Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1876-05-04
Finance.


OF trade. and as consequence trade
and manufactures anguish?
LIST. 1t is for the very purpose of
having an unvarying standard in order
to avoid, as far as possible the fuctua-
lions of trade. If any other standard
would be more stable it would be bet
ter, but wherein can it be found;
1t is not alone the article used that
determines the stability of trade and
values. 1t is first the definiteness of
the quantity and secondly the system
of its use. Of course it must be some
thing that will be accepted by common
consent as the standard. Gold contin-
ues to be accepted as the standard of val
ues more by virtue of comparative detin-
iteness of its quantity than of any other
quality. True it could not hold its po-
sition without its other valuable quail
ties but if production should increase
the supply ten fold this year, and the
following year one half should be lost
in the ocean, with prospect of cOntin-
Jed variation and uncertainty as to
quantity it would cease at once to be of
value as standard of exchanges, and
some other medium would have to be
sought. Whatever it might be, the def
initenesS of the quantity would fix the
value of the dollar. The acceptance of
of gold by the commercial world, as the
standard of values, fixes the market
value of every commodity at what it
will bring in gold.
Nothing can escape this rating,
whether land, food, labor, manufac-
lures or credits, including the issues of
governments, corporations and individ-
uals.
Whatever will bring dollar in gold
on call is worth a dollar, whether a
greenback, bank-note, individual note
or article of merchandise, and so long
as greenback or National bank dollar
and fifteen cents will bring a dollar in
gold 1T is worth just that much as mon
ey, and if there were no disturbance,
nor damage of commercial confidence
there would be no stringency, or at
worst to the extent of the discount on
the currency.
But this circulating medium, money,
whether it be gold. greenbacks or bank
notes, constituting as it does merely a
basis of trade, or margin" cannot de-
termine wholly the condition of the
commerce of the country, the great
majority of transactions being made by
exchanges based upon confidence in
the integrity and ability of the opera
tors, and the health of the markets.
When therefore, by over trading, this
health is impaired, the commerce must
suffer according to the extent of the
impairment. Thus we may readily see
why, in times of panic, it is so difficult
to get money into circulation and to re-
vive business. Credit is deprecated.
much of it is so damaged as to be Who'll
ly Invaluable; and constituting as it
does, in prosperous times so large a
part OF the vehicle of trade, the failure
of business man to negotiate loan
for business transaction may prevent
the transaction of business, to MANY
times the amount of the loan desired.
We are asked to explain the process Of
destroying financial health, and the ne
cessity for its continued impairment.
in the face of the assurance that spe-
cific remedy exists in the issue of more
money; because even in legitimate
business, and with perfect confidence.
a certain amount of actual money, say
seven To ten per cent of the amount of
trade, is necessary to effect the ex-
change.
The constant tendency is to increase
trade by the use of credit. When,
therefore, it has reached an amount
disproportionate to the amount of act
ual money in market, the money is in
sufficient TO meet the demand, there
fore, debtors are unable to procure it to
meet their obligations. Then failure,
impaired confidence, panic, the with
drawal of loans and moneys from al:
enterprises, manufactures diminish,
men are thrown out of employment and
their wages being cut off, they consume
less, there is less traffic, less demand
for property. This condition is only
improved by the gradual restoration of
confidence upon scale less expanded
and a glance at the Interchangeable prin-
ciples of exchanges will dissipate all
hope from this specific prescription of
issuing more money" to meet the
wants of trade, as, if gold remain the
standard, more paper money is only
more credit and more debt to be met
with gold, already overtaxed land INSULT
cient even as basis for effecting the
exchanges and debts already contract
ed.
Ii ala irredeemable government issue
be adopted and accepted, its value per
dollar-its purchasing power-will de-
pend wholly upon the amount thereof.
An attempt to give relief by doubling
the amount would diminish the pur-
chasing power of its nominal dollar
just one half. Any change in the vol
ume of the legal tender money is "a
change of the standard of values, and
prices change accordingly; but the
change does not cure impaired credit.
nor give any relief from financial pres
sure. If the amount of money in circu-
lation could be increased without vary
ing the price of property, it might give
relief, but such presumption is in con-
tradiction to the natui al law of exchang-
es over which we can have no control
nor power to change, When we learn
that the impaired function in panic is
the credit, not the money, we may be-
gin TO study the treatment with some
hope; but dOctoring money for sick
credit is hopeless quackery.
GLIDER.
LaPorte, April, rs.
That notorious brazen, villifier and
defamer of men of spotless reputation,
Don Piatt, a wretch loves who lying for
ito oaHa hoe bao, -. An