THE FARMER AND THE CURRENCY. 353 



which is usuall}^ for the producers, a time of prosperity, 

 because costs seldom advance as rapidly as prices,* and 

 because confidence in the future induces free purchases. 



From all the foregoing, upon which I believe all econo- 

 mists are substantially agreed, it must be evident that the 

 only money which is satisfactory to everybody, even for strictly 

 national use, is coined gold and silver, or paper money known 

 to be actually and conveniently convertible into coin, the 

 aetual coin or certified bullion being the only reliable inter- 

 national money, at least between distinct nations. 



This is because these metals represent actual labor in 

 substantial quantities, applied to the productipn of materials 

 which are objects of desire irrespective of their use of money, 

 and which are practically indestructible. They have intrinsic 

 value, which means that they are desired for themselves, and 

 not solely for qualities which have been imparted to them. 



A satisfactory national money, not redeemable in the pre- 

 cious metals, is theoretically possible, but not practically so, by 

 reason of the inferiority of human judgment and of human 

 nature, which renders it impossible to prevent over issues. 



The fact that a merely national currency is non-exportable 

 is not only of no value to the nation which uses it, but is a 

 slight hindrance, as the nation having the non-exportable 

 currency must pay the cost of procuring the precious metals 

 to pay foreign obligations, if, as will usually be the case, it 

 is a debtor nation. This is not a very serious matter, and 

 apparently does not seriously interfere with trade. If there 

 were any special advantage in having a national currency — as 

 silver — for domestic purposes, the matter of foreign exchange 

 should not stand in the way, since in all countries the volume 

 of domestic transactions is enormously greater than that of its 

 foreign transactions, and therefore entitled to first consider- 

 ation in mere matters of convenience. 



It is also true that as human society is now constituted, all 

 the money, or what serves the purpose of money, in the world, 

 must be considered as one stock, which flows freelv where it is 



* Neither can they be reduced as rapidly, when prices are falling 



23 



