The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1890-10-22

u
and supply simply, which regulates thc
value of everything ese-the constant demand
which the government has on the conlh'l,lsE y
for its necessary supplies: medium resting on
this demand, which simply obigatcs the govern
ment to receive it in all OF its dues, to the cAcuS
ion of everything else. except gold and SILVER ana
which shall he OPTIONAL with those VINO nave oe-
lnandS the government to receive or not, would,
it seems to me- be as stable in its value as those
metals themselves, and be as little liable to abuse
aS the power Of coming. 1t would contain WITHIN
itself z Selt-rcGultt:ng power. lt could only DC
| issued to those who had Claims on the govern
| ment and to those only with their consent; and,
of course, only 1T or above par with goid an0
silver which would be its habitual state; for, SO
far as the government is concerned, 1t would De
equal in every respect to gold and silver, and
superior in many, particularly in regulating the
distanG exchanges of the country
PAPER CURRENCY REPRESENTS DIsTRIBuT1vE
! MERCHANDISE.
An important fact that is frequently overlooked
is that paper currency. when sound and stable,
must in its fnal ::r;'yS:s represent the distrlbu-
ton of merchandise MIR. Poor, in his work,
Moi ey, its Laws anu history" states this prop
osition most admirably The fact Is so important
and Poor is so clear and forcibe on the point, that
| quote from him at some length. even at the risk
| Of being tedious. In discussing the operation OF
a bank in the conduct OF its business ana the Is
| suance of its notes. he says: line pivot upon
which all these operations turn IS merchandise.
That provided. the instruments which represent
| it. and which entitle their holder TO
| corresponding amount o. the same value, or
to the proceeds of the same, and which. by their
| transfer transfer that which they represent, are
paper money currency. As soon as they are ls-
sued their movement c0nmences automatically IN
! their appropriate spheres, and continues until
tLev have accomplished their circuit ana Work.
Ii Is merchandise that calls them into bclng 1t Is
merchandise that gives them their value; 1t is
merchandise that gives them their impulse, ana II
is merchandise that. nv its purchase for con>ulnp-
! th,.,,, hO
| be reissued bur in making new loans. so TAR as
merchandise is provided, they proceed no!Se!eSsly
and benefccnt!y IN their prone: orbits so lar as
II is not provided their sc Is crrt!c and de-
structive as would be that of the planets without
| the guidance and contro! OF that central mass
around which they larneSsiy H!oVe.
"An loca! currencies. therefore, are rase NOT on
gold and silver coin. hut on merchandise, Tor
which they serve in the place of coin, as InStru-
ments Of distribution Com Is ;tSelf money, and
needs no symbol for Its transfer or distrhution.
Except a small quantity by way of caangc. the
preclouS metals arr no longer used as currency.
They are held and used chiefly as reserves Tor the
discharge of such paper curr'nfl@S as are not us
charged by II crcliinse i'll the ::anncr described"
| AS long as the notes issued ly the bank repre-
Sented merchandise. he SHOWS that they would
pass on parity with specie: THE holders OF mer-
chandise, therefore, would receive THEM equaiif
with coin in its sale. they would pay their bills
equally with coin. AS they would lie accepted IN
| the sale of merchandi equally with coin, they
would lie taken 10y :.p public, the CONSUMERS OF
merchandise. equally wltn COIN. A. llc O.,1%CL Vi
all currencieS no matter the form or II, tcrial OF
which thew NAV he composed Is TO reach by their
exchange some other article or article, the nod
ers OF the notes and credits OF a bank would have
no adequate motive to exchange. nor would they
exchange them for coin 20 lie used a. currency 30
long as they would rerior1n. currency. al the
! functions OF coin Producers cOH>eu uuenti!. IN
whose favor the bills We're discounted, would from
the greater convenience o1 their use, prefer to re-
ceve in their discount. notes and credits TO coin
as they would pay them out equally with coin IN
the purchase OF labor and material. i'll the prose
cution of their industries, to the very parties VINO
would he the consumers of the merchandise which
they had produced and put upon the market.
