The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-06-08
an a ,,nndaut Currency.

taken possessicn OF the minds Of a large
number OF people in this country. We see
the idea constantly cropping out in some OF
our, exchanges. II the writer's OF the articles
were to attempt TO formulate the method
by which this desideratum could DE accom-.
plished they would soon find that it Is true
now, as Is has ever been and ever VIII De-
that out OF nothing nothing comes. There
is no possible way by which man can
obtain money but by rendering an equlVa-
lent, or what is a conventional equivalent,
for it. tits true our Government could issue
currency until 1t became as abundant as
assignats once were in France, or as Con-.
fetIcrate notes were in the southern States
during the war; but 1t is not true that the
community would thereby be benefited
On the contrary, the prices OF all articles
would advance more rapidly than the money
would depreciate nominally as compared
with specie. The standard OF value Is at
WAYS kept in mind when business opera
tions are going on, and whether he says so
or not the trader will always sell his goods
for certain amount Of the precious metals.
So long as paper and specie remain at or
near the same value, prices may remain
comparatively steady. But whenever the
quantity of paper money becomes so great
as to render it worth much less than specie,
prices will "readjust" themselves to the
new stste OF things. That is to say, it is
the quality OF the currency that gives 1t It's
value as circulating medium, or, IN
other words, that renders it capable
OF being a measure Of value at all. II
Virginia were to issue fifty millions OF
dollars OF paper money tomorrow, it
would not be accepted at one fifth
OF its face-value. Why not? Such money
would have no real value behind it, or at
any rate not enough to make it half as ac'
ceptable as the notes of the obscurest ma
tional bank in the United States. II it were
made receivable for taxes, that fact would
inpart some little value to it; but not much.
The State has contracted to receive for taxes
the oupons OF the State bonds; yet these,
though amounting annually to only $780,
900, are far below par. If there were fifty
millions Of them on the market at once they
would not bring ten cents on the dollar. -,
1t is evident, then, that there must be
something more than a legislative declara-
ton to give value to paper money. II Vir-
sinia is unable to issue q good and alum
dant currency. can the United States Gov
eminent do it? Not unless it can by law
make water run up hill. The present cur
rency is good because it is limited in guam
tity and because the Government has always
declared it to be its purpose to redeem 1t IN
gold and silver, and because it is actually
making preparations so to redeem it. But
let the Government issue three thousand
millions OF greenbaeks or one thousand mill
lions, and declare by law thatitis "absolute
money! not to be redeemed in specie but
to be received as good because the Govern
ment issued it, and the one thousand millions
or the three thousand millions would pur-,
chase no more gold, silver, wheat, or iron,
than the three hundred millions now in cir
culation would purchase. II the United States
Government, or any other Government,
could make its people prosperous and happy
by printing pieces of paper and calling them
money, it would be crying shame il it
did not do so. But why paper? Why not
iron? Why not leather? Why not cop,
Der? Because paper is the most suitable ma
terial, and because there would be no way
Of identifying the genuine Government
currency if it were made of iron, leather, or
copper. But ifthe currency were valuable
in itselH-if it were what is styled "abso-
lutte money pit would make no difference
whether it was counterfeited or not. cab
solute money" must either be money that
is not to be redeemed in gold, silver, or any
other precious metal, or else it is nowise
different from the currency which is now in
use. II it is not to be redeemed, it cannot
be much better than counterfeits OF the
same vaIqeless description; whereas if it is
to be redeemed, then the Government must
issue no more than it can redeem. The laws
of finance operate for Governments as they
dofor individuals. IF Mr.. FRANKLIN STEARNs
were to put out more notes than ne could
redeem, they would soon lose their value.
And lust so it is with the National Govern
ment. 49,
Some years before the war the western
States had an abundant il not good cur
rency. HORACE GREELEY had delivered
lecture in one OF those States, and was
being paid for it in this '..abundant /" cur
rency, when he exclaimed, .. Can't you give
me good counterfeits on'some eastein bank
in place OF this trash 2'' So the story goes.
Whether true or not, it illustrates the truth
that an aabundant" currency may be the
worst possible thing for a country.
But let us suppose that the Government
is to print next week a thousand millions OF
ereenbacks How are we to get any OF
them? How am Ito get any OF them? let
every man ask himself. II the Government
gives them away they will be worthless. II
they are to be bought and paid for they are
lust like the currency we now have, and
with which the banks are stocked, and
witch anybody can buy who has anything
salabie to give for it.
Oh, no. People deceive themselves who
think that they would be benefited if money
were made cheap and abundant. The
southern people ought to be the last to be
misied by such delusion. They know By
sad experience what ':absolute" money
is-the kind issued by the Confederate
States Government. They know that as
the quantity of it was increased, the prices
Of the necessaries OF life went up until the