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1864.], this becomes the currency of the country by a species of necessity. In short, because of its inconveniences and risks, specie is not used as a currency, and will not be, because, in addition to these obstacles, the representative currency in use, being without proper regulation, has increased to such an extent that there is not sufficient coin to replace it,—a fact that practically settles in the negative the question of the sufficiency of the precious metals for currency, in addition to their other use, in a country where civilization has established credit as a means of trade. Nevertheless, a specie-currency is advocated even by those who carefully avoid handling it, and who would be the last to consent to such a reduction of the currency as its exclusive use would require,—a confusion of mind due to the fact that the difference between value and wealth is not always distinctly recognized. Moreover, it is not the function of a currency to be replaced, but to be a means of payment. This the proposed currency will be by right of use,—a right inherent in a national currency, and respected as long as the government respects itself, that is, as long as the people govern wisely.

A dollar, value-currency, will always buy a dollar's worth of gold, but it may not always buy the quantity of gold contained in the gold dollar. How much it will buy depends on the quantitative relation of the currency to the population,—a relation which, though entirely optional, should never be changed, because, with whatever change, provided the proper relation of the parts to the whole be preserved, with little there will be no lack, and with much, there will be nothing over,—and because any change of that relation is injurious to commerce, inasmuch as it produces a corresponding change in the value of credits. And assuming a change to have been made, a return to the former rate, instead of being a mitigation, will be a repetition of the injury, except in regard to credits so extended that they embrace both changes. If, however, a reduction be insisted on, a suitable mode may be proposed. Twenty dollars per head gives six hundred millions. Assuming this quantity to be superabundant, if it be adhered to until the population reaches forty millions, the rate will be fifteen dollars per head, which may be assumed to be abundant. If it be adhered to until the population reaches sixty millions, which it will probably do in one generation, the rate will be ten dollars per head, which may be assumed to be convenient; and any attained rate may be continued, or made constant, by increasing the currency proportionately with the increase of the population. This mode of reduction, however, is possible with a national value-currency only. A specie-currency is incapable of regulation. The same may be said of any currency based on specie. Indeed, a credit-currency will necessarily collapse under a superabundant issue, unless its promises be ignored, or unless it be sustained at the expense of the nation,—an expense which the nation itself cannot sustain permanently.

The rate of the currency governs the value of wealth. It is important, therefore, that government have time to pay its debts before any great decrease of currency takes place; otherwise, that decrease will be equivalent to an increase of taxes, without producing a corresponding decrease of the public debt. For the portion payable in gold it will be better economy to pay the premium than to reduce the currency sufficiently to avoid it; because such a reduction will work a corresponding reduction of the value of all the wealth of the country, a sum much greater than the debt. It is scarcely necessary to suggest that the more currency the less taxes, and the greater the ability to pay them; or that, when the war is over, government will cease to spend several hundred millions per annum, and the industry this money supports will require time to rearrange and adapt itself to pacific demands; or that, if the currency be suddenly and Rh