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

OF the cO1ne III WeISnb "a
Thus the Roman pound of copper of the
wear $50, Be, in less then three hun
dred years, was gradually reduced to
one twenty-fourth part its Original
weight: and the French livre, OF
Charlemagne, of IL ounces of pure sill
YER was repeatedly diminished and al
loyed until, in 1889, it was one seventy
fifth part of its original weight in pure
metal. This mode of robbing the
people was invented as our National
Bank system is maintained, for the
purpose of making the people pay the
extraordinary expenses of the party IN
power, bat was less Objectionable be.
cause it robbed the rich chiefly instead
of the masses. In I'LL paper money
was first issued by authority OF an
European Government. The Republic
of Venice being at war made a forced
loan off all it's citizens, inscrlblng the
amount taken from each in Bank call
ed the Chamber of Loans, and agreeing
to pay four per cent. interest perpetual
ly. The lenders received irredeemable
certificates to bearer in sums to SUIT,
which were found to be so much better
and more convenient as money, than the
diverse and debased coinages OF the
nations with which she traded, that they
became the chief legal tender money OF
Venice, and remained so for six hum
dred years, until the conquest of Italy
by Napoleon, when the bank persisted
by act Of war.
ColweIl Up. 1917 in speaking Of this
Bank says, "The facility of payment
furnished by the Bank, which made il
the admiration of Europe, honorable at
once to the Government and merchants
of Venice and a support to the pride
and power Of its people, consisted In
substituting as a medium of payment
the debt Of the Republic for current
COIN" Like Venice, we were forced to
make part of the debt of the Republic
into current coin, and our experience,
like hers, shows that the best money a
people can have is paper money sup
Piled by itself, and whi,h depends for
its volume and permanent character, as
legal tender, on the interest and faith
of the people. From the date of the
established success Of the Bank OF
Venice, coin has gradually ceased to
be the actual money of the commercial
nations, who use generally paper cur
rency issued or authorized by Govern
ment, Coin being used chiefly as a mere
adiuster of balances Of trade between
different nations, and then only as bull
lion, because ofthe diversity Of Nation
al coinages.
1t will be argued that these Bonds
and currency will not answer these
purposes, because neither redeemable
nor drawing interest in coin. Is no,
the present currency the best we ever
had, though not in fact redeemable in
coin ? In two-th:rds of the civilized
world paper money not redeemable in
coin is now q legal tender, and in effect
the sole currency OF domestic business,
to wit:-in the United States, France,
Austria, Italy, Greece and Russia. Ii
our Government were to adopt the pol
icy Of always keeping out unredeemed
the present circulation as legal tender
it would not impair its value. That
value depends, not on any expectation
of getting coin for it, but on the faith
that the Government, while it remains
outstanding, will always keep it lega
money, that it can pay all private debts
and nearly all public dues, and be ex
changed for anything for sale through
out the country, and if a new currency
with completer money powers, were
put in its place, with the pledged faitt
44f thA- GnIarnment thai ii should al
ways have these powers, would 1t no
be worth, at least, as mucn as the pre-
sent currency? BUTT Will be replied
its volume will be so great that it will
: not bring as much gold as other pro
perty, dollar for dollar, as the presen
! currency Perhaps SO any large in
crease of the currency will raise for ;
time the money value Of gold, and o
other property, and by that increase
without reference to its effect in reduc
ing interest, creditors will suffer as ;
class and debtors be benefited. Tha
is all the injury to any body from tn,
change. The reduction Of the rate z
interest will be brought about largely
however, not by the increase of III,
currency but by the fact of the adoption
Of settled financial policy, giving
stability to business and greater activ
ity and. effect 10 the circulation, which
now is drained from the country fo
Wall-street to speculate on the fluctua
: tons which its scarcity elsewhere pro
duces, and with this greater activity 0
the circulation, its increase under thu
plan proposed would probably stop a
about our per capita circulation ii
J 1865, and prices generally 60 up t.
about the figures of that year. But i
will make no difference to any body
what may be the amount Of currency
which will be preferred to the three pei
cent. bonds, and therefore kept out
) standing, except this, that the more
currency afoat the less bonds, and con
sequently less taxes. The volume vii
never be so large that it will not pro-
duce three per cent. of itself in Interest
by conversion into permanent bonds
duu IluCu IlOIc liltU ludJ III
investment. Every bond will yield
three per cent. Of that legal tender cur
rency which will be the sole measureI
and exchanger Of all the values of the
land, and may be converted into it al
par whenever the holder wishes. 1t is
impossible for any man to show in
wha. respect this currency and these
bonds will fail to perform their respec-
tive Offices, at least as well, in every
particular. as the coin and consols OF
Great Britain.
The adoption Of this system will
awaken and develop every productive
energy and resource Of the land. Taxa.
ton will be reduced by the reduction OF
the interest Of the public debt, produc-
ton and exchanges Of all kinds in
which credit enters will flourish, be-