National Republican., 1877-08-28
AN ELASTIC CURRENCY.

The assertion Is often made that we need an
elastic currency. There Is no greater tinln.
cial falacy. Money Is a measure Of value
nothing more, nothing less. Its volume
cannot I've increased 10 any considerable cx-
tcnt without diminishing its purchasing
power. IL IL often said that the volume OF
currency should he increased just after
harvest for the purpose Of facilitating the
movement OF crops to market u is not
true that any such increase is necessary.
II we had \ fixed volume Of currency that
matter would always regulate itself; Tor 1t
must be remembered that commerce b..
tween different sections ol the country aud
between different nations is largely ncrr
exchange of commodities the value oi
which is SO nearly equal us to only require
the settlement Of the comparatively small
balances in currency.
Another fact which mus, he considered is
that the commerce of the world is now tar.
Iied on almost exclusively by means of bills
Of exchange and bank checks, and that
through the agency Of clearing houses very
little currency is actually handled in great
commercial Transactions, and even the retail
business of mankind Is largely carried on
through the exchange Of credits by means
Of bank checks However active, therefore
commercial transactions may he, there is no
necessity for increasing the volume of cur
rency TO facilitate them. Healthy CONNER
cial prosperity results not from an abun-
dance of money, hut from an abundance Oi
exchsnseHhio commodities existing in re-
giOn- separated frum each, aud the ultimate
end of all coiuinerce Is simply the exchange
q the surplus productions oi the country iUi
lhcss NJ another.
The rh,-f haanctai maciincty for effect.
Ing tb-ss exchanges, whether within tli,
ssunuy oI ~,ihout. Is the use of bills OF ex'
eAAnse, sAiy the snan oNinnces wnicn result
ens way Or the othe iIom krge aggregate
transactions being settlcd by the actnn
TRANSMISSION of money IL is very import
snt that these facts should bs understood
fnr II the principle be admitted that II Is
eipedieut to initiate the currency for any
pn,,rs-e whatever IL becomes at once til,
fruitful mother Of many worse hnancia
hercsios-
An indispensable requisite of sount
eaIrcncy is that IL should he As far frou
nuctuatiaus Ia its volume as possible, henc,
spccie, OF . currency rcleenubIe in specie
b tho only currency which should ever b,
tolerated In n civilized couutry. Ir pape
money is only issued under regulations
which will secure it's prompt redemption il
specie under all circumstances, there vii
bs no room Tor any of that elasticity Of the
currency which some ill-ipformed politic;,
economists talk about
IL must be confessed that fhe iinancia
outlook is not encouraging when we tn'
eminent inan,ies obieCting Ia . metallic
currency because 1t Is wanting in elasticity
II rs that want OF elasticity which reader
tho pio,tous metals suitable iof use u
money, and any currency is WORTHLESS jus
In proportion as il varies fOm that fIe
standard. Ali talk about an elastic curret
cy Is founded upon false i.leas ~ +" ihs ~
ture and functions OF money. and ,san onl
result In postponing the restoration of th
use Of the constitutional currency sf u
Rapublic