, 1875-10-09
some Questions Answered.


gold would be needed es the basis for specie
currency where and how il is to be procured;
and how, supposing It to De procured, II
Is TO be kept in the country. In answer TO
the frst Question we will say that it would
require from $500, O,O00, 900 TO S250, ,000, 900
to base a national currency upon. This
would afford basis of about SO = per cent.
for the convertible note currency which would
be required TO complete the ezehAH.--- --AA
would give a ,sArfa..tly safe proportion Tor a
----sa As to the question how the gold Is
!" eS procured, the answer is by contracting
Tue present REDUNDANT irredeemable currency
Inc result OF Contraction Is to lower general
prices, and result of fell in general prires
Is to attract gold 70 the count, IN which II
takes place. According TO the well l.,ov,,
law OF the circulation Of the precious metals.
gold flows naturally and invariably wherever
It's purchasing power il greatest. The etfec-
OF redundant and deprecated paper CURRENCY
Is to enhance prices above their normal level.
and to drive ont gold. When such paper Is
made legal tender tor whether 1t is or mott
II rapidly supercedrs coin III circulation. the
Law being that an inferior quality always
drives out superior uDe. If the greenback
currency we're contracted, and notes below
five dollars were Withdrawn altogether, specie
would Al once hOw back into circulation, and
as the contraction woald tend to keep prices
down, the export Of gold wCuld be stopped.
and the import of it established One Of til
chief difficulties IN The way of resumption
heretofore has been the disposition Of the pub
lie and the banks TO throw the whole respon
slbilty upon the government. In all pTupuS-
iiiOns for resumption it has been assumed
that 1t WIS 10 be commenced by the govern
meiit. 1t may safely be asserted that if We
wait for resurap;ion until we obtain it in
that way the present generation will not live
to see it. What is necessary is, that the
banks and the people should prepare for
resumption. That Is how the end was ac-
compIi-hed by England, after the bank
restriction. The government, IN 1919, not
ifed the Bank of England that it must
redeem its notes in coin in 1921. The resul
was that all the banks prepared for the
change, which Vas favored by contraction,
and so successfully that resumption was act
nallJ effected a year before the appointed
time, and the Bank of England ps'Itionrd
for Law removing all restrictions upon H.
As 10 how gold Is 10 be kept IN the country,
we have already shown the way, but it may
be added that the repeal Of the legal tender
act, after sufficient time had been allowed Tor
the renewal of specie reserves would establish
coin as The currency, and y would then take
care of itself If aft-r such an experience as
We have had, the government permitted tine
banks to OVrr-issue, 50 as TO infate prices and
cause another drain of gold 10 SIT IN. "f
course the country would suffer the u,u.!
penalties of ignoring natural laws. Nodouht
the main objection to contraction lis III the
fact that it would lower prices But that
uCdtL4 " SOL1 lbOlbs anu llAls4tl ~
to the stock exchange, and We imagi that
if popular vote be taken on the Proposition,
the majority in favor of such a cDnsummation
would be immense. A period of low prices,
moreover is always period of active produc-
ion. II Is also time Of prosperity for the
working classes. and II is So even though the
scale of wages should be lowered, since i'll
such circumstances the increase in the puT-
chasing poWec Uf wages more than counter
balances thSit reduction in nominal amount.
Those who would be injured chiefly by
policy Of contraction are specularOrs. Spec
ulatiun in fact would be des ruyed by II, and
we should return - legitimate commerce aud
steadily and evenly distributed gains Onr
Of the most serious faul's Of IucuuverlIbie ami
iuctuarIn2 pap-r currency Is that II causes an
unequal distribution of wealth. Il fAcih a'e-
the acQuIsl ION of riches without work, and
robs the laborer 70 establish the spectator
Every wUrkingman, If he understands Els
own best interests. must be IN favor OF IL
return TO specie payments, and all VII"
believe that steady and lrgi innate progres. is
alike safer, healthier and more civIlizing.
thau "a condition of rapid hucr ua'ion IN val
ues and consequent general tendency to gam
| bling IN all ir- fprm5. must also support this
| policy Record Jri0n.