Year: 1874

measure of value, because of the labor
requisite to produce it and because of its
inherent or intrinsic value. A bushel Of
wheat has the advantage of gold in both
respects, and yet no one would pretend
that wheat would be good legal-tender.


The intrinsic value of a gold eagle is
one thing; its legal value is another and
very different thing. Its intrinsic value
depends upon the valuable uses to which
the metal can be applied; its legal value
depends entirely upon the arbitrary law
of the Government which has provided
for its coinage. The legal value is pure
ly arbitrary and has no reference what
ever to the abundance or scarcity OF the
metal, or the uses to which il may be
converted. A piece of gold of a given
size, quality and weight, duly stamped
by Government authority would be one
dollar if gold was as abundant as iron.
The money value is wholly extrinsic
from and independent of its intrinsic or
commercial value.


Paper money sholud be made a legal
tender for all purposes.


The money value of piece of paper,
duly signed and stamped according to
National law, and declared to be one dol
lar, is the same as piece of silver or
gold issued by the same authority. If
the piece of paper is promise to pay a
gold dollar, the former is worth the lat
ter only, if the gold dollar is at hand to
exchange.


If the piece of paper is declared to be
one dollar and a legal-tender for that
sum, and will pay any debt of that
amount, or buy that amount of proper
erty, it would buy a smaller or larger
piece of gold, according as gold was
scarce or abundant, in small or large de-
mand.


The issue then should be money mot
promises to pay) and made legal-tender
for taxes, custom duties, all debts, public
and private, including the bonds of the
United States.


IRREDEEMABLE PAPER-THE CRY 81


LENCED.


All the cry about irredeemable paper
money will be silenced. Gold and silver
coin is redeemed by any property, real
or personal, there is for sale, and this is
what gives it its money value. If paper
money will pay taxes, pay debts, pur-
chase property, and perform all other
functions of coin, no other redemption
will ever be required, unless such treas
ury:certifcate is worn or mutilated, when
it could be redeemed by another of like
denomination.


REGULATING THE AMOUNT OF ISSUE.


The volume of this paper to be furn-
ished by the Government will be easily
determined and regulated.


First-Let the greenback circulation
be absorbed.


Second-Let the National bank circu-
lation be Withdrawn and the bonds Sc
curing it be paid off and cancelled
Whhen these two things are effected, the
circulation would be the same as now,
and the public debt will be reduced to
the extent of the Government bonds
held as security for the National bank
notes.


Third-Call in and cancel the bonds
of certain date and amount, so as to
make the circulation, say one thousand
millions.


Fourth-To give elasticity to the cur
rency, have provision that the money
should be convertible into Government
bonds, drawing, say three per cent inter-
est at the pleasure of the holder, and re-
convertible into money in like manner.
With our rapidly growing population
and the great enterprises in progress,
and those which would be undertaken in
the future, all the present bonded IN
debtedness would be converted into mon-
ey, or other bonds drawing three per
cent. substituted in their place.


Gold and silver would then only be
required in the form of bullion for in
lcIIidtlOheA SACAAdASSJ anu AlS elOuIiuhlACe
or scarcity would not derange our none
tary affairs nor unsettle our home val
ues.


With an adequate supply of cheap
money, labor would be fully and profit
ably employed, all kinds of legitimate
business would be on a reliable footing
and the convertibility of the money into
interest bearing bonds, and rice rersa
will prevent redundancy or scarcity Of
money, and it cannot depreciate as long
as the Government endures.


INCREASING THE VOLUME OF GREEN
| BACKS.


Having given this brief summary ir
regard to money, in which exceptions
are taken to gold and silver, greenback'
and National bank notes, it will beck
pected of me, and entirely proper, that
should say something upon the question
now engrossing the public mind anc
commanding the attention of Congress
Shall the volume of greenbaoks be in
creased, or shall they be gradually with
drawn, and their place supplied by Ma
tional bank notes-not with gold, for tha
is out of the question?


Greenbaehs are q tolerable currency
because legal-tender for some purposes
National bank notes are intolerable cur
rency, for they are not legal-tender fo
any purpose whatever.


But We are told that greenbacks wer
a necessity growing out of the war, ant
now that the war is over this abnorma
currency should be Withdrawn. 1t tmus
not be forgotten that peace has its ne
cessities as well as war. Greenback
were issued in large volume without rel
erence to gold as a standard, and a
enormous debt incurred upon a legal
tender basis. 1t is safe to say that upo
a gold basis the debt would not hav
been more than one thousand million
instead of two thousand five hur
dred millions. Is it fair, just equitabl
or honest, to demand of the productiv
industries of the country which mus