, 1873-12-19
MIR. 1IOOT0N ON CURRENCY.

"*SAtAt O11IE iIlFAtSbGu HASl tAV VAaAGnbu9eH
and the evident sincerity Of his language. md,
II there ho pointB Which will not boar tho tost Of
economic criticism, 1t by no moans weasons tho
conviction that MIR. Hooton rcally thinks what
he pays. 1n tho matter Of tho uso Of gold and
silver NJ money, and thoir employment as o
standard Of values, Mr.. Hooton Expresses optn-
ious which we consider tremendously etronoous;
nevertheless thoy aro opinions that llayo high
antiquity, and have, no loliovo, boon advanced
by Tltaddeus etevons aud William, D. Kolloy.
Mr.. Hooton coutonds tint money. in ordor to
DO good, does not need hnve any other value
than that stamped on it by the Government.
In other words, tint when The Government shall
stamp ita dollar-1narl on q given quantity OF
Iron, tin, lead, or papcr. and declare 1t legal
tonder, such money Is aagood as II It were coined
Of gold or silver. Ho states lH proposition to
bo that " Tho material on which tlo money!
tolsonB Of country arc impressed has nothing
to do with tho valuo thereof al money. Tharo-
foro tho theory that money, in order to DO good,
boah." IIo therefore regards tho whole theory
Of spooie resumption as " d fraud and cheat.'
Ills remedy for all financial OWLS Is tho repeal Of
all banking and usu4y lava the retirement Of
all bank circulation and its pormauont prohlbl-
ton the iasue Of fifty millions Of logal-tendora
every month In payment Of an equal amoult Of
national bonds ds,-these notes not to bo promises
to pay, but certificates Of value, authorized to
pay all dobts, Thls currency ho wishes to have
decreed to be "monoy equal with gold and sil-
ver." Ho gives as form for ono Of theae notes
tho following: ia United States of America.
Five dollars. (sigued) --, Secretary Of tho
Treasury" He wants this currency issued until
it shall be 30 abundant thnt holders will readily
lend it at per cent. By adding little more to
tho quantity, OF course tho holders would readily
lend 1t for nothing, aud tho borrowers wouldn't
take 1t At that price.
In his argument, Alr. Hooton points out tho
fact that, during tho times Of great imitation OF
paper money, prices Of labor and Of all produce
tions lave advanced and good times prevailed.
He admits that the inaations were followed by
crashes, but maintains that this result WAS due
to the fact that tho currency was redoomablo in
specie, mud, the banka failing to redeem. tho pa
per became worthless. Aa the greaubaok is
mover to be redeemed, there Gnu be no such fall
ure, and, tho currency being lcgal-tender, thcre
can bo no loss. Alr. Hooton's argument proven
too much. Ho admits his own fallaoy
when ho says thAt, as the paper currency
becomes inflated, prices nominally ad-
vance. Tho laborer, Whose wagos advanco
Is per cent, is met by q corresponding
If not creator advance in what he has to buy;
wheat nay advance 80 conts bushel, but. II tho
farmer has TO pay 80 to 40 cents moro Tor each
Wheat wherein is he benefited by the cbango7
The advance in plicos ia but equivalent to the
depreciation in tho paper currency, tho
real value Of labor and product remniu-
ing A. they weie before. It Is true that
1t has boon decided that the Government may,
under the ezigencles Of war, "as = meaaure Of
necessity" make ita paper promises q legal
tender in payment Of debts; but that, after all,
is species Of robbery aud population. We do
not bolieyo that the most latitudinarisn econo-
mist has yet claimed that the Government can
compel man to sell or exchange Ills goods or
his labor for either greenbacaH or gold. Making
greenbacks lcgal-tender can Ut most apply only
to existing debts. Whom pre-sxisting debts are
dltion Of things betterol7 Prices advance pre-
ciscly In tho proportion that grconbacks do
prcc1ate from tho gold standard. II groenbacks
are worth but 80 cents in gold, it will take 90
In paper to purchase what ono toal dollar would
buy. There are numerous instances to show the
moonshne folly Of all attempts to mako any
thing but tho precious metals standard OF
values. Tho experiment Of making brass and
copper and iron coins. and stamping them with
the valuo.mark Of gold, has toen tried in many
countries. and always with the Hame result.
Blaas dollats will purchase goods to their valuo
us brass, and nothing moro. With IN issao OF
two Thousand millions Of greenbackH. irredcon,-
able at any time, they would fall 30 low that 1t
would reluirc bushol of currency to purchase
q bushol Of wtont. II Ill that is needed to mike
paper as good as gold IL tile Government stamp,
why is it that utter eight years Of poaco. tho
greenback, outstanding only in limited amount,
fails to purchase what the gold dollar will buy
Th% Confederate Government tried tho policy OF
stamping papor iu unlimited amounts with the
dollar-mark, snd, long before tho War was over,
the value Of that money was illustrated In the
remark that tho purchaser carried his currency to
market in basaet and brought home .is pur-
ehasss In his vost.pocket. Mr. Hooton imag;nes
condition Of things whom gold will bo go
plenty TINT it will have no creator value than
iron, and asks Whore shon will bo tho standard?
1t Is Just because this abundance OF gold IL III
impossib.lity that gold isa standard Of va!ue,
aud 1t will remnin 30 just 10 long as that impos-
sibility exists. II wloa. and corn should become
ArticloA Of spontaneous growth IN all parts Of
tho inhabited earth, thoy would lose their COM
mercia! valuo; aud thoro IL just AZ much likell.
H.