The New York herald., 1875-10-26

not desire depreciation OF the currency ndeed They
profess 60 believe that by hyetold repudiaton-by
pudating frst the promise tie face Of the note
pay dollars second the contract which limits the issue
ofega tenders third the contract Of lsOz which re-
qures payment of customs duties IN COM fourthi the
pledge Of 1859 70 make provision az the earliest pFac
tcable moment FOR the redemption Of the United States
coin; - and dfth the pledge or last January 70
redeem IN ls79-this government can actually liz up its
credit II difficult 70 believe men capable a such
what IS 70 sustain United States notes after i've
fold reputation The advocates of this scheme rely
upon three supposed elements OF value hrst. use As
ful legal tender; second automatic adaptation Of the
quantity 81 notes 70 the wants OF trade; third, ex-
changeabhy 81 the notes for bonds bearing 800 per
cent interest in paper Closely analysed these threol
are reduced % one-faith IN the government That faith
this scheme begins BY destroying. Nalue Of paper
as legal tender wholly faith that.
government will not issue TOO much OF H. But
government issue much that nobody will takes
u, and as debt-paying instrument II is issued
than is wanted, the value Of the whole Is destroyed
With regard 70 the second argument notes do not get
into circulation automatically. After a certain issue
exehangeability can only act regulator case tho
government docs not meddlc with Il BY ISSUES
Finally, power 10 command certain fixed interest in
paper Of value undxed and unfxable is valueess The
bond has no value unless the paper has value And the
paper has no value not derived from the bonds.
lnroush banking loan, savings and insurance com
panes, civilization gathers up TIE savings OF milAons
Of workers to utilize IN raising the great temple
oi industry. 10 transfer part of these savings
from banks which loan them % the government,
winch does not loan them, would be 70
withdraw millions Of capital from use to ldencss
Another Of It's beauties Is that II proposes
to abolish bank notes secured BY gold bonds the
of Sl20 for each 500 issued substitute
vertbe into paper bonds AZ the rate OF 500 FOR each
500 issued The ayowed object is to save interest
the bonds deposited by the banks But this can bo.
done only by buying bonds. Again, Il Is said
qulre a non-exportable currency just as John Law
DID In 1720, when he ruined himself and France.
surely our greenbaek Is nexportabe enough for all
practical purposes But il lacks elasticity, II Is said.
to meet the wants Of trade II Is only speculation de-
mands more. currency eXchangabe for sixty
five bonds after forced sale Of bank bonds and five fold
reputation of solemn pledges would dcpreciate moro
than any we have lately The financial
action of France during the Franco German
and since mlnutely criticised and
quoted as example for the United
States The causes OF pancs then investigated and
they shown 70 be inevitable under any system OF
currency The late recovery Of California after great
financial collapse, also brought forward TO show
what a country do when It's financial system
solid basis. Wages may rise nominally under n1a-
ton but cannot ia reality. Thus years the wages
Of American laborers have increased only thirty per
cent while the cost Of living has sixty per
cent A long argument then introduced TO
show that must pay the cost OF the huctua
tions consequent on paper currency. II was shown
that imitation might give relief 70 debtors but could
only be at the expense Of creditors, who by far
the larger number. The lecture concluded with an eo
quent peroraton setting forth the qualities Of gold
a medium of exchange and measure OF values and as
the only eicacous instrument In restoring prosperity
TO trade and commerce..