The daily Argus. (Rock Island, Ill.) 1873-1877, 1875-09-23
Ghe Daily Areas,
Continued from second page. J

There being but one universally recognized meas.
ure OF value and thaI being yalae ITSELF cost.
ing wnat 1t represents in the lagor which reuuir-
ed 20 obtain it, the nation that adopts either from
choice or temporary necessity, inferior standard
violates the financial law Of the world, and ineyita-
Oily suffers Tor Its violation. An ire deemabe and
and consequently deprecated currency. drives ont
OF circulation the currency superior ITSELF and
made by law legal tender, while Its real value Is
not thereby enhanced, ii becomes a false and de
mofallzlng standard, under the influence of which
prices advance In o ratio dsproportoned even to
It's actual depreciation. Very different from this
Is that gradual, healthy, and general advance of
prices which is the effect of the increase of The
clons metals. The coin which is obtained in the
gold and silver producing districts. although it first
course Of trade and in obedience to its laws soon
finds 8 way to other countries. and becomes part
OF the common stock of the nations, which, ncreas
ing IN amount by the regular product of he Mines
and IN activity by the growing demands of COM
merce, advances the price of labor ani commodities
tnrougoht the commercial world. Thus the pro-
| ducts OF the American. Australian and Russian
mines tend first to advance prices in their respec-
tive localities but the operation OF trade soon dis.
tributes them and enterprise everywhere feels and
responds to the increase of the universal measure
OF value. All this is healthfu1 because slow perma.
nent and uniyers Il. The coin produced in any
coountry will be retained there longer than its
productions and sales keep the balance of trade in
Its favor. As soon as it becomes cheaper(if this
word can be properly used in regard to the stand
ard of vaue) iii the country in which 1t is produced
than in other accessible countries addhg interest
the cost OF nsportation ana other necessary
/
when 1t is required to pay balances other coun-
tres, it flows to them by law as regular and as
| certain as gravitation. Hence although the pre-
clons metals are produced in considerable quaint
ties, in but few countries, that affect prices In ALL
| Not so with a paper currency, which Is local in
It's influence Its advantages when convertible, are
admitted for, If convertible, although il swels the
volume of circulation it rather increases enterprise
than prices. Its convertibiity prevents expansion,
creates greater demand for labor. But when
paper currency Is an incOnvert,ble cur
rency, and especia ly when, being so, il is
made by the sovereign power legal tender, it be-
| comes prolific of mischief. Then specie becomes
demonetzed and trade is unce rtain iE its results
because the basis is inctuatng; then pricesadyance
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 diminution of products. and conse-
quently of exports, there is an increase of imports
| and higher taIiffs 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
" and true
| LOSS OF BUSINESS CONFIDENCE.
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 stabili-
| ~ orr LOFT
only affected by the importation or expor-
tation of coin, but which is raised or de-
tpressed 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 sand. it is gold that regulates the value
OF the currency)but the prop
erty and business of our great coun
try are to no small extent at their mercy
Is it not this whichis destroying confdenc,
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 thu
value of legal-tender notes one year or two
: years hence? How can any man venture t.
engage in any reaching business, while
the currency upon which its transaction.
are based is constantly changing its value
Especially how can he risk the future
when the currency, now greatly deprecated
may be still more deprecated by further
issues? 1t Is uncertainty in regard to thu
future of the currency, that is destroyins
confidence. and without restoration Of
J confidence there will be no Improvement In
our financial and industrial condition
E What healthy and reliable business re
: quires is a stable basis. Let men o
capital and enterprise feel that there is t,
be stability in the legal measure of value
! Let it be understood that the higher Law
j which makes gold and silver the only tru
I measure is hereafter to be recognized ant
I obeyed, and the existing lethargy will dis
appear and the country begin rapidly t.
recover from its prostration. 1t is yer,
clear, then, that the remedy we are seek
ing is not to be found in the maintenance
of the present volume of irredeemablt
paper moDey--most assuredly not in al
increase Oft.
Other proposed policies for betterin
our, condition viii! be considered in M
next. HUGH MCCULLoCH.
J. London, Sept l, 1875.