The workingman's advocate., 1870-05-14
CHAPTER I.

THE SECURITY OF PAPER CURRENCY.
We now enter upon the most important
Rnd yet the simplest part Of this subject
namely, the institution Of true monetary
system, by which the distribution of wealth
can be properly regulated.
1t has been proved IN our foregoing ar
guments, that the amou of currency
should be equal to the wants of the people,
and that gold and silver, of which the guam
tity is necessarily limited, are not the pro-
per materials II remains TO be proved
that a paper currency can be established,
which shall be always adequate in amount,
and which can be maintained at q uniform
value. The present chapter will offer some
considerations of the security and compe-
tenee of a paper currency, as a medium Of
exchange.
First, we may notice some Of the ways in
which paper is now used, and in which Q
legal power expressed upon it is deemed
sufficient security. Al titles to land, al
loans of money on bond and mortgage o.
otherwise, the payments for all lands, ant
for every other species of property on ere
dit, are secured by paper These paper
must, Of course, be made legal liens uPor
property or they would be worthless, TO
their value must consist in their control o
real property, and not in any worth inheren
in their substance. Money of every de
scription, gold, silver and paper, is creates
by the laws, and its value consists in it
being made by law a public lien on al
property for sale.
The difference between private Obligs
ton, such as a mortgage, or note Of an ini
dividual, and money, is, that the twS
former are private liens, one on a specific
piece Of property, the other on any or a.
the property of an individual while monet
is public lien on all property for sale
whether that property be owned by indl
viduals or by the Government. Betweet
individuals and the Government, the Ian
secures the ful6lment of contracts by mort
cages and other paper instruments. 4
paper instruments can be made safe repre-
sentatives Of property between two ih
dividuals, no sood reason appears why paphl
instruments cannot be made safe represeh
tatives Of property for any number Of il
dividuals. If paper instruments can p'
made representatives Of property for limitbC
periods Of time, no good reason is perceivec
why they cannot be made safe representa-
tives of property when made payable on Do
mand. And if made payable on demaAd
in something capable of producing an ia.
mediate income, they are then competent eo
fulfil all the uses Of money; for money can
have no other use than to exchange for psO-
Perty, or so loan for an income.
Governments have falsely assumed that
the value Of money consists in the inhertint
worth OF the gold, silver and copper MA
terials out Of which it has been coined. This
is not only palpably a false assumption. hut
the laws OF nations prove it to be so for
10 near ly every civilized nation, the eoyetn.
ments have authorized paper money Cwben
secured by State and National stocks. bonds
and mortgages, and SO forth,) to be issued
in the form of bank-notes and to circulate
as money. England has made pa ber
money tender in payment of debts snd
in other countries, where paper 10 the ftrm
bank-notes is authorized to he used as