The Marietta journal. [volume] (Marietta, Ga.) 1866-1909, 1890-06-26
EFFECT ON THE CURRENCY

dangerous CONTRACTION OF the cur.
rency and prices are low.
EFFECT ON THE CURRENCY.
According to the last official re-
port upon the subject the total
amount of currency IN the country
is 81, 60,758,071, but the sum of
1922, 764,278 is held in the Treasury
of the United States, leaving about
81 sec, O00, 600 in active circulation
among the people. 1t was said by
one of the leading advocates of this
scheme, who appeared before the
Senate committee, that in order to
carry it out it would be necessary
to double the present volume OF cur
rency in circulation once every year,
and as the products can remain in
the warehouse only twelve months,
OF course about 81 500, 600, 900 would
have to be retired and cancelled
every year, two changes in the vol
ume OF currency, either of which
would be absolutely ruinous to all
the commercial and industrial inter
ests of the people. No business of
any kind could be transacted in any
country in the world under such a
financial system as this, and the
farmers and laboring people would
be the first to feel its fatal effects.
The fuctuation in the wages of Ia
Dor and prices of commodities would
be so sudden and 80 great that no
man could afford to enter into a
contract of any kind. All credit
would be utterly destroyed. The
laborer would find that the wages
which he had agreed to receive when
the currency was contracted would
be insufficient to buy bread for his
children, when the currency was
inflated and the farmer would find,
when he undertook to purchase his
supplies with the Treasury notes
received on his products, tina: on
account of the temporary imitation
it would require twice as many dol
lars to procure the same articles as
were required before the deposits
were made.
THE LOGICAL RESULT.
The entire business of the couu-
try would be thrown into the most
profound confusion twice a year.
Some would find themselves sudden
ly bankrupted by the contraction of
the currency and a decline in
prices, while others would find
themselves suddenly enriched by
the initiation of the currency and a
rise in prices, but all would share
substantially common fate in the
end, for the growth and prosperity
of the country as a whole would be
destroyed as long as such system
existed. But, during the time when
these great food products are locked
up'in the warehouses, or in the sub
treasures as they are miss. called.
what is to become of the millions of
people who reside in the cities.
towns and villages, and the millions
who reside in the country, but own
no wheat, corn or oats? They are
to be starved into submission to the
demands OF spectators; they are to
be deprived of bread until such
time as they become willing to pay
whatever prices the purchasers and |
holders of warehouse receipts NAV
see proper to extort from them. |
No such facilities as this scheme
will afford for controlling the mark
cts tor purely speculative purposes
have ever existed in this or any
other country, and no more perfect
system for the oppression Of the
poor could be devised. The exact
quantities of products ON deposit in
the several public warehouses will
be known in every commercial and
financial centre and combinations to
purchase and hold the receipts could
be easily made, especially when they
can be procured by the payment of
. small per centum of the value of
the deposit.
But it may be contended that the |
farmers can sell their products
while they are on deposit and
receive the benefit of the
high prices which will temporarily |
prevail on account of the imitation |
Of the currency. If the volume of
currency were to be permanently
increased so as to make prices per-
manently high there would be some
force in this suggestion, though even
in that case the prices of everything
the farmers are compelled to buy
and use would be increased in the
same proportion and they would gain
nothing substantial in the end. But
the volume of currency in circula-
ton is not to he permanently IN
creased under this plan, for, as al
ready stated, each initiation must be
almost Immediately followed by a
corresponding contraction. In view
of this inevitable contraction and
consequent fall of prices, of course
while the currency is inflated and
tho nriceS ara hiuh No ac4uol ooo