The daily Argus. (Rock Island, Ill.) 1873-1877, 1874-05-18


their manufactures, their trade, all their
industries, with money to pay tor only
fifteen one .hundredths OF their business.
And vet this vast system of credit stands
the strain, this comphcate industry goes on
for years, until its delicate support is
broken. That support is trust the trust
nv friend has that his bank will pay his
check; the trust have that my friends
debited in my ledger for money loaned
will pay when ask them. This enables
the bank check and the book credit, or any
currency, to take the place Of money.
When this support is broken, when citi-
zens begin to doubt the solyency of banks
and bankers, and neighbors the solvency
Of each other,
THEN COMES A PANIC
the child of distrust-and all refusing
every form of credit, note, or draft, or
bill, or check, demand money. Currency
is valueless; the delicate machinery of
credit which the ages have perfected
ceases to work, and man, in the frenzy of
distrust, RENTED to his original barbar.
ism, will take only gold. Until the panic
is hopeless, if, law interiors, they will
obey it, and take the legal money, which
the law enforces. If the panic is hope
less, the creditor, doubling the
ultimate solyency even of the government,
refuses it's legal tender, and peace comes
only in the utter ruin of bankruptcy. The
trouble is the people have asked fifteen
millions of legalized money TO do the work
of one hundred millions, andi. cannot
This shows the cause of panics-the pos
sibility in the human heart suddenly to
lose its normal trust in its kind And the
human heart is the same and will act tn
the same causes whether the legal money
is gold or whether it is paper. We shall
be liable to panics always for we can new
er make the exchanges of our present civ
ilization for money, but must always use
credit mainly. And when we use credit,
and the human heart remains as it is, we
are always subject to the incursion of that
distrust which will suddenly palsy the &C
tivity Of currency, and panic will reign
All we claim is that the liability to this in
cursion Of distrust, this panic, is naturally
greater under an irredeemable currency.
The evils of an irredeemable currency, to
which have already alluded tend strong
ly to produce it, tend strongly to aggravate
and perpetuate it when produced. The
reign OF paper money gives us specu-
lation and extravaganza. Both use up
money rapidly, extravaganza consumes,
speculation wastes it, or buries it in un.
profitable investment. This twofold drs'~
is felt, and a people whose Nor ID
been Slapped by an artificial otte mas
forced to look a,out - prosperity are
they have ate consequences which
speed 40 courage to endure ana IL
- loss of hope and faith they rush tt
save all that to them has worth-money
And the loss of trust, which leads mel
temporarily to despise credit and seek only
gold,is panic. Paper money has produced
it paper money will aggravate 1t. Ha(
we redeemable currency.a currency tina
the solvent world has. the insane want u
money would be met. The gold of Thrift
" population, ever looking for the mos
profitable market, would come to our relief
The profits offered would overcome all OBJ
stacles and drain the world, were it neces
sary. But it is not. 1t is an unrea sOnin
panic. The arrival of little gold, tn
news Of it on westering ship, breaks tn
SPELL
AND CONFIDENCE REIGNs AGAIN.
Where we have national currency of gu
own-the best in the world-there is n
such remedy, no such cure. TIL
national ISSUE If it has an
value, has a limit The people kno
that limit, know that the limit fixed for
normal condition of the market, is mad
quate now. And if it has no limit,the mo-
ignorant know it is worthless, it's legalil
fails to give it currency, and the nation
issue disappears with the continental scrl
the French dssigndt, the Texas red bac
the South American shin plaster.
an1n
but they will retard and cure them.
And here, too, is the folly of an arg
ment based on a supposition that govern
ments can tell how much legal money
needed for nation wants The per cal
itd theory is vain one for the amour
shifts from day to day, FROM market
market. In normal condition New Yo
needs FIVE millions of legal money to do Il
work of one hundred millions; in times
panic New York needs one hundred III
lions of legal money to do the work of Of
hundred millions. What amount shall Il
anxious legislator manufacture for Ne
York's wants? Shall he make it one hu
bred millions? Then it will take two d.
lars to buy ten penny loaf when there is
panic. Shall he make it five millions
If the panic continues he can buy his te
penny loaf for half cent. l would COT
sci the anxious legislator under these C
cumstances to hold off, and let God a
nature take care of man S wants.
Without further discussion, let us
sumo.
l. That gold is the only basis of sou
currency.
2. That paper redeemable in gold is I
best currency.
Z That crrrencv must alwavs narfo
the larger part of the world exchanges
4. That currency is that form of ere
which gets its birth in business trans
tiODs, and represents an existing valu,
either gold or property.
5. That currency, uutrammeled by q
ernmental interference, regulates its O
volume.
6. That governmental credit, not REP
senting gold in the Treasury. not issV
against property in existence, but agai
property consumed or destroyed, is |
tard currency and, as foreign and
pertuous element, depreciates the cure
Of the people.
Z. That deprecated currency inf
moral i'll upon all classes, but throws
material loss and suffering mainly on
farmer and laborer. = =
g. That deprecated currency tend
create and aggravate. panics.
9. That il is our duty to legislate in
direction of specie payments.
Now we come to the "
BILL OF THE COMMITTEE.
l break no confidence in saying it
bill of no member-it is literally the
OF the committee-the result OF cOnfic
views A part Of its provisions / like