The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1898-04-26

them stripped or coin. Various ex
periments were used to keep the peo-
pie supplied with money, but nearly
all Of them proved visionary and inn
practicable. Our own state, however,
established an excellent system. The
province issued 800, 900 in Treasury
notes that were receivable for all pub
lie dues. They circulated at par be
fore the Revolution, during the same,
and afterwards until called in by the
state after joining the Union.
Franklin, whose remarkable intel
lect YVES equally speculate and practi
cal, whilst a young man in Philadel
phia wrote out q plan of finance in
pamphlet form which was adopted by
the Province of Pennsylvania, Some
$500, 600 in Treasury notes, receivable
for all public dues, were issued. They
were loaned to the people at 4 per cent.
for a term Of years on mortgages OF
land, the land, exclusive of improve.
ments, to be worth at least twice the
amount loaned. No person could Dor
row more than $500. It was to be re
paid in instalments. The system
worked admirably for more than half
q century until abolished by act of
Parliament.
In 1901 government chartered
the United States bank. The govern
ment owned a majority of the stock.
The notes were redeeaable in coin,
but fortunately were made receivable
for all public dues, and this prevented
them from declining when the bank
failed to redeem them. In 1861 our
government issued $50, 600, 600 in de.
mand notes, SO called because they
we're redeemabIe in coin on demand.
Shortly afterwards the government
failed to redeem them and they at once
began to decline in value. The Secre-
tary Of the Treasury issued an order
making them receivable for all public
dues. Thsy at once returned to par
and remained at par during the whole
war.
do not knows of any government,
well established in authority and with
ample resources, that issued Treasury
notes receivable for all public dues
and had them go below par. If 80,
what better money do we need9
There is no law in economies more
fully established than that a change in
the relative amount Of currency and of
commodities for sale in a country will
effect the prices Of commodities. A
contraction Of the circulating medium,
the supply Of commodities remaining
the same, will cause q decline in prices
and vice versa. Great and sudden
changes in the relative amount otecur.
rency are to be avoided, as theyimpair
the equity of contracts.
Some claim that unless all paper
used as money is redeemable in coin
you cannot know when too much is
being issued and cannot prevent such
over issue. Both these statements are
in error A general and too rapid rise
in prices Of commodities is sure proof
of a too great increase in currency and
the evil can be corrected by diminish
lug it's supply. So far asspreventing
over issue is concerned the history of
the redemption system clearly shows
that the obligation to redeem has not
prevented over issue by banks when
sufficient temptation is offered. In
fact, when banks control the circula-
ton periodical expansion and contrac
ton are sure, as it is generally brought
about by manipulation and the CON
traction after expansion is sure to be
severe, for when it begins and distrust
sets in each bank is in haste to save
itself by curtailing credit, which ag
gravates the evil. In case of over
Issue by a government Of large re
sources there would be less temptation
to over issue, and in case Of over issue
q return to normal conditions would
not be attended with such alarm and
little or No harm need be done.
Ex-senator Edmonds, one of the
ablest men among the monometalists,
not long since in his address 10 the
committee Of the House In behalf of
the monetary commission, said that
gold Wss q commodity, and, like all
commodities produced by human
labor, was effected in value by it's aver.
age production, and that as it's average
production was more uniform than any
other commodity it was the best to
be used for measuring the value of all
others. Passing by the all.important
fact that such a rise of any one com.
mody by a large number of nations
would give it a purely artificial value,
and the further very imnnrtant fact