Year: 1869

that those who sold us Foreign Wares and Fabrics
must accept and export our Produce In pavment
therefor having no alternative; and such might be
the case at first but they would stop selling lis when
they could no longer sell at profit and constrain MS
to pay prices for their goods in currency at which
they could afford TO purchase and export our staples
Admit that this scheme would lack some of the vices
and impediments created by the iron money Of
Sparta. it still seems to me that Mr. Kelloggs cur
rency though at the outset it should make money
ever so abundant and payments remarkably easy,
would end in throwing us back upon Barter through
the instrumentality of a egalized currency which
must gradually lose the character by failing to sub
serve some of the most essential ends, of Money.


i have given some consideration to this scheme,
because the conception of Currency of Paper
purely has fascinated many acute minds and has
ardent apostles among European Radicals intent on
emancipating Labor from what they denounce as the
tyranny Of Capital. do not say that the plan is
impractcable; / believe in Paper Money and would
gladly see its and benefits extended; readily
admit that public good as well as evil has resulted
even from our Irredeemable Paper Currency of the
last seven years. and that an abundance of Money is
blessing though like other blessings) it may he
bought too dearly The subject of Currency is one
by no means exhausted; the science of Money is
still imperfectly known and the fact that Capital
mot merely tokens which represent what does not
exist is really and uniformly cheaper in Western
Europe than in this country, is one of the imped-
ments against which our National Industry and es-
pecially our Manufacturing Industry has struggled
and is doomed still to contend. Land is cheap
with us that our farmers have an immense advan-
tage their European rivals in the cost of this
important element of production; but Labor is
relatively high with us :; nearly every element of
Manufacture is dearer here than in Europe and herein
we encounter one formidable impedment to the
pansion and prosperity of American Manufactures.
Whoever needs more Capital than he possesses and
is impelled to borrow. must pay third TO q half
more annually for the use of a certain sum than his
British French. German, Belgian rival; and this
interpOses grave obstacle to his thrift and success


But why cannot we have cheap capital by
adopting some such plan as Mr. Kelloggsp


answer, Because the use of capital is ,COrth moro
here than any such plan assumes or suppOses it to
be; while we might double or treble the volume of
our Currency without increasing materially the real
aggregate of our wealth. We might each be worth
more dollars than now, though our real wealth had
not increased one dime; just as he who has now an
income of 5000 year lin greenbacks) is better
off than he formerly when his income called
5000 year (cOin.D


To illustrate the nature of Interest will suppose
that a hundred farmers of nearly equal means in





tains, having little intercourse with the outside
world Their settlement being comparatively new
and in a mild climate they have thus far done with
out barns; but now that their wealth has increased
and moro pressing wants have been satisfied. they
generally conclude that the time has come wherein
to provide shelter for their stock and their fodder
Yet all cannot erect suitable barns at once: were
they do their crops must be neglected and their
food run short so they confer and agree that one
fourth shall build this year. another fourth next,
and so on till all have barns-such being the
rate at which they judge themselves able to supply
this common want B., c., D., are to refrain
from building this year, lending part of their Ia
Dor or their crops to A.. who builds now, and
taking his notes for their value; A., c., and
ID. doing the like by b. next year; and so on.
Now Interest, in my view, is the consideration for
which b., c. d. consent to fOrego building this year
and help A. instead. Each of the four would gladly
have his barn built this year; but A. Is the most
urgent and bids most for the first of their con-
Joint surplus and so obtains it, THUS many Of our
Cooperative Building Societies having, by small
weekly or monthly payments from each member, nc
cumulated enough to build one dwelling put the
amount up at auction, and that member who bids the
highest premium has the first housel Thus is estab-
shed what consider natural rate of interests and
it IS one far above Mr.. Kelloggs standard. Were his





means and hire the labor requisite for building drain
ing fencing and otherwise improving, and too few
would be left to cultivate the earth otherwise
produce what is needed to supply our most urgent
wants; we should have new or enlarged dwellings,
with more and better furniture, but scanty supply
of bread deem this a natural result of any scheme
whereby Interest is depressed to fraction and Money
created in lmitless abundance


But do not thence conclude that Paper Money is


delusion and that Coin alone should constitute our
Circulating Medium. Golden yardstcks would
measure Textile Fabrics with perfect accuracy yet
it would not be we'll to forbid the use of any other;
since gold is scarce and dear many yaTdsticks are
remred and we have those that answer the purpose
made of materials far cheaper than gold. Have
golden one if you will, at the Treasury, the State
House, the City Hail. and enact that every one in
use shall be tested by and conformed to that; but to
require erery yardstck to be of gold would absorb
in yardstcks too large share Of the National
wealth. for which we have other and better uses
Between the bigotry which regards all Paper Money
as virtually counterfeit and the folly which would
enrich people by burying them in shinplasterS
there is a happy medium and this medium expe-
rience and discussion will yet make plain to the
great body of those who earnestly, dispassonatey
seek. not personal advantage, but the widest and
highest public good.


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PERSONAL