The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1870-08-27

tDuC IN facJ for the interest OF petty
class, furnishes greatly less currency to
meet the greatly larger wants thus
leaving the masses to become enslaved
| by usury, giving the net fruits of their
Il toll to the non-producers, and drifting
rapidly towards the condition OF Great
Britain when the spoliation and conse'
Il quent d s0redation of the tollers by the
idlers 81 complete.
But most of all we need a currency
which will contract and expand in vol
ume, to fit the fiuctuating demands OF
trade, never be much too large or too
small, and therefore will bring a nearly
uniform rate of interest.
H Our present system is defective in
this, that its volume depends on political
chances rather than the demands OF
trade-on what the party, the Presi-
dent, the Secretary, the Senate. the
House, the Finance Committee, the
Currency Committee, each separately
may think best for itself and for the
country, and what pro- sition all may
be brought to unite upon. These
political powers are so various, their
opinions so discordant, their move
ments so uncertain and slow, that they
cannot regulate the currency, and so,
since contraction was stopped by joint
resolution in February 1868, business
has gone on, so far as it depended on
the Volume ofthe currency. like steam
engine without Governor.
This detect of the existing system
has given strength to the plans for re-
sumption of specie payments. Its
advocates say that coin is moved to
and fro throughout the world by the
laws of trade, and therefore has the
desired fexibility. But this is an error,
the increase or diminutiOn of the coin
here has always been determined chief
" by the fluctuations of our foreign
trade, which is possibly as much as
one-fiftieth part of the whole trade OF
the country. Last year it was about
half the aggregate Of the retail liquor
trade alone. Commissioner Wells
estimates the balance Of foreign trade
against us last year, including interest
on securities, &C., at 2I0 millions in
>pecie, and says that the first quarter
of this vaaIlDdicated a still %more un-
favora fade. This adverse balance
is probably nearly as large as the
whole volume of specie in the country,
the highest amoNnt we ever had being
275 millions in 1860 /. Suppose that
we had been this year depending on a
Bank currency, redeemahle in specie,
when the sales of securities, by Which
we have heretofore settled such balan
ces, were arrested suddenly by the
European war, and We were threaten
ed with drain Of specie, apanic would
have ensued only less disastrous thar
that of 1857 and every year, wher
our securities should stop selling abroad
or when bad cotton crop here anC
abundant harvests in Europe, should
drain our specie to settle foreign bal
ances, we would have stringency O.
panic which would damage production
| and exchanges at home, to from one t
ten times the amount of such. foreigI
balance.
r A currency on coin base, therefore
! instead Of responding to the changing
demands of the chief business Of tn
/ country, subjects our immense domesti'
trade to the independent fluctuatlon
= of our cOmparatiIl ""f'T forelgl
1 trade, which fluctuations =. ,.Iemselve
n UPJcnrTvrrv v4-t~-f4J ---.-s'------r@-~-
: politics of Europe.
e The rings Of gamblers who have re
| 1Y,.a1 oil ~ n hnn arf WnnII
h especially, flourish under such sys
/ TEN. They would be constantly CON
r bining to lock up gold and bank paper
/ and demand redemption of the paper q
IS the instant Of greatest foreign deman
for gold. By their manipulations a
: the evils Of the system would be in
# creased in frequency and destructiv
r. power. The whole business of tn
s country would be kept constantly dis
: turbed, all risks increased, reasons 0
: pretexts given for exorbitant and tiuc-
tuating interests, and every now an
8 then financial storm or squat wOul
r sweep from the productive debtor elias
a their hard earned property ana pile
e in the laps Of the non-producing none
lenders, enormous wealth lost thrOug
G plots and vicissitudes, which no sagaC
s ity Of the toiling loser could foresee
0 and gained without a stroke of produC
!. tive labor by the shaI ks Of this destruc
o tive money system.
h A currency of the desired volume
v flexibihty and consequently Of value is
i | think, attainable by the issue, a
e suggested by the National Labor Unto
If of three per cent. bond, and a cm
4 rency, to which the whole debt sha
O be reduced as soon and as cheaplY a
n may be consistent with the good fait
v Of the Government. The Bonds to b
# convertible at the option of the holder
K at any time into the currency whic
e shall be legal tender for all debt;
r public and private, except when tn
S law of the contract requires paymen
!. In other funds, and which shall be con
4 yertible into Bonds in like manner, a
G the option of the holder. Enough cur
I rcncy would he issned at once to br'n!
s down the average rate Of interest from
4 about twelve to about five per cent. pc
= diiilulll3 ulCil 10 WV pc NNiibs
:. than Commissioner Wells estimate D
/ the present average mel annual increas,
Of the fixed values Of the land. Tb,
f volume of currency would adjust itsel
! to the fluctuations of business, so as t.
5 keep the average interest paid by labo
E to capital at point as good, consider
r ing the risks Of business, as govern
y ment three PER cents. AS business in
! creasps and the demand for money anC
e consequent rates Of interest increase
s bcuds will be converted into money t
. get the increased interest; a. business
n diminishes and rates of interest fall
4 money will be converted into bonds
e Thus the country, and all parts Of it
e will always have a currency sufficien
: but not excessive in volume, becauS,