398 PAPER MONEY -AND A PROTECTIVE TARIFF. 



was eagerly questioned by the bankers and capitalists of the 

 East, with reference to his views on American Finance. The 

 following, concerning the same, is taken from the &quot;New York 

 Tribune:&quot; 



Q. Professor Price, what do you think of the currency of the 

 United States ? 



A. Simply that it is a shocking bad currency. But mind, if a 

 currency is thoroughly convertible I don t think it is of great im 

 portance that there should be a large stock of gold. Provided the 

 currency is issued by an issuer who is perfectly safe, thoroughly re 

 sponsible for the debt, the public won t ask gold in exchange for his 

 notes. They would rather have the notes. In Scotland at this 

 moment a one-pound note is distinctly preferred to a sovereign. It 

 is carried about much more easily; it has got a number upon it and 

 it does its works perfectly. It is of the same value as a sovereign, 

 and that implies that it is convertible. If that is only so a country 

 may go on with very little gold and almost all paper, when the lat 

 ter is of equal value with the former. 



Q. Suppose the three great nations, England, France, and Ger 

 many, should all adopt the principle of using little coin, where is the 

 gold they now use going to? What is to become of it? 



A. The effect would be that gold would undoubtedly become 

 cheaper. It would all flow back into the stores and shops and be 

 locked up. It would be a large mass of property for which there 

 was no use. The owners of this gold would have to do precisely as 

 owners of notes would do sell cheaper. In the case of currency it 

 is not that metal should be worth one shilling of twenty shillings, 

 but that its value should not be changeable; but a fifteen-shilling 

 sovereign, or a ten-shilling sovereign, is just as good as a twenty. 

 The only trouble is, that for the same business you carry twice the 

 weight. 



Q. As a matter of fact these three nations England, France, and 

 Germany by adopting the course this county has, can sink the value 

 of gold one-half ? 



A. On the other hand, you must remember that if it had not been 

 for California and Australia, it is quite certain the price of gold 

 must have gone up, and why? Because the world has opened so 

 desperately fast. There are so many more people and so many 

 more wants. In all those old countries they cannot deal with paper. 

 The Russian will not take American greenbacks, nor in the very 

 heart of Russia will they take English notes. You must pay in gold. 

 But to come back to America. One very favorable circumstance in 

 America is that the very ignorance of the people makes them more 

 receptive of first principles than people in England. The English 

 bankers are doing so well that they detest of all things any inquiries 

 as to the nature of their business. Now here you are in trouble 

 about your currency, and there is a receptivity of first principles 

 which is to me very attractive. 



Q. Suppose you were to propose legislation on the subject of the 

 currency, what step would you advise? 



A. I would take measures steadily to make the currency fulfill its 



