, 1874-05-02
sues, commercial dishonesty, speculation, suffer.


"mfdl1o tenor or - now tenor seoontl,"
Rhode Island md Connecticut triod tho sd;nq
plan. Commissioners wore appointed to dotor-
mtno from time to timo, tho depreciation Of tho
last isano. Quo Of thom stated It correctly, aud
WAS vohorncntly abused. 4 curious. thing, in
strict accordance with tho Inv that worno our
ronoy dtsplacos better, nov 1anponod.
Tho Rhode Island papor was worst Of ali. It
drove out tho othors, which wero hoardod. In
TIA, whom Rhodo ls1and Ind out :e40000o
E38O, 900 wore in Massachusetts. Tltg money
kept on doproolating, mud 10 cost Massachusetts
cas- 900 III nino months. In 1740, tho Bsues Of
tho Colonies, reduced to tod tenor" woro.
1laeaachHeetts E9 dte 713
HonHocti9a. oM
isheuo lslanu.. ...s..........++.+-...s. coo
Now Hampshire. ............,........... $4,000
Tho Massachusetts paper WAS at II to /, In
gold. Tho ransom of Louisburg enabled tho
Colony to redeem 1t at this ratio. This waa TO-
pudiation of. ton-olovenths Of It's faoo.:-
a fact that tho friends Of shinplaa.
tori. would do vol; to ponder. Thcrro
Was bittor opposition to specie resumption. 1t
was aaid that It would ruin trudo So It did,--in
Rhode Island and New Hampshire. Thoir buSi-
nesa was transferred to tho "3t1vor Colony"
Newport lost tho WoHt. India trade. strho ap-
prohensions of loss and danger from the change
In Massachusetts 1od to some demonstrations Of
riot, but tho chango took placo eo 3uiotly and
aaai1y TINT theeu foatn wure not rca]iaod, and the
tumn!t snbsldod. Trade had boon Immediately
.boforo q740-5o) Mt tho lowest ebb. Bhip-buill-
Ing and fisheries Ind declined, and people were
moving away: !, Trade now revived ateadiiy and
rapidly, and, nc hear no, more Of scarcity Of
money until tho noxt violation OF tho laws Of
circulation Virginia, North Carolina, and
South Carolina issued, paper. Gold ranged in
tho three at from 100 to / 400. 80
Tho atory Of tile Continental ot,rroncy In prcttv
we'll known. It waa isaued to pay tho cost Of tho
Revolutionary Var. When taxation was eug-
Eoated, memher Of Congress asked in ,vratl. II
ne was to help tax tue people when they could
=. ~ -.-' GET uAnr-1oAD OF MONEY =,
~ going; to: the9 printing-of Tho harshost
la"a were paeaod to prevent depreciation,
but In 1780 tha' cart-load would have boon
worth only cents ION tho $1.,.. Shortly
afterwards, tho currency ceased to- circulate,
specie: flowed in at once. While: the. papor
was robbing It's holdera by sinking in .yalt1o
soVery year, the Kolleys Of that time boastod Of
away" =. T.. '.,' y
Tic history Of American currency r, ainco tho
formation of. the Union is too long to- give in d.
tail. It presents the familiar feat rrog over and
ovor again. Imitation, speculation, crisls,-tlo
dreary cycle has boen troldon many times.
Chartered banks maintained their right to issue
irrodeonablo paper BY giving easy Discounts ind
slarea OF stookto mombers Of Legislature or
OF Congress. Courts woro packed for the sake
Of hhnp!asters, even aB they have boon since. :.
scattered through tho book, arc soma, clever
discussions of disputed points,. Tho difference
between 4. -: -. $50, :'
worry important difference and one little uu-
doratood, since people III want Of capital havo
lately: been demanding more currency, .upsxr
tho dolusion that they, wanted It's nut yory
neatly thus -: ''1' .. =:
Capital is that portion Of all tho previous product
new production. This viii Se corata s amount of
aud arc ready for use III proucinq transporting and
lsars ne ts9Ei aIs as
sapa into s pfopsy Gg ags ss t. sso ss I
only 9ns sehinS anso shRa aans me
s It deusion to sapposo sst aaos m mm
ttpe1 for, II "money "a plenty y" BY arttficisi III
tho nunbor Of tickets which gva olain On snecsflS
stock Of goods.tho tickct-hoers would be deceived.
dend Il s ~ s5sE &C. only got proportional ai7
=
q. The fallacy Of supposing TINT tho Il
+ ,:,t.. BALANCE OF TRADE ...:',.@,. =
must be-. in onr favor before wo can ries11rnal
apocie payments ia exploded by ths following
Hue OF argument j:
The balances q Imports and exports never can moro
og to sart se1Se Or nsloT = than
down prcos aid inmcdtatey naEe y rsmitt.nec su
goods more profitable than ono of bullion ifa a
itS +,7nbx>
docs not here como into account t. therefore. t1ero
comr.nied ii uatsvoraSo esehSnso a. sg
that there Is an inferior currency Iehnd tho oo}
Ssasg s sHpolt IT Of Ts ss e e
fGsf fs a. S # ,,y To want
to do 1t, ami thata simply to remove ths inferior cur
renoy Al for waiting for tue balanco OF trade to turn
paper euTrenoy QUE mghtas wall ako hls stana at Sa
s3era fo9t Of h and wait for 1t to change into scs
Mr. Summer regards ,..-. .,-
- t.,a..s FREE.BANKINa =. T. Il
aa simply a: ntep towards. bankruptcy =na
repndation. IN this he goes too far, Any
botween tho. state and ,1anh,
las this undcniable danger, that it giyoa
he opportunity for tho ,moneyed- power
o :unduly. iuduence Legislation, since !, uaapy
shareholders, directors, and favoritos Of .tha
'anks will lavo. a. part in governing the
3tate,: Moreover, sucl q connection Tia a,stand.
ng temptation to- Congress- to- bo tinkeriug OF
ie finances, which is precisely tho last thing Ii
'uslt to do. On tho other hand .itis. q great
advantage to have lanl:currenoy good all over
ls country, and ono that cannot :dopreoiate bo7
ow tho value Of tho country's. currency, since,
'npo security FOR its redemption III that curren-
y ia on deposit at WnBhiuCton TT %l,a rr.oo;n -.
'acha Sore wiped out, so TINT the National Bank
.oteB were. roaeonoablo, in specie aud it they
zero no 1opgor receivable for tnxes and 1T. they
TeTe issued In no lowor denomiaationa than elo,
II order that gold and silyer OF: stlll }owor d.;
,oni"ations might circulate freely,-wjth these
hree Safeguards FREQ. banking might do enough:
ood to couutorbalanoo Its eyils - il; ;;t.: =: .::
Tue two cliaptera on thse' English Bank Re-.
friction (tho Restriction was simply command:
tho Bunk OF England not to redeem it's notoa
spocio) aud Austrian Paper Money are val,