The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1872-06-15
BY d. II. MASON.



ton, but to increase the number Of its rev
olutions then why should gold and silver
be selected to perform this office, when
neither separately, nor both together, can
be obtained i'll sufficient quantities to make
the niece. sary exchanges To do that
would be to make the superior instrument
Of exchange subordinate to the inferior,
and to take a retrogressive step in the di-
rection of barter ; for gold and silver are
not merely representatives of value, but
value itself, and thus in passing from hand
to hand, in making purchases, are payment,
to that extent partaking Of all the qualities
Of a commodity. We have already seen
that the circulating note, through force of
its superior excellence as an exchanger Of
things, is preferred to the precious metals
to do the work Of commerce in all highly
civilized communities then why should
this deliberate and strengthening choice,
growing out of the daily circumstances Of
exchanging needs, and indicated by expe-
rience, be sought to be nullifed by legisla-
tive interference, merely in order to force
again into use symbol of the power of
commanding services which is fast being
displaced because a better and more ser
viceable one has been devised and has
passed the crucial tests of long trial
Why not, in this matter Of resumption
Of specie payments, draw as freely from the
fountains Of knowledge, and from the his
tory Of human action, as when endeavor-
ing to arrive at true principles Of policy as
regards other matters Of public importancel
Even those who so clamorously advocate a
return TO coin basis, look forward only to
bass of the precious metals for the issue
Of circulating notes, not to an exclusively
metally currency. Why select for basis
what Is so liable to political and
commercial disturbances in the worlds
markets, affecting its quantity in this coun-
try-a basis beyond the control of the gov
eminent or the banks Is not the credit
of the United States perfectly ample for
the basis of medium to facilitate ex-
changes at home If, by that means, we
can secure an inexportable currency, which
fully accOmpGshes the only object for which
money Of any kind is ever instituted, why
introduce into it hindering and disquiet-
ing agency Specie has ever performed
that disagreeable function. Under the old
State bank system, there was rarely day
when the malice ola powerful combination,
by demanding the immediate redemption
OF banks issue in coin, could not have
forced it into suspension. The big banks
preyed upon the little ones, turning them
into tools of proft-making schemes. Set
the same cause at work and we shall have
the same effect. Have we not had enough
of it already All this orthodox talk about
the necessity Of resuming specie payments
Is a delusiOn and a snare 1t is at daRper's
point with the principle of progressive
machinery for operating exchanges. each
advancing step bringing a large improve
ment upon what had preceded for it
would turn back from the new and better,
to adopt the old and inferior Saws Mac
leod, CTheory and Practice of Banking,
vol. l., ?. 40:
The simplest and most perfect form of a |
currency is that which represents nothing but |
transferable debt, and Of which the material |
Is Of no intrinsic value, such as paper. 1t is !
only when States have reached high degree |
of civilization that they adopt this perfect |
form before they attain that, the material Of
1t entirely consists of something which has an |
intrinsic value, such as gold or silver But |
this intrinsic value is asecondary circumstance, |
and not the one which gives it its charac- |
teristic as currency II is its general recep. |
ton az the risi6le symbol Of transferable potcer,
which is also called negotiability, which is the |
essence OF a currency, and distinguishes coin /
from q medal"
Gold or silver coin is lower grade of
currency than the circulating note. It is
a gross mistake to subordinate the latter to
the former-the legitimate master to the
legitimate servant. The very cost of a
metallic currency Is no small part of its
disadvantage. To acquire the amount of
the precious metals requisite for perform
ing the offices of money, a nation must
part with no Insignificant portion of its pre-
vlous earnings and this, whether it have
mines OF itself, or procure the metals from
abroad: The quantity of gold and silver
devoted to the purposes Of circulating
medium In any country, represents 80 much
Of It's accumulated wealth withdrawn from
productive and reproductive pursuits, to
perform, In the most expensive manner
possible, the woIk of exchanges. PAPER
money, while accomplishing the same task \
more readily and more satisfactorily. |
possesses the additional recommendation Of
saving nearly all the investment required
IN the case OF coin, together with facility
OF supply to any needed extent. Conse-
quently, the idea of returning to specie
payments involves also the idea of convert
ing vast quantity of the precious metals.
now commodities like wheat and pork. in
TO circulating medium, at great and un.
necessary cost to the community for.
after such conversion shall have been COM
pleted, the coins will for the most part re-
nam IN stagnant state, while fulfilling
their purpose as a basis for the circulating
note, lying idle, as they generally do when
performing such a service, in vaults and
safes, where they are neither meat. nor
drink, nor clothing, nor fuel, nor shelter.
nor anything else that is useful. The de-
sign OF this basis is frustrated the very mo-
ment this inactive, and hence unproduc-
i've, condition of specie is disturbed. bv
the com redemption Of any paper issue.
since the gold or silver given in exchange
ior IL at once ceases to be any part of the
oGSIs which may thus be dwarfed into inn
Potency, whenever a sufficient number of ,
D!ll-holders choose to exercise their right
q convertibility. It is not contended bv
the advocates of the gold-base system. that
us institution has any higher object than
70 give security to and confidence in the
resulting paper circulation vet both az
tnese may at any time be impaired bv
variety OF circumstances over which the
DAnk can have no control. This ineffect-
NeneSS Is the natural result of the ATTEMPT
70 make a superior exchanger of commOdi-
nc: Sno services mere appenda0e of one
Hnlcal u inferior. Such q policy is. in its
enects much like subordinatine inteli-
gence 70 the rule Of Ignorance or Ike
making the Egyptian pillow a mera ~rn-,is.
r