The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1875-08-23

Another Able Letter from our Philadelphia
CORRESPONDENT What is Meant by expan.
sjon."LThe True Financial Policy for the
Nation.
PHILADELPHIA, August a, 1875.
Editor of anti honopolist;
Let me correct some very erroneous views
about paper money through the columns Of
YOUR valuable paper.
If we could resume specie payments, the
value of our excellent paper currency would
he increased, but consider it to be the height
of foolishness to war against that currency
because il is not the best it can be, although
the best existing. look upon paper money,
i. e. government paper money and legal
tender notes, as the best financial inven-
ton of our age; and the day is not distant
when this will be generally acknowledged.
It should be issu: in sufficient amounts to
satisfy the requirements of the people for
their interchange Of commodities. If issued
in large abundance, it's adaptation to the
wants of business may be suitably regulated
by its convertibllity into bonds bearing
reasonable rate of interest. as proposed by
Hon. W.D.Kelley. The main obstacle in the
way Of clear and healthy understanding of
the nature Of paper money, is the very ready
objection of '.infation." This results from
the prevalent singular confusion of ideas, &C
cording to which imitation is made synoni-
nous with "increase The idea is that an
increase of money increases the value OF
commodities; and that thereby an artificial
increase of everything produced, which
will prevent US from competing with other
nations, and thus from exporting our com
modties, while large importations from
abroad are invited. Now the real truth is
directly the opposite. The price Of commod
tiles is never regulated by the amount of
money in circulation, but exclusively by the
law Of demand and supply. The millionaire
does not pay one cent more for his butter Or
coffee or bread and meat than the regular
market price, regulated exclusively by de-
mand and supply Indirectly it may hap
pen that an abundance of money in a locality
may induce large increase in the supply OF
commodities and thus indirectly produce
falling of prices Such was the case in Cal
ifornia after the first discovery of gold,
when SO many ship loads of commodities
were sent from New York and other Atlantic
ports, and thus made the prices lower than
in the Atlantic cities.
One word more about "infation." This
term is correctly applied to corporations
that issue more paper, either in bonds,
stocks, or notes, than their property is
worth Such paper will be deprecated in
its value, in proportion to its degree of in
hation.
If a corporation issues paper far below
the value of its property, no sane person
will call that initiation.
How then can sensible person apply
that term to any amount of paper issued by
our government, so long as all the property
of the country is its security? This point
should be properly clue dated IN many ways,
in order to counteract the perverted asser
tons of the monopolists, who war against
paper money Of our government, in order to
have the field alone for the banks and CAPT
talists. You have exposed the absurbity OF
our government delegating Its own preroga
tive of issuing paper money to the banks,
and paying them interest on the bonds de
posted as security. instead of itself issuing
the paper money and thereby canceling the
bonds AMI saving the interest. No greater
error can ever be committed by govern
ment, than to transfer its exclusive power,
entrusted to it by the whole nation, to o few
preferred monopolists. VINO are made the
rulers Of the peoples interests and business,
without being responsible to them. Those
corporations can. ut any time. contract
their issues and dealings and thus make
money scarce, and produce panic, and a
consequent destruction of our vital interests.
When i, suits their interests, they may
make money plenty and encourage every
kind OF industry and business, in order af
forwards to ruin every body again. What
freeman, who has his full senses, will longer
permit his government, to subject itself and
all freemen to such a rule and to the whrms
of fnan cial monopolist? If paper money is
useful, as all admit, then let it be issued,
through our government, by all and for all.
and for the benefit Of ALL
Your friend,
W. s.