Fiat Money

jnow iet U8 iraniuy acKnowieage tnat if it could be once an accepted fait that the purchasing power of the money in nse by this nation would be dimiuished by tlie addition of a limited or an unlimited amount of greenbacks, business at the moment wouïd revive. And why? Because everyöne would be desirous of parting to-day with "money" which would be lees valuable to-morrow. All kinds of trade would be brisk, real estáte would be bought and sold ; so would live stook, raw products, evidences of indebtedness, like bonds and stock, manufacturad articles, objeots of fine art, and so on. The desire to spend money that would have a constantly decreasing value would then give a nmch greater Ímpetus to extravagance tlian the desiro to hoard a currency which is oonstantly rising in value now giyeB to economy. This may be frankly acknowledged. But would prosperity of this kind be permanent? The hietory of our owa past shows that it would not. The rifiicg tide of 18ö5 and subsequent years was iollowed by the low tide of 1873 and the following years. The action would be f ollowed by as great a reaction. But is it true that there is not money enough in the country to meet the wants of trade ? Are we suffering because the laws of Congress do not now provide currency enough ? Let us see how this is. This week's Public gives a valuablo ;able of changes in the currency for the last nineteen years, which we abridge as 'ollows: Xominal Qotd Value Amount Amount. of Paper. in tïvltl. Tune 30, 1860.. $207,102 477.00 100.0 $207,102,477.00 T uno 30, 1H6I. . 202 005,767.00 100.0 202,005,7(57.00 Tune 31), 1862.. 333, 452,079.(0 86.6 28Í.7ÍW.5ÜO.41 Tune 30, 1863.. C. 19,867,282.75 70.6 497,798,338.10 Jane f 0, 1864.. 8:13,718 984.34 3H.7 322.649,246 91 lune 30, 1885.. 983,318 BSö.78 70.4 692,256 854.77 luneSO, lHlili.. 881,904 685,96 C6.0 583 Bi7,O!l2.73 Tune 30, 1867.. 826 97,irt.t2 71.7 592,906, 700.07 lunes, 18f8.. 720,412 802.75 70.1 505,009, '2S4 62 June 30, 1869.. 69i,'.M6,ÜI6 01 73 5 510,050,35161 June 30, 1870.. 7. 0S7S.X99.48 8Ï.6 693,521.71)9.9 j lime 30, 1871.. 717,875,751 06 89 0 (SJ8 9(19,418.44 June 30, 1872.. 738.t"0,LU.5) fc7.5 64,249.540 58 June 30, 1873.. 750,f 6.',S68 94 86.4 648,0J8,886.7fl Juno 30 1874.. 7819 ),9I0.17 91.0 7ll,líli,733."l Tune 80, 1875.. 773,4fi,728 69 87 2 (74,619.947.42 June 30, 187(1. . 73S 37S535.89 8 66O,846,93.6j Tune 30, 18.7.. 698.194.2(!9.84 917 661,189,973.54 Iuue30, 1878.. 688,537,270.27 99.9 684.4(l.);ti!ll.62 luly 31, 1878.. 686,462,8 9.67 99.5 688)080)45.38 This does not look as if we did not lave currency enough to meet the wants of trade. The tact is, not half tho currency issued is in circulatiou. Now, it would seem that the proper expedient is uot to add to our already largo currency, jut to endea'vor to find some expedient by whioh the whole of it may be put in circulation. An increased business rul not an increased currency is what we need. There is pknty of it, if you could offer the necessary inducements to hose who have it in their custody to put t in circulation. By watering the currency you might compel them to get rid of it, but the prosperity thus superinduced would necessarily be ephemeral and would result in greatest distress tlian ever. Thero is still another point - against lat money. The money of the consti;uüon is assuredly gold and silver. No ono can have studied with atteution the views of the lounders of our Government without concluding that paper money was their aversión, and that they were ' anxious to prevent the United States f rom being wrecked on the "fiat money " rook which proved fatal to the old Confederation. All constitntions, and notably the constitution of the Jnited States, are intended to preserve and perpetúate property. A constitution that would aim at detroying property would be a novelty. íow, a constitution that would provide liat the " universal equivalent, "money, liat for which all commodities and I ices are exchanged, should constantl; decrease íq valué in order that trad e might be brisk, wonld be such an in strument. The oonstitntion of the Unit ed States is not oí that kind. And there can can be no doubt that any attempt to issuo "fiat woney" in time of peac would be met by a decisión of the Su preme Court oi the United States de claring the act unconstitutional. It mus be remembered that the Legal-Tende acts were only sustained by a bare ma jority, and then only on the expresf ground of the snpreme law of nationa self-preservation - only because it was asserted that the issue of legal-tende notes were necessary to the prosecutio of the war. The legal-tender decisión rests on the war power. Fiat money is sued in time of peace would have no wa power to rest on, and would most surel; be declared an unconstitutional exercis of power on the part of Cougress, anc therefore, void. We are all anxious for business re vival - for the prosperity of the whol country. Btit this prosperity, to be per manent., cannot come through, nor res upon, "fiat money." The country is member of the family of nations, its in tereste are knit up with theirs, and it money must be the money of the worlc - that is, all its paper must be basei upon and interchangeable with eithe one of the two precious metáis of th world. The process of bringing thi about may be slower and more difficu than that of legislating prosperity b issues of "fiat money," but it is dei tined to be surer and more pennanem