Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1873-12-10
OUR PAPER MONEY.

The commercial transactions between
nations are all negotiated upon a gold basis.
The only currency good the world over is
one of coin. The articles we sell to Europe
are paid for in gold or exchange sold upon
a coin basis. The imports which we gather
from all parts of the globe are paid for in
specie. Any currency, therefore, which
our legislation makes the basis for transac.
ton between the different States of the
Union, is good or bad just in proportion as
it approxmates in value the basis upon
which the grand trade Of the world is con-
Quoted. We do not care for a coin cur
rency, for that for many reasons
would not be the most convenient
currency. But we do need paper
sustained by the pledges of the Govern
ment, which shall so nearly approximate
gold in value as that it will for all practical
purposes, answer the same purposes. The
business of this country needs a certain
amount of currency with which to carry it
on. That amount it should not be difficult
to ascertain. If we mistake not, we have
near the right volumeSnOw. 1t may be,
that few more millions are needed, but
we are inclined to think not many. If
foolish legislation does not give gold fic.
titious value, our greenback currency is
now near its legitimate basis and value. 1t
IS, therefore, with satisfaction that we pub
lish this morning the Presidents recon-
mendation on this subject.
He has, in our judgment, struck the
key note to the situation when he says
that, as near as practicable, the money of
the nation should be of a coin value.
The cry for initiation does not seem to
Us reasonable. 1t is not the abundance of
money that gives it its value. The Con-
federacy had so much scrip that it re-
quired but little effort to gather half
bushel basket full of it. History shows,
Just what reason teaches, that after a ma
ton exceeds the volume of currency which
is sufficient to carry on its legitimate BUSH
ness, it depreciates its value, and that it
depreciates just in proportion TO that excess
We have just,passed through a dangerous
transition in or business affairs. 1t has
been less dangerous than was apprehended,
and we have reached substantially A specie
basis without those violent commissions
and losses that usually occur during the
change. Our paper money is worth more
to-day than it ever was before. Its pur-
chasing power is greater than it ever was.
Every citizen, who holds thousand dol
lars in greenbacks to-day, can 60 in:o New
York and buy as much with it as he could
have bought sixty days ago with eleven
hundred dollars. In some branches of
business its purchasing power has increas-
ed even more than that. Why do we want
20 diminish its value now by issuing a
large additional amount of paper money?
Who will be benefited? Such initiation
IS not going to put money into the hands
of those who are not entitled To il. The
farmer who has produce to sell can get
money for it now, which, If not quite as
much as he would get under an infla-
ted currency, is worth more, for he can
buy more with it. The idea that initiation
would give money to those who have
nothing to offer in return for it, is ridicu-
lous. 1t is, therefore, of no use to them
that imitation should take place. To those
who have values to give in exchange n
new issue would be of no help, for it would
simply give them little more money in
bulk without giving them any more in
value.
AS we have said before, we are of the
opinion that little if any initiation is needed.
An issue of a small amount of bonds, con-
vertable at will into currency, would
probably satisfy the West and South, and
It could not be of much harm, for it could
be used to save the Government large
sum annually in interest. Further than
that, we do not believe it would be prudent
now TO go.
-~-1