The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1879-11-28
VII.

VII.
GOOD MONEY REGULATES IT'S OWN VOLUME.
II more money were needed in this country,
use specie, and our prices are gold prices.
When the level is lower here than elsewhere,
gold will flow in; when it ID higher gold will
flow out. Resumption has cut away tho barrier
between our money and that Of the rest Of the
world, and now, il We want more, more will
come. There is plan to cut through the
sands which separate the sea from the great
African desert. Streams Of some size now
flow into that low basin, bat are lost in it's
sands. Let in the waters OF all the oceans.
engineers say, and . new sea will be created,
and kept always full. Resumption OF specie
payments in this country was feat OF the
same sort. 1t opened to us all the specie OF
the world, which will now regulate Cur supply
according to our needs. In place Of dreary
desert OF stagnation, it has brought new hfe,
and thrift, and commerce. The African sea
will have two sources OF supply, the ocean and
rency also has double supply; it is open to
the worlds monetary ocean, and streams OF
new notes without limit can be poured into 1t
by the banks. OF an excess OF notes, there is
possibility. Notes might so multiply as to
fall in value, stop redemption, and drive out
specie How far We are guarded against that
danger will be asked hereafter. But of lack
OF currency, as long as notes are paid In gold
Oh demand, there Is 40 possibility. II more
notes are thought to be needed for local use
the banks will issue them. II more specie is
needed either for circulation IN addition to the
notes, or as a reserve against legaltenders, it
will come under natural laws, and according to
our needs.
This is not fancy, but fact, as our experience
fully proves. Resumption has come, because
the barrier OF false prices was cut away be-
tween the industries OF this and other coun-
tries, 30 that gold was brought hither, and the
yield from our mines was kept here. The cost
OF raising wheat, corn and cotton, of producing
provisions, petroleum and other articles, and
OF moving them to the sea, was 80 reduced
and the yield Of them was so increased, that it
became more profitable to send Thorn abroad
than gold. SO We paid off foreign debts With
our products, and in the process gave good
work to hosts OF men who had been idle, and
piled up the gold from our mines aud from
abroad until all doubt that tho United States
could pay its notes was removed. Until we
have an excess OF money, prices must remain
at such level that we shall sell more to other
nations than We buy from them, and more
debts will be paid, or more gold will come from
abroad. So foreign debts amounting to many
millions have been paid since the year began,
and some shipments Of gold from Paris and
London 30 NewYork have been made since
August 1. Even if there should be an excess
OF money here, tho first effect would be an un-
due advance in prices; the country would sell
less and buy more; gold would soon be wanted
FOR export, and some notes would be handed in
for payment. In short time legal-tenders
would grow scarce, and prices would fall back
to proper level. Thus some shipments or
gold to Europe IN June were each preceded,
within day or two, by closely corresponding
redempsons OF notes at the Treasury, and,
small as the movement was, it probably helpe1
to stop too rapid advance in prices, of which
there had been signs. AS long az notes are
redeemed on demand In gold, it may be hoped
that our currency will have the self Regulating
faculty Of hard money, which never loses the
one royal virtue OF going surely and swiftly
where it is nseded.
As long as prices here are ruled by this great
regulator Of the worlds markets, industry and
trade will have healthy growth. OF growth
that was not healthy, We had more than enough
in the times OF bad money and false prices
Vast sums were worse than wasted in making
or growing things that could not be sold, IN
laying too many miles of railroad, opening
too many coal mines, and building too many
iron and other mills. What good would it do
to bring into country settlement ten lawyers,
or twenty blacksmiths, where one could do all
gave undue profits to some kinds OF industry
or trade-to mlddle-men and TRANSFORMERS
especially. Thus more means and more labor
we're drawn into the very channels where they
were least needed and our industry went on
from bad to worse, getting moro ill-adjusted
every year, until the crash came. Long pros
tration has forced return to more healthy
proportion Of occupations. 1t is said that TO-
600 miners have gone from Eastern coal re-
gions to Western farms; host Of dealers
have ceased trading and gone to producing
and 80 from other ovsrcrowdsd occupations
men have gone by the thousand to try new
fields. No one can tell how much suffering |
and waste would have been prevented, had |
this mlsdirection OF labor and capital been |
stopped at the outset. Hard money, by going |
where it is most needed, has great power to |
prevent this mischief; it stops an unnatural
rise OF prices, in any country or in any branch
OF industry or trade, keeps speculation within
e