, 1876-04-08

Soma Of the prctentious organs Of irro-
dcalnhble scrip onrronoy exhibit in remark
ab1o tlcgrco how littlo Of knowledge is neces.
sury to Il rrofcsacl tencher. an nrsiele In
ono OF those Hhecta stRrtg ont with
tho assumption that our banl;ing in for.
NOR timcs wns derived from tho English
system. Why English moro than Scotch, OF
French, or qorman2 Tho Engliah systonl is
distinguished BY its rigorous limitation of
currency issros, md tho requirement Of The
best security for thoir prompt md certain
conyertibility into gold on demand. The
Scotch system il n FREQ ono, allowing any one
to issue notes, compelling no oao to +,kt them,
ana applying oaly tl.e law Of debtor and
creditor to hold the banker to proper ac-
couutability. In tho former caac, tue Govern
ment undertakes to protect tho people againat
bad currency; in tho latter, tho people nro
put upon their gl,ard, mud warned 10 Keep
a Bharp look-ont lest they lose by bank-
notes. Doth plnns in tloir respective placos
hayo worked we'll. "But," says tho rng-
baby oracle, !" tho practical result has been,
in England, tho conversion Of the promises
into tho thing promised or tho absolute sls-
pension Of Bpeclc-payznonts, accompanied by
widespread aud devastating commercial
crises during each tlccado.' ThiBi is conspicu-
ous1y untrue md falsc,-a historical fact
evolved from inucr consciousnoss or tho im-
ngiuntion of dishonest writor. There is no
foundation whatever for tho assertion. Not
o:cn in tho tempest Of 1926, nor 1915, nor
| 1866, lid tho Bank Of England s11spon1 spe~
| cic-paymenta. Under m order in Council,
affirmed by net nj Parliament, The Dank Htls-
| portled from 1877 10 1910, luring tho gtent
| French war. hut Euch a measuro WINS not
| thought Of at other times, ana wonld
| not haye been considered during tho
Nnpolconio wars but for tl9 lnrgo
| demand for gold by the Government.
| Even this suspension nntlcr the pressure OF
gigantic war has beon condemned nj unwiso
by tho greatest English statesmen and
economists. If tho rng-baby organ wishes to
soo how tho memorable bank restriction WINS
regarded nftor yenrs Of experience, lot its
| ignorant editor reEd tho Parliamentary DO
bates in 1911 aud ngnin in 1919, tho
spoochca Of HORNET, Lord Liverpool, HuaEls-
BON, ard CANNING, OF PEEL, Lord K1:'G, mud
| TIERNAT, n.1d tho writings Of 1l1cAnDo anu
TooxE. 1Io 1aay get some ideas, some facts
anil figures, moro yaluublo than his own cogi-
| tat;onu
Tho commercial cr;sca in England for tho
past fifty years havo Ind little referopco to tho
expansion Of tho currency. Hor currency III
| the ya1no in amount, or nearly SO. Tl.rico in
q great panic tho Bank las boon directed by
"Ortlora in Council" to disregard tho legal
limit IN tho ias,fe gf mates, in order to ford
| relief to solvent borrowers who nro in
danger Of being crushed for waut Of
roatly currency. 1T such ti1nes the run is
not for gold but for baalk-notee. So complete
is tho security GU whicl, tho banls-notca arc
issued, TINT no question Of their aouudness is
ever raised. In tho midst Of tho great panic
of 1895 tho13ank enlarged itsloans ca, 600, 900.
or $40 0,000, ,000. All who could give Wild &C.
curity wcro accommodated. The expansion
was temporary, and tho notes wero placed
where they Afforded complete relief.
Is not we'll nigh cril1so TINT m editor
should esaume to instruct tho public ont Of
lis own vicious ignorance? Cannot tho
raC-baby organ afford to employ writer
| upon this most important subject
| WHO chi, speak from knowledge, and
attain tho u full assuranco of uHicrsttnding" 7
Tho rag-bnby organ proposes US n ron,edy for
nil our financial ills currency meto up OF
Government debts not bearing Interest," con-
vertiblo into other dobts bearing currency in.
torost, und tho intorcst-boaring debts recon-
| vertibln into debts not bearing interest. This
IL tho double-roversiblo, back.action, sclf-rog-
Uniting curroncy-boud theory. 1t mca1.H q
f,f f1a1hu 1rf pnt,uOr}i-
bio into specie or anything clio; currency
TINT must bo tho football Of political pnrtioa
Il cusronoy tlnt makes q standard Of value
impossible; currency that will baaish rcal
money from domestic circulation and ING.
II anything Inns been demonstrated beyond
MI doubt or cavil in tho whole scionco o1
money, 1t is TINT paper promises or prnm
Of my kind arc worth only what they bring
In gold, md TINT a nota that represents
mouey can only ba maintained ut par by III
chenp mud certain conyertibilisy into gold a
tho will Of tho holder.
It is further evident at a glance that I
standard must possess tho gua|itiea which il
is expected to measure. A standard of lungtt
must hayo leugth, standard measure O.
capacity rnust hayo capacity, . ,ncasuyo o
weight must have weight, aud standard o
yaluu must havo yGltlo.
There Ia no cscapo from these conditions
Governments Cannot mike sl,Gce, or length
or weight, but they may fix And dcclaro th'
units by which they nro to 10 measured ant
expressed. No moro CAN GovernEents max
value; they ,nay declare how much Of golt
or silver shall bo tie unit Of yalne, and II
moro. AL attempts beyond this ore rs fntil'
III " climbing upon tho house.top to clutcf
tho stars,"-an amusement Of fools, to1ro
to prudent men.
/ Mr. DEgc1sEn's "triumph," Oh It has beer
; announced. in tho suit for malicious proso
} cution brought agaiust him by FnAsK hIouI
, TON, turns out to hayo boen another doubtful
, victory In supprossing investigation Of th
scandal. Mou1ToA, II will 10 remembered
| waa t1non BYrnHEft'a fnstimhny fnf]irte1 fn