The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1875-12-09

nipuiations O.. large operators united for that
purpose. and producers and abOrers are
often made to suffer, without effective power
of resistance. Restoration of a sound and
nnvarylng currency must bring better rela.
tive wages with more constant employment
| because the value of labor, as of that which
| it produces, will be measured by more GER
| tam standard; and, with the return of conf
dence. there must come activity, prosperity
larger markets, and greater demand, which
as both reason and experience prove, do MOI
tend to lower wages, or make employment
| less certain.
1.-THE claim that the large issue of inconvert
ible paper currency has been beneficial to pro
ducers is, perhaps, sufficiently disproyed BY
| reference to the reports of sales of leading ar
ticles of produce, such as wheat corn, ano
pork, before and since the issue of such cur.
rency The most trustworthy statistics show
| that such articles were sold in New York dur.
ing the five years from 1870 to 1874, inclusive
for about the same price that they brought in
the five years from 1856 to 1860 inclusive.
ION the other hand it is equally certain that
the farmer has paid increased prices, during
the period from 1870 to 1874, for the articles
imported for consumption, upon all of which
the difference between gold and currency must
De paid by the consumer who pays In the lat
ter. Thus the producer of domes-
tic articles is constantly subjected
to loss in exchanging his products for such
articles as coffee, tea, sugar, and oJher i'm
ported goods, which enter into daily consump-
ton. In this connection it should be borne
in mind that a greater volume of currency
is required for the transaction of business
when it consists of inconvertible paper,
which does not circulate abroad, than when
the currency in general use is gold, which
flows through every artery of commerce. The
statistics of our foreign trade illustrate this
proposition. For every imported article the
consumer must pay to the importer, besides
the cost n gold. increased by his percentage
of profit, as much more as the difference be-
tween gold and the currency with which pay
ment is made. The difference, commonly
called the premium en- gold, increases
by many millions the total amount which would
otherwise be required to complete all such
transactions.
'.The proper Office of currency, whether it
be gold-or paper, is to serve as a medium of
exchange for the adjustment of transactions
between buyer and seller. When it is sound
and stable, receivable in all parts of the COM
mercial world, the amount which actually
passes from hand to hand in business transac-
tons is far below the volume of business. A
small per cent. thereof is adjusted by the
actual handling of money. Exchanges are
for the most part, made by transfers of cred
its through banks and other agencies. Wher-
ever exchanges and business transactions are
conducted on the basis of COIN and paper con-
vertible into it, the volume will be regulated
by natural causes. Money, like merchandise,
will go where there is demand for it, and
where something of value can be obtained in
exchange for it. When the financial panic of
1857 created demand for gold in this country,
Already and continued supply came steadily from
abroad to meet the necessities of our pee
pie. and brought speedy relief. Now, the en-
forced use of inconvertibIe paper currency
not only obstructs the flow of gold from
abroad, but drives from the country the pre-
cious metals yielded by our mines.
GOOD and bad currency cannot be retain
ed in anything like equal proportions in a
country having commercial relations with
other powers and peoples. The latter will
drive away the former. Gold and silver will
flow steadily to those parts of the CONNER
cial world where business is done on the basis
of an unvarying standard of values. and
where every issue of paper is convertible into
the precious metals at the option of the
holder, because they are needed there. Such
is the inevitable operation of tie law of sup
ply and demand and the present limited and
inadequate supply of coin in this country Is
chiefly due to this cause. Gold has become
a commoditv of trade, the price Of
which from day to day depends largely upon
the will of those who have combined to con-
troll the market. This presents serious OBJ
struction to all productive industries and COM
merce and introduces into business transac-
tons an element of uncertainty, which often
unsettles the most intelligent calculations and
tends to destroy confidence, without which
there can be no real or permanent prosperity,
Apparent but fictitious prosperity has often
followed large issues of lrredeemable paper
currency, but no result is more certain TO flow
from given cause than disaster and financial
distress to follow period of initiation of bust
ness and credit caused by excessive issues of
paper currency. The philosophy which teaches
by example, as we'll as the deductions of rea-
son. establishes conclusively that there is no
effective remedy for the evil but the removal of
its cause.
1.-THE circumstances attending the issue of
the United States notes now in circulation
impose upon the Government peculiar obi
CATION to provide for their speedy and certain
redemption in coin. They were issued in the
exercise of power which can be called into
use only in time of supreme necessity, and
were paid out for the support of an army
composed of brave and patriotic citizens who
had resp onded to the call of their country in
the hour of its extreme peril. To suffer a
promise made at such time and under such
circumstances to be dishonored by subse-
quent Indifference or non- performance would
be little better than open reputation, and
would affect injuriously our national name
and credit.
cit is worthy of note that, for the most
part, those who now oppose the redemption
VI lCS tOuOOI hOtC0g unu WIZ dSh III ID Lul =
ther issue and continued and idnefinite
reissue of the notes now in circu-
latlon, " ere most strenuous in their opposi-
ton to such issues during the war. The acts
authorizing such issues were denounced as
i'll violation of sound principles of finance,
not warranted by the Constitution. Their
constitutional validity was resisted as every
point, and subjected to the test of judicial
decision in almost every court in the country
both State and national. The supreme iu-
dicial tribunal of the nation upheld the acts
as measures of necessity in time of great
exigency, but it has neither decided nor IN
timated that such power may be exercised by
Congress in time of public tranquility. In
deed it is fairly inferable, from all the court
has said IN the various cases in which the
question has been before it, that the issue of
such notes in times of peace is not
within the constitutional power of Con-
gress. The language and argument of
the court leave no reason to believe that
it would sustain the claim CT power to in
crease the volume of such issues such as have
been redeemd in obedience to law. when the
public exigency no longer exists Those who