The Camden chronicle. (Camden, Tenn.) 1890-current, 1892-05-27
WARNINGS TO BE NEEDED.
DANGERS OF FLUCTUATING VALUES.
An Extract From the Pen of Senator Rog-
er Q. Mills, Of Texas.

elgn countries. Our national eX-
changes will be based on market
values expressed in our paper mon
ey, and the value of our paper
money will be based on the coin
circulation Of foreign countries.
If a bale of cotton is worth $50
to-day in Liverpool and 500 in pa
per in New York or New Orleans,
then one gold dollar will be worth
two paper dollars. But the value
of the paper dollar is elastic, and
sometimes contracts and expands
like India rubber. The intelligent
dealer knowingthe dangers Of these
fuctuating values Of paper money,
will insure himself by taking a mar
gin when he buys and sells, IL the
paper and coined dollars would re-
main at the same value he would
buy and sell by the prices fixed by
each. He would pay $10O in pa
per and sell for $50 in gold.
But the paper will not remain at
a fixed price in gold and silver. It
GIBBS and flows like the tides, be-
cause like the tides the rise and fall
is the law Of its existence. Against
this peril the dealer has to guard,
and the producer has to pay the in
surance against loss on the way to
market. An Intelligent buyer to
succeed in his business must pro-
tect himself against the peril Of
fuctuation as he protects himself
against loss by fire. He will give,
l say, 800 in paper for the bale of cot
: ton. IF the price Of the paper dol
! larremains uHchangeduntil he sells
for gold he will make So out Of the
pockets Of the farmer in addition to
his other profits. If the paper APP
preciates 5 per cent. he will be even.
If it depreciates 5 per cent. he will
l make $40. In any event he will be
secure, and the farmer viii pay the
losses.
This is but type Of millions Of
: commercial exchanges. The pro
e Queer, as has been shown before
d has to pay all charges incurred in
e the transportation of his products
+ to market, and then has to sell al
the market price. If one farmer il
so situated that he can deliver 6
bale of cotton in market for SIS cos
and another has to pay $40 cost, the
- first will receive So more for his balt
? of cotton than the other, and if al
the cotton farmers in the United
States could deliver their s, 500,00l
bales Of cotton in the market at
g reduced cost Of So per bale the!
n would save over S40,000,OO0 pc
Us annum.
y The dangers arising fromthe ris
-e and fall Of paper money are no
E confined to the sale Of the farmers
product, but they extend with equo
-, force to other commercial exchang
, es. The merchant who buys hi
. goods at price fixed at the col
- value Of the paper dollar at the tim
/, Of purchase will protect himsel
70 against loss by adding a sum to hi
: own charges sufficient to cover a
possible depreciation and sell fc
enough to pay all costs and res
lg sonable profit, and thus the pre-
s, ducers and the consumers in tn
w country would have to pay all insu
ce ance against the peril with whic
ar commercial transactions are COZ
cy stantly threatened. tits a tax TIT
k eats like a cancer, and eats in seer,
in where it is not seen. There coul
is hardly be conceived and put in o.
= Grafton any scheme that is mo
hnrtfnl to the laboring masses thu