper money-mill business. A cur
rency so alarmingly ''elastic" as to ,
stretch from $50 millions to 81 ,925, ,0OO,- (
900 and from 81 ,925, 900, 900 back to
$50 millions, does not awaken the fears !