The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1872-10-05
Cheap Money.

We take the following from the New
York Mercantile Journal of June 29th I:
The abundance ~ money offering on
Wall street yesterday gave borrowers the
advantage. and temporary loans were OBJ
tanned at the unusually low rate Of two per
cent. per annum. This somewhat peculiar
condition Of the money market calls to our
mind a statement made not very long since
by one whom We delight u honor as an or
binary careful and correct thinker. 1t vas
to the effect that low rates u interest for
money Indicated dull business, or adepres-
sion Of trade followed in the wake Of cheap
money, and active business followed as the
effect Of high rates ~ interest. We were
astonished at this. as il is quite the oppo-
site of the fact. One might as well claim
that the drinking ~ pure water increased
thirst. Yet thousands upon thousands Of
our business men knowing that when mon
ey is very cheap business il dull, and rice
reisd, jump at their conclusions without
stopping tn reflect upon the subject, in or
der to decide intelligently which is the
cause and which the effect
Cheap money induces speculation, and if
continued in over-supply for a long time,
finally leads "a an unhealthy condition Of
affairs. which in the past has almost inva-
riably been aggravated by a withdrawal Of
currency when most needed, producing
panic and numerous bankruptcies. Ex-
tremes must be avoided if we are to pros
per While the proper temperature Of the
bl@Dd IN the human system is 81 degrees
(Farenheit). it is a well known fact that
with an increase ~ only few degrees, a
dangerous fever is the result and ii, On
the other hand, the temperature is reduc-
ed a few degrees below the standard, de-
biiity follows, and if prolonged death en-
sues. 50 with commercial life the only
way to secure exemption from severe EN-
barrassments Is to have a system Of finance
inaugurated by the Government which
shall so regulate the flow of currency that
the supply shall never exceed nor fall short
Of the needs Of the people
II seems almost absurd to again state in
these columns that the only sttre method
which can be adopted to bring about this
as al admit much needed adjustment
Of the currency, is for the Government to
carry out the intent IL the trainers Of the
Constitution, by coming money of paper.
- regulating the value thereof, by making
il interchangeable with Government bonds
bearing a G1ed equitable rate Of interest
Simply because 81 the lack Of such Nation
al Paper Money, the panic Of 1857, with it,
numerous difficulties and financial embar<
rasments, and thuse which preceded and
have followed It. were possible.
II il with me- small pleasure that we have
noticed the tendency % the press ~ discuss
the STRIKE" Of workIngmen from puliti-
co-economical stand point. Strikes are
very unfortunate, and have not had, and
shall never have, our support, because they
are wrong in principle. But while there 1
are those who depart from the right. en-
deavoring t. coerce employers, there is a
much greater wrong perpetrated upon the
masses through the mistaken financial pol |
ICY of the government. II is a moderate
estimate to say that at least ., 900, OOO men,
women and children in the United States
we're kept out Of employment for twelve |
month a. the result Of the panic of 1857 !
and that their average wages for say three |
hundred days in a year would reach. in
Guiding board, one dollar per day This |
would give I'M the enormous sum Of 81. 800 |
OO0, OOO a. the loss sustained in the brief |
space Of twelve months, through unem-
ployed labor, caused by this panic.