The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1872-06-08
THE INSTRUMENT OF EXCHANGE
(nNTIYURn

In all the most advanced communities Of
modern times, there ID cumulative ten
dency on the part of the circulating note
to displace gold and silver coins, excepting
those small denominations which may be
described as change, and which are for the
most part carried about in the pockets Of
the people. Were there no other evidence
of this fact, it would be found in the grow
ing practice Of using minted bars Of the
precious metals, officially stamped with
theirfnoney value, in commercial transac-
ti0ns. But We are far from being left to
this isolated indication. The general fact
il conspicuously true Even where the cir
par, 1t will, large sums Of snecie very rare
- r--- L-A-e@1 -ksAsss-A aad aalIer CoIA
and silver, generally speaking, -
countries, are, and were IN the United
States, before the suspension OF specie pay
ments, lodged in the vaults Of the banks,
and in other safe repositories, whence they
seldom emerged in any considerable guam
tity. So long as confidence in its integrity
was unimpaired, all intelligent classes
greatly preferred, and still prefer, the note
Of the banker to his disc of metal, on &C
count of its exceeding hghtness, its supe-
rior capacity to represent large denomina-
tional values, its Incompatible ease Of car
rage, its peculiar adaptabihty for conceal
ment about the person or elsewhere, and
its surprising readiness Of Identification in
cases of loss or theft. Despite all the or
thodox talk about the pre-enrinent fitness
of gold and silver to fulfil the functions Of
money, because Of their beautyand utility;
their scarcity their intrinsic value their
uniformity Of quality their facility Of
separation into homogeneous parts, and OF
reunion by melting and their capacity Of
receiving plain and lasting impression, by
which their weight, value, and origin, are
indicated by notwithstanding
all this, we say, the circulating note has
steadily increased in popular favor for
everyday uses, and As q oOntrivance for
dispensing with the service Of coin, which,
consequently, has more and more disap-
peared from the channels of commerce.
The rt Ason 10 plain-thS inevitable tsnden-
cy Of a superior medium OF exchange Is to
supercede one which is inferior. Gold and
silver money excepting only minor denom-
nations. has outlived the days Of its supe-
riority a an exchanger of values in all
highly civilized countries and having
there passed its meridian, IN now rapidly
on the decline. Among the most consplc-
nous indlcations of this loss Of ascendancy,
was the employment cf coin ~ basis for
/ the issue of bank Representative
| promises % pay. The movement of the
I precious metals IL nov increasingly toward
/ harbarlc lands, which absorb far more than
they Rive out. Inasmuch - trade with
I Asa and in adjacent islanda, and with
. r. L. n
snccsasive year assuming vaster proportions,
! the drain upon the specie reserves OF Eu'
rope and America must steadily augment,
in the fAce Of growing populations ON bott
! continents, and o most wonderful develop
ment of the productive forces, involving
an increasing number and frequency OF ex
changes, and consequently an imperative
need for the hest attainable machinery fol
facilitating them. II IN evident that gold
and silver cannot serve the coming demand
for. in addition to the swelling drain int
Asia and elsewhere, those very qualities
which have been adduced 70 prove the pFe
emiDent fitness Of those metals to fuli
the functions Of money, are now, In stll
higher degree, recommending them for tn
manufacture of plate, jewelry, watches
ornaments, and various Htilitiesof OF the azts
and their diversiOn 10 such, uaes natural!
increases with an increase OF numbers an'
wealth, both Of which were never before .
marked and significant. Here We hnd
variety Of causes, all cooperating TO ex
clude gold and silver mintags, excepe IN
coins Of small value, from PsrfozlAing tn
work Of exchanging values. This forebode
the divorce a vsnc,ilo matrimoaii Of the cir
culating note from specie, 10 which IL b.
been SO long and - hasmenieusly wedaed
At monetary centrssS where PoPulAsso
is crowded, AAd the eiresAtiou Cfcgusnlod
ities and services sxsesdingly ssPia, Tier
is . growing tsadsncy TO sabstisute 'th
check and the draet.fos the -sirsulatin
note, bsenMse - thsirI sspsfiOaky-ss d
Struments Of exchanges WitA sSswstseks
4 Of the psA, shsy oaA b maae 70 rspssses
! any dssBSa anssank, A which shnPs ths
keftsn invsapS<nsahina @ss tAa>. sssse'