, 1874-01-19
THE CURRENCY QUESTION.

THE CURRENCY QUESTION.
The debate now taking place in the United
Statos Senate On tho currency question calls for
q rcstatomopt Of somo OF tho elementary princi-
money. Tho arguments Of thoBo opposed to a
return to Bpocie payments are based upon tho
threo following errors:
Firsl-Tnat money need haVs no intrinsic
yl6uo.
Stcond-Tlat an inoonvertible paper money
can fulfill the functions of hoalthy currency.
1ti,s1-That Government ean regulate Bnch a
currency In auch . manner as not to injurs the
commercial interests of tho country.
To understand why M inconyertible paper
currency, dependent for it's emission and
amount only upon the variable will, wisdom, and
honeaty Of Government, must always bo inju-
injurious, 1t ia necessary to understand what the
precise ust Of money is, what 1t Ia called upon
to do, and examine whether an incon7ertible
papor can do 1t. Everybody Knows TINT
exchange. 2. As q measure OF yalue.
Tho hest medium Of exchange ia evidently
that Which everybody, everywhere, will take in
| exchange for what he has to soil. A medium OF
| exchange received everywhere is better than one
| which passos current only III single countrE
a medium Of exchange which all tho world h
! willing to receive IL bottor than that which III
rejected by all the world except Que nation aud
which is not rejected by them only because it's
| coption is compulsory, and because the Govern
mont guarantees to everybody who takes it thai
he shall be able to got rid Of It and obtain sona.,
value in exchange. though how much value Gov.
| etument cannot decree.
| Nor. specie is received everywhere, by every
body, willingly, nay, eagerly; 1t is It's Own
guarantee, and caunot 10 repudiated. An in-
convertible paper currency ia accepted only by
tho gubiecta Of Government which amita it,
not willingly. much loss eagerly, aud onEy because
the Government covenants With tho holdor that
1t shall uso it's strong arm to force so,ue other
person to accept 1t in exchange for what that
other person Laa aold him or will soil hin1.
power Of the Government. Weaken that power,
and 1t depreciation Destroy that power, and tue
currency drops to tho ground worthless. Slpcl
is the character Of an inconyertiblo paper as
medium Of exchange. !
1f'it were only borne in mind that money Ia: {
n,onsuro Of value in no merely agurativo aopsc4
that it is measure OF value in seuao rs ROAD
as tho yara-st,ck is measure Of linen and clotha
| Or as buHhcl is OF volume, NC should hear les.
of IN inconvcrtiblo ellroucy. Now just as tue
best moasnro Of clofh iB the moasuro lcast sub.
tect to yasy: justas 8 yassl-s,ick liable to vary
At the will Of tue buyer or tno aolor would be IN
instrument otfknavery, 30 Is a currency that
varies Or may vary suddenly and grcatly-ns IN
iucourcrtble currency always may. And Just as
every contract for tho aale Of lnon oro1oth, made
Oh suchja variable measure, cheats either buyer
or ao1ler, so evory contract for the payment oi
money, made in country tho volume Of whose
incdnyertibe currency III liable TO Auctuato
doos injustice either to tho debtor or tho cred
,1tor, according as ita amount or tho do1nand to,
+ 1t incleaees or diminishca. And just as all cou
tracts for tho sale Of cloth, cotton, OF linot
tnade Oh such scale are gambling contracts, 81
| aro all contracts nude wharo auoh q cusrenc.
exists gambling contraota.
There is only ono way iu Witch yard meal
uro liablo to contraction or expansion can coas'
I to ho swindling measure by tho aimultaneolt
md proportional contraction or expansion q
the article measured. The aaue holds true Q
the currency. Tho contraction or expansion q
. currency that takes place as business itaol
contracts or oxpands that is, Al there are NOR
or fewor exchanges to DO nsado with curzN ncy
and more or loss goods to be sold for currency
is contraction or expansion which loayos price
unaffected. OF such healthy contraction an
expansion OF nntion's currency ne ar
:, not speaking hero. We roter only to contrac
;, ton or an expansion made at tho arbitrary vii
y Of Govornment.
Now 1t may bo impossible to find 1neaaur
;. for yaluos absolutely tuvarlablo, or that yaro
precisclyas the Duainoas domanda Of tho countr
vary. hut In tic absence Of al absolutely perfec
measure Of yaluo, that measure least subject t
d variations. and which will come nearest to var1
~ Ing ~ commercial demands vary, ID tie tast. .
y MEASURE rhtah may vary great daal should b