Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1908-01-10


notes do not possess these requisites
in q degree sufficiently high for this
purpose l do go further. 1t appears
to me. after bestOwing the best reflec-
ton l can give to the subject, that no
convertible paper-that is, no paper
whose credit rests upon promise to
pay-is suitable for currency. 1t is the
form of credit proper in private trans
actions between man and man, but not
for a standard Of value, to perform ex-
changes generally, which constitute the
Inappropriate functions of money or cur
rency. Qb., p. 49,
No one can doubt but that the gov
ernment credit is better than that of
Why. then, should it mix it up with
the less perfect credit of those insti-
| tutiOnS? Why not use its own credit
to the amount of it's own transactions?
Why should it not be safe in its own
hands while it shall be considered safe
in the hands of 500 private institutions
scattered all over the country and
which have no other object but their
own private profits, to increase which
they almost constantly extend their
business to the most dangerous ex-
tremes? And why should the commu-
nifty be compelled to give 6 per cent
discount for the government credit
blended with that of the banks when
Al 90 Ioa mo n
could be furnished separately, without
discount, to the mutual advantage OF
the government and the community?
Why, let me ask, should the govern
ment be exposed to such difficulties as
the present by mingling its credit with
the banks when it could be exempt
from all such by using by Itself Its
own safer credit?" Qb, p. S7.)
"On what, then, ought a paper cur
rency to rest? I would say on demand
value of everything else-the constant
demand which the government has on
the community for it's necessary sup
plies. A medium resting on this de-
"HlSli oDiiSoSSS stiiS oN'
ernment to receive it in all of its dues
to the exclusion of everything else, ex-
cept gold and silver, and which shall
be optional with those who have de-
mands on the government to receive or
not would, it seems to me, be as sta
BILE in its value as those metals them
selves. and be as little liable to abuse
as the power of coming. 1t would con-
tain within itself self-regulating
power. 1t could only be issued to those
who had claims on the government,
and to those only with their consent,
and, of course, only at or above par
with gold and silver, which would be
its habitual state; for, so far as the
government was concerned, 1t would
be equal in every respect to gold and
silver and superior in many, particu-
larly in regulating the distant eX-
changes of the country. Should, how
ever, a demand for gold and silver
from abroad or other accidental causes
depress it temporarily as compared
with the precious metals it would then
return to the treasury, and as it could
not be paid out during such depres-
sion, it's gradual diminution in the
market would soon restore 1t to an
equality when it would again flow out
into the general circulation. Thus there
would be a constant alternate flux and
retiux into and from the treasury be-
tween it and the precious metals, but
If at any time a permanent depression
in it's value be possible from any cause
the only effect would be to operate as
a reduction of taxes on the community,
and the only sufferer would be the
government itself. Against this its own
interest would be a sufficient guaran-
ty." Qb., p. S5.)
There is so much of interest to be
noted in the course of these speeches
that one has no hope Of mentioning
more than a few of the points. One
of the features that impresses itself
strongly on the reader is the long, con-
slant attention and study devoted by
Calhoun to these matters. The above
extracts are from speeches of his de-
livered in 1887, the year of the great
financial crash. AS early as 1916 his
attention had been strongly pressed in
this direction and one finds in embryo
in his speech in that year on the bank
the view which subsequently had such
full development. Thus the later views
are the fruits Of more than twenty
years of study and reflection. There is
a remarkable conference and logical
unity here as elsewhere in the career
of Calhoun. But the freshness and
novelty, even, of his views is what so
surprises and delights the student.
They are as applicable and available
these speeches, as if they were uttered
yesterday This comes with the shock
of surprise when contrasted with the
view so commonly current that CAL
houn's views and theories belong to a
bygone day. May the day be fastened
when the benefits Of his discoveries
and views of these great subjects are
made available to the American peo-
pie!