The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-01-15

GOV. TILpEN cOntradiCts himself. when nc
makes the assertion and the admiseion ut
the same time. For in every issue Of pa
per money, even y rCdccnablc on its face
IN coin. there is this element OF unccr-
tainiy."
We cannot refer therefore In answer to
the many eases IN our own history, begun
ming i'm the seventeenth century and COM
ing down 20 the slavchuldcrs' rebellion, In
every one or which the faC1 OF a rapid rise
of prices followed new issues OF paper
money, however strongly fortified by the
promises and securities Of legislation. In
all such, GOV. TfLDEN would reply, go,
these arc merely cases Of the depreciation
OF the paper money That is true but it
is nevertheless equally true that they were
all eases of imitation of prices through the
instI1lmentalty of fresh issues Of what
was held TO be money
We cannot however, he cut OF from the
Illustration Of JOHN LAW in France, who
doubled the circulation In thnt kingdom,
ana NJ the same time doubled prices, Ivy
issues actually redoemablo and redeemed
in gold whenever presented. IL may be
said that the element OF uncertainty in
the transactions growing out of this great
operators proceedings, created the differ
cnces OF prices, but rs mater OF
fact this is not true. We point to LAWS
case rs n valid illustration that ii was
the increase in the volume of money that
started prcoe from their low point Of de-
preston, and continued their rise. by the
repeated additions to the stock. OF course
speculation went band in hand with the
issues but the originating cause was
supciabundaucc Of money.
But there are two great facts that estab-
fish inoonto- ;ably the doctrine that prices
steadily advance with the increase OF Che
volume OF money, oven when ID f. ia pure
coin or its equivalent. We will take first
Our own times and the discovery OF Culi-
fornn and Australian gold. wcknow that
| through these discoveries, prices rose
| fabulouely in the countries where they
were made This was not The effect of
| emigration. For in all our eailicr emil
| gr,tions, FIRST TO Now England, and subso-
! Quently to the Great West, there was no
such experience. TLcn we know that With
the distribution Of the new supply Of The
precious metals, over this country aud
throughout Europe, the asccndhc mcYo-
meat O, prices began ana long continued.
All Europe az we'll as an America knows
that the cost OF living has been greatly
enhanced in the last quarter ~ Il century.
| The collau OF ie,j may have tcnpuf1i IS
arrested the rise, lut q 'rmanont advance
has been universally maintained. aud Is
everywhere recognized. TIE cause OF its
equally we'll understood, and we caruot
fupposc that even Gov. TiLpLN C.n be
doubter on this head.
II he has n doubt, let it bo removed by
| turning his attention TO another experience
far IN re significant, and wholly corrobO-
ratiye. This Is The experience of Europe in
| the iirst quarter of the sixtocnth century:
| just after tho discovery Of America. The
| pouring into spain OF the precious metals
from Mexico and South America, and th,lr
distribution over EWupe az that time,
created such II revolution in prices there
as mcuaced the social ana pohticai fabric.
! In those twenty-five ycnis, prices rose five
fold and more Tie cause WIS not then
understood, and tie fact led to tWnui, ana
violence. All professional nud saiari 4
men were nigh to starving. They rc=mdOd
the farmers aud other producers us hay Ing
entered into u general conspiracy against
them, and held public meetings 20 protcs.
against the uIhoard of eXtornons in
| prices they were practising. We have
never heard any other cause assigned for
| this advance but tie Ulcxan pied iuGuX
! OF the precious metals INTO Europe, and
the extraordinary in, redse Of the volume
of money put thereby into circulation.
| With these palpallc results before our
eyes, il seems quite Incredible tl.at any
man can hold the theory that an ucrc:se
in tho volume OF money does not increase
! prices.
GOV. THnES has also rap at Eng ii
legislation in tho Bank Act OF i,li, and de-
clares il failure. We never understood
that that act was Intended, az GOV. TunEN
iucousiicrately a. ris II wa "to ~ ert
the tremendous vicissitudes in business 10
which MI commercial countries are sub
ject.' 1t was not dos gnod 20 prevent
paniCs. which Is an impossiblity underany
system, but moaslnably - shield the coun-
try from their effects, and TO prevent the
suspension OF specie payments. These
vital objects the act in question has nc
compli~hod. The fact that the Government
has twice suspended the restriction, for II
temporary period aud purpose, upon the
| banks issue of notes, We do not conceive
10 be any evidence HAT the theory of the
act ais completely rofuted by experience"
We are OF quite the opposite opinion.
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