The daily Argus. (Rock Island, Ill.) 1873-1877, 1875-09-23
OH Daily Areas.
CONTINUED from second page. !

tContlnued from second page
There being but one universally recognized meas.
ure OF value, and thar being value ITSELF cost.
Ing wnat 1t represents in the laeor which requr-
ed 20 obtain it, the nation that adopts, either from
choice or temporary necessity an inferior standard
violates the financial law Of the world and inevita-
Oily saffers Tor Its violation An ire deemable and
and consequently deprecated currency. drives ont
OF circulation the currency superior itself; and
If made by law legal tenderwhile Its real value Is
not thereby enhanced. it becomes false and de
mofalzing Standard under the influence of which
prices advance In ratio dlsproportioned even to
is that gradual, healthy, and general advance of
prices which is the effect of the increase of the pre-
ci n,d metals Inc com which Is obtaned in the
affects prices within sach districts following the
course Of trade, and in obedience to its laws soon
finds way to other countries and becomes part
of the common stock of the nations, which, Increas-
ing In amount by the regular product of The mines
and In activity by the growing demands of COM
merce advances the price of labor anu commodities
througoht the commercial world. Thus the pro-
ducts OF the American, Australian and Russian
mines tend first to advance prices in their respec
i've LOCALITIES, but the operation of trade dis
tributes them, and enterprise everywhere feels and
responds to the increase of the universal measure
OF value All this Is healthful because slow perma
nent and univers H. The coin produced in any
country will be retained there no longer than ifs
productions and sales keep the balance of trade in
| Its favor. As soon as it becomes cheaperGf this
word can be properly used in regard to the stand
ard OF yaue in the country in which 1t is produced
imam IN Otner accessible countries (addiHg interest
the cost OF trans poraton, and other necessary ex
penses) than in that in which it is produced or
when 1t is required to pay balances 10 other coun-
| tres, 1t flows to them by law as regular and as
certain gravitation Hence although the pre-
clous metals produced, in considerable quanti
ties, in but few countries that affect prices ALL
Not so with paper currency, which Is local in
It's influence. Its advantages when convertible are
admitted; for il convertible although swells the
volume of circulation it rather increases enterprise
than prices. Its convertibility prevents expansion
while its lar,er volume gives impetus to trade ana
| creates greater demand for labor. But when
| paper currency is an incOnvert Bile cur
rency, and especia ly when being 20, il is
| made by the sovereign power legal tend.r it be-
comes prolific of mischief. Then specie becomes
demonetized and trade is uncertain iE its results
because the basis is huctuatIng then pricesadvance
as the volume of currency increases and require as
they advance. further additions to the circulating
medium; then speculation becomes rife, and ''the
few are enriched at the expense of the many - then
| industry declines, and extravaganza is wanton /;
| then with diminuton of products, and conse-
quenly of exports there is an increase of imports
and higher taiifs are required account of the
general expansion. to which they in their turn give
new stimulus and support, while the protection
intended TO be given by them TO home Industry is
in great measure, rendered imperative by the
expansion.
In view of what has happened, since
then, ! ask if these remarks were not time
| ly and true
LOSS OF BUSINESS CONFIDENCE.
l submit that with the exception of over
production to which l referred in my last
letter, the existing prostration of business
and enterprise in the United States, the
want of nerve, the lack Of recuperative
power, which are everywhere noticeable,
and which are so unusual in the American
character, are attributable to the excess
and uncertain value of our circulating me-
dunn, to which no legislation, without re-
duction of the volume of it, can give s.abili-
ty; a circulating medium which is not
only affected by the importation or expor-
tation of coin, but which is raised or de-
pressed in price by gambling combinations.
Not only can capitalists, by becoming spec
ulators, put up or down the price of gold,
which means advancing or depressing the
value OF currency(for, after all that may
be SAID, it is gold that regulates the value
of the currency)but the prop
eEty and business of our great coun-
try are to no small extent at their mercy.
Is it not this which is destroying confidence
which is the handspring of business
vitality? With what safety can men EN-
bark in enterprises that look to the future
for results, when they cannot predict with
any degree of certainty what will be the
value of legal-tender notes one year or two
years hence? How can any man venture to
engage in any far-reaching business, while
the currency upon which its transactions
are based is constantly changing it's value
Especially how can he risk the future,
when hecurrency, now greatly deprecated,
may be still more deprecated by further
issues? 1t Is uncertainty in regard to the
future ofthe currency, that is destroying
confidence. and without restoration Of
confidence there will be noimprovement in
our financial and industrial condition.
What healthy and reliable business re-
quires is stable basis. Let men OF
capital and enterprise feel that there is to
be stability in the legal measure of value.
Let it be understood that the higher law
which makes gold and silver the only true
measure is hereafter to be recognized and
obeyed, and the existing lethargy will dis
appear and the country begin rapidly tC
recover from its prostration. 1t is very
clear, then, that the remedy we are seek
ing is not to be found in the maintenance
of the present volume of irredeemable
paper money--most assuredly not in ar
increase Of it.
Other proposed policies for betterins
our condition will be considered in my
next. HUGH MCCULLoCH.
: London, Sept. l, 1875.