Los Angeles daily herald., 1873-10-04
Ios Angelts Atrald.
The Currency Question.

EDITOR HERALD: That there is a
growing disposition throughout the
State in favor Of the adoption of the
National currency, is clearly evinced
by the tone of the up-country press
and the people, and that this DISPOSE
ton is liable to ripen into action dur
ing the coming winter is also, to some
extent, fOreshadowed. There are those
in this community, too, who have inn
bibed of this opinion SO intemperately
that they have contracted Il species of
greenback intoXicatiOn, aud declare
almost in terms--that it is purely Il
question of one side and that no ra-
tiOnal man would stand forth, and
purely ON the ground of commercial
policy or political economy, attempt
10 vindicatc our gold and silver cur
rency system. We are told that ii is
suicidal policy on our part, to conf
mercially array ourselves against the
rest OF tho Union, by REFUSING the no.
tOadi curreicy; that our course is un-
natural and un-American, and that
We not only shut out immigration and
hence the inseparablc capital, but that
we are likewise driving out capital al
ready here, to seek investment where
it Will becol.le nominally greater.
Now, Mr. Editor, take it for grant
ed that this is an open question, and
as such, is entitled to fLee discussion;
and while see upon the surface many
good reasons why we should think fa-
Vorbly of this rising hercsy, am
convinced that beneath will be found
the true reasons why we should not
adopt it.
In, n
plausible argument that we should ac
capt the national currency rs the cir
culating medium in our State, and SO
acknowledge ourselves member Of
the Union i'm weakness as well as in
strength, in adversely as well as in
prosperity. This much, ! say, sounds
plausibly, but beyond that it carries
with it no element of conviction.
There is no logical reason why, rs n
sovereign State, we should regulate
our currency to conform to any sys-
tenn outside, whether national or 9TH
erwise, and | cannot recollect an in
stance in which / have observed the
Often-asserted argument to the contra
ry defended on its assumed ground.
It's champions depend for success on
the fair subtlety or their position, and
if this is brought into controversy, we
find them next entrenched behind
some collateral and decidedly specific
issue. But these collateral matters
will fall into their appropriate places,
i'm the ennrsp of this communication.
That or currency system is the
safest and the best for the people of
this State is, | think, susceptible of
demonstration; but that its opDticd-
ton Is not open to very severe criticism
is by no means true, and just there is
where the remedy might be profitably
applied. Our "bito system is simply
infamous, and lacks only the neeessa-
nv acts of intimidation to constitute it
robbery, and indictable. But this
abuse might be SO easily remedied by
the adoption of the nickel two-cent
and five-cent pieces, that | will pass
it without further comment. That we
keep out capital by an ''eXaggerated'
standard of currency is not true to
common sense. Our currency is not
exaggerated, but it is the basis that
gives to II nOndescript security its only
value. In other words the grcenback
is II medium which with borrowed
powers, seeks to usurp the dominion
of that which is the parent of its
power. Now, surely it is Il logical ar
gument that direct value is as prOfita
ble as, and much safer than indirect and
complicated value, or that gold as a
circulating medium should impart
every advantage, with the additional
advantages of directness and stability,
that the same commodity will impart
when brought to bear through an un-
certain treacherOus and deprecated
security-fOr gold is still the represent
tative of value whether it come to us
rs specie or i'm the verdant tints of a
greenback. Again, it is not our curren-
cy but it is the application Of our sys-
TEN before referred to, that discoura-
ges the capitalist who looks hither-
| cannot believe that any man would
ness here purely on the ground that
his funds have nOminally decreased;
for the man who has sold his $1,000
in national currency, and obtained
$500 in gold, has still the satisfaction
of knowing that not II cent has been
lost by the change and has besides,
the qualification of feeling that his pro-
perty is no longer liable to be reduced
ten to twenty per cent by the slightest
national complication. ste4
Nominal value Is an argument too
childish for this age. 1t reminds one
of the Indian bargain who refused to
exchange his buckskin for II sack of
flour unless the trader would agree
that each article was worth SO. The
best answer to this charge is, how
ever, that the man who invests in
California under our system loses
nothing, and knows he loses nothing.
Now suppose we adopt the national
currency what will be the result as to
our pre-existing obligations. The OBJ
legation of our contracts must be pre-
served inviolable, for this is Il consti-
tutiOnal provision. Independent Of
any legislation this would therefore
remain unaffected. We would there
fore be compelled to go into market
and purchase large quantities of gold
for the payment of such obligations,
thereby creating speculative neces-
sity and compelling the State to take
its chances of being fleeced by the
graduates of Wall street academy as
often as an obligation became due and
payable. Suppose then such forced
speculations should prove mprotita-
BILE, that another black FRIDAY, or any
other of the thousand and one causes
which affect games of chance, should
arise, our state would be forced from
its proud position into condition of
bankruptcy and financial ruin. Such
are the chances against us in accept
ing adepreciated currency, which act
could possibly bring no good resnlt,
and whose most earnest advocates can