The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-07-10
THE SCARCITY OF MONET.

III StAKOIIh OF MON 81.
There is and must be a general scarcity OF
currency throughout Che country, because that
article Is so superabuudant This statement Il
doubtless paradox Co the urrehecting never
thcless Eothing u more certain The history
Of this country for the last fifty years shows shat
money has always been most scarce, ana the
rates OF interest most advanced when there
was the largest absolute amount ln circulation.
The reason OF this is obvious. A currency
j. expanded, speculation is excited, prices are
greatly raised. and il takes a much larger
amount 0f money to transfer an equal amount AZ
merchandise. while the operations Of those who
are engaged il influencing and controlling the
immense amount Of Transferable property of al
kinds held for speculative purposes absorb ait
the surplus, and leave the money markeE ia
I stringent condition.
Money. We must recoilect, is scarce not FL
proportion to ts actual quantity, but 10 the re-
iatiye demand for ~. When, therefore, 10 "a
diton to the natural wants Of trsde, the specu-
latiye interest comes into tie marke. the ex-
traordinHry demand Is certain 20 create pres
sure s0 that, practically, IL has always been
true a. it is now true, thtt an expanded curren-
cy wiIl be most unsatisfactory when the cIrcuIa-
uon IS largest and tbat the rates Of interest
will Oe highest when the loans Ot the banks are
most extended.
This important lesson the people must learn
and if they would have money plenty and cheap;
they must insist that the amount shall be re-
duced to its natural hmit--to that point where
10 II par with specie. They cannot have 81
easy ard reliable money market until that which
~ called money il truly 80 and We incur 10
risk in predicting that satisfactory state Of
trade will rot STRIVE until The currency Of the
nation il ca uivaleut in value to the currency OF
commerce
II looking forward lor the remainder OF the
current year, We no 100 anticipate a general
panic Or breaking down Of the national indus
Try, because the currency Is nov a fixed guam
titv, and cannot tas IN tile case OF mixed cur
rency 10 must bed suddenly Withdrawn from cir
culauon whenever there is pressure on the
banks for the redemption Of their notes but We
10 expect that trade, manufacturing and
business generally will be depressed, that profits
win be small, expenses large, rents and rates Of
interest high, and losses IRON delinquent debt
ors heavy while ia the large centres of trade,
especially in the largest, "the spasms" Of the
money market will be frequent aud violent
From the Prospectus Of Trade, IN LppncOtt's
Magazine tor J-ne.
The above is specimen Of the logic and
miserable sophi>try by which the financial
journals and other apoloEists, aiders and
abettors Of a labor robbing money, cover up
their iuiqu.tits. That "the history Of this
county for the last nifty years shows that
money has always been most scarce, and the
rates Of interest most advanced when there
was the largest absolute amount N circula-
ZION, may al be true, yet, it possesses just
that amount Of truth which is necessary to
divert the public mind into any and every
channel of thought, but such as will expose
the real causes, AMI the real authors Of these
outrages upon business men, and through
them, the destruction Of the great industrial
interests d the nation.
While il may be trre also that "IHoney Is
scarce, not IN proportion 10 its actual guam
tiiy, but to the relative demand for il" vet
il by no means follows that "the people must
earn If they would have money plenty and
cheap, they mus, insist that the amount
shall be reduced to us natural Ii nit-to that
point where II is par with specie"
To test the truth of tins labor depicting
theory, let US examine it for a moment
The country has had great war Through
this double interest and gold bond theory,
the government has bought wild eat money
at one hundred cents on the dollar, and part
ed with it at forty; until they have run up
an interest bearing debt Of over two thous-
and FIVE hundred millions of dollars. Hav-
ing thus converted the larger portion OF this
wild cat" into gold interest bond, and
governmental expense Of some three hundred
millions per year, these governmental savons
have discovered that there is altog ether too
much money. Accordingly the people are
told that this initiation has gone ar enough,
"that a satisfactory state Of trade will not be
reached until the currency Of the nation is
equivalent in value to the currency Of com
merce-' Well, gentlemen, what is the trou-
bic nowg So long as you were buying gold
interest bearing six per cent bonds a. forty
cents on the dollar, through wild cat" me-
dun, at one hundred cents on the dsllar