The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1875-09-13

require the united efforts of the Democratic
Republican and Autobiography parties. The
former party having met in convention, and
placed in nomination State ticket, will of
course support fully the ticket as edopted by
tue convention. Shoold the ANTI Monopolists
decide to adopt the course pursued by the
Democratic and Republican party in 1873, by
adopting the list Of candidates nominated July
It'll, the result will place the election beyond a
doubt in favor Of Mr.. Blu and his ticket.
Very ltrsly and respectfully yours, "a
q Ed. II. DURANT.
the Currency Question. An able. Reply 70
4g Hou. VIM. croesbeck Of Ohio.
PHILADELPHIA, Pa, Aug. 2sth 1875.
For the Anti-.lonopolist. ast j. s;as
Permit me to examine briefly Hon. Mr.. Groes-
,beck's remarks on the currency, published
tfron his Cleveland Speech He says, son
the Pacific shore sits California, untouched by
your disasters. Her labor is paid in gold.
der ports are crowded with ships. Her wheat
travels 20, 900 miles to push western grain from
the markets. The manufactures are growing
with marvellous rapidity, for solid money
and low prices are a tariff in her favor against
the greelback goods of the east
Thereby Mr.. Groesbeck wants to convey the
idea that solid money and low prices go hand
III hand, and cause marvellous rapidity'' in
tie & ow.h OF produt ton and general prosper
lty: and that ttgreenhacks'' and high prices go
land in hand, and cause our present disas-
tiers.
This is a gross distortion of the truth in re-
gard to the laws of trade and of OR history
during and since the war.
1t is not true that solid money and low
prices 60 together, because the prices of all
commodities are governed exclusively by the
eternal law of supply and demand. After the
gold in California was first discovered, many
emis rants went thither, and the prices of all
commodities were for few years very high,
although 'solid money" was there in great
abundance. 9t4
The rumor Of those high prices, caused by
the insuffciency OF the supply to meet the de-
mand induced the merchants on the Atlantic
coast to send many ship loads of commodities
to California, the result Of which was that,
| thereafter, the supply exceeded the demand,
and the prices OF commodities fell below those
in the Atlantic markets, causing great losses to
our merchants here.
striking instance of the truth that the
law Of supply and demand alone regulates
the prices OF commodities, without any re-
| gard to the kind If money in circuat on, is
given by the present peach crop. The album
dance OF supplies causes low prices, although
greenbacks and bank notes form our CURRENCY
The false argument of Mr.. Groesbeck is the
result OF fundamental error which prevails
among many people, who think that green
| backs, or paper money, always cause imitation,
| or fictitious high prices OF all commodities.
| This may be true Of bogus paper money that
Is not properly secured by substantial and adj
equate values, as, for instance the notes of So
called wild cat banks, or the paper money Of
the Southern States, during the rebellion, or
| the so-called "assignates" Of the French reyo-
| luton, and other similar issues Of Illegal and
| usurped authority; but it is never true OF the
/ lad nor 1.f eflyI nd
| WEALTHY nations, such as our greenbacks,
4 which are secured by every house, and farm,
and factory, of the whole country. The OBJ
lection that gold commands premi1m over
| or enbacks, Is simply a temporary and acciden-
I'll circumstance, caused by the unwise law
demanding payment in gold Tor duties.
| While this law prevails, gold brokers or
dealers are made necessary, who keeps sup
plies Of gold for sal. to-those who require It.
| These dealers naturally charge premium on
| their sales OF gold, because that is the only
possible remuneration and profit of their
business, they having no other use Tor their
! gold. This premium ranges higher or lower
according to the old law Of supply and de-
| mand. If tbs re il much gold III the markets
and less demand for it, the premium falls, and
| il the demand is greater than the supply, the
premium rises; gold in this case not being a
| currency, it is treated as a commodity, and its
varying price is not the result OF any depre-
ciaiion Of our greenhack currency, tut simply
the effect Of its accidental demand for the pay
inert Of duties. | say again, abolish the ex-
ceptional law Of demanding gold for the Iay
nent Of duties, and the premium on gold will
cease. II our government would pass a law
demanding greenbacks tor all dues to the gov
eminent, inclusive Of duties, then the green
backs would frequently command premium
over gold. Such thing happens occassi nall
| " in Prussia where certain proportion Of the
4 1s.v -. -.
| Nothing could convey greater falsehood
than the constant cry OF Imitation against
the issue OF government paper money. As BE-
1 fore stated, this paper money, called "green-
backs," is secured BY all the property 81 the
country. Il is universally acknowledged that
it forms the b-rt currency the world ever saw.
/ II neither increases nor diminshes the prices 81
COMING dities, which ars regulated, exclusively,
| by the law Of demand and supply. But the
hank people raise this cry Of imitation, to make
| the greenbacks unpopular, and to draw the a.
tention off from the bank imitation. Certainly,
if any imitation exists, il it IN the banks, which
not only loan out all their capital but also all
deposits, entrusted TO them, charging interest
| and deduetlny 1t in advance. Our national
banks deposit United States bonds in Wash
ington to the amount Of their stock capital
which is invested in these bonds. For those
bonds they receive gold interest every si1
months. On the strength of those bonds thu
! government issue to them 90 per cent Of banl
i notes, for circulation. These notes are leaned
| out at per cent. interest in advance. Then
the banks receive deposits, frequently II
double, treble Or quadruple their capital, and
all These deposits they loan ont, at 6 per cent.
IN advance. At the same time the banks hold
| out the idea that they are always ready TO pay
on demand This they do as long a. the de-
rnAnd i small and may be met by the daily
new deposits: but a. soon as any considerable
number Of deIositors ask for their money, o.
as any holders Of their notes ask for specie,
Or for greenhaeks, in exchange for fhose notes
then the banks stop payment. Their princi-
pie and practice il, to pay On demand, wher
nobody wants money, but TO stop payment
1 other peoples money al the time, and draw
interest on four or i've times the amount .
their capital. They literally initiate their capi