The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1891-10-17

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the government.
@. What determines the amount
to be issued?
A. The will of the people as
expressed in law.
@. What is the direct affect of
an increase of money?
A. The effect upon the country
at large is to produce increased
activity in trade and production;
that is, to increase the wealth of
the country. The effect upon
debts is to make them relatively
smaller and easier to pay; the effect
upon prices of goods and values
generally is to raise them. Those
periods that are popularity known
as ''good times" when laborers are
generally employed, and industri-
GUS men are getting richer, always
occur when money is either abund-
ant or increasing in amount; and
on the contrary, what are called
"hard times" when many people
are out of work, and industrious
people find it hard to pay their
debts and make living, always
occur when money is either scarce
or diminishing in quantity.
@. What is the direct effect Of
decrease of the volume Of money,
or contraction of the currency, as
it is called?
A. To check the production Of
wealth; to throw men out of en-
ploy ment; to increase the amount
of all debts; to decrease the gen.
eral prosperity, while it increases
the gains of the creditor class
those to whom debts must be paid
in money.
@. How has the quantity of
money been generally reg ulated in
the past?
A. Largely by chance and
accident.
Q. Is this a good way?
A. Manifestly it is not. The supply Of any
want should be asubject of intelligent considera-
ton.
Q. What is the general rule for the regulation
Of the issue Of paper money?
A. To issue only what could be redeemed in
gold.
Q. What are the objections to this plan?
A. They are many. II the quantity of gold
be too small for use as money, it may be gener-
ally Is too small to serve as a basis for paper
money, andthen 1t Is impossible to have enough
money This plan is only a make believe way of
increasing the amount Of money, and does not
accomplish the object sought 1t does not in
crease the volume Of real money at all; the paper
money IS only a kind of confidence money and
VIII en- confidence is lost it becomes deprecated
It does not stand the supreme test it is like a
railroad bridge made just strong enough for or
binary trains.
q. What is real money!
A. Real money is irredeemable money-that
Is always just the same-that does not expect re.
demption, promise redemption, or require re-
demption Redemption is onlyappllcable to such
things as are naturally deficient or bad
Q. Can real money, irredeemable money, be
made out Of paper:
A. Yes.
q. Wilt serve all the purposes of real money.
and that perfectly?
A. Yes.
Q. Has the experiment been tried on a large
scale:
A. Yes. The bank of Venice maintained an
irredeemable currency, which was at premium
over gold and silver for 700 years.
Q. What are the advantages Of an irredeema-
BILE paper currency?
A. A great saving Of expense, The supply
may be perfectly regulated. When worn it can
be cheaply replaced. It would not leave the
country and thus be lost to use when most needed
@. How can its value be maintained?
A. Its value, that Is, the purchasing power of
each dollar, cannot change II only the quantity in
circulation DO increased just as fast as is required
by the increase Of population and business
.. How could such an important matter be
best regulated?
A. Probably by constitutional amendment |
requiring the secretary Of the treasury to prevent
any fail In the general range Of prices by means |
Of the issue Of new money. |
Q. Why should 1t not be left to the action of |
congress.
A. Because the conflicting interests of differ.
ent classes would cause perpetual conflict over
monetary legislation, than which nothing can be
worse
Q. Is a contraction Of the currency ever de-