The Tipton advertiser. [volume] (Tipton, Cedar Co., Iowa) 1856-1962, 1874-04-16
THE CURRENCY QUESTION.

and is, therefore in favor Of scarce
money and high interest, replies by
presenting the following as the rea-
sons for the faith that it fights for. As
hey are a good western statement of
the whole currency question, we
,uote them ia full:
l. 4 return Of our financial sys-
tenn to so-cailed specie basis can
not be accomplished for years 10 come.
md any attempt now, in the col'aps-
a state of all industries, t. contrac,
he paper circulation, with view to
advance il to par with gold, would
be attended with incredible hardsh p
md absolute ruin to all except few
fortunate capitalists.
2. Inasmich as we must, from
the necessity Of the case. use pa
per circulation, let the volume Of that
circulation be equal to the needs of
the cuuntry-and as the growth Of
he country in population and wealth
S rapid from year to year, so the vol,
ame of currency needed cannot be
made fixed quantity, but should be
increased in the same ratio of the an
nual increase OF exchanges to be ef-
fectual.
3. The present volume of curren-
CIV, fixed arbitrarily years ago, and
based on no ascertained law Of sup
ply and demand, has become wholly
inadequate to the wants of the coun-
try-and its scarcity, as evidenced
by the desperate struggle to obtain il,
| and the ruinous rates Of interest paid
for it. during the last few years, led
| 10 the panic last fall and the paralys.
of trade that still brings distress Otto
millions.
4. The rational and safe remedy
for the evil We have described is the
establishment of free banking on the
national system. Capital should be
left as free to engage in banking as
in any other pursuit. and with en,ire
freedom to establish banks of issue
on the present national banking sys-
TEN. the amount Of currency put on,
would depend wholly on the laws of
supply and demand. and would adapt
itself easily to the varying condition
of a growing country, and activity or
depression in trade.
5. An increase in the volume OF
national bank currency would not re-
sui, in depreciation of its value
The only mode in which bank note
can be deprecated in value is by inn
pairing the security on which it rests.
If bank with paid up capital of
81 100000 issues $4,000 900 of notes,
it depreciates the value of its notes
Just one half, because there is moth
ing to represent the over issue that
has been made. But if free banking
be allowed and additional bank notes
he issued, every dollar of his new is
sue will rest on solid capital OF gov
emment bonds equal pro tanto in val
ne to the bends on which the pres
ent national bank currency res,s.
G. Ii the security Of a circulating
note is good, we viii use what we
want and no more, and the loss OF in
terest on excess OF currency not used |
will fall on the capitalists, who will
qnicklv withdraw il from banking
and put i, into some other mode OF
employment. Thus free banking will |
cary its own cures either for scarce
itv or redundancy Of circulation.
!. The existence OF vast sums OF i
money in the banks of all the cities at
the present time is not proof tina,
there is too much or enough currency
in the country. 1t is only evidence
that business is practically dead all
owe. the land, having been killed by
the high interest and Improbable re-
suits. in most cases Of honest enter
prise. Start alew to-day every iegi-
innate business that was in full oper-
alton one year ago, and the presen.
idle capital in the cities would be dis
sipated in sixty days, and the strug-
gle become as fierce as ever for its
possession. so inadequate would be
the supply to the demand.
s. The constant abuse OF our pres
ent currency-legal tenders and ma
tional bank notes as Ar ''irredeem-
able paper circulation, j, libel on
It's worth and usefulness. 1t is the
bes, currency the country has ever
had. No one has ever felt afraid OF
it. |, could come nearer being CON
verted simultaneously into specie a,
par than any body OF paper money
the country has ever had. While on
occasions of past financial eonvultions
millions of dollars have been lost by
the failure Of "specie paying banks
and the consequent worthlessness Of
their notes, not dollar has been lost
| by the ''depreciation" of our national
currency from the beginning of the
panic las, fall to the present day.
g. In no sense whatever can our
present currency be called "depreci-
ated paper" except in its relation to
its purchasing power of foreign mer-
chandise or payment Of foreign debts.
IL tue DISADVANTAGE IL TtSls uiueE III
that particular should result in dis
couraging the purchase Of foreign
commodities and the creation of for
eign debts. and stimulating the com
pleter development Of American in
dustry, we should feel that the one
point Of supposed weakness in our
currency had proved its highes, mer-
H.
There is every reason Tor hoping
that Mormonism will be thoroughly
aired. Sarah Alexander will emulate
the example Of Ann Eliza, and tell
what she knows about it, Sarah was
adopted into Brigham Young's fami-
ly by his arbitrary power and with,
and in like manner was placed upon
the stage Of the Mormon theater.
Az exchange says Miss Nirgie
Wells, of Wapello, has passed sue
cessful examination before the Super
iniendent Of Louisa county and re-
ceiyed II teachers certificate. She is