New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-08-23
THE A B C OF FINANCE.
TX.


10 beeorne poor and therefore unequal TO Its
,ra,ts The first thought always is to issue more
,o.es But borrowing does not help man out OF
debt and issuing more notes does not make the cur
vapev any better. Notes not redeemed are sure TO
beeome poor. as has been seen. even when. the
amount OF them is not changed. But IL more De
sssued in answer to the cry which always comes
when the notes poor they are sure 10 grow
orse and win lose in virtue even more than they
gain ia volume. This is proved by the history OF
note issues IN all lands ancient or modern, ciNzcd
or unc,yilized American European or Asiatic under
oDv form of rule from absolute desPOtSm to self
government In these papers, however the aim is
not TO array mass Of facts IN bulk so great that
few can master them, but to make clear the causes
and laws which govern the value OF money III all
human experience.
Iisalaw of human nature. in all lands and
fines that we give less for a thing IN proportion as
IL becomes plenty and easy to get When wheat was
plenty. and cotton cloth was scarce, bushel oil
wheat was worth only two yards OF the cloth WIN
the same supply OF wheat, cloth grew more plenty
until bushel Of wheat was worth twenty yards
Then cloth being still plenty wheat became scarce
until abushel was worth forty yards of the CLOTH
Make ANYTHING more plenty, and the desire Tor IL
crows less in comparison with the desire for other
things that is its value falls It's so of gold. II
St grows more plenty we give less for IT; that u.s. IL
buys less Aud exactly the same is true OF any klhd
Of money: IL il grows more plenty. people want IL
less in comparison with other things and give less OF
other things for it, so that it buys less Everybody
knows that if there is big crop OF wheat each
bushel will buy less dollars. Everybody ought 10
know that If there Is big crop Of dollars each DOL
lar will buy less wheat
Money is the buying tool. But a great many mis-
takes come from looking at money only as TOOL IL
i the only tool that does its work the more poorly
loses mart of its buying power-the more there IS OF
q ifs farmer has use for only one plough, II is
,roste 70 buy two. for one will lie idle
md rust. but the other will do It's WORK
rs well as if be had only one. But If the coun-
try has need OF only one supply of dollars, and keeps
+,ce as many, all Of them viii be used in the buy
ing SO that each will buy only half as much as II
ourbt THIS is the only tool that grows duller De-
,oo,,se W.. have too many Of them. What sense Is
there in getting more, when the effect Is 70 make
fben all dulleri Dollars are like workmen. Ii the
work to be done in a shop OF mine IS only enough
for 100 hands, but there are 200 at work,
each can yet only half time and will be worth only
half pay. So il the amount OF buying
10 be done is only enough for a certain number Of
dollars worth 100 cents each, ana we send twice as
many dollars TO do that same work, each can only
do enough TO be worth 90 cents. ItdOes not help at
MI 10 make the dollars lcgal-tenders. Without
breaking law, a man can refuse TO sell things at any
price PAYABLE in legal-enders. If he does not want
TO sell 100 cents worth of wheat for legal-ender
worth 5Oceus he will put up the price, and ask -
a bushel instead OF 81 bushel
But the paper dollar is also promise, as well as
tool. The value of promise depends upon the
power to pay that is behind it. The thrifty Jones
and the slftless Smith each had in his store goods
worth 81 900. But 1t was known that Jones had
out only one note for 81 0O0 which was worth that
sum- Smith had out five such notes. and men did
not care to buy Of them Tor 5000. The power OF
the Government 10 pay its notes is the after the
amount of them is doubled as before. But each note
then represents only half as much Of that power.
Besides distrust sets IN. No one knows what the
Government may be able to pay, nor how many more
notes il may issue. The receipts for wheat in an
elevator ought TO have behind them one bushel of
wheat for each bushel promised. Suppose there has
been m over-issue-that the elevator cannot de-
liver bushel for bushel, what the receipts promise.
PERHAPS there are twice many bushels on receipts
sdoa as there are of actual wheat IN the blns Ii so
each receipt for 1000 bushels really represents
only 300 but no one can be sure. And the elevator
may put out IS many more receipts tomorrow. talth
IS shaken. Holders sell receipts for what they can
So of notes that are not redeemed. The one thing
certain is that the Government cannot pay dollar
for dollar How much it can pay. none know. How
know.
Such notes lose part of their power to buy. PeO-
ple refuse to give the same quantity of goods for
them as before the larger issue. The change is not
instant but 1t is sure. 1t is not eqnay rapid as TO
all things to be bought and thus does special wrong
to labor, for wages up more slowly than prices
But soon the whole scale Of prices and wages alters
q part of the buying power of each dollar is lost.
Because there is dstrust. put up prices as far
rs they can Because they expect another issue
still 50 that the dollars may soon have still less
buying power men put prices too high for the
amount of notes now in use. Thus il is inevitable,
from the laws of human nature. that the note loses
not only that part of its buying power which, In
proportion to the amount of notes already In use II
oprht TO lose but a larger part from the fear that
more note, are to come. When every man is anx-
ious to 10 make himself SAFE some will oyerdo 1t.
iast rs a boy. who tines to fill a pail to the very
bru Is sure to make il run This comes TO
pass: the double supply of 50-cent dollars will not
40 as much buying, at the new prices, as the former
suppy of lOOcent dollars could do at the old prices
What then7 The cry for more money Is louder
than ever. The need for more money seems greater
than ever In reality, the need for better money is
greater Men ought to see that another issue OF
NAPIER money means only further loss OF ITS buying
power, deeper dstrust, and greater mischief But
80 Government has vet been seen among men, save
ihat OF these United States, winch has had the
sense and tie frmness to stop, after having fairly
begun the issue of irrcdema6le lega-tenoer notes
IL those rapids many nations have dIifted toward
tue Niagara Of bankruptcy. Only one has thus Tar
escaped.
OBITUARY.