The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-06-22
From the Philadelphia Inquirer.
Herbert Spencer w.. The Mcsnos@
dunn.

IJroucAionsbly the greatest living Qhi
3osopl,er and Political economist is Herbert
Spencer. His right to bold that place y moi
disputed. ard. therefore, whatever he @elbe
rateIv sets down IS the result of bis thought
and study-and such men as Herbert Spen
Ger CLEAN their propositions from the broaC
experiences Of al countries, times, anu PEG
pies weighs great weight.
Over twenty years ago Herbert Spencer
wrote the following, which to-day replies &c
the areuueats of the Memorandum witt
crushing force:
The monetary arrangements OF any com
muni,y are Ultimately DEPENDENT like moS'
OF its other arrangements, on the moraIl'v OF
its members. among 4 people aItoSelbei
di>Eou, 81 every mol caLtiC transaction must
be Il, c.ed III caiG or goods. Tor promises 10
pay cannot ciicU!ate al all where, by The by
notLesiS, there is no probability that they
will be redeemed. Conversely, among per-
fectlv honest people paper alone viii form
The circulating medium, seeing that as no
one OF such Will give promises 10 pay more
than his assets will cover there cIn exist no
hesitation 10 receive promises to pay IN I'LL
casts: and the metallic money will be need
less save IN nominal amount TO supply u:ea-
sure of value. Manlfe>tly, therefore, during
any iDtcrme date state, IL which men are mel
Their altogether dishonest nor altogether hon.
est. > mixed currency will exist: and the ratio
OF paper 10 coin will vary with the degree OF
trust individuals eau place in each other.
There seems no evadiDg this conclusion.
TIE greater the prevalence of fraud, the
greater VIII rc the number OF transactions
in which the seller will part with bis goods
only for an equivalent of Intrinsic value !;
that is. the greater will be the number OF
Transactions in which coin is required, and
the more will the metallic currency prepon-
deratc. On the other baud, the more gene.
rally men find each other trustworthy, the
more frequently will they take payment in
rote>, blil> Of exchange and checks; the
fewer will be the cases in which gold and
silver are called for, and the smaller will he
the quantity Of gold and silver in circua-
ton.
Thus, sclEresulating as is a currency when
let alone, laws cannot improve its arrange
menlS, although they may, aud continually
do, dsrange them. That the State should
compel every one who has given promises to
pay. be he merchant. private bunker, or share
holder in Il ont-StOck bank, duly to discharge
the responsibilities he has incurred, is very
true. 70 do this, however, is merely to
maintain mems rlghts-to administer JUS
tice-;ind therefore comes within the States
normal tuscfion. But TO do more than this
to restrict issues, or forbid notes below GER
tain dcnon.ination--iS no less Injurious than
inoquitable for, limiting the paper in crcu-
lation to III amount smaller than it would
otherwise reach. inevitably neceSsitates Il cor
responding increase OF coin; and as coin is
locked-up capital, Oh which the nation gets
no interest," needless increase Of ii is equiva-
lent to au additional tax equal TO the nddi-
tional interest lost.
Moreover. even under such restrictions, men
must still depend mainly upon each others
good faith and enlightened seli-intercSt see
ing that only by requiring the banker to
keep sufficient specie III his Golfers to cash
all the notes he has issued, eau complete Sc
curity be given TO the holders Of them, and,
TO require As much, is TO destroy the motive
for issuing notes. 1t should be remembered,
too, that even now the greater part of our
paper currency is wholly unguarantecd.
Over the bills OF exchange in circulation,
which represent liabilities three times as
great as represented by notes, no control is
exercised. For the honoring OF these there
exists no special security, aud the multiple
cation of them is without any limit, save that
natural one above mentioned-the credit
men tiud it safe to & i've each other.