, 1875-08-22

THE EPURCHAS1NG-PoWER0 or GREENBACK9.
A person by the name Of FNoH-evidenuy
not gold -fnch-has addressed series OF
questions to TIE TRIBUNE through the col
umns of the initiation organ Of this city. We
should be glad to answer them all, but nrs
necessarily limited to those in which Mr.
FINCH has made himself Ineligible.
l. FNoH wants us to "give single market
quotation which, when compared with other
market quotations, will show that the pur-
chasing power Of greenbaoks varies with the
theoretical changes Of value as We give them
in our quotations of the discount of green
backs"
This is silly demand Mr. FINCH must be
under the impression that nothing except
what he calls the rise and fall Of gold affects
prices Of produce. As matter Of fact, this
is but one of the Influences. Take wheat in
the Chicago market, as an instance. It would
be impossible to trace the corresponding de-
crease or increase in price pars passu with the
decrease or increase of the purchasing power
Of greenbacks, on account OF the manifold
other influences aoting with or against the
value Of greenbacks Thus the price Of wheat
is liked in gold by the British market. Before
any change is felt here in Chicago, it goes
through several notifications An increase
of prices at London may ba entirely absorbed
by IN increase in the cost Of transportation
from Chicago to London or to New York. It
may also be influenced by the gold quotations
in New York. If wheat should rise two cents
in London, this rise might be counteracted
by q variation in the e1changeable
value of greenbacks for gold in
New York. Various speculative tendencies
might also operate to affect the price Of
wheat or corn in this market, and which
might render the influence Of the gold mar
ket apparently insignificant It would be
impossible, therefore, to Fix any rule by
which prices and the huctuating purchasing
power Of greenbacks could be invariably
compared. But the variation can be readily
discerned and described by merchant who
buys foreign goods in gold when greenbacks
are worth but 70 per cent and is forced to
sell them for greenbacks after they have be-
come worth. 80 per cent. The changes in
the purchasing power Of greenbacks is pain
4AAt AtPt4!At ~ . 80~A AA4s4J toVR@o AA
active business.
2. Mr. FrcH also wants to know how TIE
TRIBUNE knows that gold governs prices
We can tell Mr. FINCH how he may find out
for himself. Let him take thousand dol
lars in gold in one pocket, and thousand
dollars in greenbacks in the other, and 60
into any store or upon any Board of Trade in
this country. Let him ask the price of
wheat, corn, barley, -four, pork, lard, or
any other produce that is sold, and,
after ascertaining it, ask what the
seller will take for it in gold. The seller will
refer to the latest quotations, and discount
10, 12, or is cents, or whatever the differ
euce may be. He cannot offer leather, nor
brass, nor brick, in exchange in the same way.
The seller will probably reply that he does
not want leather, or brass, OF brick :; but he
never 1efnses gold, and he makes new price
for the product which he sells whenever gold
is offered in exchange for it. We do not
know Of any more practical test Of the aasar-
ton that, as between gold and greenbacks, it
is gold and not the greenback that governs
prices. This test teaches that the greenback
will buy only in proportion to its purchasing
power as measured hy gold That is to say,
it is the promisso7y note and not the gold
which ductuates, and because it is not re-
deemed. To-day ths sorip dollar buys, We will
aaY, / hs much IA ahs poIa doflar ln.snnr.