The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1874-02-21
Doe, Money Need to Have IntrlnsI,

NatuG
From the N. Y.Bulleun =
We are accustomed, and therefore ex-
poet to find, more or less error in every
thing said or written on the subject Of
money, currency and banking, but we
confess we were not prepared TO meet SO
glazing an error. presented by public
journal usually so sound and intelligent as
the hnaHcier, as It utters in It's issue Of
the 14th inst. Its leading editorial, enti-
tied, NEED Money have an Intrinsic
VGlue" concludes as follows:
"PAper money Is dangerous, because uulimI.
"ted and cheap, and we lay down this PROPOSE.
"tion without any Qualification whatever: Pa.
PER Sioney derirn all iks pdlus az money from
~! qGIoeidtloH tgIh gold and he belief Mat Il
"lriH some time BECOME, IItt Is not n0p, al pdr
with gold dlStoelGts u entirely from gold, 6irt
up and dtstroy finally he idtT Of redemption IN
"2oId, and u t1M s,stfay perth and disdRpear
Now, instead Of this being true, we as
sert that the conVertibility Of bank notes
into coin Is not necessary to their proper
performance Of the functions OF money,
except in regard to international COM
merce-on the contrary, that whenever
bank notes shall not be made convertible
into coin, but merely stipulated 10 be re-
ceiyablc In liquidation OF all liabilities due
10, or payable at, the bank that issues
them, they will equally well perform the
functions Of money, in the internal trade
OF the country, as II convertible into coin
on demand; and they then will be far lees
subject 10 the disastrous effects OF sudden
panics, for banks can never redeem on dc.
mand, either in coin urlegal tenders, their
entire liabilities; whereas, they can at any
time, without the slightest Inconvenience
or loss, receive them in liquidation of the
Indebtedness OF the community. The
great error Of the Findncier and others
who hold to lis views, is In not preceiving
that the sole functions OF money Is TO Ell
tect the liquidation Of pecuniary obliga-
lions and purchases Of useful services and
commodities. That money Ia never sought
for its intrinsic qualities, but merely as a
means of obtaining useful results OF labor.
Gold and silver coins will not perform
these functions, unless necessarily thus
redeemed in commodities and services,
any better than bank notes. The notes
Issued by banks form but small portion
OF their entire liabilities. IAN well man.
aged, solvent banks have more due them
by the community than they owe to the
community, and hence the liquidation Of
the claims Of the banks against the CON-
munity, win moro than redeem, not only
every note issued, but also every other Ii.
ability Of the banks to the public, so that
the Intervention Of coin for the redemp-
ton Of the liabilities Of the banks, is per
tectly useless and unnecessary. The only
reason why we need q resumption Of
specie payments is that we may convert,
at any time, into coin at par, such pOr-
ton Of our currency as may be necessary
10 liquidate any adverse balance Of trade
which may mOmentarily arise. The con.
version into coin at par Of a moderate
amount OF our currency Tor this purpose,
is all that's necessary TO bring and main
tain our entire currency on par with
gold, and thus rid Us, forever OF our
present vicious currency, daily hucluatIng
10 value. ~
The PinancIer very correctly says that
government paper money is nothing but
an evidence Of debt, aud this Is equally
true.of bank notes. The difference Is that
governments have no claims against the
community which will absorb their issues
OF paper money, other than the annual
taxes which II leVies, whilst the banks
hold valid claims against solvent indiVld.
uals, generally well secured, which are
daily lquidated through sell interest, aud
which can be enforced by legal process,
the liquidation Of which will absorb three
10 tour times the amount Of the entire
bank note circulation. This Is what
gives currency and value to bank notes,
and not their conVertibility into coin
Every banker will inform the FSndncier
thai, under specie payments, II is very
rare that bank notes are presented, either
, here or In Europe, Tor redemption in coin,
When foreign merchants and bankers
need coin, they generally obtain II by
presenting checks drawn against the dc.
posits OF the bank. To collect bank notes
and present them for redemption Is too
slow process,
The NHdneIer Is, like the Bulletin, an
ardent and consistent advocate Of the re.
sumption Of specie payments. Can It not
see that he,views presented.in the leading
editorial Of last Saturday, do more to pre-.
vent resumption than any thing else
that can be said on the subject? We
shall never have resumption until the
public becomes convinced that we do not
need to withdraw, contract, nor redeem,
urlegal tenders and National bank notes.
AL we need Is TO be able to convert q
small per centage oil the currency, at any
time, Into coin at par, and the notes thus
converted, can at once be reissued-the
legal tenders in the expenditures Of The
Government, the bank notes In new loans
10 the community. :
That Is all that Is needed lor-all that
Is meant blythe resumption OF specie
payments, which, II properly managed, Is
perfectly easy and VIII prove greatly ben.
ehcial to every legitimate interest Of the
country.