The New York herald., 1874-11-25
MONETARY SYSTEMS.

Denounced.
lecture was delivered last night. at Assocta-
tion Hall, by Professor Bonamy Price, OF the Uni
/ versity OF Oxford. England on the subject or "Me
| taiiic and Paper Currency" The lecture was de-
! nvered in connection with the Mercantile Library
| Association. There was small but highly intclli-
| gent and influential audience. On the platform
were Mr.. S. Patterson. the President or the asso-
citation. who introduced the lecturer. Mr.. w. E.
Dodge, A. +. Stewart, Cyrus w. Field, s. B. Rug
giles. Peter Cooper. ex-Judge Picrrepont, D. W.
Jones and +. F. Mowbury.
Mr.. Price commenced by explaining the origin OF
the value and use of money. IL is q commodity
which every person agrees to take one from the
other. Therefore the great principle Of currency
IS guarantee.
THE NEED OF COIN.
i Very little coin Is wanted where paper Is used !:
as In England, where everybody pays III bankers
checks and notes. Gold coin Is the most useless
thing In the world when you can use bankers
checks. you give your gold to banker he puts 1t
into his cellars. The banker does the business OF
buying things more usefully without gold than
with 1t. Gold only rises and tails IN the whole
commercial market of the world, not in any
particular nation. Many people in Amer
| lea seem to think that there would
be be great dliacuty IN % resamng specie payments,
! such dltHcuity. II q new world had sprung out Of
the ground aud the inhabitants all wanted gold
! there would be gold enough; the only difference
Is tnat soveregns would be worth thirty shllln9s,
perhaps.
| PAPER MONEY.
| Now about paper. There Is such thing as
credit IN the world. Wen, the substitution gold
consists IN that; il am certain that the paper is
! equal to the value or 1t prefer the paper II
paper Is perfectly solvent then 1t Is to me as II the
w seq e ssn aSs s ns
! the metal ana not against the paper. converti-
,s.ns bic note Is a tool with spsclac use, and is
iar as the public OF England goes they paw
iaenrically ia as much properly Tor gettng hold Of
great dlderence when you pay lor the gold to the
miner IN California, because you then slve rails
property Virtually destroyed as Tar us England Is
concerned. Now the Bank Of England has
Inc present circulation Of the Bank Of England.
All the rest OF 1t IL Ill gold IN it's cellars The bank
ss go wass It sss Ss with tine
| This bank Is steady, oldfashioned company, and
has always been So Tne Bank OF Eng
nobody thinks the bank Is unsafe. Now to In
convertible paper, NOBODY knows when this Is
America is paper that takes away from nation
more than was raised by the treasury. II there
taxes by inconvertiole currency. An American
paper dollar buys less goods than the metallic dol
number OF Things ioilow.
Then business becomes gambling. No man knows
what dollar will buy. Notes remain out IN q
wants the iDan offers more Tor his goods than ne
otherwise would.
| PAPER sPECULATroNs
Now In 1852 there was q difference In the
premium on gold OF this character: on Apru u it
was la, ana on the 2Sd OF June it stood att. rms
was a discount on paper, not premium
their notes the same as they pay In gold.
of notes. wnat 90 they do with its They give it
to SPECTATORS ana they Immediately 90 into every
obtained. Then comes the furnishing or rooms at
$4,000 room. II means more champagne and
the naon pooeI nos
the, praetlce o. the BANK o. England, VINO
o s ny sas o oe
BILE paper. IN America does no more for the gov
ernment q than mar obtaining the first tax. the trouble
It has the effect OF taking the property Of the
American people and giving II to inc specula,ors.
any other class OF producers. The foreigner ex-
&C. acts terrible penalty on the American people
TO TINS. All that tney say Is tins, 1t Is promise
that the American government VIII some day
upon thus cnance; sometimes he bets twenty
or ten per cent on this. charging what he
sells accordingly; sEa,.sn - . c.rn,roa
When England buys American bonds she does
not pay America In gold. The German gov
tne French was not one penny rcner; all
that she did was to put certain amount Of prop
land don't send you gold ior that; sue sends you
your bonds and your nation becomes richer Bos
/ when tho Engiishman asks what dollar is.
to sena you these goods That is the curse Of the
present American system OF currency. Now, how
to o get ont Of II: You can get ous Of this wnen
There Is q deluslon that It cannot be got out OF
Rns up w Se gold m
gold II your notes are certain OF being convertible.
Say, Tor instance, II 1t were known that IN two
| prices would be settled on the present value.
Ine difference would be such that it would scarcely
be perceived. The same thing occurred In Eng
land: three years were gwen for all new contracts
10 be made. and III consequence OF the confidence
ience Now. who IS to put out these con vertinc
notesy Not government. tCheers.) I would
trust no government on earth. tCheers.) You
cannot arrest government, or put IL In
q bankruptcy court.
rnH BANK OF ENGLAND.
would not trust the English govern.
ment with f15Joo,Ooo OF the SUBJECTS money.
We, IN Enoland, in 1874 before the Bank Charter
were convertible in gold. Before 1874 many Of
these country bankers went into speculation with
issuing 10 ile naon without without ' any Security
Is very bad issue. There was much trouole
about american finance tnat 1t was very difficult
The position Of the Bank oi England Is certainly
one wnlcn Cd, Amerlca a could copy exceIlent!y we
given to bona hde honest traders, not to
joint stock companies. rhe result Is that
the BANK OF England notes never went
to u discount. Never In the worst crises
| OF financial difficulty did they go TO discount.
This fi5u0o,ooo aii went Tor capital to trade and
| is always reproduced IN an increase OF trade.
beeve the reason that the institution mas not
| been copied Is because tue Organization TO do
that work Is not found In other countries the
nearest approach to IT Is the Bauk ot France 1t
had $500 900 OF gold IN It's cellars when
| lucky Franc0-Gerlnan war broke out. 1t IL ut
| terry impossible for me 20 answer whether Amer
| lea can get up such an institution as this Now
/ "A 10 IN QnfhI lftf amid m
perfectly solvent, and tnat the proceeds OF IL
should be legitimately employed as capital, and
capital only, Tor trade purposes only. No
junction ike this have right to get
NIL the profits to themselves. The Bank
ol England does not give any direct sum in money
| to the government for TINS privilege. The Bank
manages the pubic dept, pays the dividends and
takes The risk on these payments. The govern
ment owes tie Rank flA and the