The Roanoke daily times. (Roanoke, Va.) 1895-1897, 1896-04-30
MONEY AND PROPERTY.
Calhoun's Theory. Which Has Been Dem
onstrated by Silver Demonstration.

John G. Calhoun, in his speech deliy-
cred in the Cnited States senate March
Il, 1884, on the bill to recharter the
national bank, said:
"All feel that tho currency is n deli
cate subject, requiring to be touched
| with the utmost caution, but in order
that 1t may be seen as well Us felt, why
IL is SO delicate, why slight touches
elther LII depressing or elevating it, agi-
tate and convulse the whole community,
| L Will pause to explain the cause. IF we
take the aggregate property of a COM
munlty, that which forms the currency
constitutes i'll value very small propor-
ton of the whole. What this proportion
is in our country and other commercial
ana trading communities is somewhat
uncertain. speak conjecturally in fix
ing 1t as l to 20 or 80, though pre-
sumo that is not far from the truth,
and yet this proportion in our country
md other commercial and trading COM
| munltles regulates the value Of all the
rest and forms the medium of circula-
ton by which all its exchanges are eff
fected, bearing In this respect a strik-
ing similarity, considering the diversity
OF the subjects, to the blood in the hui
man or animal system.
Ii we turn our attention to the laws
which govern the circulation, we shall
ma ono OF the most important to be
that, as the circulation is increased or
decreased, the rest of the property will,
all other circumstances remaining the
same, be decreased or increased in val
ne exactly in the Same proportion. To
illustrate: If community should have
an aggregate amount of property of
$5o, 600, 600, of which 81, 900, 900 con-
stltutes its currency, if that 81 900 600
be reduced one-tenth part, that is to say
800, 600, the value of the rest will be
reduced i'll like manner one-tenth part,
that is So, 600, 900. And here a very inn
portant fact discloses itself, which ex
plains why the currency should he
touched with such delicacy and why
stability and uniformity are such essen
tlal qualities I mean that small ab.
solute reduction of the currency makes
great absolute reduction of the value
| OF the entire property of the community.
ils we see IN the case supposed, where a
reduction of 500, 600 in the currency
reduces the aggregate value of property
So, 600, 600, sum 80 times greater
than the reduction of the currency.
From this results an important con-
slderation. If we suppose tho entire cur
rency to be i'll the hands of one portion
OF the community and the property in
tho hands OF another portion, the for
mer. by having the currency in their pos
session, might control the Value of all
the property i'll their community and
possess themselves of it at their pleas
ure. Take the case already selected and
| suppose that those who hold the cur
rency diminish it one-half by abstract
| ing 1t from circulation, the effect Of
Which would be to reduce the circulation
to $500, 900; the value Of property would
also be reduced one-half-that is, Sl5. =
600, 600. Let the process be reversed and
the money distracted be gradually re-
stored to circulation, and the value of
property would again be increased TO
$50, 900, 600. Unjust be obvious that by
altering these processes and purchasing
at the point Of the greatest depression
when the circulation is the least, and
selling at the point of the greatest ele-
walton when it is the fullest, the sup
posed moneyed class, who could at pleas
| uro increase or diminish the circulation
by abstract1ng CT restoring it, might
also at pleasure control the entire prop
! erty of the country.
'It results from this that there Ia q
dangerous antagonistic relation between
| those who hold or command the cur
rency and the rest of the community ;
but, fortunately for the country, the
holders of property and of the currency
are so blended as not to constitute sepa-
rate classes. Yet 1t is worthy of remark
it deserves strongly to attract the at
tention of those who have charge of the
public affairs under the operation
OF the banking system. and that particu-
lar distribution Of property existing in
the shape Of credit or stocks, public or
private, which so strikingly distinguish
es modern society from all that preceded
it, there Is strong tendency to create
separate moneyed interest, aocompa-
MED with oil the dangers which must
necessarily result from such separation.
which deserves to be most carefully
watched and resisted