, 1874-01-26
GEN. L0GAN'B SPEECH.

Gen. 1ogau'B speech In tho Senate On the 18th
inst. is pervadod with an error somewhat CON-
mon among long-haired financicrs who haranguo
the trades unions. and infeBt newspaper -ofllces
and Congressional committee-rooms whom Tho
currency question il under discusbion-tho error
that money has not, or ut least need not, have
any intrinsic value; that It is not wealth at al,
or need not bo; that it is only a symbol Of
wealth; that, therefore, IN inconvcrtiblo paper
with compulsory circulation, the omission and
amount Of which are under tho control Of Gov
ernmcnt, is good circulating medtum-one by
means Of which ahealthy commerce can be carried
op, and contracts justly aa vol as legally settled
In charactcrizing this theory Of money ns
grievoua error, big with mischief. it is not iu-
tended to convey tho impression that at any
glvon moment an fnconvertiblo currency does
actually derango commerce or entail dBastor,
moral, socia1, or political. We mean only TINT
its tendency is always to do SO; TINT, unlesa su-
perscded by currency having foundation in
nature, a currency having intrinsic value as it's
basis, tho supply Of which mny regulate iteelf,
just Us tho supply Of boots, aud coats, and other
commodities regulates itself-by tho demand
for it; currency which shall contract only un-
der tho pressure OF commercial necessity, and
expand with commercial wants currency
which government cannot tanper with, which
shall assert itself aud be Its own guarantee
these m'sfortunes will sooner or later oycrtako
tho country, certainly, inevitably. Infinite wis
dom and infinite honesty alone cau 90 reg
ulate paper-currenoy that sooner or
later 1t shall not rcduco all commercial
transactions to gambling speculations. And
tho extent to which it may give business this
odions character, is dependent ntirely on the
extont to which government ia wise, honest
and fearloas. But wise, honest. and fearloBs as
government may be- it can novor be omnisciont
or on1nipotont, aud. 30 long as it is not, it can
never make the supply Of an irredeemablo papor
currency iust equal to tho demands Of tho busi-
mesa of tho country. Tho supply OF suoh cur
roncy will be always either too great or too amal:
Tho danger its boing too small is ntnitesimnl,
howeyer-and on this danger We hayo little to
say; for thoro mover has been an inconyertiblo
currency Of which thoro has not been too much.
Wero there just enough, it would be at par. II
there wcro too little, gold would flow iu to Bup-
ply tho deficiency. The oxcoss over what IL
really nooded is necessary by its depreciation.
How m inflated currency may lead to moral
evil and financial troubles it ia not difficult
to understand. Whom an inconvertble cur.
renoy is inflated, tho signs Of woalth-
an inconyortiblo paper money Ia not
wealth, but only sign-aro multiplied,
This multiplication Of the signs OF woultA
croatos deusiou which soon becomes universal.
that real woaltll auperaboun1s Each ono has
moro money-boliovos, therefore, ho has moro
wealth; that there Ii less need Of economy on
hia part, that he may consume moro III pleasure,
n dresa. In luxury generally. Honoo, fast living,
extravaganza, and reok1easneas tho wasting Of
tho loal wealth Of tho country unproductive
consumption consumption that outrlna pro-
ducttou and dlHturbs tho equilibrium between
them; tho destruction Of capital on large acalo,
and its inevitable consequence, a oommoroial
oriais, followed by tho discharge Of laboyots,
poverty, idlonosH, crilao, starynton, soclaistu
ind "1nternatlonal" demonstrations tho spread
ut pestilent communicate theories, atrikes md
look'outs aud the demoralizing effoots these
and antaRonisn1s have On both |