Shepherdstown register. [volume] (Shepherdstown, Va. [W. Va.]) 1849-1955, 1886-02-26
For the Shepherdstown Register.l
COMMUNICATED.
THE INTEREST OF THE PEOPLE IN THE
CURRENCY OF THE COUNTRY.

Again John Stewart Mill says (B. ill,
Oh. xii, sec. i. p. 3l6), "If more money
is thrown into circulation than the
quantity which can circulate at its value,
conformable to Its cost of production,
the value of money, so long as the ex-
cess lasts, will remain below the stand
ard of the cost of production, and gen.
eral prices will be sustained above the
natural rate" This quotation we'll
sustains the apprehensive views Of those
who are in favor Of suspension of the
coinage act. aud make it for their es-
pecial benefit, and for their especial fam
cy let us carry the metaphor little
farther. When less "mOney Is thrown
into circulation than the quantity which
can circulate at its value, cOnformable
to its cost of production, the value of
money, SO long as the" deficiency lasts
will remain above the STANDARD OF the
cost of production" and general prices
will be sunk below the natural rate,
and below that price that can only bring
ruin and bankruptcy to the manufac-
turer and the agricultural producers.
Unfortunately, this just now seems to
be the exact situation in which the man
ufacturers and the producers are placed,
and their condition calls loudly to Con-
gress for relief by slight expansion OF
the currency, instead of a farther con-
traction of it. The coinage Of s25.OOO,-
600 per annum would only be about fifty
cents, or little less, per capita, or
about rs twenty-five million dollars is
TO tifty-six million people. Now at
this rate of increase, the increase of
minted coin would hardly keep pace
with the increase Of our population,
taking into the account the minting Of
both gold aud silver.
All political economists have, by COM
mon consent, agreed that where the two
coins are used as medium of exchange
(and this is now the case throughout
the world) their rated value should, for
the benefit of all, be kept as near as
possible TO that value at which they
were rated, for if either fell below the
rated value, all transactions, and all OBJ
legations would be paid in that one that
has fallen most, and the one that has
not fallen will be- driven out of circula-
ton by the one that has, leaving it as
the only circulating medium. In this
case, if the circulating medium consist
ell of equal proportions of the two met
ais, the circulation would be contracted
nearly One-half in very short time.
Instead of depositing it in the banks,
one class would hoard it, while the cap
italists would hold it in reserve for the
purchase of the deprecated coin and
bullion at a discount, knowing that
when the two metals obtained their
equilibrium their profits would be en-
larged by the transaction. Now, the
problem for the solution of our friends
who advocate suspension is this: BY
which process will the most gold be
driven out of circulation; by the one
above named, or by the the amount re-
quired to balance accounts annually
when the bulk of trade happens to be
against us? Certainly the balance Of
trade against us would never reach to
half the amount Of our gold coin, for
every five years out of seven the balance
of trade is In our favor, and would re-
quire neither gold nor silver to balance
them. Now, in order 10 sustain one of
the foregoing propositions advanced,
that England would profit by the depre-
citation of silver bullion in the market,
we beg leave TO introduce little of the
past history Of the currencies into our
service. On or about the 18th of Sep
TENDER, 1888, the New York Evening
Post, the acknowledged organ of the
Board of Exchange and the Board OF
Trade, made the following quotation
The price of silver bullion in London is
5O3S pence per ounce" Here the bull
lion value OF the 4l2la grains silver dol
lar is $0.S4l4, or in other words about
"a cents. In order to show to the peo-
pie the utter fallacy and the deceptive
influence that such statements, withour
an honest explanation Of them, have
upon the public, we will first examine
the result of the purchase Of this very
silver bullion referred to, and then
quote in full the reply of the American
Register, the ablest paper ever published
in America on the financial question, in
reply to the Post - report of the markets.
After showing from the public archives,
to which he had unlimited access, that
the very silver reported to bave been
bought in London at that time amount
ing to $25, 95s 900, for 503s pence per
ounce, that no less than 7,745, 900 was
exported 10 British India and there
COlt5Cu INV iuPSSS ct % ""''g
given to the 4l212 grains of standard
silver i'm our dollars would make them
worth l03 instead of 81 cents. | hope
the readers of the REGISTER will have
the kindness to pardon me for giving
them the benefit of this quotation at
length, as it so ably exposes the fallacy
and the deception of the same policy
now attempted to be perpetrateG upon
them. In reply to the Potts oft quoted
fsllacy, he says: ca paragraph similar
70 the above had been printed cohspicu-
ously in the Erenins Post newspaper
several times every week for several
years, with the object of impregnating
the mass of its readers with the false
belief that the United States Govern
ment, in coming since March, 1873, up