Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-01-21
w,11txr,.vIOS INMATE.

W ~ -
The President in his annual message
showed how it would not. He argued
that. however much greenbacks be is
sued to move the crops. they will go to
New York IS soon as the crops ale
moved, and there getlocked up in spec
ulative enterprises Ike Jay Cookies
Northern Pacific, so that when another
S JASON rolls round with its crops, the
needed currency VIII be as scarce as
ever, and a fresh imitation viii be as
badly needed as before. 1t is a vicious
circle. One wrong begets another
One lying promise needs a succession
of lies to bolster it.
Again, can one hundred millions be
added to the present volume OF eight
hundred millions without depreciating
its UaIae? at present a greenback dol
llr is worth ninety cents. If imitation
reduces its value 10 eighty cents, what
advantage viii nine hundred millions
give business over the present eight
hundred millions? Yet this reduction
in the purchasing power and business
capacity of the greenback dollar, Will
inevitably result from such IN
flation of volume. We say IN
evitably, because values seek
their level as sure as water does. The
exchangeable values of a country al
ways accommodate themselves to the
volume of currency. This tendency IS
as true of gold as Of paper. When gold
was scarce in the world, it represented
more values than it does now. The
California deluge has materially depre-
ciated its relative value. In other
words, the increase of gold during the
past twenty five years has been greater
than the increase Of accumulated
values, to represent which the world
uses gold. The business Of this cOun-
try to-day is adjusted to a volume of
eishthundredmillions OF paper. Itisthis
adjustment which fixes the price Of the
greenback dollar at ninty cents. If
We to-day increase the volume of paper,
business VIII have to readjust its values
to the increased volume, because there
viii be exactly the same amount OK
wealth to be represented. The late
panic showed the workings Of this
rule. When tens of millions of green
backs were locked up by tialid capital
lists. tie business OF the country was
obliged temporarily to adjust itself to
the decreased volume III CIRCULATION, and
as an inevitable consequence, green
backs appreciated 10 ninety-five
cents gold. Contraction of cur
rency enhances the value of that
currency. whether it be coin or pa
per. The panic caused contraction
by boarding. Imitation is equally sure
to involve depreciation. tt can give no
increase Of purchasing power. Why
then initiate, when it can give no sub
stantial or even temporary benefits, but
will, on the contrary, Prccipitate new
evils and give a fresh start to unhealthy
speculation. The railroads had not
euitaaccommodatcdw wages To the hoard
INC contraction Of the panic. before the
boarded greenbacks came pouring ont,
simultaneously with Richardson's issue
Of reserves-an which made The rail
way reduction Of wages unjust. If the
government issues another hundred
millions Of grcenbacks, the prices of
the neccssaries of living viii be en-
HANGED, and the laboring classes viii
demand increased wages, which capital
lists viii be slower to give than ever be-
fore. As sure rs initiation comes, strikes
VIII multiply beyond all precedent,
and a struggle between capital and Ia
Dor. more serious than this country has
yet dreamed Of, viii be precipitated. The
times are only too ripe for it. The IN
iiationists are tapping volcano.