The Carbon advocate. [volume] (Lehighton, Pa.) 1872-1924, 1878-10-05
LEHGHToN CARBON COUNTY, SATURDAY, OCTOBER 1878



morrow.
Itissuggested, however. that only so many
Of the bonds as are held by banks shall be
repudiated, giving greenbacks for National
bank notes. But suppose the persons en-
gagged in banking decline to accept such
proposition, how then would you get green
backs into circulation as basis of banking
capital, and how would they increase the
volume of money and make better times?
The suggestion is preposterous and the pro-
position is full of danger and bankruptcy.
1t would be unconstitutional to attempt it.
That sort of banking would involve the
severest contraction-it would drive the Ma
tional banks into liquidation, and of course
the persons to whom they have loaned mon
ey would have to contract and sacrifice
property to meet their igations-indeed
such course would have a tendency to stop
the wheels of industry altogether. The gov
ernment could not under any circumstances
become a money lender in the ordinary
business way and upon commercial terms to
get out the greenbacks among the people.
You can pull down, but not always build up
Is it fact that the hard times are caused
by scarcity of money for legitimate bust
ness purposes? The law of supply and de-
mand regulates the market value of mer-
chandise, grain, labor and money. If an
article is scarce it becomes dcnr-when plen-
ty, cheap. Banking capital is compelled to
retire, because it cannot find profitable en-
ploymcnt, and the government is borrowing
millions upon millions at four per cent.
Now, do these things indicate that money is
scarce or plenty? If money were scarce it
would be dear and the rate of interest would
go up, and the government could not borrow
at four per cent, and banking capital would
not be compelled to go into liquidation and
retirement, and beg for employment. If
there was an active demand for money, it
would seek other channels of investment
banking capital would multiply, and the
volume of currency would increase accord
ing to the necessities of business.
The fact is then that there is not demand
enough for the money in circulation for bust
ness purposes or banks would not surrender
their capital, and men who have money
would not put it in four per cent. bonds.
There can be no getting around the fact that
if business men needed money they could
borrow it as readily to-day as they can when
the promised millennium of greenbacks shall
be naugurated-because even then bankers
will not loan out money without security.
On the 30th of June last, the volume of
currency was $6Ss, ,5g7 ,275.27, and the value
of a paper dollar was 90 cents and mills
upon the very verge Of resumption. That
accomplished, and at least 5000 700 900 more
money would have been added to the circu-
lation, and you would have had 81 900 ,OOO,-
600 of money for business purposes, with the
facility of increasing the circulation to any
extent by establishing additional banks
and this could have been done too without
the destruction of $5O,OOO,OOO of fractional
currency TO increase the bonded Indebtedness
that amount, in order TO resume silver pay
ments. The people seem to be willing to
sanction an increase of the bonded indebted
ness TO resume silver payments-but not
dollar to resume gold payments, and yet the
silver dollar to-day is premium of twelve
per cent. TO the foreign manufacturer and
importer, and discriminates to that extent
against the American manufacturer and
laborer. Why? Because goods in Europe
are bought on gold value; but the duty is
paid in silver, and as d silver dollar is worth
but SS cents in gold, the foreign manufac-
turer and importer pockets tBe IL per cent,
and the American consumer in the end pays
it, and in that way the silver dollar is free
trade ally; and yet you find people who
clamor for the silver dollar and propose such
legislation as must Danish gold from trade
and business as a medium of exchange.
Is it not singular circumstance that the
Sa,,J,,,';tL a,,ia,I,' nt,iI " ftI 'ti s'ie
t Dohu1 VIII Sleeioaehs . shoula az the same
nose oC hnving silver to mt into circnIotion
when the fractional currencv is moro CON
veninnt for small CHANGE ana cartainIy, n
| grnot daol hotter aud eoier thon siIvor9
business men Of oil cIossos Layono notro,,Ilo
| in smnnlving themselves with money iftbny
| have nr1peT security to ofIar thereiore i
it not clear then that business and the vari-
not for want of money, but because they can
| find no profitable employment for capital
no market for the products of the shop and
| the manuiactory.
We are on the sure road to prosperity, if
we can let natural causes work out their
| legitimate results-but we may make things
| a great deal worse by taking steps back
wards
| The value Of q dollar is measured in the
| market by its purchasing power. The dol
| lar, Therefore, wheth or gold, silver or paper,
| IS worth most that you can buy most with.
| Gold has always been dearest because 1t
| represented more labor or wealth than paper
| or silver, aud therefore has been the stand
ard dollar by which the value OF the others
/ was measured In order that you may clear