Year: 1875

.
GOLD THE BEST MEASURE OF VALUE-THE


POLICY OF CoNTRACTIoN-wHAT THE En-


SECRETARY WOULD DO IF HE WE'RE IN


CON GREss-IMMEDIATELY WITHDRAWAL


AND FUNDING OF THE LEGAL TENDER


NOTES.


From Ne,o York Tribune.


SLr-By what means, then, is the coun-
try to be relieved from the existing embar-
rassment? To my mind, the answer is a
very simple one-by industry and economy,
by earning more and spending less, by the
restoration of confidence; in a word, by a
return to the measure of value, a departure
from which has done more than any thing
and every thing else to land us where we
are. Confidence certainly will not be re-
stored, nor business rest upo2 a substantial
footing, until this is brought about.


The experiment we have been trying for
some years past, Of substituting inconverti-
BILE paper for coin, of endeavoring by legis-
lative enactment to give value to promises
which they do not possess, is not an origi-
nal one. 1t has not even the gloss of nov
city to recommend it. 1t has been tried on
both sides the Atlantic, and always with
disastrous results.


Some years ago my excellent friend Chas.
Beecher, who was then living with re at
Fort Wayne, and who had among his Other
gifts a talent for invention, discovered, as
he thought, new method of propelling
steamships. The more he thought and the
more he read upon the subject the more
confident he became that he had made a
discovery which would not only be Of great
gain to the world, but which would secure
to himself fame and fortune. Before ap-
plying for patent, however, he thought he
would bring the matter to the attention OF
some one on whose judgment he could rely.
He therefore wrote to his brother, Thomas
X. Beecher, then living in Cincinnati, and
who, had it not been foreordained that all
the Beecher brothers should be ministers
of the Gospel, would have undoubtedly be-
age, described to him his new process of
propulsion, and requested that he should
say what he thought about it. Although
we afterwards had good laugh over it,
shall not soon forget the shade of disap,
pointment which passed over Charles in
tellectual face when he read his brother
reply, which was as follows:


DEAR CHARLEY:-I have examined your
proposed method of propelling steamships.
| see but two objections to it: First, it is an
old invention; second, it is good for moth
ing. Yours affectionately, Ton.


If " Tom" could have gone further and
said, Your process is not only an old and
worthless one, but instead of driving ships
more rapidly through the water, it has,
wherever it has been tried, invariably sunk
them," he would have given substantially
such an answer as might now be given to
those who think the way to make money
plenty is by the free use of the printing
press, and that all Government has to do
to create money is to decree that its prom
ises to pay shall be money-the higher law
that has been in force since man begun to
trade with his fellow to the contrary not
withstanding.


THE TRUE MEASURE OF VALUE.


Some time after the close of the late civil
war l met Virginian who contended that
the failure of the South to establish its in
dependence was attributable to its financial
condition. He related to me an incident
which l will repeat, as nearly as can recol-
lect, in his own language:


81 knew" said he, that our Confeder-
ate notes which had been made legal ten
der were terribly deprecated, but little
purchase that l made brought the fact home
to me very forcibly. AS 1 was walking
along one of the streets of Richmond with
some of my friends from the country, a
short time before the fall of the city, l OBJ
served in the show window of shop some
fine apples for sale. Thinking that it
would be a nice thing to treat each Of my
friends to an apple, which was then very
rare fruit in Richmond, l stepped into the
shop and said to the dealer, How much
for your apples?' Three dollars apiece,
was the reply. 'Three dollars apiece" l
exclaimed; that is an outrageous price for
apples Cant help it, said the dealer;
it is as cheap as 1 can afford to sell them.
There were eight in the party and $24 was
rather more than I could conveniently spare
at that time, but as had undertaken 70 do
clever thing I did not like to back down;
so l said to the dealer, THE price is extrava-
gaat, but will take eight of the apples
The apples were placed upon the counter,
and as l was taking out my wallet to pay
for them, it occurred to me that l had two
half dollars in silver in my pocket, and that
it would look better to pay for the apples
with them than with the Confederate notes;
SO, involuntariy almost, lthrew both pieces
down upon the counter, remarking, Per
haps that will pay for them 'Oh, yes
said the dealer, seiaing the half dollars, and
hastily dropping them into his till, that will
pay for them and leave you some change.
| took the apples and he handed me back
the change, and how do you think the
change was? Why, sir, $3G in Confederate
notes. do you think, SIR said he, that
we could continue the war with currency
like that ?''


The real dollar in this case showed its
purchasing power over the inconvertible
paper dollar, and so it always will. This it
did over Continental notes, this over the
French assignats, and so it shows its power
to some extent over our own legal tender
notes. Gravitation is not more certain than
is that law which makes gold and silver the
measure of value. We may argue against
it, we may struggle against it, but it is a
law which is as irresistible as fate. The
value of irredeemabe currency depends not
upon the law which autnorl-es its issue and
l:xes legal value upon it, but upon the
responsibility of the government that issues
it, the purposes for which it can be used
and the amount in circulation. Cur iega
tender naies are not greatly deprecated,
because the United States are great ma
ton, rich in undeveloped resources, if not
in actually acquired wealth-because these
notes are receivable for all putlio dues ex