The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1876-11-02
THE CURRENCY STANARDS.

The prosperity Of France, and the
business and financial depression in
England, Germany and the United States,
furnish subject matter tor much
thought and discussion. French pros
perity does not and cannot result from
any superior natural resources which
she may possess, nor from the superior
energy of the French people. 1t is and
must grow out of the healthy condition
and elasticity of her currency-its
buoyant tone and the universal conf
dence it inspires. The management of
its currency by the French government
is as simple as it is successful. Both
gold and silver are utilized, and paper
is made equal to them by accepting
either as legal tender. But how is
the case in other countries mentioned?
England long since ordained the stand
ard of coin and demonetizing silver by
making it legal tender for the sums OF 40
shilling or ten dollars. in the payment of
any one debt. She also limited by law
the issue Of notes by the Bank OF Eng
land, which are legal tender, though
$75, OOO, 900 OF them have no other basis
than government securities. Thus, the
legal tender money of England is gold
and limited volume of notes of the
Bank Of England.
Turning from England to Germany, it
is found that up to 1873 the legal tender
money of Germany was silver, and by
law gold also, but practically silver only.
She was, therefore, a dOuble-standard
nation, and the volume OF her legal ten
der paper money was augmented by
the notes of small denomination issued
by her many banks. In 1878, having,
as Bismark and the Emperor supposed,
drained France OF her gold, and so i'm
poverished her that she could not re-
claim it, she demonetized silver, ordained
u gold coinage established an lmbeIial
bank, the lowest issue OF which should
be the equivalent OF $50, and prohlbi-
ted the circulation of tue small bank
notes. with which. in Connection with
the legal tender silver money, the bus
mess OF the German Empire has been
transacted. She is, therefore, now like
England, single standard country, the
standard being, and the volume OF the
paper being, closely restricted by law.
Following the example OF England
and acting in concert with Germauy,
our government demOnetizod silver in
1873, though the silver dollar was the
monetary unit, and the constitution pro-
vides for the coinage OF silver. The law
OF 1892, approved by Washington, made
silver the unit, and all the government
bonds by the terms OF the act of 1869 tor
strengthing the public credit, and the
act OF 1870, under which the Secretary
of the Treasury is retundlng the gov
eminent debt, are legally payable in sill
YER the unit of all our coins then being
the standard silver dollar. Consequent>
", the United States takes rank with
England and Germany on the single
standard OF gold, and like Germany, we
are constantly contracting the volume
ofour paper money, month after month,
under the stupid supposition that gold
will flow in and take the place of the
paper, in spite of our immense indebt-
edness to foreign countries, Now, is it
not perfectly clear that the gold standard
and a contracted volume OF paper money,
together with the characterization OF sill
yer, have brought about the present
terrible financial and industrial prostra-
ton in Germany. Engand and the
United States? The argument of"over-
production will not do, IS France is
now producing more than either country
named in proportion to her inhabitants.
"EXtravagance" is y still more puerile
argument. Aud the argument that this
country is only going through relapse
in its attempt 10 recover too rapidly
from the Frustrating effects of the war.
is simply nonsense, as it would not ap>
ply to the cases of England and Ger.
many. Our only remedy is q return. at
the earliest possible day. to the doudle-
standard monetary system rs adopt ted in
France.