The daily Argus. (Rock Island, Ill.) 1873-1877, 1874-05-26
ILLUSIONS ABOUT PAPER MONEY"
BY DIoGENEs, JR.

C oiSS .tInJenendent in Everything" will il
FairIv present and candidly consider all b
s;des IF 'the first and foremost question, !
now before the American people.
In reply" l would say, first, that L
agree with THE ARGUS, and with the long .
list of illustrious authorities it quotes, that I
paper bank money is very injurious TO the
manufacturing, agricultural
and other interests of the country. l.
/ also agree that what the country needs
is not so much more money as better mon
ey, secured in the best possible manner
against repudiatiaR and ti,tctUatioR in
value, left to regulate itself in quantity by
the laws Of supply and demand.
But l also say that''if anything on earth
is demonstrable, or has been demonstrated
by the practice and experience of man.
kline" it is that the article alluded to is en-
tirely mistaken when it says THE coined .
money of the world, and the credits based
thereon, are ample to transact the ordinary
business Of the world.
1t comes in sight Of the truth when it
says lin the large commercial centres, the
business men never use currency at all.
What do business men" use? coin or
credit based thereon? No, indeed, they
are not such fools. They use paper certif-
Gates of Indebtedness, checks, letters of
credit bills of exchange, based on balances
oF things Of real value due-corn wheat,
cloth, real estate, labor, &c, redeemable
at par in specie" that is IN kind, that is,
in other things Of real Udlue which they
wish to buy. Thus it is IN fact that the
mercantile exchanges of the world are eff.
fected. A little reflection will convince
anyone that the amount of gold exchanged
every year is very small pared with the
mass of commercial exchanges going on,
the world over, in labor. land and mer-
chandise, and that the Medium Of Exchange
used Il don't call it money for that poor
word is ruinedl must be in some form
much greater than all the gold that ever
was and ever will be.
Gold is not even the best standard of
vdlue of the Medium of Exchange. Gold
has high value because it costs much Ia
Dor 10 get it. Our National Treasury mot
bdnk) notes offer better way Of getting
at this than sending men to labor in gold
mines for it,and they afford better secur-
ity against fuctudtiOR and population
than all the gold that ever was dug from
mines or stolen from vaults.
The standard of value of our National
Treasury notes is the par market value
Of the l15or Of soldiers, seamcn, officers,
congressman, &c, really neecled by mot
the government butt the people Of these
United States.
They are secured against fuctuaton and
reputation, and ultimately redeemed by
the loyal willingness of the people to PAY
tdres with them.
They are inflated ard made to Ructuat,
in value.
/. by giving immense quantities to per
sons who have not given the par amour
Of labor for them. Especially
2. BY giving them in the first instance
to National banks, instead Of issuing then
directly from the treasury, and cHRcelljHl
hands with them, 10 any extent which thC
business needs Of the country may render
possible.
3. By accommodating useless gold in tn,
treasury, instead of selling it, and buyin!
and caRceiliRg bonds in the proceeds
4. By collecting part Of our national in
come in gold for custom house duties, In
stead of by direct taxes payable III Treas
ury notes.
These are the important points Of tn
great struggle on this question which is a
hand.
When Mr.. S. NJ Smith says Il am nc
in favor of that exploded humbug, a spC
Gle basis currency, which deluded an
robbed the people every time" you Ca
rest assured" that he is right. The pc,
pie are finding it out and you can also re
assured that sooner or later they will fo
low this advice.
What is called credit based on gold ''
a delusiOn whereby shrewd bankers 5cj
hare no gold and should have no eredi
cheat the people out Of the products
their land and Of their labor.
May the true interest of the people h
umph' They will just as soon as the pc
pie thoroughly understand what they ar
D., Jr.
REMARKS BY THE ARGUS.
We received the above by Mond
mornings mail from a man who gives VIII
we suppose to be his real name, and
taches University of Va, to the end of
The letter was mailed university of V
ginia, Va, May %
We give the writer place, because y
5. NJ, Smith, probably feeling inadequ1
to the task of answering our article allu
ed to has sent to the University of Va.
get the job done, and we are willing \
Smith attorney should try his hand at
Probably there is not one of our read,
who cannot see through the fallacies,
phistries, and financial decisions of I'D
genes Jr." without the aid of our glass
still we feel as though we would like
hove in few remarks" And first Of
we take leave to say that the azores
Diogenes Jr. is as lily instructed in
gard to financial matters as is S. NJ. Smi
or Finance" Osborn, of Erie. Like
other inhationists and repudationists, Il
have a vague and indefinite idea that t
can reform the precious metals out of
istence as a standard of values throu
out the world, and substitute an i
deemable promise to pay; greenb
lies in their place They fail to conn
bend that when the United States Ii
their notes and promise to pay them,
ssue them for salaries, labor, food, cl
ing, or other property which is consuu
annihiliated, and that the United St
have nothing to pay their notes with.
property for which they were given is
longer in existence-it has been consur
The only way, then, in which these
ted States notes can be paid is by ia
the people, in coin, and using the coil
pay these notes. If the people we
will compromise for long bonds at q