Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1874-11-21
THE CURRENCY QUESTION.

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other which threatens the harmony Of
the Democratic party, in the near fu-
fure. Those Of the eastern and mid
die States stand. on this question, side
by side, with the Radicals and are, of
course. for the earliest return to gold
basis and consequent contraction to en-
nance the vsluelof concentrated capi-
tai, and prolong. in the hands Of mo-
nopolies. that money power which has
corrupted the government and op-
pressed the people almost to the point
of ruin to both. Whilst such is the
policy Of those Democrats who have
imbibed the spirit of extreme Radical
ism and adopted its policy on this i'm
portant subject, those Of the Westand
South, who represent the vital inter-
ests of agriculture and labor, favor
expansion OF the currency as the most
effective means of stimulating produc-
zion and securing its cheap access to
the markets of the world.
The party of the first part, argue
that gold is the true standard ofvalues,
and that paper currency, no matter
how wisely adjusted, must be subject
to fluctuations that will unsettIe values,
depress. or excite the markets and en-
rail sudden losses which eliminate in
psnics' and bankruptcies. Hence
they conclude that the markets can
not be stable, nor the currency fixed
in value, unless ID be so reduced, in
qusntity. as TO bear q certain numeri-
cal relation to the amount Of gold in
the Treasury and in the vaults Of
banks.
The most advanced on the other
side, argue that gold has less intrinsic
value than iron, copper, tin, or lead.
and that il owes its fictitious value in
part, to its former scarcity, but almost
entirely to the laws that have made it
q standard of values. The arbitrary
value given 10 gold as a regulator Of
the currency has made it serve only as
sort Of sliding scale. by means of
which avaricious spectators can raise,
or depress the nominal value of green
hacks according as their ventures in
gold and stocks, require the one, or the
other condition. They argue, farther,
that the wealth of the whole country is
theproper basis fora currency, uniform
in value, and redeemsble in government
bonds, bearing three and two-thirds per
cent interest. Our inference from this
is, that the government is to be made
great banking institution, issuing its
own notes and redeeming them with
lis own bonds. How such a radical
change in the constitutional currency,
and in the constitutional functions of
the government, will work, We are IN
able to forecast We readily admit how
ever. that paper currency, so long as
as the business Of the country has
confidence IN it, is as good as a metal
ie one and, in some respects, better,
but the difficulty, in the way of such a
change is to ascertain and fix the man.
ner Of ultimate redemption and what
shall bethe Quid pro quo. So far as the
internal commerce of the country is
concerned, we can readily see how
greenbaeks, if made equivalent to
gold, will answer all the demands Of
trade, but as we have foreign COM
merce Of vast proportions every other
commercial country recognizes gold as
the standard of commercial values. and
by that standard they are enabled to
make the currency Of each convertible
into its own. Can we do this with green
hscksR If not, what will be the effect
upon foreign commerce of purely
paper currency redeemable only in
larger promises to pay"
We confess our inability to fathom
the depths Of this sea of speculation
upon the vital question of a sound cur
rency, but are at no loss TO perceive
that a clearer exposition of the
theories Of both parties, and fuller de-
tails Of their practical workings are
needed to commend the one or the
other, to the average intelligence of
the country. Most men can see that q
hasty return to specie payment must
produce q collapse in business and
wide spread ruin, but few are pre-
pared to see how paper can be substi-
tuted for gold, making the former the
standard of its own value by the sim
pie exchange of bank notes for gov
eminent lands. There is a sort Of su-
perstition-if you plesse-in the pop
ular estimate Of gold, as q standard of
values. that will make it delicate job
10 de,hrone it, and supply its place by
adopting, in its stead, the wealth of
the whole country as the basis of pa
per currency, and of its final redemp-
Iion. The wide difference of opinion
on this subject, shows how difficult it
is TO understand, and at the same time,
this extreme difference shows also that
there is a happy medium between
them-a point where both parties may
meet in a wise and harmonious adjust
ment of extreme views and final set
Element of question SO important TO
the welfare of the country and to the
harmony of the party, with which this
settlement must rest That the public
ought to be prepared, as early as posi-
BILE, for a compromise Of extreme opin-
ions, is manifest from the tendency of
the question to assume a sectional
character which ought to be deprecated
bya
But whatever may be the solution
of the financial problem, the convic-
ton is fast gaining ground that the
system of national Banks, at an annual
cost of INVENTIVE millions Of dollars,
60 the people, is costly incumbrance
and that, as q part of the Radical