New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-08-12
THE A B c OF FINANCE
,,orre FATALLY coon At ALI. TINES.

rrrelacmed paper money. At last redemption
b,irs the currency to gold and our feet touch the
soh3 land. Now, for the first time We can know
,,-s- night what the greeDback viii be worth at
breakfast time. Men say, gold also changes IN
value. 80 the solid rock, to which ship u moored
after a voyage. Is really moving-round the sun.
Rrtir moves only as the world moves. For all
,,ractlcal purposes IL is still. currency that is
,uoored 10 gold can change only with the money OF
The whole civilized world. Hence 1t disturos for
eicn commerce., aud consequently domestic industry
and trade. less than any other form Of money that
has yet been tried.
Even az IFS worst, our currency Of greenDachs an"
National bank notes was in some respects the oe>V
This country had known. When II rose OF fell m
vaIue the whole country shared the gain or Joss
Uniform money, which no longer made the west
pay tribute 70 the East, was Of incalcuaoie dement,
II the money ln use during the war had not been OF
equal value fin an parts of the country IL is n'l 40
an SIRE that Grant would have reached Apo
rpattoy or sherman the Men learned To- see Ne
hind each note not some one of a swarm OF banks
OF ali kinds and grades but great nation Eacl
note was as secure as any other; whatever value
any had all had Yet tins simple currency, though
vastly better than that which 1t drove out OF use
was bal money, because il had no fixed value. IL
was ever changing. because the note was promise
which was not redeemed The prospect OF its being
paid varied with every battle; with good crops OF
great fire with each increase or decrease ID the
amount issued; with the victory or defeat OF
party.
Tris money did not tax one section steadily for
che benefit of another. But il taxed everybody by
tr,~rs for the benefit Of nobody. The brgands OF
Nay,co DO not take as much from the property
owners Of that country, IN the aggregate as Is
taken in needless taxes or pllfcred by corrupt
officials in many civilized lands but they kill all
trade and industry So chaugeable money infested
all the highways Of trade, making every step un-
certain and costly. At first the dealers as class
made great gains; they bought with dear money
at low prices and sold for cheaper money at higher
prices. But their turn TO lose came when money
went ND and prices went down. Soon they
learned TO charge higher rates Of profit on
every sale 70 insure against risk of
change IN the value Of money. Having
paid - q barrel for -four i'm money worth % cents
on the dollar, the dealer knew that he might be
obliged 10 sell for money worth only 40 cents and
hence charged - per barrel. This made a wider
gap between the price paid to the producer and the
price paid by the consumer. So all middiemen.
dealers transporters and spectators. defended
themselves against a possible fall IN the value OF
money by heavy tax upon consumers, and this Is
the secret Of the extravagant charges and retail
prices iu times Of variable money.
But .lis wider gap between producer and con-
suner syeled the cost Of living That forced work
men to seek higher wages. That raised the cost OF
producing things, and that. IN turn compelled The
producer to ask higher prices and that, m turn,
drove the trader to charge still larger profits So
the cost of things was pushed mp step 10y step.
First our foreign trade was dIsordered this be-
came the best Of an countries IN which TO sell, and
the worst On which TO buy, and goods from abroad
were emptied upon this market with goods Of
our own which foreigners had been won't TO
buv. Next, many found that they could
no longer consume at high prices as much
"a before Workmen found wages had gone mp less
than the cost of living and they had less TO spend
An the wheels were cl0Cged. Everybody was I'm
trouble. though few could see why. Trade slack
ened and grew staguant. Active traders were left
with great stocks of high-priCed goods prices tum-
bled and traders by the Thousand we're ruined.
Producers stopped their mills, or mortgaeed their
farms and workmen By the thousand sought work
in vain.
Every thrifty man who had savel ANYTHING be-
INTO lose. when money fell in value. If ne had
loaned 900 dear dollars, the debtor paid 1000
cheap dollars. If his savings were in bank, each
dollar came 10 mean less value. He who had saved
500 in 1860 found in 1864 that SCI of 1t had van
ished. He who had money in a stocking found that
tvo-thirds of its buying power had gone. There
was small inducement 70 save such money. Ii
seemed 70 come more easily every dav, but melted
away i'm the hands Of who tried To save It, Hah-
its Of thrift faded away. That meant mischief, not
merely 10 millions Of men aud women whose habits
thus formed have cost them years Of misery but TO
all good workers and honest dealers. Industry is
kept alive BY capItal-that is, by that which has
been saved in the past. When saving stops, the
stream Of capital dry. As a thousand little
rills come together 10 form river deep cnough 10
float nations commerce, tho small savings Of the
millions are brought together 20 sustain great en-
terprses 10 float an active trEde and TO keep mills
and mines. furnaces and farms at work But
the little rlls dried up, IN the years when
bad money discouraged thrift Those who
had money. too. became afraid to lend it,
for nobody knew what sort of money might be paid.
Its valne was fixed by Congress- and not by re
demption. and every gain Of a cheap money party
made lenders less willing 10 lend. Thus on all
sides industry was deprived OF support On the
other hand. much money was drawn into the wild
speculation which uncertain money breeds. The
chances 70 make great by rapid changes
in the value Of money and in prices turned
trade into gambling. Money went thither. Pro-
ducton tainted and speculation thrived.
AL these things we have seen. For years we cav
dealers trying by heavy charges which finally over
loaded trade to guard themselves against the risks
which come with variable money. We saw the pro-
ducer get low prices for what he sold, and pay high
prices forwhat he bought. We saw savings shrink,
while men Of means locked up their funds in fear.
For years we saw spectators busy, while mills
still and furnaces dark The sharp lash Of suffering
should have taught that the land does not thrive
when its money changes in value day by day. At
last redemption has chained our currency to the
worlds money. With lower prices comes a vast for
eirn trade Steady money brings lower charges by
retail dealers. transpOrters aud middlemen. The