, 1873-05-29
build canal and wator-ro,tto, 1,400 milps long,
through tho n,ountains Of Tclnesaoo, Alabama,
mud Goorgia, arc tho States Of Iowa, Now York,
and Missouri.
GOLD AND GI.EENDAUKg,


much greater than tho current promium Of gold
in opposition to Bomo criticisms Of ours on lilo
viows of Prof. porry aud Mr.. Amnaa Walker OIL
TINT subject. Wo hold TINT tho gold premium iB
thu eraot measure Of tho depreciation Of tho
currency, y,-allowance being mado for abnormal
disturbing cauaos, such aa victories or dofeatH
In war, Government lntorforoncoB Black
Friday oonspiraolos, oto. Tho Finnncie,'
mai1ltains that tho gold premium is
not such u measure that tho premium ought to
DO much higher than 1t is ns compared with cur
ronoy,-ho,o much higher Ia not suggested. Tie
roasons 1t assigns for ttis belief aro throo In
number, viz:
1. That tho Logal-Tondor act practically demon-
otfGod gold leaving for 1t no usos in this country
orcops for tho payment Of import duties and
tntoroee On tho public dob, for tho arts. and for
purposes Of ornament. That tho cessation Of
its principal uso (as monoy) choaponod tt, just
as tho cessation Of tho beer manufacture would
cleapcn barley
2. That tho law authorizing tho gocrotary of
tho TreaRury to soil gold las artifloiay cheapon-
cd 1t. That tho Treasury Ia the bear of tho
gold market, forcing down tho prico whcnoyor
1t shows tendency to riso.
0. That tho protective tariff now in force llas
arsicially choaponed all exportablo articles, in
Guiding gold, by causing them to exchange for
less quantities Of otlor commodities than tloy
otherwise would.
The argument is, that whateyor artiacial1y
choapens gold causeB it to exchange for a loss
number Of groonback dollars than It ought to
and would II those artificial restraints were re-
moved. We think wo havo stated tho F;nan-
cter's position fairly and fully. We will now
show whorcfn wo think it il erroneous.
That the cessation of one uHo of q commodity
susceptible OF two or moro uscs, tho supply bo.
Ing the samo choaponB tho article to that o1-
tent, is truiRm in economic science. But gold
Inns not ceased to bo uHed aa money in tho world
generally, nor oyon III all parts of tho Unitod
States. Its usc as money Inns largely Increased
in Franco and Germany since 1t became domono*
tizod in thts country, and has materially in
creased in India and japan. To whatovor OK
tont its disuso in tho United States has oxcood-
cd its Increased uso in tho rost of tho world It
has been choapenod, not in tho United States
merely, but everywhere. This choapening, bo
1t moro or less, s exhibited in higher gold prices
for commoditios. Less goods will bo exchanged
Tor tho aamo weight of gold. Tho general fact,
tint tho choaponing Of gold In ono country will
causo it to flow into other countries, 40 that tho
mil }1>rs1 NJ 41.1
preserved, is conceded by tho Financier.
But 1t contends tint, after tho surplus las
gono out Of tho country, tho aamo causos net
upon tho romaiudor-that is, upon tho amount
retained horo for the payment Of duties On i'm
ports, otc. This is IN extremely subtle distinc-
tion. Wo arc not quito Buro that wo understand
1t, but We think 1t is sufficient answer to say
that gold is as mobile an element in the COM
mercial, as water is in the physical, world that
In this respect it il peculiar, differing nltogothor
from pariey anu everything olHo, Tor whoroas
only q certain amount Of barley con be sold at
any price, any amount Of gold can DO sold Ut
Some price; that you cannot permanently e1c-
vato Or dopross any portion Of tho gold supply
Of the world as compared wit1, tho general level,
unless you put barriers around it, virtually sopa-
rating it from the mass. You may nrtiAcially
dam tile water, or you may prohibit tho export
or tho melting of coin. Dqt, If you 1oaye thom
FREQ, you cannot produce OIL effect upon ono por-
ton without affecting in like manncr evory por-
ton. Now, the depreciation Of greenbacAs (Which
arc nero tools for facilitating oxchanges) is
caused by tho fact that thoro are moro of those
tools in use than arc needed. Corn is deprooiat-
od at tile presont timo for tho same reaBon
Hats would be doprcciated in like manner. How
much arc the greenbacks doprociatod7 Tako a
thousand dollars Of them and see how much you
can buy. You can buy $50 gold dollars, or you
can buy lettcr Of credit good for that weight
OF gold coin or bullion III any part Of tho world
What othor measure would you have Of
tho worth OF your groonbacks? Tho idea
TINT thoro should bo any other test would pro-
yoke smile II 1t wero not advanced by rosnoot-
able writors. It WIS advanced under analogous
circumstances, and In alu,ost identical language,
in England half century ago. It WAS tl,on
assailed md demolished by Mr. Tooke In hig
History OF pricos Vol. !, part 81 and by Mr.
Ricardo In tho House Of Commons. Mr. Van
eittart, tho champion blookhoad Of tho poriod,
contonded that tho English groenbacks were
not depreotatod at all, Notwithstanding tho gold
soverolgn was worth considerably moro than the
paper ono in tho market. Another party, whose
organ was the Quarterly Repie,o maintained that
the rcal depreciation of the bank-note waa much
greater than tho difference betwoon gold and
tho bank-noto in tho market. Both
these fallacios wore 40 completely OYER
thrown by A1r. Tooke that they havo not
hinco boen sustained by any respectable British
authority, sayo in qualified nlannor by hIr J.
Il. McCulloch. They nre now consigned to tho
limbo Of forgotten horosiea by English ocono-
mssts, and aEe deemed worthy Of littlo moro
than sneer by tlo eminent Trench writer
Ohevalior,
Wo do not 500 why the law authorizing the
Secretary Of the Treasury to sell gold should 10