New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-12-03
years and trials, and that no brings to her
councils the craftsmanship and philosophy that
belong 10 the new and better period.
LESSONS FOR BEGINNERS.


To hcvildered readers Of the Presidents Mes
saQe and the Report Of the Secretary of the
Treasury. the following are commended as
among the simplest and most elementary OF inc
fundamental propositions relating 10 money
Every nation has certain methods oil DONG
business. a certain quantity OF business TO De
done, and certain quantity OF money with
which To do that business. The result Is a
certain scale of prices. OF course there arc
fluctuations in all these elements, just az
there are countless waves on the surface
of the ocean, but in speaking of the level OF
the sea it isnot necessary to take them into con-
sideration. Most nations slowly increase In
wealth and population. but that also il
change which for the present purpose may be
disrcgarded. Now it il truth, apparent to
common sense and attested by all experience,
that any considerable increase in the money
of a nation simply increases prices. If the
nation carries on commerce with other
nations its ability to sell its own pro-
ducts is diminished by imitation, while its pur-
chases of foreign products arc increased. If
its currency is convertible one, that part OF
it which is gold is drawn upon for export TO
pay for tho increased importations If gold IS
demonetzed and deprived of its principal use
ms money, il is likely to be Of even less value
than il it formed part of the currency, and
is still exported until the entire surplus IL
removed. The balance of trade for these
reasons, will inevitably bo against a
nation which issues convertible cur
rency to excess, and just rs certainly
will it be against nation which, by issuing
S75O0OO,0OO of inc0nvertible paper, de-
Drives gold and silver of their principal utll-
ity and drives them out of circulation. III we
cut out of President Grants Message and Sec
rotary Richardson's Report those portions
which conflict with these fundamental truths,
there will not be much left Of their financial
discussions, it j. true; but what remains VIII
not be utterly contemplate.
But why is it. some one may ask. that the
balance of trado has lately been iu favor OF
the United States; that gold has actually been
imported during the last two monthsf The
reasons are two. In the first place OWING
to the recent great development o. -the
credit system OF England. prices had
risen in that country to such de-
gree that her export trade was checked,
while by reason Of the short crops her I'M
ports for two years have rapidly increased.
This observation applies particularly to her
trade with the United States. In the second
place, by reason OF the temporary loss OF con-
fdence throughout the United States growing
out of the panic, the paper money suddenly
became more valuable importers were unable
to remit to their foreign creditors. and for
time it was necessary TO send gold here
Nnty
that confidence is in measure restored, the
importation of gold has ceased, though. con-
s,dering merchandise alone, the balance Of
trade is moro in favor of this country than
ever With 4 paper currency Of s75O,OOo,oDo,
with no other use for gold than tho payment
OF customs duties and interest on the Public
Debt. aud that afforded by the spcculatons
of Wall Street TO talk, as Grant Richardson,
ard Boutwell, do, of Il balance of trade per
"manentlyn in favor of the United States is
supreme nonsense Tho balance Of trade never
is and never can be permanently IN favor of
any nation whatever. When we find the phi
losopher's stone and tho fountain Of youth;
when we have perpetual Spring, and beauty
grows with advancing years, then may we
expect a permanent balance of trade in favor
of tho United States.
The President favor5 increase Of the cur
rency to stimulate the manufacture Of goods
for expectation We are unable TO imagine
how this effect could follow, unless by tho
sale of bankrupt stocks. Ho also agrees with
Mr.. Opdyko in calling our irredeemablG paper
money tho best that has ever been devised"
The same opinion was entertained IN France
a century and half ago Of paper
currency which has many remarkable points OF
resemblance to Our own, VIZ, that de-
vised by John Law. The President appears as
convert to the latest delusion-an "elastich
currency, which means that money should be
created every Autumn for the purpose of
moving the crops. 1t seems to IA, since money
is not and cannot be made elastic That the
proper way to accomplish the desired object
i, to reserve money in tho Spring and SUM
mer. and that the duty of making such accu-
mutations belongs to the banks and not to the
Treasury of the United States. On the whole,
we find little Of value relating to finance In
the Message, and next to nothing in Mr.
Richardson's Report.
curious story comes 10 us across the ocean OF q
sbaple., bundle Of rags found recently in treetop