The herald., 1894-03-21
THR KXIGRNT DEMAND.
Hungary,

more money, OF, as the DrOKers OF
Pauper alley would put it, more mud,
is the exigent demand of the United
States today. and consequently any
thing that bears even remotely on the
subject will be of great interest to any
intelligent person. Our fellOw-citizen,
S. B. Gordon, Esq., has an article in
magazine called "Politics," in which he
develops some interesting views on the
nature of money itself. In substance he
holds that gold and silver are moneys by
virtue OF universal law and would be so
over the whole world were the several
governments thereof to absolutely de-
monetize them. Perhaps the most
original portion OF his article, however,
ia that in which he advances the idea
that a paper money, issued in proper
quantities by the United States, and re-
ceivable for all dues OF the government,
is money, and is not merely the repre-
sentative of money. To insure it that
character it ought to be issued in
amounts responsive to the demands Of
business. To prevent it from be-
coming redundant, and to give it
fexibility as we'll as stability, the
government, in times when infa-
ton was threatened, could offer for
sale bond bearing low rate OF inter
est, into which the surplus circulation
could be readily converted. We have
not attempted to give more than hint
of Mr.. Gordon's plan. His paper is
somewhat voluminous, and yet so COM
pacted and automatic that it would be
scarcely possible, in the brief compass
of a newspaper article, to give just
idea OF it's scope.
We look upon Mr.. Gordon's leading
postulates as absolutely impregnsble,
and this journal has always held sub
stantially the same view of money, viz,
that it's value depends absolutely upon
its uses and the weight and solvency of
the power behind it, and not upon the
material OF which it is made. Even the
wampum of the Indian, with nothing
but the common consent of the red man
to back it, was as much money to him
as gold ia to the monocrat of Wall or
Lombard streets. There is about these
propositions nothing OF the wild vagaries
of the greenbsckers. The only thing
Mr.. Gordon's plan has in common with
the greenback notions ia that he believes
the government ought to issue its own
money directly, and without intermed-
isries. His system has all the checks
aDd q IL tho 70 of11rap of r1odarotiou uoadad
to secure its beneficial operation. If
adopted by the United States a magical
era of prosperity would ensue for the
whole nation, instead OF being confined
to New York City, and to small portion
of that city pan!cs would become im-
possible because, under its workings, the
people would be supplied with precisely
the amount of money needed, and no
more, and there would be no conieders-
ton of national bankers and their allies
owards making money scarce or plenti-
full at their pleasure.
Mr.. Gordon might have enforced the
strong arguments Of his paper by re-
view OF the old scrip System of Pennsyl-
vana, under which the people of that
colony attained a prosperity never par
alleled In the previous history of the
world in the rspidity of its development,
as DR.. Franklin declared in mis- testi-
nony before q committee of the British
parliament. The plan was a very sim
pie one. The colony of Pennsylvania
issued scrip bearing moderate rate
Of interest and in small denominations.
This was loaned to the people on their
lands on fair valuation. Thus every
deserving person had money, which cir
culsted without question, it was as good
as gold and the commonwealth was set
tied MP with marvellous rapidity. Busi-
ness OF every kind 1ourished like q greer
bay tree. In moment OF devilish ma
Lightly the British government inter
fered with this issuance of sc1ip, and
exercised the high prerogative of issu-
ing all the money OF the empire itself.
From that moment a blight fell on ev.
erytaipg in the fair land OF Penn. Pros
perity was succeeded by universal stag
nation. Business was paralyzed, and
llAib NA5 JAc Va SEo PtlhCtphl Chubob
which led up to the revolution, for the
same mArplst policy had been pursued
in Massachusetts.
Is ia NOT generally known that the
late Governor staniord's plan for the
loan OF government fands to farmers
waa iounded IN this successful expert
ment OF the colony founded by William
Penn. 1t was looked upon by most peo
pie as chimerical and even anarchical.
There is not one man in ten thousand