New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-01-13
THE NATIONAL FINANCES.
SPEECH OF GEN. BUTLER IN THE HOUSE
YESTERDAY.

free people, by which their values measured and
changed should be uniform, sound. cheap, stable, and
elastic Uniformity is that quality which gives the same
value in every part thereof to the money Of country
This quality present currency in sufficient
degree OF perfection. S0undiess may be defined
tainty that the currency secured that
fall OF exchangeabity for equal intrinsic values No
American permits himself to doubt but that legal
tenders and national bank notes. secured by the pledge
OF public faith guaranteed by all power
OF the country 10 be made good 10 the extent OF
value printed on their face Our present currency there
FORE the quality OF purposes
OF internal business and trade As to ehedpes all nan-
cal writers that paper currency the cheapest
OF all possible mediums of circulation. whether regards
the cost Of its supply Of ts and tear because
of being producing capital while circulating from
hand to hand. II gold and silver used In its
stead, or locked up basis for its redemption
they would be much idle and dead capital doing
duty currency only and the nation using it would
suffer tho loss OF interest much toasted capital
1t apparent that paper being but the sign or token OF
value yields loss Of interest upon itself capital while
used as currency. While therefore, in these particulars
present cheap enough yet there another
in which that term is sometimes used in relation to
money, but properly to capital which our present
currency wholly fails TO satisfy, and which will be ne
cessary to examine hereafter refer to the enormous
price at which money capital is furnished TO the
consumer user. Stability Of currency is, perhaps tho
most important Of all its attributes 1t may be well
enough defined as quality OF currency when used as
standard and measure OF value which renders it un-
changeabe at all times compared with itself. meas
ure of value should change than should the
Of length quantity weight 1t should be at
all times and the When all the property OF
people adjusted to such measure OF value 1t is Of
comparatively little moment what that measure may be.
To illustrate: we have two Of weight the pound
troy and the pound avordupols. We find special In
convenience In their the classes Of objects submit
ted to their have remained unchanged for many
years. and bought and sold with regard to the differ
between them which also is nvariable. SO as to
length Iisenrely unmportant whether we had adopted
at first the imperial yard Of Britain the metre OF
France as measure OF length, provided maintain it.
unchanged In the in which We have defined sta
biity present currency Is greatly deficient Ths
from the fact that nseai Of being an unyaryng
standard of value OF itself it is continually measured by
another standard TO wit gold which is itself variable
Further, currency still more fuctuated by empr
cal attempts either OF legislation administration, on
the hand TO increase its value by bringing nearer
TO gold or on the other by combinations OF brokers and
bankers to enhance its value for the purposes OF
speculation and unjust gain. This variability in our legal
tenders is yet largely enhanced because OF the law
provides that they shall not be received for the
| duties imposed by the Government imports which
annually amount fOrtyhve hundredths of the whole
currency circulation. To buy this sum In gold there
FORE lawful money to be used In fact as an
article Of merchandise commodity, TO be exchanged
| 20
in the country II. the contrary, the legal tender
had been made receivable in payment OF all public dues.
internal external aud the amount issued liked
by had remained unchanged without power IN the
Secretary Treasury by boarding fnndngor retiring
1t to change volume, it would then have become
xed permanent and stable value to which all the prop
erty of the country would have
dard to be changed by law, Of which change
the whole country would have ample previous notice.
AS its value standard would, In that case, have de
| IN or vail &
10 see why currency might not be interchangeable
unvarying Of the value of all property as
the yard and pound the measure length and weight OF
all substances made nvariable by legal enactment
The elasticity applied TO currency Will define as
the power Of contracting or expanding its volume, ac-
cordng known rule to meet the necessities OF It's
use in business arising from its activity its sluegsness,
or from the needs of increased population. At first
thought this quality might opposed to the definition
OF stability which have just given, but careful consid
Grafton will show that is not as elasticity rs an att
butte of currency should pertain toit not as measure OF
value but as a representative OF active capital Stability
is the xedness OF the volume OF currency as compared
with property measured by it, Elasticity increases or
lessons the volume determined by the necessities
for its USE Elasticity is by no means synohy-
nous with huctuation, the latter being the increase
dminuon of the value Of the currency at one e as
compared with another the former is the change or
volume only compared with itself To give an Illus
traton froma sensible object: water is most unstable
elastic OF substances currency 10 meet
this requirement OF elasticity should have such eapabty
OF volume as adapt itself to the highest needs OF the
internal business and OF the country and at
the same time contractiby to adapt itself 10
the state Of greatest depression without in either case
affecting It's soundness stability value This quality
OF the currency the element Of ITS highest usefulness
and safety as circulating medium In nothing Is our
present currency more deficient. II has limit fixed by
law beyond which IL cannot CO. however great the eNI
gepces OF tho business OF the country may be- 1t contains
within itself no power OF contraction when not needed
It's volume must then remain still the seeking IN
vestment and profit speculation and adventure forced
by the sershnes Of bankers and capitalists Again. not
being capable OF expansion the unprnopled ana aueh
turous capitalist calculate exactly how much cur
rency he must lock up at the time wheh " 70 inoS'
needed TO bring about financial CRISIS anu uSioSs,
and thus involve in ruin the uhsuspectins anu
honest merchant and dealer, who Is maze tue 'io' u
unlawful combinations which he can hei'"ei iOo ~
control deplorable example of this as pr'c'ca rae
r. -, nloca within a few weeks under our eyes by
hoh tba managers of an nsovent railroad In conneo
,,on with certain banks who should have been regulators
nead Of reccaer the currency contrved 10 sequos
| tar soma thirty millions. and thus TO bring aoouta
,,ncorcv in the money market, and a consequent de-
reson I'm the public securities OF some hve per cent III
single day. OF which the conspiraors might reaiiLe
o profits This process OF robbing the community may
now be repeated at pleasure. system OF currency
which permits its guardians the banks which issue IT, {"
tins sport with the public credit and Cypress the mer-
chant depress the public funds and unsetc the business
OF the country is clearly defective and Is the duty
Congress at provide the remedy for hat delecS
We see, therefore, that our currency Is UNIFORM
cheap, and sound enough, but mat I"cA
| stability from fucuation and elasticity TO ac
commodate itself to the changes III The demand,
OF business Our financial system has another great anc
| Iafa