, 1874-02-20

always happens in tho ttmoa preceding crlBis,
1t Of oollrao onunot be loaned, md banks aro
poworlosa to nlalEa up for itB absence.
Mr. rrco secu ITO ronson why tho rosorvo OF
Tho Bank of England, iixod by tho Bunk
net Ut 1sA4, should bo placosl whcro
1t was by tiat .aot. Ito can justify 1t
nothor OIL scientific or other grounds, and thinks
t1lat "20 0,oo00 900 might DO ratonally substituted
for It, 900 600 nj tho point ut wloh tito storing
of gold IN lilo rcservo should commence On
tho wllolo, he approves tho net, and shown that
ita suspension novor mitigatcd crIan or pro-
dncod any oltcot oil tllo number Of notos in cir
cnlaton. Tho number Of stol, notes Is mattor
which bault nctB cantlot regulator
THE ttATE OF INTEREST,
hlr. prlco shows. dooa not doponl Oh tho aban-
dance or scarcity Of coin or currency; TINT IL il
not caused by an Increased oxportatlon Of gold;
that sloan OF yarnB," iii Of gold, would raiso
tho ratio Of interest; TINT in case OF such Il
loan domands for ADVANCES would pour In upon
bauhors with tho sasno urgency as 1t tho loan
wns OF gold; TINT tho samo accommodation
would be hslod for, ind TINT tho riso III tho
ratio OF discount would follow. Wo wiah tho
gentleman who wautol tho currency In
Aated till money could DO had for
portion OF h1r. Prico'a book. We could wisll,
too, that those who demand M increaso lit
tlo amount OF currency as the panacea for tho
illa that commerce Ia heir to, especially for COM
mcrcial crisoa, would porugo his book and learn
TINT panics nro not caused by d lack Of currency,
mud cannot DO cured by my amount Of it {; that
they are produced by q want of woalth, aud not
by sudden disappearance OF credit or n
deficiency of money. This disappearance
is tho offcot, not tho ca,1so, Of q punic. These
orrors, and /, host Of othors, Indeed, oil tho
financial failacies, broachol ovory das in tho
press, In Congress, mud In conversation ,-wc
find thoroughly rotutod in Mr. Prices book.
Thero was mood Of book to do for tho currency
question what Dastiats "Sophsmos Econo-
,niauoB Inns dono for tho question OF froo tradc.
nIr. Price has proiucol It. When 1t Is known
and studied az widely as It deserves to be, wo
shall hear lees Of tho
!. MYSTERIOUS NATURE or MONEY,
| ]oss Of it's miraculous effects on trade, loss Of
tho blessings Of an incohyertible piper, less OF
unfnyorab!o exchanges" +" loss Of tho oountry'a
growing up to tho volume Of our prosont inflated
currency. We ahall bo loss troubled at oxporta-
| tions of tho precious motals, draw other infor-
onceB from tho variations n tho rate Of interest,
or tho movements Of banking reserves, and
| make fewer endeavors to regulate it's supply
perhaps confess that wo cannot regulate IL ut oil
by legislative euactments. But, bettor than oil,
we shall learn to connect tho prosperity OF the
country, not with tho supply Of gold or tho atate
| Of the currency, but with our industry; and that
| tho Burost way 10 avoid the widespread mfsory
consequent on panics is for each ono to produce
as much as possible, to 1.-Two within hiaa moans
mud not DO carried away by speculation or the
| temptation to grow rich except by honost indus
try. The lessons taught by Prof. Price aro noI
only highly &C scientidc, they aro also highl,
| moral