The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1870-09-03

which will contract ard lexpand in vci-
June, TO fit the fuctusssng- tefnen ds-es
j trade, never be much too large or toe
small aud therefore will bringa nearly
uniform rate. Of interest. Ay
Our present system 10 dsfeci.vel y
this, that its volume depends on polltrcsi
chances rather than the demands OF
trade-on what the party, the Presl-
dent, the Secretary, the Senate. the
House. the Finance Committee, the
Currency Committee. each separately
NAV think best for itself and for the
country, and what proposition all may
be brought TO unite upon. These
political powers are 20 various, their
opinions 80 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 1858, business
has gone or, so far as it depended on
the volume OF the currency, like steam
engine without Governor.
This defect Of the existing system
has given strength to the plans for re-
sumption of specie payments. It's
advocates say that coin IS moved to
and fro throughout the world by the
laws Of trade, and therefore has the
desired fiexibiIity. But this is an error,
the increase or diminution of the coin
here las always been determined CHIEF
Nv 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, Sc, at 80 millions in
specie, and saws that the first quarter
of this year indicated q still more I'M
favorable trade This adverse balance
is probably nearly as large as the
whole volume of specie IN the country,
the highest amount we ever had being
: 275 millions in 1850 /. suppose that
we had beer this year depending ON q
Bank currency, redeemable 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 than
that Of 1857 and every year, when
our securities should stop selling abroad
or when a bad cotton crop here and
abundant harvests in Europe, should
drain our specie to settle foreign bal
ances, We would have a stringency OF
panic which would damage production
and exchanges at home, to from one tc
ten times the amount Of such foreign
balance.
A currency on coin base, therefore,
instead of responding TO the Changing
demands of the chief business of the
country, su ojects our immense domestic
trade to the independent fluctuations
Of our comparatively petty foreign
trade, which fluctuations are themselves
dependent chiefly on the crops and
politics Of Europe.
The rings of gamblers who have re-
duced p anIe making to fine art would
especially, flourish under such sys
TEN. They would be constantly com
bining TO lock up gold and bank paper,
and demand redemption of the paper NJ
the instant Of greatest foreign demand
for gold. BY their manipulatiOns al
the evils of the system would be In
: creased in frequency and destructive
power. The whole business Of the
country would be kept constantly dis
turbed, all risks increased, reasons OF
pretexts given for exOrbitant and fuc-
tuating interests, and every now and
then a financial storm or squaIl would
sweep from the productive debtor class
their hard earned property AMI pile II
in the laps Of the non-producing money
lenders, enormous wealth lost through
pIots and vicissitudes, which no sagao-
4 ity of the toiling loser could foresee,
i and gained without a stroke of produc
tive labor by the sharks ofthis destruc'
tive money system.
A currency Of the desired volume,
flexiblty and consequently of value is,
think, attainable by the issue, as
suggested by the National Labor Union
of three per cent. bond, and cur
rency, to which the whole debt shat
be reduced as soon and as cheaply al
may be consistent with the good faith
Of the Government. The Bonds TO bs
convertible at the option of the holder
at any time into the currency which
shall be legal tender for all debts
public and private, except when the
law of the contract requires payment
IN other funds, and which shall be con
vertible into Bonds in like manner, al
the option Of the holder. Enough cur
rency would be issued at once to bring
down the average rate of interest from
about twelve to about FIVE per cent. pei
annum, which is one per cent. greater
than Commissioner Wells estimate Of
the present average net ANNA increase
of the fixed values of the md. The
! volume of currency would dust itseli
to the fluctuations IF busin :, so as tC
keep the average interest pa 1 by labor
!, to capital at point as good, consider
. ing the risks of business, a. govern
ment three Ier cents. As business in
creases and the demand for money AND
, consequent .ates of interest increase
bonds will be converted into money tC
get the increased interest; as business
diminishes and rates of interest fall
money will be converted into bonds
Thus the country, and all parts of it
, viii always have CURRENCY sufficient
bot not excessive in volume, because
f obedient only to the demands Of trade
the servant of the people not theiI
master-the steadtast treasurer, ex
changer and distributor, not the ftfn
destroyer of their values y a currency
which, instead of expanding will
Chase, contracting with McCulloch and
standing still with Boutwell,, will obey
only the laws OF trade and with an ebt