, 1874-05-08
MONEY!;

MONEY!:
sThe Material of which 1t In mudo
OF No BtHniFicnncc.ss
TO the Editor Of The Ch,caao Tribune:
SIR fow days dnya since, obsprved In the
columns Of THE TRIBUNE criticism upon an
article written by me- NJ editor Of the CantouKeg
lister, touohing the'greas question OF National
Finance. This criticiam was not e1act1y IN
analysis Of my article, but 1t referred to several
points contained thornin as though they woro
visionary, unsount, and extravagant, but ntl-
mittlng they wore not more 20 than tho views
promulgated by Morton, Logan, 0goaby, and
others,
do not profeaB to be q financial doctor. Iam
only plain country editor, with enough egotism
in my composition to believe that, where hive
the aano facts, and have exercised nj tho oppor-
tunitiea that others havo to Judge OF matter,
my opinion is just Oh good as anybody's.
hnvo discovered that tho financial doctors
widely diaRgree. Some Of them can 500 nothing
but disaster and ruin Tlloro others Gnu soc
nothing but tho thrifticst prosperity. ''When
doctors fail, quacls prevail" ! now come to the
front with my remedies, and insist that they
will euro tho patient.
reitorato the proposition contained In my
article, and to which The TRIBUNE took excop-
tion, which ia thus: "The material OF which
money ia made Ia OF no Significance" I viii
provo It,
Tho true definition Of money is medium Of
exchange. It performs the Office Of exchanging
property. That il all We uso 1t for, and thas is
all We want Of it.
What Is tho quality essential to make 1t mon-
ey7 answer, confidence; or, in other words,
the knowledge and belief that othcrs will take 1t
from IL 1T the value which We have allowed for
1t. How shall No impart this qualify to money!
nnswer, bY the power and authority OF tho
Government, and by common consent.
But can the power aud authority Of tho Gov
ernnlent confer this quality upon money, With
out regard to tho material Of which money is
mado? I answer, most aBsuredly it can, con-
vononce meroly being consulted. How do you
prove it?
Tirst, Iprovo It by the rules Of common sense
aud reason. we must havo money. Tho inn
pulses Of tho people arc to barter, trade,
aud exchange their products with each
other. It moods no ntatute-law to giye tue poo
plc thceo impulses. Ali They neod is protection
iu their individual rights In the exchango OF
esos"ys Of 1nsy repsg | t viii e. assd into It ts
auisitiou. That which tho Government rocog-
nizes ag money, which 1t will itao1f receive for
taxes, which il invests With the power to pay
debts as legd-sondor, will ineSitab1y bo used as
sent Is gained, and confidence follows as an H.
evitRble consequence.
Hayo l any more proofs2 have plenty Of
them. 1pro7a It by actual experiment. have
dono business, bought. sold; and exchanged
have sometimes bought ton times; and oven 100
times. moro property with ono pioco OF papor
than with another piece OF tho sama Bizo. TO
be specific, will uay, that ona piece Of paper
representing 500 will buy 100 tmcs mora prop
erty thnn another piece of paper Ct tho same
size and quality representing only 81. Why mas
this? answer because tho mower and authori-
ty Of tho Government hal invested that piece Of
papor With the quality Of money to tho extant
named upon the face Of Ii. In tho course Of
business and exchanging property hayo ro-
coived logal-tenter notea OF various denom-
nations. I parted with the property when re-
ooivad these aotes. took them, not ou nocount
value. I did not tako them expecting to get
gola for them, or believing that anybody would
get gold for them. I took them because they
Here moneY.-baqauso I had confidence that
otherr would take them from mo at tho yaluo
which had allowed for thom; and. 30 far, my
confidence has not been miBpaced in thin kind
Of mouoY. lily experience il the experience Of
others, also.
repeat, then, TINT tbs material Of which
munay is made is OF no Significance, provided It
is only convenient, Its essential quality is con-
hdence, and tho Government has powor to inyest
paper-monoy with that quality.
Bat am mot with THE TA1BuNE's iien TINT
lega!-tender notes are not money. hut that tlloy
are simply promises to pny money; and TINT only
gold aud silver is money. admit this to be true,
provided it has the sanction and authority of the
Government to rocognize and enforco II. Dntit
is equally true that l0gal.tondar is monoy, il 1t
has the caneIlon aud authority Of tho doyorn-
n,cut.
Now, thon, which Is the hotter polioy7 Shall
tho Government rocognize only gold a,ld ailvor
aa money, aud paper as the promises to pay
money; Or ahall it recognizes legal-tendar paper
- money itsolf, aud not promise to pay money!
roasouB forit
1t il All admitted fact thas thero is not enough
gold aud silver In tho country, and has not been
for many yea1s, aud nesor wiA b. to mees % tue
we muAt have q substitute, WhatoYer ,anhasl,
tnte wo adopt it should receive the sanction aud
Endorsement OF tbs Government AZ money, and
no other money h1aould bo tolerated ~ tue Gov
arnment. Gold and silyor would then become
commodity, as It ought to be, and as 1t practo-
ally has been since legal-tonaots wore issucd.
It Nc recognise gold and silver as money, and
legal-tender paper ~ only promises to pay
OF moasy, Of unequal yslue,mztho ono reliable,
aud the other unreliable. Tho necessities Of
trade will forco US to accept tue unreliable
mopoy, WHOM ws would prefer tho more reliable
always su unhealthy influence possaling the |
mnrta OF commerce, Tho basis upon which |
commercial transactions arc carried OH wil DO
unsteady and unreliable, ooca,1se tho money Ia
unreliable. There NH VII Pc n9ctuatlons ct! alarms.
will n,a1sa fortunes Oh tho margins between the
two kinds Of money. |
Dcfore the War, ne had gold and silver, and |
all circulating a. money, nomi-
Hnuntrp a Ht1nrI