The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1873-11-13
why not Return to a specia BasIsq

There is question very pertinently
asked by the Frankfort Yeoman, and
one that viii be asked by the people
generally in thunder tones, if prompt
and satisfactory answer shall not be
given before said people have an op-
/ portunity of being heard at the ballot
box. The Yeoman very truthfully
says:
From nearly all the suspended
| banks and bankers comes the state
ment that their assets are double,
sometimes treble and even quadruple
their debts. This means, simply, that
| the suspending institutions or firms
have plenty of property, but they can
not convert it into money, with which
alone can their debts be paid and
I they cannot obtain the money, simply
/ because there is not sufficient amount
of currency in circulation TO supply
the demand of legitimate business.
But it is contended by some that there
| is plenty of money, or that which pas
SEES for money, in existence, but that
/ it has been diverted from the regular
channels of trade and commerce by
I those money kings-the stock gam
blers-and cannot, therefore, be made
available for the emergency of the
time. Suppose we grant that this is
/ so-What, then, becomes of the admin
istration's-the Republican party's-
/ boasted system of finance which leaves
/ the trade and commerce, the legitimate
business, the entire material interests
of the country at the tender mercy of
few unscrupulous SPECTATORS and
cormOrants in Wall street2 Is not the
Government as much bound to re-
move all distractions to the eircula-
! ton, as it is to furnish full supply of
the circulating medium at the fountain
head If Jay Gould and few other
sharpers of his class are to be the mas
ters of the financial situation in this
country, then why not resign the mat
ter into their hands entirely-Why
not elothe them with the entire re-
sponsibiIity? And, then, perhaps,
after they have stolen enough to salts
| fly their enormous greed, they may be
content to leave the channels unob-
structed, and allow the trade and COM
merce of the country to flow on with
out Interruption.
The best financial writers and think
ers in the country agree that the only
permanent safety to legitimate COM
merce is in specie basis, and upon
this hypothesis it is gravely asserted
that our present troubles are not un-
| likely to end in return to 3 specie
currency, or a circulation based on
specie, dollar for dollar. That our
present currency cannot be permanent
we presume no one will deny. Then,
so long as we are subjected TO the use
of such currency, SO long are we liable
to just such troubles as we are now
passing through.
An inconvertible currency, however
large, adds nothing to the wealth of a
country. 1t has no intrinsic value. 1t
is not proper in any sense of the word.
An order for flour is not property /;
the flour is, but the orderis not. Why
Because the instant the order is ac-
cepted and the flour delivered, the
order has performed its functions and
no longer exists as a power or means
| of production. So, exactly, with our
present currency. But if we have q
piece or pieces of gold or silver repre-
senting SIS, the exchange of the specie
for fonr leaves both buyer and seller
| in possession of an intrinsic, substan-
tive VRlne.
The wealth or capital of a country
is made mp of all the various kinds of
property existing III that country, in
| cluding all those commodities con-
sumed by use and annually reproduc-
| ed, such as articles of food and cloth
| ing, as well as objects of q more per-
manent character, such as the cultivat-
| ed lands, dwelling houses, stores and
| barns, the buildings and machinery of
manufactures, agricultural imple-
ments, and the tools of the mechanic
and the lab orer. None ofthese can be
! Immediately consumed by use, but
| they continue to perform the service
/ which they render to the community
over and over again, year after year.
The money or currency of q country,
! when it consists of the precious metals,
is another of the items of wealth or
capital belonging to this class of per-
manent property which is not consum-
ed by use, but being once in posses
sion Gf country, remains always
ready for use over and oyer again,
performing the important Office of
measuring the values ofall other arti-
cles in the daily transactions of trade
and commerce.. Thus, we see that it
is a mistaken idea to suppose that pa
per currency adds anything to the
wealth or capital of a people. If this
paper currency is inconVertible into
gold or silver, it does not represent
money, but is used merely as a substi-
tute for mouey. We're this paper cur
lrency based upon gold and silver, then
the convenience of the material might
furnish good reason for using it, but
our currency is based upon no such
foundation; each note or greenbaek
merely represents fact, acknowledge
Jed by the Governments, viz: that the
nation owes the holder the amount of
money specified on its face, and prom
ises to pay that amount, not at any
specified time, but at the pleasure or
convenience of the Government. To
call such promises TO pay, money, in
the present enlightened age of the
world, is simply an insulting mockery.