The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1878-10-17

talic money to accumulate In Europe
In the words of Adam Smith "Gold
and silver, like other commodities, nat
urally seek the market where the best
price is given for them, and the best
price is commonly given for every
thing in the country which can best
afford it,
The precious metals, like money OF
all kinds, naturally gravitate from
debtors to creditors; from the poorer
sections of our country to New York,
Boston, and other rich portions. This
tendency continually attracts gold from
New York and Boston to the richer
cities of London and Amsterdam, AS
representative of wealth, the precious
metals are in most demand by those
who can best afford to own them-in a
country where there is the greatest
accumulation Of capital-where the
rate of interest is the lowest, and
where there is the least inducement to
exchange money for productive capital.
At present. the United States cannot
attract gold to them, nor maintain it in
circulation without making sacrifices,
without lowering prices and contract
ing the volume of our paper more than
is best for the good Of the nation. The
present hard times is due to our strug-
gle for gold.
What other objection is there to a
metallic currency?
It is liable to disturbance by wars or
money panics in foreign countries.
On gold basis we are Immediately
affected by any financial disturbance in
Europe. Gold at once leaves our
shores in large enough amounts to ne
cesitate contraction Of a paper currency
based on gold, and this at once lowers
prices and creates business uncertainty.
Is there any other reason adverse to
gold and silver as money?
Yes, very serious one. The exis-
ting scale Of prices, Of wages and COM
modities is the result of the combined
use Of gold, silver and paper through
out the civilized world for two centu-
ries. Upon this scale rests the vast
amount of public and private debts,
and the numerous con racts and obi
cations which involve the whole fabric
of society. Coin forms but a small
amount Of the money by virtue of and
with reference to whose existence these
prices, debts and contracts have been
created. But if coin is to be sole le-
gal tender, any purturbation in the
public mind which produces scramble
for this legal tender at once largely de-
stroys the functions of the chief por-
ton of the money; and in effect if not
in fact, Immediately contracts the vol
ume of the currency. AS prices owe
their stability to stability in the amont
of the currency, this contraction low.
ers prices and produces great distress
A series of events the reverse of those
above mentioned, will have an opposite
effect and undnly raise prices.
If as you say coin and paper CO
bined have produced these disturb
ces, why not have nothing but coin ?
Simply because there is not coin
enough in the world.
How do the Greenback advocates
propose to avoid fluctuations in the
amount of the currency, and the con
seguent fluctuations in prices?
By abandoning the whole idea of reg.
ulating the amount Of paper money by
convertibility into coin. They propose
to issus full legal tender paper money
ane make 1t just as absolute money as
if made of gold and silver. Yea, they
propose still further to give it the adj
vantage over these metals by making it
the only legal tender, thus demonetiz-
ing them, and reducing them to mer.
chandisc and rendering them powerless
by their presence or absence of infu-
encing prices. And instead Of notes
nomlnaily convertible into coin they
propose to issue fiat money; and by reg
ulating the amount Of this money, and
keeping in circulation a definite
amount Of about fifty dollars per CAPT
ia, We shall secure stability of prices
for all time.
But is it not more expensive to
print paper money than it is to coin
gold?
The cost Of printing paper currency
is much less than that Of coming a me-
talic currency.
GREENBiCK NOTES.