, 1874-01-29

tax the pooplo?
a commercial crisis is not tho only consequence
Of imitation. Tho depreciation of tho currcno
itHelf, aud tho Influence Of TINT tloprocia
tlon On tho fortune Of ovcry membo
OF tho community, must not bo lost Sigh
OF. Tho domand for curronoy IL no
unlimited. Money has certnin apociflc Junction.
to fulfill. To fulfill tl1oso functions cortai'
, quantity is neo1ot. Onco this amount Il
ronched, any addition to tho currency Ia followed
ny lss own depreciation. II, for tho BaAo of IL
l'tstration, wo suppose TINT at given timo, in
given country, tho moods Of b,lBneBB domaine
s1oo,o0ooo0. So long as tho paper currency does
not exceed this amount it is at par, provided tue
Government that 1ssuos 1t Ia strong ono, al
peace with NIL tho world md that thoro is nc
oonot entertained Of It's pormanonoy. It now nn
additional issue Of s1oooo00oo bo mado,-tac
demand for money not having increased Oh ac-
count OF tho number Of exchanges tllat must be
maao with it,-tho volume Of tho currency is
doubled, but its value OF purchasing power rc.
mains the sasne. Tho dollar lnB, therefore, depro-
oated ono-half. II third e1oO, ,000, 600 be omit
ted, tho dollar 1osoB two-thirlg Of its yalrc u1
pnfchaH'ng power; aud. II tonth 9100, 900, 600
10 1ssuod, the. dollar purchases only ono-tontl,
OF what 1t did before tho currency was inflated
beyond tho volume demanded by tho business
neoas OF tho country. Therefore, contract
mate when tho currency was at par for tho pay
ment OF $1,000 is now discharged by a10o-tho
real dollar, or yaluo-dollar, being substituted by
tho name-dollar, ana the payment mnde In q
name inateal OF Thing. And 40, MI annuity of
Sl0ooo dwindlcs down to $1,000. A lobt duo
for the purchase Of houBe of $4,000 is dis
charged by $4,000.
Let us now glance at another matter: how
easily oaoh successive Issue Of a10o 900 900. sav
loadH to continually decreasing results, and be-
comes moro onorous and disastrous to tue ua-
| tion.
"hon tho Government has Issued Us muc],
currency as is needed to carry on tho business OF
tho country, 1t has obtained by tho lssuo wealth
equal in value to tho specie which it l,as dia-
placed If It's papor is inconvortible, Tho effect
OF tho issue is the samo aB tho contiscae1on Of
80 much gold. It Is, in fact, tho contiscatiou of
tho gold and silver circulating in the
country. Let ua suppose this yaluo to
DO represented by 81O0, 900 specie, If
now for any roason tho Government must in
croaso Its resources by an oquat amount Of real
wealth. 1t cannot accomplish 1t by another issue
OF Sloo,ooooo0 paper, ainco tho addition Of
9loo,o00, 600 to the currency will now bring only
a50, 100000 worth Of real woalth. In like man-
ner, fourth issue of 800. 900 will bring on
" $25,oo0 900. A table will illustrate this:
Ti1at Issue Of paper brings 3ioo COO
SeGonu sano q $l00 GUY 00o paper brings 60D00 goo
Third Issue of 500 200 900 paper bri,lgs IL
F1ar F1 ,as nano o q Soo 5 @ 900 paper brings 2oo9o
sixth issue ct 500 paler brinss: 1SSGSoSS a.
gsvth issue Of Sloo oo6 oo paper briSgs ~
Ninth Issue Of $780, 600 paer brings lllii1ii 10
Tenth issue Of Sl0U, ooJ paper brings l0o0o0o5
s292.scos25
Thus while by issuing $1oo, 100000 only, tho
State obtains s1oo,ooo,o 600 woalth, by issuing 10
times as much 1t does not obtnin 8 times tho
wealth it obtains by the first $lOo, ,0o0, 900. Such
ia the inevitable result OF depreciation. By tho
first sl00,000,000 the State contIsoatos $780,,
the property Of its cilizons, by the fourth $685.
100000, etc.
There arc other Causes Of depreciation,
hopes and fears Of tile people, tho incoming or
outgoing Of IN Administration, war, or rumorg
OF war. On tho caprice of the people, On tho
arbitrary will Of Congress, on tho clamor Of tho
public. on tho fears and tho hopes Of tho nation.
in peaco or war, in the fluctuations Of opinion on
the caprice OF tue olemonts, Oh tho winds, and
the rains, and tho frostB, on light and shatlo.-
Ruch IL tue sandy foundation on which our cur
fency rests, our commerce, our contracts, aud
our fortunes. Any great variation iu ono of
these, and fortunes chango hands; debtors or
creditors aro robbed; nll commerce becomes
speculation, and all legitimate business impossi
bic.
III all we have said VIC do not deny that q |
perfect paper currency is imaginable. We grant |
that 1t is but good incoMrerible papor cur
rency is not imaginable 30 long as human nature
aud human government remau wl,at they ere.
When human governments become as permanent
aa tho eternal hills,-if there are any etornal
hills, s,-omnipotout,o ,omuiBcicnt, andincorruptib1o
thoy may bo ablo to regulate paper currency ~
well us Hpecie-paying currency regulates itself.
ILL TINT time comes, au irrodeemablo paper
currency is black cloud oyorhanging all busi-
ness, threatening all interests, public and pri-
'ate, and constituting permanent menace to
society itself.
THE BOSTON SCHOOL BOARD.
Tho Boston Indies who were elected to eaata
n the School Board seem to be travelling hard
Dad. immediately after their election, tho
conservative element in Boston which lives In |