Los Angeles daily herald., 1873-10-10
The Currency Question.


at the coming session. The will of
the people should be made clearly
manifest in advance, SO that our So
Ions may have no uncertain light to
guide them. .-
The great body of the people de-
mand relief from the merciless eX-
actions of Il money system which eX-
cludes capital from abroad, imposes
an eXorbitant rate of interest, and
controls the business of the state to
the injury of all their interests.
1t is patent that, on this question,
the people are divided into two classes.
Arrayed on one side are the bankers,
brokers', capitalists and all other in
their interests. On the other side, are
the agriculturists, mechanics, labOrers
and all others i'm their interests. The
former bitterly oppose the introduction
Of our national currency and banking
system, redUy because it will add
largely to the volume. of circulation,
bring in capital from other States,
lead to the establishment of national
banks, reduce the rates of interest and,
generally, unsettle, if not entirely de-
StrOy the great mOneyeu monopoly
which OH1,s the State financially and
politically.
The latter pervcrsely insist that leg
iSlation, banking, Il high rate of inter
est and a despotic control of the COM
merce and business Of the State, have
all been enjoyed long enough by the
other side: and now they must have Il
little legislation in their behalf, and
at east, brief respite from the des-
h.
Ostensibly, the former insist that
the national currency is unsOund; that
no currency should not be tolerated
unless convertible into gold, the stand
ard by which all values are measured.
But is the national currency in fact
msound: 1t is difficult to tell what
intrinsic value there is in gold, aside
from its use as II purchasing power.
1t owes its position as standard of
value to legislation and custom. What
is there behind the national currency
to give it value? list. 1t is the promise
of the government, and the gOven-
ment is bound to redeem it sooner or
later. 1t has, therefore, the security
Of stable government which secures
to it Il value. I'd. 1t has Federal and
state legislation i'm its aid, by which
il is made legal tender for all debts,
public and private, except customs.
3u. Ii has the endorsement of the peO-
pie and, by common consent, all the
business of the United States, except
the Pacific Coast, is done on Il govern
ment currency basis. So far, then, as
we are concerned, greenbacks have all
the elements that give value to gold
rs Il purchasing medium. Therefore, |
assume that it cannot be said that our
national currency is lnsound. True,
il cannot be converted into gold ex-
cept at discount. Unfortunately for
forty millions of people, a few unprin-
cipled money gamblers in Wall street
without "rhyme or reason' put gold
up to twenty one day, and down to ten
the next, and the people have to sub
nit! 1t would be a happy consumma-
ton if some way could be devised,
idWtuiiy to send all such gamblers to
the happy hunting grounds with Capt.
Jack.
With the exception of this coast,
gold does not enter into circulation in
the business of the United States. 1t
has practically ceased to be money and
become an article of commerce to be
bought and sold i'm the maket like
iron and copper
Currency is, therefore, the only
money, and as it has for all purposes,
except customs, the value of gold, how
can it be said to be unsound: All bus
mess has adjusted itself to the money
used in transacting it; and for all or
dinary uses it is sound currency, Sc
cured by the wealth Of the govern
ment, and currency which cannot
fail without the wreck of our institu-
tons.
What would be the effect of the in-
PRODUCTION of the national currency
into this State? Undoubtedly, gold
would gradually cease to be used, eX-
cept for customs, and the bulk of it
would find its way to the great gold
mart of the continent, where its de-
mand for custom duties would be most
needed. We would then have cir
culating medium composed entirely
of national currency. OF course the
transition from the one to the other
here, would necessarily he slow and
in proportion to the influx of currency;
and this would continue until the
point of equipOise should be reached.
This transition would have tendency
to derange our business somewhat;
but | cannot imagine any disaster af-
tectfng the general public would fol-
low.
On the other hand, may we not, with
some confidence, take another view of
the question so far rs it relates to the
equalization of gold and currency, and
the effect of the introduction here Of
the latter. The adoption of currency
on this coast, as / have stated, would
add to the bulk of gold as an article
Of commerce, (and not as money! say
fifty millions. The addition of that
amount of commerce gold would at
once and inevitably reduce its value
as compared with currency, probably
to nominal premium. When that
point shall be attained, the govern
ment and government banks could
then well resume specie payment, and
the equipoise would be reached.
Then the locked up gold would float
out into the great channels of business,
reviving dropping commerce, stimu-
lating new private and public enter
prises, and bringing about an era of
general and substantial prosperity.
The very moment California au-
thoritively adopts the national curren-
cy as a basis, the effect on the value of
gid would be instantly anticipated,
and close approximation, if not an
equality, reached at once. In that
event the transition would be har-
mOnious; and the treble blessings
devOutly to be wished equalization
of gold and currency, resumption of