New-York tribune., 1874-06-11

EVOLUTION IN FINANCIAL VAGARIES.
CONSTANT REPETITION IN THE CHEAPMoNEY THEo-
RIEs-CAsEs OF ARRESTED DEVELOPMENT.
To the Edttor Of The Tribune.
SIR: | long ago accepted the DarwInlan
theory and had not thought of discovering ev
dences Of lis general truth. But how shall account
for the perfect likeness borne by the present financial
discussion TO former excepting by the laws Of
Heredity," "Reversion," and Arrested Develop
ueut Z" The reproduction Of former types" OF paper
money vagaries Is indeed remarkable.
The threatening Of the demands of the West
and South few months since for more paper cor
responds to shays Rebellion in 1855. That was an in
surrecton OF debtors c.amOring for paper The aDces
tors of our cheap-money" men imbued with such
notions as we now hear Irredeemable paper was the
safest kind of money foreigners could not take
IL away In l7G3 Franklin said "Any other well
founded credit Is as much equivalent as gold or
silver" OF course considered dollar unit OF value
and thought that the precious metals had "hen
paper had declined. Our cousins over the water have
wasted much past TO prove their the
standard and gold the fuctuating value. How natu-
rally do we come by habit Of estimating the premium
on gold instead OF the discount on paper Ii is matter
OF historical interest 70 back its origin the pre-
vang idea that the balance OF trade is charseaoie
for the scarcity Of the precious metals 30 far as we
knov this notion was first killed" Queen Eizabeths
time by Sir Thomas Gresham, who laid down the prin
ciple that better ana worse Canno' OHOu
late together but that the worse will drive out the
better In finance. "balance Of trade" theories have
been the persistent "reappearance Of monstrosities
From the settlement of the American colonies 10 our
tine there always been cries against sendng soo
away 10 pav for foreign luxuries. When barter cur
rencv was used, specie continually exported III
1640 Winthrop tells the mercDants came ana drained
of the peoples cash. Since then. whenever We nave
used nconyertibe paper there has been mucn preach
ing against extravaganza aud want OF patroiisp lu
foreign homemade articles anu hus IOSins
6ur specie III 1870 were few people IN England
who did not attribute the scarcity Of bullion 10 te grea
amount OF imports Notwithstanding that TINS notion mao
beep refued many times by facts and arguments lhe
:" Buuop Committee" dld their best In the classical re-
nortD no strike down this m0nsirous llheft
anee The notion have been in the very bioou VI
the peope for alone left 70 test the lruts VI
me report" liz fell like a lecture from ones mother
in-law Lately have heard Lamentations over our
expartatOn OF gold and the unfavoraDe lorelgh eA,
change. Three hundred years have a!npy @ 1
ms case OF Arrested Development Aud now DI'
Leonard Bacon in admirable letter gives uhqleS qS
tlonabIe evidence OF his Connecticut origh SunheI
" History of American Currency" 10 Whlch we arr
much indebted mentions three-Yeafs Dllls scnene "a
tbat state in 1850 The doctors "twoyears proposal,
ont OF place as il among sound views eau oo
explained only by the natural law OF q" Reverson.
Nep-IOrk, June ., ls7A A'iA-