73 



market values are regulated by the great natu- 

 ral law of supply and demand. 



Money, therefore, biug In its important of- 

 fice of a tool, the general measure, or standard, 

 by comparison with which the ratio of all val- 

 ues are ascertained, just as a yard stick meas- 

 ures cloth, it follows that only a limited supply 

 of such tools is needed to effect the ends for 

 which money is used, and, as a general rule, 

 none but misers, who are the drones of society, 

 ever desire to possess themselves of, or to lock 

 up this very costly tool, in unnecessary quanti- 

 ties. It also follows that, like the measures of 

 length and capacity, the measure of value 

 should be made of a material, the standard of 

 which is least variable. In other words it is 

 most obvious that the tool, money, should be 

 made of the very best materials that human 

 genius and experience can invent. I think I may 

 now say, without any one who has carefully 

 weighed the propositions and deductions I have 

 laid down, denying the final inference, that 

 gold is the best of all materials lor a general 

 standard of value. It is convenient for coinage 

 and fluctuates the least of any known metal, 

 and hence is the best fitted for all the uses of 

 money, and as a regulator of paper currency. 



On the subject of paper money, about which 

 so much is being said and written, I must now 

 say something, and I shall not philosophise 

 much on its principles, but come straight to the 

 facts as they are at present under debate before 

 the whole people. Paper money being, like 

 metalic, on which it rests for its value, an in- 

 dustrial tool, or implement, is governed in all 

 respects by the same principles that govern the 

 latter. The only really important question, in- 

 volved in the determination of this issue, is, 

 who shall have the advantage of it, the nation or 

 the national banks ? This will appear the cor- 

 rect view to take of it when we analyze the 

 law. As that now stands there are two kinds 

 ol paper money in circulation, for both of 

 which the credit of the nation is fully pledged. 

 One of these consists of legal tender notes, 

 popularly known as " Greenbacks," the other, 

 national currency notes, loaned by the Govern- 

 ment to private trading companies, known as 

 National Banks, at the almost nominal ratio of 

 one per cent, per annum, for which the United 

 States Treasurer holds, Government securities 

 as indemnity against loss. This loaning of the 

 public credit to companies of private trades in 

 capital and credits, seems to me to be a gross 

 violation of the Constitution of the United 

 States, as well as of sound principles of econ- 

 omic science. In case of inter-state railways, 

 the clause in the organic law which authorizes 

 Congress to provide " post roads" has been con- 

 strued, on doubtful authority, as a warrant tor 

 lending the railway companies, building such 

 '* roads," the national credit ; but no such pre- 

 text is set up for the vast loans made to bank- 

 ing corporations. I submit the point for the 

 consideration of the National Agricultural 

 Congress, and as one demanding the attention 

 of the public at large. The right of the Gov- 

 ernment to issue Treasury notes and other se- 

 curities for national purposes, is unquestioned. 



but the distinction between such a policy and 

 the lending to a single class, to the exclusion of 

 all others, is clear ; and what makes the act 

 itself appear more conspicuously wrong and 

 illegal, is, that such loans are made at rates far 

 below the market value of the National capi- 

 tal, which these public credits represent. 



Perhaps, the acts of congress, under which 

 this great and manifest wrong to society at 

 large, is perpetrated, might receive some iusti- 

 fication, if it could be demonstrably shown 

 that the Treasury notes when loaned to, and 

 issued by the banks, were improvised into bet- 

 ter tools than the legal tender Treasury notes. 

 But here again the fact is obviously the reverse. 

 The legal tenders, from the circumstance that 

 payment or tender by them extinguishes debt, 

 while those loaned the banks may be refused by a 

 creditor proves the legal tenders to be the best 

 tools. View the matter as you will, there seems 

 to be no justification either in principle, or 

 practice for such a use of the National re- 

 sources, and if it shall be found, that these 

 loans of the public credit, to trading corpora- 

 tions, are, in addition, illegal, then the sooner 

 some well digested system for providing the 

 public with a supply of paper money, regulated 

 by the national laws, which require it to be con- 

 vertible on demand into gold, the better for the 

 public interests. The long continued agitation 

 of this question is injudicious as well as injuri- 

 ous, and should be brought to an end by the ac- 

 tion of the people through the ballot boxes as 

 speedily as possible. 



Apropos to this subject is the question of 

 having a double standard of values, or of mak- 

 ing both gold and silver coins legal tender. 

 Scientifically that question is easily solved. No 

 government nor all the governments in the 

 world by treaty or otherwise, can establish a 

 permanent ratio of value between any two pro- 

 ducts of labor. It is an axiom, of political 

 economy that the value of commodities in the 

 market of the world will, in the long run, in 

 spite of legislation and treaties, be determined 

 by the law of supply and demand or by the 

 number of producers and amount of ma- 

 chinery and capital, combined with the facili- 

 ties for bringing them to market, on the one 

 hand, and the number of competing buyers for 

 consumation in the markets of the world, on 

 the other. It, therefore, follows, that one metal 

 should be selected as a standard of value, and 

 gold being the fittest for coinage and handling, 

 and the least bulky, and least liable to fluctua- 

 tions, commends itself as the proper one to 

 make an exclusive standard, silver or paper 

 may be used for small change, or for what is 

 called " token money" with nickel or copper, 

 for still smaller change. With one dollar or 

 even fifty cent notes, which I prefer to silver, 

 there need be no difficulty or inconvenience 

 to the public, in respect to the use of small 

 coins of silver, nickel and copper, to be circu- 

 lated as token money, and for small change, in 

 such quantities as the wants of the public indi- 

 cate. 



I have given much thought to this most im- 

 portant question and have endeavored to sub- 

 mit a condensed view of the natural principles 

 on which currency or money rests, and I feel 

 assured that all who sufficiently value a sound 

 system, founded on public rights, and justice to 

 all classes, will cut loose from party affiliations 

 and traditions, and will cast their votes for men 

 who stand pledged to sustain those principles in 

 the National Legislature. When it is considered 

 how many of your public men, from the Presi- 

 dent down to the annually elected assembly- 

 man, have prostituted the trust reposed in them 

 by the people, to the shrine of mammon, we 

 must all feel that "eternal vigilance is the price 

 of liberty." H. BOWLBY WILLSON. 



NEW YORK, Aug. 24, 1876. 19 West 46th St. 



