Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1876-03-10
The Cost of 1t.

THE losses sustained by the people of
the United States through paper cur
rency less in value than the universal
money OF the world, has been repeatedly
demonstrated, but never more sharply
than by Mr.. Schleicher, the German
Representative from Texas, In his recent
speech in favor Of return to specie pay
ment. When gold is quoted in the news.
papers at seventeen per cent, the citizen
passes over il as a matter that he has moth
ing to do with greenbacks, if he can get
enough of them, are good enough money
for him, since with them he can buy
everything he needs and as to the
premium on gold, whether it be high or
low, he leaves that to the importers-the
only class OF men who need to buy gold.
But little reflection will convince the
citizen that he has a great deal to do with
the premium on gold, and it with him,
even though he may not see gold dollar
once in a year. Its effect on him begins
with the importer, who not only pays his
import duties in gold, but buys his goods
with gold, and pays the freight bills on
them TO foreign ships in gold In doing
this the importer is too cautious TO make
his estimate of transaction on the exist
ing premium. He remembers that this
once twenty; and he adds three per cent
to the gold cost of his imported goods.
From his hands they pass to the iobber,
who adds three per cent. more; thence to
the Wholesale dealer who makes like
addition; thence to the retail merchant
who adds on four per cent. more; so that
when the consumer, the farmer in the in
terror of Missouri or Iowa, buys a
part of the imported goods, he pays
gold premium of thirty per cent. on
the purchase. In 1875 we imported mer-
chandise to the gold value of $533, ,005,-
436; the freight on this at six per cent
was $3l ,9S0, 1876; and the duties $l57, ,167,-
122, making total gold value of $722,-
1913, Asa. If it be estimate that the CON
sumers paid a premium of thirty per cent
on this it would amount 10 $245, ,532, 1874
A similar estimate, beginning with 1866,
when gold was forty.one per cent.
premium, and ending with 1875, when it
was twelve and half per cent premium,
makes the gross premiums on the gold
cost Of imported goods paid by the people
three thousand million dollars.
Another most injurious effect of depre.
ciated currency on the people is the alb
sOrptiOn of capital in speculations in
gold. Decry gold as we may, we cannot
lSHOIt Bblu NdluCS as lOuS rs VIC utdl
with the outside world where gold is the
recognized money. Our system of cur
rency causes gold to rise and fall in value
- or rather causes our paper to rise and
fall. The iuctuation offers an area for
speculation, for there is money to be made
or lost in any commodity whose value
varies from time 10 time. The result is
that millions of capital are drawn to and
held at New York Tor speculation in coin,
which, but for the varying value of our
currency, would be invested in healthful
industries. This is the explanation of
that singular fact which so puzzles the
farming classes-that our paper money,
though so abundant, should be so dear;
that the rate of interest should be so high,
and money for the prosecution of legiti-
mate enterprises so hard to get All these
losses, charges, high rates and difficulties
are part OF the cost we are paying for incOn-
vertible paper moneV.-St. LOWts ReDub.