New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-10-01
OUR CURRENCY.
M RONAMY PRICE.


-,Ir eprc,p STANDARD OUR ONLY SALVATION
ARBITRATION THE ONLY REMEDY-THE NATURE
OF MONEY AND CURRENCY. 49,
prof Ronamv Price who fills the Char OF Pontl-
naI Economy in the University OF OXFORD. arri'ou
IN this country on one OF the SATURDAY se'.noi''
The Professor issued book on the Problems OF Cur
rencv in 1862 which has become one OF the etaho-
ards on that perplexing problem. Ihen' ana shce.
he has been in the habit of devoting to IL many Oh
his most careful lectures IN the University anu
his rostion there has enabled him to impress his
views largely upon British statesmen. In ORDER 10
Obtain his opinions the currency question as now
presented to the people of the United States, q
representative of The TRIBUNE called upon him
Yesterday The Professor expressed his mind with
great freedom, and the substance Of the dialogue
which will be found of special Importance, is here
with given:
O. What do you think Of the currency OF the
United States'
s;mnlv that il is O shocking bad currency But
mind if a currency is thoroughly convertlpie
don't think it is of great importance that there
should be large stock of gold. Provided the cur
rency is issued by an ssuer who is perfectly sa1e'
thoroughly responsible for the debt, the public
WON'T ask gold in exchange for his notes. They
would rather have the notes. In Scotland at this
moment one-pound note is distinctly preferred 10
a sovereign 1t is carried about much more easily
it has got q number upon it and it does its work
nerfectlv. II is of the same value as sovereign,
and that implies that it is convertible. Ii that IS
only SO a country may 60 on with very little goid
and almost all paper, when the latter is of equal
value with the former.
O. Suppose the three great nations. England,
France and Germany, should all adopt the principle
of using little coin where is the gold they now use
going TOT What is to become Of it
ri, uou11 he that pOld would uDUOuDt-
edly become cheaper. 1t would all flow back into
the stores aud shops and be locked up. 1t would DO
alarge mass of property for which there was no
nse The owners of this gold would have TO do pre-
cisely as owners Of notes would dO-soll cheaper
In the case of currency it is not that metal should
be worth shilling 20 shillings, but that It's
value should not he cbangeable; but a l5-shiiling
sovereign or 1O-shilling sovereign Is just as good
asa2O The only trouble is, that for The same buSl-
ness you carry twice the weight.
O. As matter Of fact these three nations-hn-
land France, and Germany-by adopting the course
ills country has can sink the value of gold one
balf1
A. On the other hand, yon must remember that fit
had not been for California and Australia 1t Is quite
certain the price of gold must have gone up. and
why Because the world.has opened 50 desperately
fast There are so many more people and go many
more wants. liz all those old cQu1rie they cannot
deal with paper. The Russian will not take Ameri-
can greenbacks. in the very heart OF Russia VIII
they take English notes. You must pay IN gold.
But to come back to America. One very favorable
circumstance in America is that the very ignorance
of the people makes them more receptive ct first
principles than people in England The English
bankers are doing SO well that they detest of all
things any inquiries TO the nature of their bust
ness. Now here you are in trouble about your cur
rency, aud there is rfceptivity OF first principles
which is to me very attractive.
Q. Suppose you were to propose legislation on the
subject of the currency, what step would you ad-
wise
A. | would take measures steadily to make the
currency fulfill its only end-the exchanging of
goods-and that embraces every idea and object con-
nected with the currency.
O. Yon consider it a fundamental principle that
paper should be convertible into specie on demand
A As have said before, inconvertible currency
is so vicious so radically bad, that feel no interest
in makeshifis. There is only step to be taken
amputaton.
@. That is to say contraction
A. That is not contraction, but the extinction of
nconvertible paper. Anything short of the extinc-
ton of the currency is radically and fundament
ally bad that have interest in comparing the
relative goodness badness of any expcdients.
Q. How would you extinguish it
A. You recollect the Bank OF England was forbid
den to pay. That was from mere alarm. from fright
and the popular ignorance of banking.
@. Ii is precisely the same here Our National
Treasury is forbidden to pay?
A. All but the motive is different The incon-
vertible currency of your country q tax. By
of this species of paper the Government has got
hold of the property of the nation and it has kept
it, The property has gone and the public i'll the
&C hoe oofa of iG h.a
Governments business to restore the property,
clearly In England at the close of the last century,
in the agitation of war, and banking being very
unfamiliar then, the Government got desperately
frightened. The Bank of England was going to be
stopped and ruined In state Of war and panic
everybody likes TO lock up his property in a com
modify that is reality Then people rush for gold.
Q. Was not the case very much the same heref
A. No. The motive here simply as it was in
France, Italy. and Austria. The Government wanted
to hold of the property of the country without
paying for it, and the inoonvertible currency is a
tax. Government got the powder shot, guns,
soldiers clothes for nothing but species of paper
That, in my idea, is tax.
O. Do you think Secretary McCuocb was pur-
suing the right policyf
A. Decidedly he was. and the only right thing to
do now is TO follow his example. In the case of the
Bank of England three years were given, believe,
for resumption. The act providing for a return to
cash payments was passed 1Sl9 AT the end of three
years the bank paper was to become convertible
paper. To illustrate an important principle let me
mention here that during very considerable time,
while the bank restriction going on, the IncOn-
vertbe paper did not fall to a discount. In the lat
ter years it did fall TO discount, that a guinea
became worth 27 shlllings in paper. That is very