The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1875-12-10


rency IL increased or diminished by the ma
uipulations o. large operators united for that
purpose, aud producers aud laDorers are
often made to suffer. without effective power
OF resistance. Restoration OF q SOUND anu
unvarying 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 conii-
dence, there must come activity, prosperity
larger markets, and greater demand, winch,
as both reason and experience prove, do not
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 H. perhaps, sufficiently disproyed by
reference to the reports Of sales OF leading ar
titdes of produce, such as wheat, corn, and
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 IL 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
be 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 other i'm
ported goods, which enter into daily consump-
ton. In this connection it should be borne
in mind that 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 in gold increased by his percentage
of profit, az much more as the difference be-
tween gold and the currency with which pay
ment is made. The difference. commonly
called the premium on gold, increases
by many millions the total amount which would
otherwise be required to complete all such
transactions
1.-The proper Office OF currency. whether it
be gold or paper is to serve as medium OF
exchange for the adjustment Of transactions
between buyer and seller. When it ia 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.
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-
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 iii
exchange for it. When the financial panic of
1857 created demand for gold in this country,
ready 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 inconvertible 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 commodity 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
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 irredeemable 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, AZ well as the deductions of rea-
son, establishes conclusively that there is nc
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 certsr
redemption in coin. They were issued in the
exercise of power which can be called into
use only in a time of supreme necessity ant
were paid out for the support of an army
composed of brave and patriotic citizens whe
had RESP onded to the call of their country il
the hour of It's extreme peril. To suffer {
promise made at such time and under suct
circumstances to be diehonored by subse
quent Indifference or noE-performance woulC
be little better than open reputation. ant
would affect injuriousy our national name
! and credit.
Y III IL worthy OF move tnat, LOT me mos
part, those who now oppose the redemption
| of legal tender notes. and who ask for fur
! ther issue and continued and idnefnit,
! reissue of the notes now in crcu
latlon. we're most strenuous in their opposi
ton to such issues during the war. The act
authorizing such issues were denounced al
in violation of sound principles of finance
not warranted by the Constitution. Thel
constitutional validity was resisted a; ever
point, and subjected to the test of judicia
decision in almost every court in the country
both State and natonal. The supreme ju
dicial tribunal of the nation upheld the act
as measures of necessity in a time of grea
exigency but it has neither decided nor IN
tmated that such power may be exercised b
Congress in lime of public tranquility. In
deed 1t is fairly inferable. from ali the cour
has said IN the various cases in which tn
question has been before il, that the issue G
such notes in times of peace is nc
within the constitutional power of Coz
gress. The language ard argument
the court leave no reason to believe tia
it would sustain the clam Cf power to il
crease the volume of such issues such AZ Ina,
been redeemd in obedience to law, when III
public exigency no longer exists. Those wi
opposed such issues at time of supreme II,
cessity, and insist upon further issues when IL
emergency has passed away, put themselves
the attitude of opposing war measures in Il
midst of war, and advocating them in "A time
profound peace. Congress carefully confint
the operation Of the act to the period OF nece
city by authorizing the reissue from time
time, as the exigencies of the public interes