The Irish standard. [volume] (Minneapolis, Minn. ;) 1886-1920, 1896-10-17
Why Initiate the Chinese and Burn
House to Roast a A.=
!. Pig? L

s1ecL exchanges Is gOOQ money!, no maLlSl
OF what made; that an irredeemable paper
currency VIII not depreciate in purchasing
/ power so. long as it is not, and cannot be
listed in excess Of the necessary money
work to be done. I also assume that VIZ
can never have a currency both safe and
flexible, grounded on one or two compar
ative,y uninporta1t products, Of fuctrat
ing value, and that the exchange &medis
should be removed entirely from the pro-
vince of partisan politics and subjected tt
the direct and absolute control OF COM
nlerce.
+ Some of the foregoing propositions are il
conflict with monetary theories bearing the
sanction OF centuries; but this fact no more
establishes their tasty than the ipse di1i
sof, the college OF cardinals disproved Cali.
,tleo's cosmogony. Economic writers were
loud in their denunciations five Years ago
but are gradually accepting these PROPOSE
tions a fact which prompted a witty but
incorrigib,e. 'sgold-bug'' 10 send me the
following lines from Pope:
.5"Vice is monster of SO fr.ghtful mien,
AS, to be hated needs but to be seen;
Yet seen too off, familiar with her face,
We first endure, then pity, then embrace,
To this sally retorted with an excerpt
from the same author: -
"Old politicians chew on wisdom pas, -----.z
And totter on n business to the last,
AS weak, as earnest and as gravely out
AS sober Lanesb'rough dancing in the
govt" /:
A governmental money that will auto
maticaily and infallibly adapt itself to the
varying needs of commerce, preserve the
equilibrium between the money work tc
be done and the money available to do It.
and thereby obviate al danger OF either ap-
probation or depreciation of the purchasing
power of the dollar, is universally consid-
cred to be the greatest dis-d TO, at
tain this | propose: '' g..
58 ~ That the government keep constantly
on sale at all postoihces of the presidential
class, low interest bearing bonds in de-
nominations Of 800 to 81 900, redeemab.e
Sat the option OF the holder in full legal ten
der federal currency.
y ~ That this new currency be added tc
the general revenue fund, and paid out the
same as other moneys, until currency bondt
y to the amount Of $3.50, 900 900 be taken
the proceeds constituting a = :fedenp tioI
SuCu aAAAlIVitS tO-iLApC" S3SASa a.
revenue fund shall cease and not be re-
stunned until. through bond redemption, the
find set aside for that purpose falls below
the foregoing figure. a.
4: That's al there IS to the Inter- convertible
Bond Currency plan When there is toe
little money government will supply more
when too much, government will Absorb
the surplus, and the equilibrium at al
times be maintained. There could be nc
a. money famines' and consequent enhance.
n1ent Of the purchasing power of the dollar
there could be no depreciation, caused by
the pressure of a redundant currency fol
employment. The redemption fund would
be an infallible indication of the monetary
needs of the country. The volume Of cur
rency woul be controlled by the natural
laws of commerce-congres could neither
add to nor take from it a single farth:ng
The administration would be poweriess tt
mint a single coin or print a dollar bill
until notified by the nation through the re.
%delnption fund, that it nesded more money
Silver might become plentiful as in the
days Of Solomon, and cheap as scrap iron
gold might advance in value another 1O(
4 per cent, and only the fine arts be affected
the American currency would maintain thu
even tenor of its way, the dollar be ''the
same yesterday, today and forever Tht
s,llnit Of value could no more be affected by
4 the varying fecundity Of the mines, gooe
/ Or bad crops, legislative ineptitude, war o.
3 pesti,ence, than could the length Of tht
yard or weight Of the pound. The dollar
would be stripped Of the commodity feature
which makes it mutable. The supply re-.
s&aative to the demand would be ever the
same, 1t would measure each by az in
stead of by Itself, and therefore be true
4 and unchangeab.e denomination OF value.
s4 Perhaps have fixed the norma. redenp'
& ton, fund at too high figure; 100 million;
were sufficient but for the danger that those
Interested in preventing proper currency
expansion migat buy and hold sufficielt
Il bonds to make automatic operation Of
such system impossible. The redemption
fund must be too large for even Wall stree
sSnanipulat.on. There would be little dan
Sgersof any coterie Of consDirators tying ur
$50 millions in government bonds, bearing
!. merely nominal rate of interest, while
commerce was bidding more for the money
With SO large redemption fund and bond:
bearing even so high an interest rate as II
per cent, our exchange media would cost u:
I but SO, 100000 a year, or less than one
tenth the annual commercial. interest on the
wealth we hahve invested in metal tool O.
trade
Is IT will be exclaimed that this Is fiat
Ism It IS the tiatism Of which DR.. Adam
Smith fondly dreamed, and which his sue
Scessors have unqualifiedly approved. !
lis the fiatism of Thomas Jefferson ant
q Henry Clay. 1t is the same fiatism b,
means of which IS per cent of our ex
changes are now effected: for, as I have
frequently pointed out, our Commercial
money, approximating 40 billions, is; MOI
/ ground ad Oh a pittful ha.f billion Of gold
'EBsek Of it is al the wealth and credit Of it:
Il makers; behind the bond currency which
sspropese, would be all the wealth and credi
sS the richest nation in the word, the earn.
IIsSl, power c. 70 M lion peopse. q But 4
Il sEs4l be Tired eemable'' cries one. Not SC
u, sa,s as: 1t remained q legal tender and wax
q septed at its nominal value n trade Il
4 hut do You want a paper dollar redeemed;
94 you exchange it for gold OF silver COLI
~ have got but another Cover at or
&AeE fpra goods, which you must present fol
Ssup III ION to the people: When yoH have
- 4nsed il onrs Tor corn oT cotton
r sssor pig ron III has been redeamed-
sth en have you received pay
~ Iple s.Tsases