The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1878-09-07
Have Exchangeable Values FIuctuated?

We hear much about the depreciation OF
values. We are told every day that the man
who bought a farm or a house ten or FIVE
years ago, is to-day called upon to pay for
these in dollars worth greatly more than dol.
lars were worth when the promise was given.
That may be so. The advocates of sound,
hard-money, equvaent-to-coin currency, will
not care to deny it,-for it only demonstrates
the evils of a fuctuating currency. Had
coin been in use when those contracts were
made, when the house and the farm were
bought, the buyer would have paid now dol
ars worth no more, that is, dollars which
cost no more labor to earn than the dollars
he promised to pay. The change in the VAL
ue of dollars is owing to the redundant paper
currency that the exigencies of great war
compelled us to adopt. But it should always
be borne in mind that the Government that
is, the people,-for the Government is but
the representative of the people-said from
the first that return to coin values and the
standard of value in common use through
the world should be brought about as soon
as possible. Had the man who bought
farm or house paid cash for his purchase he
would be comfortably situated to-day. But
when he promised to pay ''dollars" months
or years thence he voluntarily assumed all
the risks that come from rise is the value
of "dollar,"-as his creditor assumed the
risk that comes from fall. Both knew that
the Government was steadily prosecuting
Its announced purpose to return to specie
payments, and both ought to have been pre-
pared. If any one distrusted the faith and
ability Of the Government that was his mis-
fortune, if not his fault. The same mistake
was made by men during the war-and they
have suffered because of it. 1t was then
called disloyalty.
Thus it appears that all men who have
made contracts since Government paper
money came about-certainly those who
have traded since the resumption act was
passed in 1s75-have done so with an under
standing that specie payments would be
speedily brought about, that return to
coin basis was inevitable. Understanding
this they took their chances. If they con-
tracted any time during the last seventeen
years to pay debt due long time thence
they took, or should have taken, into con-
sideration all possible changes in the value of
the circulating medium. They contracted
to pay in dollars-whatever the values of
dollars might be-and they are compelled to
pay In dollars as dollars are now estimated.
Ut may be mentioned that the great majori-
tp of the men making these promises have
been enabled by an exceedingly liberal bank
rupt law to discharge a dollar indebtedness
by ten cents.
Thus it seems that fuctuation of the cur
rency is the cause OF all the woes that debt
ors-and creditors-feel; for certainly there is
no change except that which results from the
law of supply aud demand, in the exchange
able value of products. A dozen of eggs will
buy as much butter as it would ten years
ago. A ton of hay will buy as much clothing.
Whatever shrinkage there has been has been
uniform. Commodities exchange as they
always did. Value is still given for value.
If eggs are worth less dozen, so is butter
for which eggs are exchangeable, worth cor
respondingly less pound. The only hard
ship comes upon the men who promised in
the days of imitation, to pay money some
time hence. Aud he did it with his eyes
open. If the money he promised to pay is
worth more now than it was then, the fault
and his distress arise from the use of fuc-
tuating standard of value, from the use of
paper "dollar' that is worth eighty cents to-
day and a hundred cents tomorrow. The
remedy for the evil is to do away with this
fuctuating currency, and to bring again into
use stable standards of value.
Itmay be said that the dozen of eggs though
eXchangeable for as much butter OF other
commodities as ever, will not go so far in the
payment OF taxes. That is true,-for the
people imposed taxes on themselves when
the dollar was worth scarcely half what it is
worth now, and knowing the pledge and
promise of the Government, bound them
selves to pay in dollars. The dollars they pay
to-day are worth far more than the dollars
they used when the taxes were first imposed.
That comes of th fuctuating nature Of the