Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-08-04
The Shrinkage of Prices.

The Shrinkage of Prices.
What is the cause OF the shrinkage Of
prizes aud values that the greenbackers
croak about? They say it is because dol.
lars have become more valuable than they
wer,,, so that less number of dollars will
exchange for more goods or produce than
they would some time ago.
Now this, strictly speaking, is not correct
1t contains a fallacy which runs through
most of greenback arguments. The dol
lar of our government is coin. gold or sill
yer. The paper dollar ESQ called), green
back or bank bill, is not a dollar, but the
representative of dollar. The gold coin
is the genuine. 1t has the stamp of the
government upon it that it is a dollar
The greenback is only II promise to pay
dollars. Ii is no more dollar than is the
promissory note of an individual to pay
IA dollar. 1t is promise and no more
If convertible into coin at face value on
demand it is as good for all business
transactions as the gold dollar, but even
then, in its best estate, it is not a dollar,
but the representative of dollar.
Scion Chase tells us that his steers and
all the products of his farm have shrunk in
value because John Sherman and the re-
publican party have changed the value of
the dollar. This is false and deceptive.
Mr.. Sherman and the republican party have
not changed the value of the dollar one
grain. Its value is the same as before
greenbacks were heard Of 1t will require
no less of genuine dollars to buy to-day as
good pair of steers as those of Scion
Chase than it would two or ten years ago
always allowing for the variation OF
price by the inevitable laws of trade, and
making other conditions equal. So of the
prices of all things when reckoned in the
genuine money of the country, the shrink
age or increase of them, if any, during
the last eighteen years. has been due to
other causes than that the value of the dol
lar has been changed. The value OF the
dollar has not been changed since the re-
publican party came into power. and the
assertion that it has is either made igno-
rantly or for deceptive purpose.
But that prices reckoning in green
backs have shrunk. nobody will deny.
The fluctuating character of an inconvert-
ible currency is no basis for steady prices.
And this is one Of the serious objections
to it. When our greenbacks got so low
down in the scale as to be worth only 80
cents on the dollar, partly because of in
flation and partly because the rebel cause
appeared at that time rs though it might
succeed and the greenbacks never be re-
deemed--we were in the heaven of high
prices, because gold prices had then to be
multiplied by three. nearly, to find the prlce
of anything in greenbacks. When the
war closed and it was demonstrated that
we had government and measures were
taken. to, pay our debt and redeem the
promises that had been made to the cred
itors of the Government, greenbacks be-
gan to appreciate in value to gold, and
prices reckoning in greenbacks conse-
quently began to shrink This is the kind
of shrnkage that Scion Chase talks Of
1t is not genuine shrinkage, but a fic-
titious shrinkage. On the basis of an hon
est dollar there has been no shrinkage,
but on the basis of deceptive, changea-
BILE, inconvertibe currency there has been
an apprent shrinkage in values which has
COMPOUNDED and deceived many honest
men and furnished a large capital for dem
agogues to ply their trade with.
The republican party wants to put an
end to fictitious dollars and deceptive
prices and establish the honest dollar as
the true and only safe basis upon which
individual or national property can rest.
Building upon fiat money we build upon
the sand; building upon the honest gold
dollar we build upon something as
solid and enduring as the rock.sr9 .a~