Again. alter discussing the causes OF the failure
of all banks which have ISSUED currency bascu
upon real estate, he says: "rr"in wi!at has pre-
ceded the reason Of the failure OF a.! banks. the
captal or reserves OF which nave consisted oi r5t
estate OF securities, vii! have been made Suiii-
ciently evident. All currences, to be accepted j.
such. must be instruments tor representing ana
serving for the distribution Of merchandise Ii
! they will not secure TO their owner merchandise
the equivalent III value TO coin. they Viii always
be immediately drawn or attempted 70 he drawn
| in com. The holder q; note issued
by a real estate bank does not
want that which it represents. but mer-
chandSe. or in the absence of merchandise. coin
Such a bank Eas neither. Should II Il EN- " dis
count nothing hut business paper, an iElr"5>lhie
suppositiop Dor ali such banks are cot up to sup-
plv the lack of business paper, that Is. OF mer-
chandse. the basis Of business paper. no one
would take its notes and crcdt- 10 any consider
able eXtcn., il would he seen hS IL! tEat no
proper provision had been u:tis' 10 carr; forward
its operations or t0 meet the losses to which II
would be subjected. SUCH hanks. therefore.
from the very nature OF tMliGS, nave never
been able to make even the first successful start
The moment they have 1t elnpt+d TO Issue notes
and credits as currency, these have always Teen
presented for immediate redemption In com. AS
they can pay neither merchandise nor com, they
have other alternative ti. To 90 lnto :iii.ic-
diate liquidation.
..That a currency may at all times be converti
ble the means for its redemption must always ne
provided previous to lts Issue, not lv the "ii!N,
but by the put.ic the producers OF m"rcilal;tisr.
With such provision. the currency from the mo-
ment of its issue would take care o.. itself. The
attempt to make such provision after issue would
be certain to defeat itself. W hen nerc!indSc Is
provided the necessities of consumers coIupe!
them to purchase 1t. piece by piece tor consuiip
tion. Their necessities and purchases Will have
the effect to maintain Its price so a. to render It
adequate to the discharge OF tie currency issued
against it. But neither res! estate nor securities
can be taken for consumption, piece by piece;
they must be sold in gross, or ot :t al.
Real estate and securities, II: ably shows, can lie
neither eaten, drunk nor worn, and cannot, there
fore form so safe or stable bas, Tor currency as
merchandise which is daiiyanG houriy distributed
throughout the country tor consumption.
ESSENTIALS OF SOUND PAPER CURRENCY.
Now, let us briefly sum up the essential elements
of sound paper currency:
l. 1t must be backed by the public confidence
that 1t IS at all times convertible IN specie or lls
equivalent
2 To secure this confidence there must be such
constant public demands Ior which 1t Is receivable
on par with specie will enable its prompt
convertibiity into specie, or its equivalent.
3. To insure this, It's volume must be regulated
by supply and demand; and
l. This can only he accomplished by making It
the representative of the Distribution o. mer-
chandise for consumption, which would prevent
it's volume from reaching point beyond
which It could not be immediately converted into
specie or some necessary article OF merchandise
on specie basis.
TREASURY NOTES SECURED BY STAPLE CROPS.
The plan of having the federal government issue
treasury notes based upon the great staple crops
fully meets these prerequisites to an increased
issue OF paper money.
For every dollar of treasury notes to he issued
by the government. the farmers PROPOSE III some
FORM pledge their cotton or wheat 10 the extent
Of only 50 per cent of its actual market value
This creates debt these staple crops, the
whole or nearly the whole OF which is consumed
within each year. For the payment of this debt
the treasury notes issued by the government
would be accepted by the government on L parity
with gold. The notes which would be issued upon
the crops could be made similar IN all re-
spects to the present treasury notes
They would perform all the functions
performed by the present treasury notes, would pe
receivable for the same class OF public and p-i-
ra1e dues with the additional strength that, by