The daily Argus. (Rock Island, Ill.) 1873-1877, 1874-05-04

The story of the Continental currency is
pretty well known. 1t was issued to pay
the cost of the Revolutionary War. When
taxation was suggested, member OF Con
Oress asked in wrath if he was to help tax
the people when they could n
GET A CARLOAD OF MONEY
by going to the printing office The
harshest laws were passed to prevent de-
probation, but in 1880 the cart-load would
have been worth only cents on the 81.
Shortly afterwards the currency ceased to
circulate. Specie flowed in at once. While
the paper was robbing its holders by sink
ing in value every year, the Kelleys of that
time boosted of its safety" because mo
body would take it away
The history of American currency since
the formation of the Union is too long to
give in detail. 1t presents the familiar
features over and over again. Imitation,
speculation, crisis, the dreary cycle has
been trodden many times. Chartered
banks maintained their right to issue ire
deemable paper by giving easy discounts
and shares of stock to members of Legis-
lature or of Congress Courts were packed
tor the sake of shinplasters, even as they
have been since.
Scattered through the book are some
clever discussions Of disputed points. The
difference between
CURRENCY AND CAPITAL
very important difference and one little
understood, since people in want Of capital
have lately been demanding more currency,
under the delusion that they wanted that
lis put very neatly thus:
Capital is that portion of all the previous produc
| OF nation which at any given time is available
for new production. This will be certain amoun
of TILED land houses buildings, stock tools food
clothing, roads, bridges etc, etc, which have beef
made and are ready for use in producing transport
Ing and exchanging new products. These thin
all the products of labor, and require time 70
| their production, Currency only serve
to distribute this capital into the proper hands 70
Its most elhclent application to new product on:
than ships are freight; 1t is only labor saving ma
chine TO make easy transfers. If, therefore
currency is not multiplied, it is delusion to sup
pose that capital is multiplied, for, if money i
plenty by artificial increase of its representatives
| Ii Is only like increasing the number OF ticket
which give claim on a specific stock OF goods
the icketholders would be deceived, and could, il
the end, only get proportional dividend ont Of tn
stock.
The fallacy of supposing that the
BALANCE OF TRADE
must be in our favor before we can resum,
specie payments is exploded by the follow
ing line of argument
| The balance OF imports and exports never cal
move the exchanges either above or below par NOR
7 than just enough to start movement of bullion
On specie system, any outflow of bullion woul
rrlng down prices and Immediately make remit
lance of goods more proitoble than one Of bullion
|. II a country produces gold, Tvs surp pre-
duct goes ont as commodity, without an unfavol
able exchange, and does not here come into aC
count. II, therefore there is outflow of golt
serious aud long continued, accompanied by an III
favorable change IL is sign that there is an lnft
rior currency behind the gold, which Is displacin
IL. The surplus Of imports of goods above the el
port Of goods, is nothing but the return paymeI
for this export of gold, and is not cause. bW
consequence. If, finally, want to I rn the It'd
and produce on influx, there is only one way to d
II, and that is to remove the inferior currency.
waiting for the balance OF trade to turn and brin
= gold into country which has deprecated papt
currency might as well take his stand at he foe
Of a hill aud wal. for ii TO change into a dcciyit
before climbing It.
Continued on third page)