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

employing the best attainable exchaneer ,
values that is, the one which most facil
tates exchanges from hand to hand. Tn
transferring capacity prominently chara,
terizes the check and the draft. The
commend themselves to general use
business transactions, in preference to tn
circulating note, because they are not lin
tied to denominationaI sums, and becaus
they are lighter, more easily transporte
and more safely, are far more economical
and more easily increased and decreased il
amount, in accordance with the wants @
the community. Where they are in YER
extensive use, the growing tendency=4s t
make circulating nOIes the small change O
the ledger. In large cities, not fiftietl
part of the business 10 transacted by the &C
tual use of money and there, except il
dealings with the government, for the 70
tail trade, for the payment of labor ana
taxes, for travelling expenses, the purchas,
Of products at first hands, and for tn,
bankers reserve, money is hardly . neces
sity. Everywhere bank credits and bills d
exchange perform the office of currency tc
n much greater extent than in former years
in all the cities and towns throughout the
country, checks upon credits in banks and
bills of exchange have largely taken the
place OF the circulating note. In all this
we fnd further and very strong confirma-
ton of the entire correctness of our fun
damental general principle regarding ex-
changes of every description, that Whatever
promotes, sustains, and completes them, In
the most rapid and useful manner, to q
needed extent, is necessarily best adapted
to secure the purposes of exchanges. Ac-
cepting this proposition az true, we reach
the conclusion that it is mistake to sup
pose that q thing, to perform successfully
the functions of money, must possess in
trinsic value. Money, at present, what
ever may have been the case II olden
times, measures the relative value of things,
and il beneicially used rs medium Of ef-
fecting exchanges, not because of its in-
trlnsic value, but simply because il il uni-
versslly accepted in exchange for all things.
Intrinsic value 10 the fundamental idea II
barter, and it was but natural that this idea
should attach to the first Instruments Of ex-
change, since. il the primitive days, in.s-
curity Of person and property was the rule,
rather thau the exception, a. now, and
prudence required that both parts
Of the exchange should embody actual
value in the things themselves But, in
the present age, the infinite division Of Ia
bor, with the never-ceasing protection &C
corded to individual rights, ha. given such
immense Importance to the exchanges Of all
things, that money, a. mere instrument
'or facilitating these exchanges, il incom-
Darably more useful 10 humanity than any
whatsoever, as the possession
But, to this end, the tnHffg
used as money must be universally received
1t all times, in exchange for commodities
and services and this cannot be unless the
themselves, and the persons
able to render the services desired, exist.
In desert island, or in q besieged town,
money, at all times, is nearly useless, be-
cause the things desired do not exist there.
1t is, therefore, evident that paper money, to
perform successfully the functions of mo-
ney, should never be issued except against
a pledge direct or indirect, of greater
value of useful commodities, applicable to
the redemption of the circulating notes is
sued. Such rule, strictly adhered t.,
would make paper money perfect instru-
ment of exchanges, becaase the redemp-
ton of circulating notes in commodities
and services is preferable to their redemp-
ton in coin for commodities and services
are useful per Sc, while the only use of coin
as money is as means of obtaining those
very commodities and services. If gold
and silver were to lose all value independ-
ent Of their character M money, would they
be stripped of their character as money
Under such a system as that indicated, pa
per money becomes mere certificate oi
services rendered, for which the holder hai
not been remunerated. Each holder, BY
transferring the certificate, transfers hil
claim to any party or parties that rendeI
him equivalent services. In this sense O.
paper mouey, the banking institution be
comes, as it were, one of the clearing
houses of the industry Of the world.
We are now sufficiently advanced in thu
presentation Of our ideas TO take up TIN
mooted question Of resumption Of speci'
payments. At every session of Congress
the country is agitated by some Legislative
scheme, either TO facilitate or to compel {
return to a specie basis. II is assumed b.
large class of impatient reformers, tina
q AVbuhAPtAOh VI SRCSAO RoJ AAASA8 - y A@-~~
ter Of paramount importance, and tha
measures, looking to that end, Ahould b
devised at once, and carried promptly int
execution, the last vestigs of excuse bein
gone. 1t is taken for granted that tn
mere power Of holders Of grsenbacks an
National Bank notes TO convert them int
gold, on demand, dollar for dollar, woul
be followed immediately by . multituds Q
blessings to the whole community, from II
highest to its lowest member. At all point
we are at war with this policy and its sup
posed consequences Even if the countr
could get back to specie payments, there
considerable doubt whether it could sta
there for ninety consecutive days, unds
the present condition Of our national deb
and finances. The very attempts to rstur
to q specie coin basis would operate TO ds
feat its own purpose for, if the fact b
came clear that specie payments were 70 3
resumed ct an early day, either by th
adoption Of o definite line of action b
Congress, or from any other cause, il woul
become at once the private pecuniary II
terest of every holder Of coin to sell. VIII
ever sold his coin would be gamer. VIII
ever held it until resumption, or durlr
the decline preceding resumption, coul
not fail TO be loser. Clearly, it woul
not be anybody's interest to hold coin Il
coin would be constantly falling m psis
| Therefore, it cannot be denied that 4
certain approach Of specie payments wca
tend strongiy 10 make every holderuf 90
q seller. In such . state Of affairs, spec
would be thrown on the market, and, 6n'