, 1869-05-19

WHY HONEY Is DEAR

Cnder the head Of '' Government Securi
ties Hostile to Trade and Industry" tn,
Philadelphia NORTH d,neric,,n arcaes TIM
every much Of the trouble about eettiut
money for the regular purposes Of trade
arises from the - immense sums invested il
government securities and the fact that the
interest on gold bonds is larger than can b<
legally obtained by looming money on note:
Of hand
So far as this intends to convey the idea
1hat the subtraction Of that portion Of ne
f1onal wealth which was DESTROYED by tht
war increases the rate of interest on the re-
Eaalnder, it is undoubtedly true. We can.
not nope to fire away several thousand mill.
l"ns !" dollars Ill powaer and bali, and de-
Stroy million Of productive adult male IT,
torers, nearly fifth of our entire force,
AID experience no tl1niuutiou in the nbun-
dance Of wealth. anI no rise in. its Ienaioo
price. or rnte Of interest. Dut now that
this wealth has been loaned to the govern
1nent. and destroyed in the war, and mort
cages on the future labor of the country
have leen given for its payment, and the
American people have had more than the
inli result they expected to gain by it, in
the preservation Of the government, the
abolition Of slavery, and the restoration Of
the Union, it is not true to speak
II the national debt rs 'slockine up'
capital. or keeping it ''idle and dead ;"
and aepriving the industry of the country
ef its use The money loaned to the gov
erun4eas WIS not locked up, nor kept idle
or dead 1t WIS actively and furiousIy de-
s'royed like property IN conaagration.
!Al property Is undergoing destruction more
or less rapid in producing the various re-
snlts 10 Which it is pnt, and indeed its use
implies its consumption. But the proper
ty DESTROYED in tue war vas sacrificed in tie
production Of two intangible ideal blessings,
viz. the union Of the States and the free
com of all their people These blessings
Lazy sid IN future, in the production Of
1naterial wealth. but at present the material
wealth. represented by the debt has been
CONSUMED il a manner not heretofore
directly I1e!iCcsiye Of any material wvaith
whatever.
SiEce tie destruction of wealth oc:a-
Stoned lE the war there has been no
0iLAinution il tie capital uf the country or
Increase in its selling III lending price by
reason Of the debt. Nor has the debt locked
Il doh IT ef cnr:tal except the su;n needed
Ii tie Treasury to meet tie acc-uinc inter-
est. The SHE'S collected from the tax
payers are paid to the bonl-holier aud ey-
pended 'y.hi1n III some way. The mere
bctd Is not wealth or capital. 1: is only a
promise to pay nsney. It locks up no
money, because there is ro money in it.
Tie principal represents money DESTROYED
by war. The interest. Ms fast as received,
is expended or invested. or. if boarded, the
hoazder loses its use and profit, us he would
Of any other money boarded The exist
ence Ct the debt, and the policy Of the
Treasury, have caused reserve Of about
s1oo,oOa:ooo to he kept locked up to meet
the accruing interest. This is the onlykum
which is Withdrawn from circulation by the
debt, and this hoard the present Secretary
promises to reduce by applying it to the
purchase Of bonds. A more direct canse
OF the high rates If interest wli.A
prevail, anil Of the locking up Of
money. viii lie found in the
speculative condition of trade caused by
the constant fluctuations in the value Of our
currency. Four weeks aeo. With gold ut
f:'l, olr dollar uf paper currency was worth
EeveEty-slz cents in gold. To-day, with
stsd nj 'i.. it is worth only seventy cents.
How lnGcl it will he worth Tomorrow is
pure guess work. We know, in general
terms, tl;:t ITS value is dependent on the
i'-r.: Il our national bonds, But what
ea':s'a IN LEro.,c aud here will affect the
I1r1ce ef our bonds TO man can foresee.
b''f, foTevet our currency iuctuates in
val':r. l'v the satn. u."l.sure Init more SLOW
y "ur crops. cattle. dry goods md every
t'ii:cr l.rs dilct Of industry t1uctuate. It is
Is If W. were measuring all these with Il
clanssa'.le ya-tlstick, which varied an inch
or two III l23gta: according to the direction
"f tie wind, or we're weighing them with a
sensitive pound weight that was lighter or
Heavier. according to the quantity Of
nolssure in the atzuosph.-e. This gives n
speculative uncertain tendency to MI
values. anl WHEN values have s.,ch
n character the monopoIsts who can
e'ntr'l large capital will use it in
huyin: np MI kinds of property, crops,
railroad stocks. currency itself. tu hold
against the expected rise, for there is al-
Why's rapid rise going Oh i'll something.
The apparent rewards OF Speculation being
greater than th"se Of industry, money is !!
withdrawn from the production Of wealth !
t. the purchase Of wealth already produced !
and to Ga1nLie il its rist and fall. This, tue !
present occupation Of thousands more Of !
or people than it ought to be, locss up :
c::..stal in ,srpro,lnctive uses AMI helps to
mike it denr to all wIc want it for urodut-
tIvc purposes
Ih.s speculative condition must c ,utinua !
81 lo2g Us the valsc Of ous paper currency
is huc:uatiag. This raluc must fluc:uate
5" hong ~ ii .is-s and falls with the credit
Of the government. It mrst lrctuatc.
therefore. rntil gold, hnd not the green
hack Promise ol the government. is made
liz standard OF redemption for our entire
currency |