The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1876-06-20
whats, the Natter

We are constantly being told that
,swant Of confidence" is the prime cause
Of the increasing business prostration.
..Want of confidence in whatl The
Resumptionist viii promptly answer
"W ant of confidence in the currency"
LIE. as see if that position is tenahle.
and if it will account tor the lack OF bust
ness activity
No speedy resumptlonist will claim
that fear Of the currency standard re.
maining as it is will depress business !;
for the very thing the resumptionists pro-
fess to- seekis saxed standard" And
it will pnzz . the wisestof tham to pre-
sent valid reason why greenbacks "dx-
ed a. ten per cent below gold can i'm
pede business more than would green.
backs "fixed' at par With gold.
Is the timidity occasioued by appre-
hensions of imitation, and the consequent
depreciation OF greenbacksa Suppose
Mr. A. has slOo,O0Oin grecnbacks. BE
fears imitation, and. according to the re
sumptionist theory, refuses to invest or
lend it lest when his loan natures or be
wishes TO realize on his investment, be
should be compelled to receive currency
Hess valuable than he paid out" Well,
suppose tits less valuable dollar for dol
llar? WHAT'S his situation he having kept
Ibis greenbacks in his possession9 They
are deprecated exactly the same a
/ would have been the returns OF his IN
Evestment; and he is poorerto the exten
/ Of the Interest on his money. or th'
profits on his investment
| But lenders do not seem to be afraid
lfor it is constantly dinned into our earl
that in the money centers there is glu
|of currency begging for borrowers. Blu
does the fear of imitation deter borrow
ers9 Clearly, no The depreciation 0
(currency means the appreciation OF othe
commodities. Then if A Ahorrows-S10O,
loco, invests it. depreciation of % pc
Ecentin currency ensues, and he realizes
the selling price will exceed the buyin
price to the extent Of the depreciation. :
He then pays back the Slo0, GOO with tn
/. deprecated money, having left his IS pc
D cent profit, less the interest lie has pait
e The fear Of making money does not pre-
! vent men from borrowing.
e 1t would therefore appear qnita plai
!, that fear Of the currency remaining as
lis, or fear OF its depreciation. is not wh'
d prevents it from being employed.
a There is but one other possible futul
) Of the currency which can impair con
d denee. That is fear of its oentractio
and its consequent appreciation in valu
N or what's exactly equivalent, the decll'
V, in prices Of other commodities. II is n
Of hard to see why A should decline to !
o. vest his money with reasonable certai
ne ty staring him in the face that he ma
Of sell for less than cost. Much less v
n any one borrow money tor investme
q when the chances are more than ev
n. that lie will lose his labor, his intere
he and share Of his capital.
If then this very plain reasoning
o correct, tits not the deprecated condlti
ze OF the currency, and it is not the app
ill tensions Of an increase, which prostra
he business; but it is the steady contract
ey OF the currency, and the fears excited
Id the clamor for more rapid contraction
The "confdence'' wanted 10 q ''col
10. dence" that coterie Of visionary curr,
ra- cy tiukers will not ruinously contrac,
Irs currency in pursuing theory much nj
promising than productive