The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1908-04-15

Wise Men Think That He Was the
Greatest Constructive Statesman
This Country Has Known Since the
Days Of the Men Who Signed the
Constitution.
From the Norfolk Landmark.

structivc statesman this country has
built the constitution Manv he'iave
that his tn ,Ories instead of becoming
"relics of the past" are strength. ming
with time and are more appl.cahl 20
present conditions than they were t.,
conditions prevailing in the authors
day. Mr.. Gustavus NJ. Pinckney, Of
Charleston, S. c., contributes to the
Manufacturers Record an interesting
condensation Of Calhoull's theory of
credit currency, which contains sew
eral prophecies remarkable in the
light of what has happened since Cal
houn's death. Calhoun's idea of the
hest paper currency is thus set forth
in quotations from his speeches in
congress. made apropos Of the pani"
tf 1897;
"Tl:e great iesideratum is to ascer-
tain What description OF paper has
the requisite qualities Of being FREE
from fiuctuatic n IN value and lab. lity
TO abuse in the greatest perfection I
have shown, trust. that the bank
notes do not possess these requisites
in degree sufficiently high far this
purpose. / go further. 1t ar,ear. t..
me, after bestowing the hest reiec-
tion I can give to the subject. that n
convertible paper-thst is, no Paper
who's" credit rests upon a "pro,nis. L"
pay"-is suitable for currency 1t IS
the form If credit paper in private
transactions between man a.d man,
tut not Tor a standard of value u
rcrform exchanges generally. winch.
constitute the appropriate functions
VI money Or currency
mo one can doubt but that the
government credit IS better than that
Of any oank-more stable and more
safe. Why, then, should il mix lip
with the less perfect credit of thcs.
institutions? Why not pse it's own
crcdit to the amount of its own trans.
actions? Why should It not be safe
In its own hands while it shalt be
considered safe in the hands Of 500
private institutions scattered all over
the country and which have n" othcr
object but their own private profits
to Increase which they almost en-
*tantly extend their business to the
most dangerous extremes? And why
should the community be compelled
to give per cent discount for tho
banks when the superior credit Of the
government credit blended with that
II government could be furnished scp-
ratcly. without discount. to the n,u-
tual advantage Of the government and
the community? Why, let ne ask.
should the government be exposed t.
such difficulties AS the present by
rningling its credit with the banks
when it could be exempt from all
such by using by itself its own safer
eredit?"
ION what then ought a paper cur
rency to rest, I would say on demand
and supply simply. which regulates
the values of everything clse-the
constant demand which the govern
ment has on the community for its
necessary supplies. A medium rest
irg\on this demand, which simply -. =
lisates the government to receive 1t
IN all OF Its dues to the exclusion OF
everything else, except gold and sill &.
YER, and which shall be optional with
those who have demands on tre gov
trnmcnt to receive, or not, would II
seems to me be as stable in its VAIN.
as those metals themselves. AMI te
as little liable to abuse as The power
IT coining. II would contain within
itself a sclf-regulating power. IT
could only be issued to those who had
claims on the government and to
those only with their consent. and,
or course. only at or above par with
gold and silver which would be its
habitual state. for so far a: the
government was concerned 1t would
be equal In every respect to gold annl
silver. and superior in many, rartic-
Llarly in rAglating the distant ex-
changes Of the country. Should how
ever, demard for gold and silver
from abroad or other accidental
causes derress 1t temporarily os
compared with the precious metals,
It would then return to the tre as,,ry,
and as it could ret be paid out during
such depression, its gradual dimuni-
ton in the market would soon restore
1t to an equality, when it woulh again
flow out into the general circulation
Thus there would be a constant al.
A. rnato dux ard roAux into ool S..,,