New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-09-01
PRICE FOUR CENTS.
NEUTRALITY-SUSPICIOUS..
PERMANENT REFORM IN THE CURRENCY.
BY VICTOR CONsIDERANT,

BY VICTOR CONsIDERANT. 81.
| fMr. v. CoNsIDERANT the eminent writer on Social
Science presents IN the article which follows plan for
the creation Of a stable and permanent currency. He
does not propose to return the metallic currency,
which he holds to be expensive one and subject to
many abuses. He proposes the creation Of currency,
based principles, which will possess the fixed and
stable character OF the metallic without its iGperfee
| tiOns.l " d, ..,
In 1889, Russia suffered. as the United States is
now suffering, from the evils of a deprecated and
unstable currency the value of which, as COM
pared with specie. was 800 to 100; that is it
required 81 paper roubles to buy one of specie.
Notwithstanding this great depreciation, Russia ef-
fected reform in her debased currency, retuningto
a JGuldr and fired monetary system In TwESTy-FoUR
YRS and that without wronging any one in or ont
OF the Empire. This is fact of history. To effect
this financial operation, Russia obliged TO bor
row ten twelve million dollars in specie Of the
Bank of France. The Government of the United
StateShas had for two years past from six to eight
times that amount lying idle in its vaults and during
all this time, with ali the discussions on resumption.
nothing has been accomplished, and no one single
point has been agreed upon. will net undertake
to crticise the financial wisdom Of the American peo
pile /; but /. an adopted citiZen-which authorizes
me to speak one of the people-must confess that
we have shown great wisdom in this particular
conjuncture.
The present currency is scourge. 1t operates as
monetary disease affecting all the commercial and
industrial interests of the country. The whole
economic mechanism is subject to the greatest un-
certainty. No one foresee whatwi be the result
in four, six, or eight months of investments made
to-day or of enterprises undertaken And no safe
calculations can be made without STABILITY AND
FIxEDNEss in the Unit of Value called the Dollar II
the Dollar is not fixed value no one can know
what REAL value given amount of Capital will
represent six months hence. may realize an ap-
parent profit my investments or from my bust
ness but it may turn to be loss instead of gain.
Owing to this instability of the money value, which
measures all others-an instability which prevents
any foreseeing what 800 will be worth in six
months, or even six weeks-regular business suffers,
while wide field is thrown open to speculation, and
financial and commercial gambling.
The sole remedy is the return to REGULAR AND
STABLE MONETARY SYSTEM. Let the example of
Russia be followed, unless something better can be
done. Can anything better be done answer, Yes;
and something far better. As we can improve on her
processes will not enter into explanation of them
/ affirm that by q simple act of Congress the fol-
lowing results may be obtained: 1. Return without
wronging any interest to a regular monetary system;
that is to say, to fired and stable currency. 2.
Effect q beneficent reform, which will ecOnomize
and hence save to the country the expense Of the
hundreds of millions Of gold and silver which it
would be necessary to use to return to and re9sab
lsh the specie currency.
II it could be clearly demonstrated to our legislators
that the greenback dollar could be raised in value
to that of the specie dollar to par, and aatsned
Invariably at this rae PROVIDED that they, their
side, would pass law abolishing the use Of gold
and silver as a currency, and the circulation of
these metals money ask. would they consent
to such measure, and take the initiative in fun
damental monetary reform
Let us remark that If the country wishing TO re-
turn to a regular and stable currency imagnes that
i is necessary to go back to the old specie money.
his fancy will cost it the several hundreds Of mill
ions of gold and silver. which will be necessary for
The metallic currency that is TO replace the green
pack circulation 1t is hardly probable that it will
eturn to the old State Bank system with its alter
lately expanding and contracting issues of paper
money so that but three alternatives open before
q: l. To retain the present greenback currency asst
is with its fluctuations. 2. To return to pure me-
tallic currency. g. To discover some new principle
on which to base the National currency and adopt it,
II is this latter alternative which propose and ex-
plain the principle which is to serve as basis for 1t:
Il would require at least sG0o,OoO,O0O in gold and
silver to establish specie currency. How is this
vast sum to be obtained but by taxation by adding
new burdens to those already imposed on the peOplef
u
worth dollar in gold, in what respect is bit OF
metal preferable-to effect the exchange Of values
to paperf will remark here that the material for
the new currency will be paper; il is easy to handle
and costs nothing Externally. this currency Will
resemble the greenbacks; but based as it will be on
different principle it viii be intrinscally and
different monetary system. For the purposes OF
circulating medium the metals are far inferior TO
paper; this is so well known that it is unnecessary
to dwell upon it,
IT, then the permdnency ia rdlHe OF the paper dol
lar can be secured, there DO no objection what
ever to using paper the material out Of which to
make the national currency. To attain the great
end in vew-namely, to create fired and stable car
,ency using the cheapest and best materia-Congress
has but to pass the following law. comprising three
articles lst Hereafter. gold and silver will not be
used for money and coin made Of these metals VIII
not be recognized as legal tender. The nasicnai
currency will be Of paper Tor any cheaper and better
material that can be discovered I'd. The Natohal
Government will alone create and issue the currency
of the country No individual or corporation win DO
permitted to create or issue circulating medium, OF
any representative of it, like our bank notes.
I'd The Secretary of tho Treasury Will at all times,
first deliver to any person wishing the national cur
rencv dollar of the same on his depositing - $40
Troy grains of gold (the amount now contained In
n dollar or its equivalent in silver second with
draw from circulation an amount of national cur
rencv necessary to keep il at all times at par-that
s diminish it whenever the metals rise in value
above the point fixed as their standard price
II this simple law is passed. monetary reform
will be effected. and regular and stable currency
M .loJ ptry ha dali