The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1875-10-09

on gold went up or down irrespective q
the quantity Of the paper currency issue
During the war, Of course it did. MI
Phillips seems to ignore the first prinCi
pies governing the value Of an irrGdeem
able paper currency consisting Of goo,
promises to pay, that It's value will b
affected by two thiHgs-the credit Of tn
government issuing it and the relation
the volume OF the currency bears to tn
requirements Of the business OF the coun
try, What is 1t the credit Of the Govern
ment depends u 'On2 Its honest intention
to redeem its pledges and its present o
prospective ability to do so. As to tn
former there was no question, but as 4
the latter the yiCissitudes OF the war pro
duced for a time serious doubt, IfMr
Phillips does not know the effect or tn
history Of It, will inform him. He viii
find that every battle we lost, and ever,
period Of Encouragement at the stand still
Of war operations raised the premium OF
gold, and that every battle We woI
lowered it, till finally the surrender o
Lee, and the end Of the war brought i
down with u terrible bound, although thC
quantity OF the currency in circulation
had not been diminished. Every sensible
man easily understanding It's reason
will not find this surprising. It is sur
prising only that any man pretending t
good sense should have to be informed OI
that reason. But can Mr.. Phillips
really be in earnest when he denies
that the expansion Of our irredeema
bic currency will Of necessity act upon
its value as to gold, and quite generally
as to its purchasing power, as soon as the
volume OF such currency exceeds the
amount which would circulate in gold
and notes convertible into gold; in saying
he does not understand that the dishonored
promises to pay, Of government, must
necessarily lose in value the greater their
amount, and less probability Of their
redemption. Assuming his own tone oil
argument, | would inform him that there
is u country called the United States
which once had an irredeemable paper
currency called Continental money, which
was increased in quantities until 1t was
reduced in value to nothing, A country
called France had an irrcdeemable money
called lssignats, which became no plenti.
ful that n bushel Of II would not buy a
potato. Then there IL country called
Russia, and one called Austria, both Of
which have had experience with paper
money, demonstrating the same principle.
Mr.. Phillips has probably heard Of those
things, but there il evidently vast field
Of study for him before he writes again
on this subject. lie argues also that the
quantity Of irrcdeCmable currency in cir.
culatiOn has no connection with prices,
and in connection with that theory he
quotes John Stewart Mills political econ.
0my, as follows: apprehend that bank
bills and checks, as such, do not affect
prices. What does act on priCes2 II Is credit
in whatever shape II gives
rise to any transferable instrument ca.
pablo Of passing into circulation or not.
Then Mr.. Phillips quotes Professor Bon.
nmy Price, in confirmation Of the same
doctrine. | cannot, II seems, expect Mr..
Phillips to be polite, but | might expect
him to be candid. Does
he not know that John Stuart
Mills, in the passage quoted, docs
not speak Of an irrcdeema6le paper cur
renCy at all, but does speak Of bond notes
into coin? Is Mr.. Phillips
ignorant Of the difference between an
irredeemable paper money and paper
currency convertible into coin? 1t would
seem 80, for otherwise common honesty
would have prevented him from quoting
q sentence flOm Mills, referring to one
as referring TO the other. As Mr.. Phil
lips desires to know what Mr.. Mills
thought :,Of an irredeemable paper
would refer him to
Pages SIS and,lOl Of Political Econo.
my, Volume II. Twill select only pas.
sage at random. ITO the increase OF an
inCOntrovertible currency, II permitted by
law, there il no check" the issuers may
add to IL indefinitely lowering It's value
and raising prices IN proportion. They
may, in other words, depreCiate the cur.
rency without limit, page 90.
Mr.. Phillips has evidently not studied
John Stuart Mills to much advantage.
Has he studied BOnamy Price2 UnfOr.
tunately l have not his book on currency
before me, but | recommend him 10 Mr..
Phillips and all those who are still affect
ed with the irredeenable currency dis.
temper. | know Prof Bonamy Price we'll,
and have personally discussed with him
on this very question. feel warranted in
saying to Mr.. Phillips that II he should
assert before Bonamy Price that the eX-
pansion Of an irredGemable paper cur.
rency beyond the amount which would
in gold, and notes convertible
into gold would not initiate the prices, the
Professor would nnxiOusly inquire after
his health. So much for the second
point.
Third-t argue In my speech that the
emission Of large quantities Of irrCdeem-
able paper money will promote extrava.
gance, prOlligaCy and corruption. Ny
reading as well as my own Oh.
Of things in this country, had
me prOiOundedly Of this fact, and
as far ns know, II Is admitted by almost
all respectable authorities ON this sub.
iect. Mr.. Phillips comes CALAMITY to the
rescue Of his paper idol. lie refers Inc TO
Great Britain, telling me that without ir.
redeemable paper money England could
not have conquered Napoleon; that pa.
per notes fought the battle Of Waterloo,
and that our late war tells the same story.
Mr.. Phillips Is uhdoubtly n splendid de-
rlaimer, but logic, does not seem to he his
strong point. The question is not wheth.
sr irredeemablc paper money has been
used to advantage in times Of public em-
ergency when other resources seemed ex.
not whether II fought the bat
lie OF Waterloo or the battle Of Gettys.
burgh. The question Is whether nm
of large quantities Of ire.
leemable paper currency will promoteeX.
Irnvagance and corruption. II Mr.. Phil
ipS tries to envnde that question by way
Df Waterloo he must permit uS to suspect
That lie cannot meet II squarely. II he
will look into the suspension period in
England he will find that irredeemable
paper money may indeed have ioughlthe
battle OF Waterloo; but that this fact did
not prevent II from promoting eGtraya-
yance and corruption nj home, and unless
he ignores what everybody else knows,
he will surely not deny that this country
leila the same story. lie might also study
The history OF Russia with profit. Still
ess will he be able to deny that cStrava-
yancc, pronigacy and corruption in an eX.
degree will result from q
policy such as / discussed 1.-THE