The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1874-03-31
the FuNpAMENrALs OF FINANCE.


too deep for them" In the bewildering
vortex of talk most minds become hope
lessly confused, and abandon all attempts
to solve the difficult problem of finding
the best remedy for admitted defects in
the present system. Much of this difficult
ty comes from not accepting some simple
and admitted truths as the starting point of |
discussion. All thinking is fruitless that
does not follow logical method. There
are first principles to be comprehended in
every subject, upon which all reasoning
about it must be bottomed, or the mind
is soon lost in a chaotic tumble.
We believe the following may be safely
accepted as incontroyertible truths, and in
the main they are accepted by all writer's
Of high authority on finance:
First. Money is an instrument to effect |
exchanges Of service or commodity. 1t is
tool or implement just as certainly as a
plough, an axe, or wagon.
Second. The material of which money
is made is not an essential fact as to its
performance Of the functions of exchange,
any more than the color or the quality of
the paper upon which deed or note of
hand is written. The precious metals with
us happen to be the conventional standard
Of payment.
Third. Money being an implement of
transfer on exchange, should be at all times
free from monopoly, and the amount in cir
culation should be left to the law of supply
and demand
Fourth. 1t is clearly proved by ex.
perience that there cannot be an injurious
excess of good money in circulation.
Fifth. Arbitrary limits upon the vol
ume of the currency are therefore unnec-
essary and even dangerous to the pros
perity of a people by arresting the devel-
opment Of industry and trade and produce
ing runous panics.
Sirth. The constitution gives to the
general government the sole power to coin
money and this it is bound to exercise in
such manner as to furnish to the people
the best currency possible, and in such
amount as may be needed for the business
Of The country.
Seventh The exercise Of the power to
coin money carries with it the right and
duty to issue the same, and this should
be done in such manner as to dtto,c eUe'y
citizen to purchase IL on the same terms.
Eighth. To allow any class Of citizens the
exclusive right Of purchasing money of the
government or of engaging in retailing il
as bankers, is monopoly of the most de-
structive and dangerous character. 1t is
precisely as unjust and injurious to the
body Of citizens as if Congress should
grant the exclusive right to manufacture
and sell all agricultural and mechanical
implements to one firm or corporation.
Ninth. The currency used by the people
and made legal tender should be accepted
by the government itself, for all dues.
Tenth. Money or currency need not hav'
an intrinsic value, but to be per
feet instrument of exchange, it must b.
convertible ultimately into all commodities
including gold and silver. Immediate con
vertibility into bonds which pay gold in
terest will answer just as well. If sucl
currency is inter-convertble it will possess
elasticity as we'll as soundness, and thus
become perfect instrument Of exchange.
The present money system violates thu
above principles fagra2tly :
First. An arbitrary limit is fixed upor
the volume of the currency.
Second 1t is issued primarily to that
class of citizens who first presented them
selves with bonds to purchase it, and all
subsequent corners are excluded from pur-
chase.
Third. 1t is thus monopoly, as nc
more currency can be issued, and that
already issued is in the hands of private
dealers in money, who fix their own terms
of rent for its us e.
Fourth. The currency is consequently
nol-elastic. and confines the expanding
business Of the country in unwholesome
limits.
Fiji. It is defective IN lacking convert
tiblity into gold and silver or its equivalent.
The repeal of the convertibility clause of
the legal tender act destroyed the log ical
basis of the currency, and left it supported
only by the generous faith Of the people
who had been grossly outraged by this act
of reputation on the part of the govern
ment.
Siath. The present currency not only
lacks in volume but in the limited area OF
its circulation. Our National Bank notes,
whose securities are convertible into coin
in every market in the world, are Of no
value outside of our own country. We
were on specie basis long ago, but we
lack the machinery to realize it in practice.
What are the remedies
FIRST. To remove all arbitrary limits
upon the volume Of the currency.
Second. To restore inter-convertibility
of bonds and legal tenders.
Third. If banks are to be chartered by
the government at all, to provide for one
central institution, uniting the credit of