The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1895-10-11
THE WISE MANS WORDS.
BENJAMIN FranklIu Believed In Legal Ten
der Paper Money, BottOmed ON Taxea.

BENJAMIN FrsnklIu Believed In Legal Ten
der Paper Money, Bottomed on Taxes
At a time when the currency ques-
ton engages the attention of millions
IF our people it will be of interest to re-
call some of the utterances of Benja-
min Franklin. more than a century
ago.
Franklin was the wisest Of American
day will find little in his writings to
commend. In his article on tie
Mature and Necessity of Paper Cur
rency," he wrote:
81. A great want of money in any
trading country occasions interest to
be at very high rate. Conversely, a
plentiful currency will occasion inter-
est to be low. 9. Want of money in a
country reduces the price of it's prod
ucc. Conversely, plentiful curren-
cy will cause the trading produce to
bear a good price. Inasmuch as prices
adjust themselves to the amount of
money in the country, this proposition
is true. 3. Want of money in coun-
try discourages laborers and handi-
craftsmen (who are the chief strength
and support of the people, from COM
ing to settle in it; and induces many
country and seek entertainment and
employment in other places where they
can be better paid. Conversely, a
plentiful currency will encourage great
numbers of la borers to come and settle
in the country. 4. Want of money in
the province occasions a greater con-
sumption OF English and European
goods in proportion to the numbe of
people than there would other
wise be. Conversely a plentiful cur
rency will occasion a less consumption
of European goods in proportion to the
number of the people"
In determining the value of money
Franklin makes distinction between
coin and bullion which shows careful
study. He says:
To make true estimate of the
value of money, we must distinguish
between money as it is bullion, which
is merchandise, and as by being coined
it is made a currency. For its value as
a merchandise and its value as a cur
rency are two distinct things. and each
may possibly rise and fall in some de-
gree independent of the other. Thus.
if the quantity of bullion increases in
a country it will proportionately de-
crease in value; but if at the same time
the quantity of current coin should de-
crease (supposing payments may not
be made in bullion). what coin there is
will rise in value as currency
Franklin maintained that men would
Cot 70 70 20 f,,l
payment of debt, provided they had
the assurance that they could repass
the article at the same value at
which they received it. In reply to
the charge that the paper money
of the colonies did not retain it's
nominal value, he said that in En-
gland the price of bullion at that
time fuctuated, and said that all the
coin in the country had deprecated 1C
per cent. He then made the point tina,
the paper money of Pennsylvania had
maintained a. fixed value for forty
years, although in the meantime the
quantity of paper bills had been in
creased from ,s75, 900 to So. 900. 600.
No country ever had a stronger
champion of paper money than Frank
lin. Until the last he held that paper
money, ''bottomed on taxes" legal
tender for all public and private dues,
was the best money, and that in a
wealthy country like ours there was
no danger of issuing too much of it.
because the people and their repre-
sentatives were interested in having
good money.
The rich men of Franklin's time op
posed his financial views, but they
could not answer him, and he had his
way in Pennsylvania until the British
government interfered and made the
colonies limit their issue of paper cur
A tn Can Tn