Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1879-07-23
Hard Times and the Decline In Prices.


standing This ana tne IacJ tnaJ many 10
not pay, national credit is a great estab-
lished fact. The truth is that moneyed men
have to submit to the same chances and con-
tipgencies in regard to the preservation and
increase of their money that holders of other
kind of wealth are subject to. Money as
money is not in fact wealth in true sense.
1t is a representative Of wealth and meas
ure of value, and therefore means of ex-
change. Credit money, that is paper money
in whatever form it exists, has no intrinsic
value, but represents, in the hands Of the
holder, property which he owns or has a
claim upon, but which isin other possession.
Coin money has intrinsic value, partly the
value of its material in the arts, and partly
its value as an instrument Of trade. Throw
it out of use for the latter purpose and it
sinks in value to its intrinsic worth as mer-
chandise. This fact is seen in the deprecia-
ton of silver consequent upon its demoneti-
cation.
Credit money, in the present condition Of
the world, is of limited circulation, and
must be backed up, or based upon--that is,
made redeemable in-the precious metals,
which have universal value and acceptance
as medium of exchange. The time may
come when the national paper money of
honest nations will have universal value and
acceptance also Such national paper money,
based upon the whole wealth of the country
which issues it, and strictly limited in
amount to the needs of trade, may thus in
time replace metallic money, over which it
has many advantages. Instead of being re-
I deemable in gold or silver alone it will be
redeemable in every valuable product of the
country-in any kind Of merchandise, or Of
other property, in the hands of its citizens
every one of whom would be a " bank of re-
demption - 10 the extent of his desire to sell
what he had. This is what some call " fiat
money" 1t has not the absurdity it is rep
resented to have by shallow critics. In
fact the hopeless stupidity of average politics
was never better exemplifed than by the
application of the epithet "rag-baby," or
"rag money" to the government issue of
paper money in the interest of the paper
currency of the banks-a currency which
owes its value and general acceptance solely
to the national endorsement which makes it
redeemable- coin 7-not at all, but in
that very "rag-baby." Presumption upon
the public incapacity to understand very
plain and simple matter was never carried
80 far before as in this attempt to discredit
national paper money in the interest of the
issues of private corporations. This fiat
money" Gall paper money is fiat money! is
the best paper currency the world has ever
seen. The people prefer it to gold and
silver for home use, and such issues may be-
come not only the national but the interna-
tional "money of the future" 1t must,
however, be a future of greater and more
general honesty that the past or the present
time. Gold and silver must remain the in
ternational medium of exchange until right.
eousness covers the earth as sea, and ma
lions learn war no more. For, in the cupid.
ity of rulers or peoples, aud in their passion
for war, more even than in idleness without
vice. is the root of bankruptcy and repudia.
ton. A very few hours of work in day,
done by every able bodied person in the
world, would give an abundance of all use.
full products, if nothing were wasted or
viciously used.
But, coming back to the life that now is
let US ask what benefit arises from laws
compelling individuals to fulfil their pecu
mary contracts, and what are the evils which
flow from such laws. We have spoken Of
these in general way, and as illustrating
the general course of our argument We
believe that it is the moral duty =. every
man to do as he agrees. Even when he
swears to his own hurt, blessings promised
if he changes not. But there are multitude
of moral duties with which the law does
not NEEDLE, and with which the law ought
not to NEEDLE. Enacting virtue by statute
and under penalties has been amply tried
and amply proved failure. The law in al
civilized nations now judges and regulates
the acts of its citizens upon a different
principle, which may be described as one O.
enlightened expediency. The question there
fore, in this case, is, not whether a MAJ
ought to pay his debts, but whether it i
expedient for the government to interfere il
behalf of a creditor TO enforce paymen
from debtor. This we mean, of course il
regard to contracts made subsequent to thu
abolition of the legal credit system. What
ever credit may be then accorded will b.
: with the full understanding that it is entirely
private matter between the parties, il
which the law will not interfere so long a
no fraud or violence is practiced upon eithe
side. Fraud and violence are criminal acts
and win still remain within the jurisdiction
Of the law.
The immediate consequence would be
considerable lessening of credit. While |
Is now often much to the interest Of the capi
talist to loan money or sell property to any on
who can give security however unwis
and ultimately ruinous such transaction
may be to the borrower or purchaser-let tn
law be changed as proposed and the interest
Of lender and borrower, instead of being an
tagonistic, will become identical. In tn
first case the more idle, reckless, wasteful O
extravagant the borrower may be, the highe
will be the rate Of interest he will pay, an,
the sooner the security will be exhauste
and the creditor dispossess the debtor. Blu
Al. A l. r