The comet. [volume] (Jackson, Miss.) 1877-1882, 1879-10-11
An Old FOgy's View of the Money
Question.

| 'h"A Nao DoJ GucI6 WIS FulS III
some of the arithmetics called "positlon -
This was perhaps contraction for "sup-
position" 1t consisted in guessing at the
answer and proving one number too large
and another too small until finally an av-
erage was obtained which answered the con-
ditions of the problem. The currency
problem seems in fair way to be gradu-
ally worked ont by similar process. Per-
sons of various political proclivities have
guessed about the gold, silver and paper
currency. The most strenuous advocate of
State rights has guessed that the govern
ment at Washington should have the abso-
lutte control of the whole currency, to the
entire exclusion of State banks and capital
lists. Some have contended that the United
States government could put in circulation
any amount of paper, and if they said one
piece OF paper was worth one dollar, and
another was worth one hundred dollars, the
world would receive the same without ques-
ton or protest. There seems, however. to
be one cause for doubling the wisdom of
some of these speculatons; that is, those
who have the least amount of currency, and
who seem unwilling to put themselves in
the way of earning much, appear to be the
most knowing upon the subject. Micawber,
Col. Sellers and John Law, made some very
plausible explanations of their projects, but
somehow business men would insist on a
specie basis. The bubble would burst,
| although for time it had all the beauties
of the rainbow. The latest grand project,
if l understand ii, is this, to issue govern
ment paper without any provision for its
redemption by taxation or deposit of coin,
to pay debts in a deprecated currency, and
to allow no interest on debts contracted.
Lycurgus went to the other extreme. His
money had an intrinsic value. 1t repre-
sented labor. ALI legitimate commerce is
an exchange of labor.
In Kentucky farmers do not ask some
body to run them They have something
to sell nearly all the time. When they 20
to town they take hay, or corn, or oats, or
butter and eggs, beef or mutton, and buy
what they need. Those who do the like in
any country are in the way of independ-
ence, and will vote right on the currency. |
Cotton has cash value at commercial
centres, and is a good foundation for bills
of exchange, foreign and domestic. Cotton
keeps adoat large amount of paper. If 1 |
make eleven bales of cotton and spend but |
nine, my paper is at par. II make only
nine and spend eleven, my note is at dis
count. SO with government; if it collects |
in taxes one hundred dollars, and spends |
ninety-nine, its bonds are at par but if it |
spends for interest and other expenses one
hundred and collects but ninety, its paper
falls into the hands of the money changers,
not simply at ten per cent. discount, but at
twenty or more.
What is called business paper generally
represents some property. If l give my
note for mule, the mule will help to raise
tile money. If l buy piece of land, the
land, in ordinary times, would help to sus>
tain my credit. If 1 employ mechanic to
build upon the land, the building is bound
for the price of his labor and material.
Banks have rarely failed that confined them
selves to paper based upon some real bust
ness transaction that is, notes given for
the purchase of property or for the prudent
of that property.
Government paper must be based upon
the taxes. If such paper falls due faster
than the taxes are collected it will be under
par Taxes then must determine the pres
ent value of government funds. If the
taxes are such that as the people can easily
pay and are sufficient to meet all ex~
Denses and liabilities, an extended time
md low rate of interest can readily ,
oe obtained. Few governments can sustain ,
, long war without paying exhOrbitant inN
crest. If the war is unsuccessful, the q
must have the most part Of the v
burden. Such is now the condition of the n
south, and it must take years of hard liv~ /
ng to discB arge her share Of the govern n
nent debts 1t has to come out of the soil, y
or we have few factories, no ships, few
ailroads that are owned by our own citi /
ems q
To return to the currency. Gold and =
liver are brought into circulation by the I
xchange of labor. The first white settlers A
ave to labor and fight to get rid of the +
indians; Government troops have to fight, o
nd surveyors labor to secure the miners in h
heir claims; miners labor and pay others h
Or making machinery and directing the a
team and water power. 1t has fire. n
uently happened that the farmers who O
ed the miners would at the end of a r.,
iven period have a larger average of 7,
,eath than the miners or owLers of q,
no mine. If these metals are shipped to
oreign countries we get tea or come other
roduct of labor in exchange. Between
S6J and 1870 we were shipping railroad s.
Id government bonds to Europe and buy A
g more goods than we could pay for c
very six months the cash had to come for b.
.terest in gold, and the goods were worn p
ut before they were paid for in our pro- d
uce or manufactures. If we send over r.
heat, cotton, or tobacco or gold, or silver Il
ie goods are received in exchange for the "
roduct of our soil and labor There is no E
,quence then like paying for dead horse. p
we buy ourselves rich with bonds or fat il