New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-05-02
LETTERS FROM THE PEOPLE.
PAPER MONEY NOT ELASTIC.

PAPER MONEY NOT ELASTIC.
THE QUALITY or CONTRACTION As WELL AS E&PAN-
SION AN ELEMENT or AN ELASTIC CURRENCY
GOLD THE ONLY ELASTIC CIRCULATING MEDIUM.
TO me Edftor or The tribune.
SIR The Presidents victory over the infia-
uonsts to give opportunity for turning
one their guns upon their camp. Many persons
who would not, ordinarily, take time for consideration
OF financial questions read dry arguments IN
tended TO show that elasticity" is feature OF gold,
rather than OF paper money An "elastic" medium or
exchange, medium that varies In quantity with the
necessities OF the people, increasing with their wants.
and decreasing also in il certainly grand desld-
eram We say that article IL elastic because 1t pos
sesses the qualities OF expansion and contraction not
usually becauselof expansyeness alone. This distine-
ton appears TO the real difference between specie ana
irreieomable paper. 1t Is .wellsettled principe Vi
political economy that values are relative ana that
money no more measures the value OF commodity than
the commodity measures tho value OF money
Tho notion that money is only o sign OF value
was exploded, long ago. by many experiments al
proving that debased metal and overssued paper could
not purchase according to their face sign value; they
could not be made take the place Of gold because It's
many good qualities and the actual cost OF its pr0duc-
give 1t intrinsic value; anu TINS Is rcatlVe ior
the reasons that other articles have good qualities ana
are produced by LABOR also. Any commodity VIII 10"
to that part of the world where it Is needed but no com
continually flowing back and forth between England
and America always going to the country that wants
most and the one where commodities are lowest or
where tine highest interest Is paid Inc capIidust
searches for the dearest money market When imam
cia crisis occurs in London the whole world
gold and must by the natural law nave peen stauR,
The same kind OF money Is used by England anu oy
countries; they have what she wants ana Ihey
choose but pay It, The volume Oh money Ia Loh
don 10 therefore " elastic" -,
Lei u.s. now look at our panic last Fall. or course,
money was the CRYING want; out wnac hhu o Iv y,
FOre gncrs had not received our rags; II they hau y
would gladly return them when asked They sent g0d
article could only be used as money AT us lace
value God was capital a commodity, whlle our
want ready money, the want OF every panic our
yJlume OF money cannot therefore, be termed eiaste
since other countries unable to help Us in time OF
need IL may said that the Government should issue
money in time OF panic But last Fan us suc me-
would be merely helping one set OF spectators
at the expense OF another would be assuming
control Of the money market nn,a nnuJ0o aaairs
seemed too much like wild Indians WOrhiue 1o 49,
graph Tue business community Is so lar rom udf
any faith in Washington tnancers tntt IL now hHo5
i'm rea OF Congress aud enterprises OF great plth anu
moment wait for the adjournment Our uo"oy Ia,
ket IS Isolated, and excepting as the ~ ontSro ifs
troubles. NewYork Is always snort Oh o"oy hnitbH,
ID needed to move the crops 10 Ihalltain Hoai'uy
plu3 money When there Is too much GOA III counuJ
when prices are high, natural law causes IL 10 %
exported before prices reach sucn llk ti - m az,
must bring ruin But for paper money tnere Is no oua
let Action or the Government may Ieuuce ts 'oii0
but 20 say that such action would DC taken whe IcH.
Is co that officials are guilty OF KLOWeugc winch no
not vet borne fruits. Ia truth, no Governments mas
ever materially reduced the volume OF us paper money
After we have reached specie payments, our y0iue Vi
small or too great InCpent panics Will DE AT once at
tackled by foreign gold. Using them the money OF tne
world, We shall enjoy the great advantages vi uuS
elastic medium OF exchange A"AOAA'
Nelc- YORK., Apru -, iolt'