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

Gov. TILDEN has made, in the main, such
valuable exposition OF the financial qu,s-
ton in his Message that ii seems almost
ungracious to stop to pick flaws in il. But
his Theory that prices do not at all depend
on the volume of The circulating medium.
is So eccentric and fallaoious, aud so per-
picking to inquiriug minds, that we must
enter our express dissent.
We freely admit that mixed causes are
almost always 10 be found for all the Pie
nomona Of finance; and OF this Gov. TIL
DEN evidently las u clear perception.
Just why il il, therefore, that he wishes to
exclude from his reasoning principal aud
immediate and very palpablc cause for the
advance Of prices, heo-iis, lac ends other
causes which are also operative VIC do not
perceive.
II may he that il grows out Of his ox-
IRENE desire to show the inhatiouists that
more issues of paper money would he pow
erless to improve prices and revive busi-
ness. But this argument cuts both ways.
If increased issues Of Paper viii not effect
any such injurious result Us the creation IF
speculative and fictitious values, then q
large part Of the opposition TO such ennis
harmless eNpcl iineut, and il many people
think il viii do them good, why not let
them try ~
Gov. TlIDEN admits that II the issues
were large enough 10 create doubts Of
their being redeemed, then prices would
advance. But this is a necessary con-
dtion of all Issues Of paper money not
based on immediate redemption. He
denies that initiation OF prices would result
if the emission was in actual money Of
gold aud silver, ortheir eluiyalcnt and his
reason is that the actual money IN circula-
ton in thc world bears such "A small pro-
portion TO the financial and commercial
transactions OF mankind, AMI TO the settle
monts through clearing houses, ana by
bills OF exchange. drafts, checks, transfers,
and the various modern machinery of adj
justiDg balances by paper tokens, that
even to double the volume of the actual
money in existence would scarcely be felt.
Wecoufoss urastoni~hmcnt ut this prop
osition, en- what is equivalent to it, com
ing from man who has 20 thoroughly in
vcstigated his subject. Probably GOV.
TmDEN has not taken sufficient note
of great difference between nctu i
money and the machinery of business,
such rs bonds, notes drafts, bllls of cX-
change, and the like. Money Is the II -ll-
lator and the test of the validity OF this
machinery; and while not used under or
binary circumstances in payments aud
settlements, it is nevertheless the undorly-
ing tombstone Of all Transactions, without
which an values would be vague and
chungcdbe. II is plain from this simplt
statement that it's actual volume must
have much to do IN tahli-hing prices.
But while Tho argument that prices must
depend, IA a general proposition, upon tho
volume Of money by wh.,h they are moa-
surcd. is overwhelming in its conclus,yo-
ness To- our own nina, We will not cmharR
IN any discussion Oh tho poiui, hut r,fci
10 facts merely that are OF themselves n
demonstration. IL is not necessary I,
make any elaborate survey lor this pur
pose. We Will simply recall Il fen fact
that lie upon ihc surface
At the outset we meet with a dlmcul
~. Gov. Tides says, that in 80 far as th'
issue OF paper monty inilatos prices, i
does SO only apparently, and is really only
II dcprecation in thc value Of tho paper
But this is substantially an admission o
the truth OF the doctrine that paper
money imitation enhances prices when i
goes so far As to unscttlo confidence in il
value. This view is intended 10 meet tn
long list Of instances with which history 1
thiokly strewn, of paper issues creating
temporary prosperity, and vast rise o
DTioes. 0ply " w followed w Subseagep