The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-09-06
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xd,tors Of The Dispatch:

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No. 3.
ea;tors Of The Dispatch:
q o. sae. then, how trifing Is this iuci-
.aen,e, benefit arising from an inconyerti.
S,,e currency. when it pre- supposes an equa
snss to far greater number. In order
to enjoy this boastcd. benefit the country
m,,st be the debtor ration aud exchange
againss its IL SO, then the benefit pre-sup-
noses a FAR greater loss. II exchange with
England Is against America, hii!s on tue
former are at q prenlium; on the lat1er aLa
discount; and America could SEND gosa 20
Europe and buy up notes against America
af n tI;scounss but that would be Ike a
man shaving his own paper, which Shows
that his credit is gone, or soon WIN DC.
m an,,ears uadeniable, then, that neon
yertiblc paper does not save the ineiSiduai
sleMor fron sacrifice OF property to pay
Soreivn debt. but increases that sacrShce;
INIT It Is said, on tue other hand, that the
convertible system Of draining the paper at
sbe rate OF or 6 Tor every OF gold
sitbdrawu contracts at heavier rate. The
TALL, saws Mr.. Winder, is taore sudden.
more extreme; It is not descent by steps:
by gentle graduations, bat crash, and
when completed leaves the country without
cent. Now let US sec: Suppose oank
with 10000 In specie Issues S36o,eoo OF
notes. Suppose 1t loses one tenth OF us
xpecie (S6,000,, it wiz call in one tenth OF
ATS notes fS3G. o00A There Is a larger
amount, but not tsrger proportion, OF pa
per withdrawn thaa OF specie. Hence the
fall is as gradual as IL 1t was specie With
drawn from circulation instead Of paper.
But you say the volume Of currency ought
net to be changed gradually or suddenly;
it ought to be unchangeablc. Sou see that
our bank currency changes It's volume Us
gradually as IL It were all specie. Why,
then. do YOU object to it3 Because 1t Is not
snvariable Ia volume How do you pro-
pose to make it inrariable? You cannot 90
SO while 1t continues specie or conVertioie
Daper. You must make 1t 1nconVertihle
paper, and then it Is in It's own nature IN.
variable in volume, for itcaanot 90 out OF
the country, ner be called La or Withdrawn
from circulation except by law; while,
after once it is issued, it needs no Jaw to de-
clare it inyaraahe IN voIume until SO changed:
II it had been specie, debts due abroad
might baye drawn some OF it out OF the
country: Il OBSERVATION-DISCLOSURES, foreign
debt might have driven out OF circulation
the same proportion OF it. :Uness you pre-
vent the accumulation eoi foreign debt. how
can YOU coulne ut home the money that
ought TO 60 abroad to ,Isy that debt? II the
money cannot go oNt itself, will it not go
abroad in the shape OF property to pay the
debt? II man cannot pay his foreign
debt with money, he must buy cotton or TO-
bacco to send abroad to pay it. That vii!
raise the price OF cotton, &C., here, and
lessen the profits OF tbeShipper, and act es
q duty on exports and;a bounty on imports,
because it increases the exports and makes
xxf,a nh
cheaper. SO it seems there is point be-
yond which Mr.. Nindcses rule about the
premium acting as bounty on exports and
u duty ON imports is reversed. It is where
the price OF produce here is so high that 1t
Cannot be exported alta profit, and would
not be sent except by those who had foreign
debts md must send produce, even at
a loss, TO save the premium on gold.
The premium on gold attendant on incon-
vertible paper lis, then, even in the narrow
view of it taken by Mr.. Winder, a doubtful
benefit, since 1t cuts bofh'ways; while, IN
wider and a juster view, it is an evil almost
nnmitigated, which is to be endured with
patience and resignation while 1t is una
Yoidabie, but deiiveraRce from which
should be earnestly sought and labored for,
and joyfuily accepted when it comes on
proper terms. L have endeaSored TO show
that 1T is only the existence Of foreign debt
that causes the danger apprehended from
convertible paper, and that this evil is only
shifted in ipostion-not eseaIed-by having
inconUeFtible paper. In the one case pro-
perry has to besacriieed by the.oontraCtion
OF the currency; IN she other the whole
country suffers by its depreciation; By the
premium on gold one is less in volume,
1he other IN value. Which of these evils is
the greater i am not sufficiently informed in
the matter to determine. My opinion is,
from my observation, that the1twn cases diff
fer like I'm acute and chronic diseaee-the
one kills the patient or itseaf Neryspeedily;
the other is not apt to kall, but establishes
itseH as aExture. and is worse itself than
death; and never, like the 'edher, cures
itself. 1t Is fair, when geu talk Of the Ills OF
OF the other. This asa negaDive .sort
of argument, only to be resorted to
when there is only a choice OF evils.
But I take higher ground. 4 advocate con-
Vertible paper onrits own merits asthe best
the bean ideal Of "a currency Iajeet asl
inconyertible paper that is permanently. SO,
and Of choice, not necessity, as a mere. CHI
mera, a Itopian vision, soeiasistc theory.
a sort OF cooperation, MISUNDERSTANDING
scheme on larger scale, that can never be
reduced to practice; for it ignoresthec ma
ture OF man as well as OF things. The only
security from peeaniary embarTassunert'for
individuals ar nations as to be cautious. OF
going in debt. We are doing peaancesnow
for our folly in that respect, and it IS tseil
that we are. Some esnoTS are SO inveteiate
that there is no cure dor them hut by the
Sufferings they entail. Such is Wig under
all, or nearly all circumstances; sach abe
the extravaganza and HoYertrading engeu- /
dered by the dbgSe, not the use, of banks, |
though unjustly charged to the latter. a |
nation having only q specie currency Wills
have its money drained away if it goes tool
deep in debt. A nation hnging for its cur
rency convertible paper based upon specie,
TO the amount of one third or one sixth OF i
paper to call in for every dollar it loses Of
specie; but the proportion Of its currency |
lost is no more in onecase thas In the other,
while the foreign debt necessary to be paid |
to prevent that loss is only one third or one
sixth OF what it is in the other case.
Take the cases above supposed. One nation
having 100000 OF specie in circulation, il il
loses one-tenth has to contract or call in &c.
coo OF specie. The other, having In circu-
lation $50, 600 in the notes Of bank based
upon only 10000 Of specie, il it loses one
tenth OF its specie, Will call in $4,000 OF
notes. But 10 keep these notes in eircula-
ton it has only to raise for its foreign debt
8,000. while the other nation, to keep in
circulation the same amount OF dollars, has
to raise $4,000. Surely it is easier to keep
out OF debtJ6. 900 than $4,000. The condition
Is SIX times as easy, and yet the benefit en-