The Caucasian. (Clinton, N.C.) 188?-1913, 1891-04-09

10 VI people having the requir
Ell collateral To deposit. aud that
the collateral so deposited, in
stead Of being restricted to gov
eminent bonds, a simple evil
fieuce Of debt, be extended To q
few leading products OF agricul-
lure that f,,rm the basis OF The
export trade Of this country and
are positive evidence of wealth.
IT IS SAFE.
Money put out under the pro
pose f! system could never aug
nlent the consumers lice. be.
canse it could never abnor:aally
Augment the relative volume.
Therefore he highest prices, or
those which now OBTAIN with
the consumer, would not be in
creased, but the tendency would
be to bring the forest prices, or
those now realized by tie pro
Queer, up 10 the mean ,rice IT,
ward which the consumers price
must also tend.
This government ROW main
ta'n8 about S346,0JG,0 900 Of traa
sury notes that circulate Oh a
PARTY with gold, that are based
on nothing buO the government
credit. Several Nom tecs OF
Congress haV9 reCOmln ended
that the amount Of such notes
be increased.
"This may be done and the
amount materially Increased,
without depreciating such notes
from the gold standard, but al
must admit that there is a limit,
to go beyond which would de-
preciate such notes and that
such limit is constantly changed
by circumstances.
MAINTAINING THE GOLD STANDARD.
81 claim that the amount of
Treasury notes that would cir
culate when based on wheat and
cotton would be- self-ii,nited to
an amount that would always
keep them on , parity with gold
and that none Of the distur5in z
Influences which affect govern
nent credit would have any
tendency to depreciate such
notes from the gold standard.
"ln considering this PROPOSE
tiol it must be remembered that
the farmer i? not compelled to
deposit his wheat and cotton. It
Is generally recognized fact that
the price Of these products are
regulated by he export markets
WI lch are using the single gold
standard Of money, aud there
fore the prices % the products
so estim ated would be gold
prices, sand whenever the increase
in the Volume Of domestic cur
rency augmented the general
prices Of commodities to an ex-
act equality with such GOLD quo
tations for these products the
equilibrium Of price would be
established and no more would
be deposited BY tie farmers, be
canse any further additions to
the volume o. the circula ting
medium would increase local
prices N local currency 50 that
it would pay better to Sell than
To deposit and the product,
would come on; Of the ware
houses aud tie money 20 iuto
them, and consequently ont Of
circulation, thereby automati-
cally establishing and maintain
ing the equilibrium Of prices.
Il GREAT ECONOMIC TRUTH.
"In this connection there is a
still more important cons:dera-
ton. If it be true that OF such
products as are leading ;onmod-
tiles Of export the domestic
price is regulated by the export
market, hen this Sub-T:easnry
plan must DE admitted 10 be the
discovery OF a great economic
truth. The price Of these pro
ducts being fixed " the export
price, it depends Of course upon
the supply Of gold and thu de-
mand Tor its use III such foreign
countries; therefore the fiuctu-
atoms here do not correspond
with the general level Of local
prices expressed in local money,
and the producer and consumer
are alike at the mercy of the
Spectator. It tie domestic
price is governed by foreign quo
tatiOns then effective measures
should be inaugurated for pre-
serving the same ratio between
the supply and demand for
money that prevails in the for
eign markets. This is effectual-
lY done by utilizing the domes-
tic product which is priced
abroad as a basis for dom estic
issgse Of currency.
81 his system says, PRACTICAL
Is, 'We have been hampered by
having domestic prices of these
products based on foreign gold,
and we nov propose to utilize
foreign gold as a circulating me-
dunn in this country for the
purpose Of handlin-, these pro
duets which it prices
"Now certificates are issued
against gold and silver bullion
Toyccs4 al II, ,,C,,.r,,,.~L