The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1873-01-04

Vluuais ana communities, FORMED INTO
townships, counties, States, and Union
of States under Constitution, which de-
clares that no State shall "emit bills of
credit, the right being reserved to tno
General Government, whose duty it is to
coin money. Q. stamp or Print-and fix
the value thereof" Government, then, 10,
in reality, huge, purely mutual, insurance
company, In which every male citizen of
lrwful age is trustee, and all persons
within its jurisdiction are insured, and are
In some manner compelled to pay for the
benefits of such insurance All have, there
fore, direct interest in an economical
management Of government affairs, being
jointly responsible for the discharge Of all
its liabilities.
Money, or currency, is an instrument Of
commerce, without which it would be
necessary to make all distribution Of pro-
ducts through the old and exceedingly
awkward and expensive process Of barter.
Currency does not, in the slightest degree,
depend upon the intrinsic value Of the
material Of which it Is made. In fact, it
ought not to have any value whatever
other than that of mortgage, which our
legal tender of to-day really is, covering
every inch Of ground and all property
within the limits Of the United States, and
it may also be said to be endorsed by every
man, woman, and child, thus even cover
ing future earnings.
If, then, We keep in mind that no legal
tender can be issued, except by the Gener-
al Government, and that its issues can only
be made legal tender within its boundaries
whether its declarations be printed upon
trplh utlx mhaIl
be very liable to 20 far astrsy.
1t is claimed by some that Government
has no right to issue paper money that it
is unconstitutional Our Supreme Court
has decided that question, and most satis-
factorily. 1t is the bounded duty of Con
gress to coin money. e., print or stamp
it-and to ir the value thereof" and
with the least possible cost to the people.
For the proper development Of healthy
commerce, currency that shall be uniform
III purchasing power, elastic in volume,
conforming to the requirements of trade
at the various seasons Of the year, il q
positive necessity. 1t should not be over
abundant when trade Is dull during the
extreme weather of both summer and win
ter, and yet it may be sufficient when all
the machinery Of commerce is most fully
employed, as in the spring and fall-es-
pecially the latter when the crops of the
South and West are coming upon the mar
ket, and the products Of foreign countries,
and the manufactures Of the North and
East are in the greatest demand. Secre-
tary Boutwell,, in his annual report, lust
submitted, among other things, good, bad,
and Indifferent, very correctly says
There IS q necessity euery autumn for
mOriHg the crops from the South aud Vest to
the seabodrd, that they may be IN hand for
export and consumption as Wdnted THIS
lCork should be dome ~ the main before the
idkes, rtrers, and canals are closed, and yet
It cannot be dOne trithOttt the use Of ldrqe
amounts Of currency.
i In the summer months funds accumu-
late at the centres, but the renewal Of bust
ness in August and September gives en-
ployment for large sums, and ledres little or
rotti,g for torIrGrdii.g the crops Va October
und Nocember Nor would this difficulty
be ubviated by permanent increase OF a
permanent reduction Of the volume Of cur
rency. The difficulty is due to the natural
order of things, and increases with the
prosperity Of the country, as shown in the
abundance Of its harvests. The crops can
not he moved generally by the aid Of ban4
balances, checks, and letters of credit, but
only by bank notes and United States
notes paid at once to the producers. This
money finds its way speedily into the
channels Of trade and to the commercial
centres. but if it be allowed to remain for
general Use after the reason for its issue
has ceased, the value Of currency would be
decreased permanently, and the year fol
lowing the same process would be repeated
with the same results, and thus would the
country depart more and more widely from
the policy Of resumption. The prObLem X
to md trdy Of increasing the currency for
m0cing the crops, and diminishing It at once
uien that icork Is tone"
1t will be observed that the Secretary Of
the Treasury is evidently growing up to
better appreciation Of the situation, but a
yet he only sees men as trees walking
In other portions Of his report he has 81
commingled legal tender notes, National
Bank notes and gold, 1--WE give them in the
order of their merritt that we cannot quote
at any length from it, without occupying
too much time in explaining wherein we
dissent from his views, notwithstanding
they are now much more nearly correct
than formerly
The questions that naturally arise in this
discussion are,-lst. Have we q currency
at the present time that fully meets the re-
quirements Of commerce I'd. Have we
ever had perfect currencyl Sd. Is it
possible to coin perfect currency out of
gold, silver, nickel, copI or, zinc, lead, or
other merchandise 7 The answer to these
questions is an emphatic NO. Then comes
the inquiry Can a perfect currency he
obtained To this we promptly say, Yes.
A currency as nearly perfect "a anything
human can well be, can most easily be Sc
cured through proper management of
the Treasury department not at the die
tation of the Secretary, but by the peoples
operations IN their individual capacity.
The process is very simple. Let the Gov
ernment coin, {. g., stamp or print money
Of paper, the promise being only that such
money shall be legal tender for all dues,
both public and private, and exchangeable
at the option of the holder with govern
ment bonds bearing fired rate of interest,
say three and sixty-hve one-hundredths
per cent. per annum, one cent per day on
one hundred dollars-saidp bonds being
payable on demand, including interest in
the same currency.
Secretary Boutwell, says, a. we have be-
fore stated, The problem is to find a way
Of increasing the currency for moving the
crops and diminishing it at once when that
work is done" This reciprocal conversion
Of Government bonds bearing interest at q
fired rate, with legal tender notes at the
option, not Of the Government-but Of the
holders-while it is the only method
will solve the problem beyond doubt, and
that to the entire and permanent satisfac-
ton Of all concerned. Some will probably
say, this plan of issuing paper money ap-
pears very well as a tn, ory, but their pre-
Judices in favor of gold, which they un-
wisely deem o standard Of value, are 90
strong that they will not admit that our
commercial affairs can be carried on with
out it. They, in the first place, fall into a
very serious error, in thinking that our