The New York herald., 1875-10-26

not desre depreciation Or the currency fndeed They
profess 90 believe that by lve-fold repudiatonby
pudlatng lrst the promise the face Of the note
pay dollars; second the contract which limits the
oflega tenders third the contract OF ls02 which re-
quires payment n customs duties in com; fourth the
peGge of 1869 make provision AZ the earliest Prac
cabe moment f0r the redemption Of the United States
notes in con and dfth the pledge OF last Janaary 70
redeem IN lST9-ths government actually ft up its
credit Il was difficult 20 belieYs men capable q sueh
what Is 10 sustain United States notes after FIVE
fold repudationg The advocates 81 this scheme rely
upon three supposed elements Of value FIRST use as
full legal tender, second, automatic adaptation OF the
quantity of notes 10 the wants Of trade; third ex-
changeabilty Of the FOR bonds bearing 65 per
cent interest IN paper Closely anayzed these threel
are reduced 10 onefah IN the government That faith
TINS scheme begins oy destroying Nalue o. paper
as legal tender rests wholly on faith that.
government will not issue too much of IL But
government can issue 20 much that nobody viii take
it. and as a debt paying instrument II more Is issued
than IS wanted the value Of the whole Is destroyed
With regard to the second argument notes dc get
into circulation automatically. After a certain issue
eNchangeabiity only a regulator case tho
government does not NEEDLE with Il ~ new ISSUES.
Finally power TO command certain fixed interest in
paper OF value unixed and unhxabe is vaueless Tho
bond has no value unless the paper has value And the
paper has no value not derived from the bonds
Through banking loan, savings and insurance COM
panies civilization gathers up the savings or milAons
Of Industry TO transfer part or these savings
from banks, which loan them, 70 the government,
which does not loan them would be
withdraw millions Of capital from to idleness.
Another of its beauties Is that IL proposes
10 abosh bank notes secured py gold bonds al the rate
of Sl2O for each 500 issued and 10 substitute
vcrbe into paper bonds at the rate OF 500 for each
500 issued The avowed object is TO interest
the bonds deposited by the banks But this bo
done only by buying bonds Again. Il ID said
quire non-exportable currency Just as John Law
did in 1920 when he ruined himself and France.
Surely our greenback Is nonexportabe enough for all
practical purposes But IL lacks elasticity u Is SAID.
TO meet the wants Of trade IL is only speculation DE-
mands more currency eNchangabe for three sixty
five bonds after forced sale Of bank bonds and hvefod
reputation of solemn pledges would deprecate
than any have lately seen The financial
action Of France during the Franco German
and since was mlnutely criticised and
quoted example for the United
States The OF pancs then investigated and
they shown TO be inevitable under any system Of
currency The late recovery Of California after great
financial collapse, also brought forward TO show
what country can do when its financial system is
solid basis. Wages may rise nominally under infa-
ton, but cannot in reality Thus IN ten years the wages
of American laborers have increased only thirty per
while the cost Of living has rseu sixty per
cent long argument was then introduced 70
show that must pay the cost OF the nuctua
tons consequent on paper currency. II was shown
that imitation might give relief TO debtors but could
only be at the expense Of creditors who were by far
the larger number The lecture concluded with elo
quent peroration setting forth the qualities Of gold as
a medium Of exchange and measure OF values and as
the only eicacous instrument In restoring prosperity
TO our trade and commerce.