Year: 1869

rency only, and the nation so using II would suher


the loss Of interest on so much wasted capital Is


apparent that paper, being but the sign or token OF


value yields no loss OF interest upon itself as capt.
tai while used rs currency While. therefore, IN
these particulars our present currency Is cheap


enough, yet there is another sense in which that
term is sometimes used in relation to money. but


more properly to capital which present currency


wholly fails to satisfy, and which 1t viii be necessary
to examine hereafter refer to the enormous price
at which money or capital Is now furnished TO the
consumer or user.


Stability OF currency Is, perhaps, the most import
ant OF all its attributes. 1t may be well enough
defined as q quality OF currency when used as q
standard and measure OF value which renders IL un-
changeable at all times as compared with ITSELF A
measure OF value should no more change than
should the measures OF length, quantity weight.
1t should be at all times one and the same. When
all the property Of people is once adjusted to such


measure Of valee It Is Of comparatively little mo-
ment what that measure may be. To ulnstrate:-
We have two measures OF weight. the pound troy
and the pound avoirdupois. We dnd no special In
convenience in their use. as the classes OF objects
submitted to their measure have remained un-
changed for many years and are bought and sold with
regard TO the difference between them which also


Is invariable. So as to length. It is entirely unim-
porant whether we had adopted at first the imperial
yard OF Britain or the metre Of France measure
or length, provided we maintain 1t unchanged. In
the sense In which we have defined stability our
present currency s greatly deficient. This arises
from the fact tnat instead Of being an unvarying
standard OF value OF itself 1t Ia continually measured
Vsrahe rrsbsr o t Wn,cn ~ ase
ated by empirical attempts, either or legislation
administration on the one hand to increase its value
combinations Of brokers and bankers to reduce or
enhance ITS value for the purposes OF speculation


why rHR oURRpNcy rs VARIABLE.


fhls variability IN our legal tenders Is yet more


largely enhanced because OF the law which provides
that ney shall not be received for the duties imposed
by the government on imports, which annually
amount to forty-1ve hundredths Of the whole cur
therefore, causes lawful money to be used in fact
as an article OF merchandise or commodity to be
exchanged for gold, which, for this purpose Is the
only legal value in the country. IT. on the contrary,
the legal tender had been made receivable in pay
ment OF all public Dues whether internal or external.
unchanged. without power In the Secretary OF
the Treasury for boarding. funding, retiring IL to
fixed, permanent and stable value to which all the
property OF the country would have asslmilated it
sef-a standard not to be changed save by law, OF
which change the whole country would have ample
previous notice. As its value as standard would,
In that case, have depended the amount or value
might not be as Interchangeable and unvarying q
measure Of the value all property the yard and
stances-are made invariable by legal enactment


The term elasticity, applied to currency, will
define as the power OF contracting or expanding It's
volume, according to some known rule, to meet the
necessities Of its use In business arising from Its
tivity,s It's sluggishness or from the needs OF In
creased population. At nrst thought this quality
might seem opposed to the definition OF stability
which We have Just given, but careful consideration
tribute @ Of CURRENCY c should pertaiS to It. not as
measure Of value, but q representative OF active
capital. Stability Is the fxedness OF the volume OF
the currency as compared with property meas
ured by 1t. Elasticity increases or lessons the
volume determined by the necessities for its
with nuctuaton, the latter being the increase or
diminution OF vane OF the currency at one time as
compared with another. The former Is the change
OF volume only as compared with itself. To give an
illustration from sensible object:-Water is the
most unstable but the least elastic OF substances.
A currency TO meet this requirement Of elasticity
should have such capability OF volume as to adapt
itself TO the highest needs OF the internal
business and commerce Of the country: ana
to adapt itself to the state OF greatest de-
preston without IN either case Affecting its
currency is the element Of It's highest usefulness
and safety as circulating medium. In nothing is
our Preseas int currency more dencen u "a mas avsr a
great the exRencies Of the business Of the country
may be; 1t contains within itself no power or con-
traction when not needed Its volume must then
remain still the same, seeking Investment and profit
IN speculation aud adventure forced by the selfish
ness OF bankers and capitalists.


Again, not being capable OF expansion the un-
prnctDled and adventurous capitalist can calculate
exactly how much currency he must lock up
at the time when II Ii most needed to bring
about financial crisis and distress, and thus
involve in ruin the unsuspecting and honest
tim OF unlawful combination which he
neither foresee nor control. deporable example
OF this as practical fact has taken place within
few weeks under our eyes, by which the managers
OF an insolvent railroad In connection with certain
banks who should have been regulators instead OF
regraterS OF the currency, c0ntrved to sequester
some thirty millions and thus to bring about a
stringency In the money market and q consequent
depression In the public securities OF some dve per
cent in single day, out OF which the conspIrators
might realize large pronts. This process OF r0bbing
syse ~ may % pe ai, ~ ~


the banks which issue ito thus sport with the pub


c credit and oppress the merchant depress the pub
hc funds and unsettle the business OF the country


Is clearly defective, and 1t Is the duty Of Congress at
once 70 provide the remedy for that defect We see,
sound enough but that il lacks stability from iuctl-
alton and elasticity to accommodate Itself to the
changes in the demands Of business. Our financial
system has another great and 0vershad0wng defect,
controlling the prosperity and development OF the
industry and resources OF the country.


TIE CAUSES or OUR MONEY BEING ENORMOUSLY DEAR.


When called into use ms . representative OF
capital our money IL enormously dear. Three
hundred and fifty-six millions OF it, not now
issued BY the government was at once fund
able into eold-bearing bonds at six per cent.
.unaxable BY state and municipal authorities, and
as is lately claimed but without warrant OF law,
taxable By the government itself. so that whoever
ten or eleven per cent for ts use. The remainder,
say three hundred million dollars Ia issued to the
panks py the government, which paws some eighteen
millions 70 them for the privilege OF furnishing and
endorsing IT, cannot be obtained by the consumer
from the banks short Of nine 10 ten per cent inter-


est, reckoning exchange and commissions that he


who uses t must pay. Out Of the great Cities and
away from the seaooard, the average rate
OF interest Is AZ least twelve per cent. Ia
many sections Of the Southern States. ON whose
productions OF the great staples cotton and tobacco,


as our chief exports to meet the balance OF trade
which y against u.s. we must depend. money cannot
be obtained At any price upon any security, and


got a. ali the syerageEstes are wenty -four per cent


In view Of this wl be the rate Of interest be-
somes matter OF national importance a. afYectng
our commercial relations with the other countries
OF the world. Cotton can be produced In Africa and
India BY the use OF capital costing not thaa
four or at most i've per cent per annum, while the
capital used IN producing cotton costs twenty.
four per cent; thus making direct discrimination
against our producer or twenty per cent,
which Of itself N to the foreigner
Huite snincieDt profit on the busi-
ness. The high rate OF interest. which raises the
value OF productions and tue xed limit to cur
rency which n taken advantage Of 20 produce nnan-
cial panlcs and distress. imperatiyey demands the
4 -