A New Banking System: The Needful Capital for Rebuilding the Burnt DistrictSpooner, Lysander
General
A New Banking System: The Needful Capital for Rebuilding the Burnt District
Spooner, Lysander
Banks and banking -- United States; Paper money
On the other hand, all kinds of real estate fall in price under a scanty
currency, for these reasons, to wit: Agricultural real estate falls,
because, manufactures having been in a great measure stopped, and the
manufacturers driven into agriculture, there is little market for
agricultural products, and those products bring only a small price.
Manufacturing real estate falls, because, manufacturing industry having
become impossible for lack of money, manufacturing real estate is lying
dead, or unproductive. Commercial real estate falls, because commerce,
the exchange and distribution of agricultural and manufactured
commodities, has ceased. Railroads fall in price, because, owing to the
suspension of manufactures and commerce, there is little transportation
of either freight or passengers.
Thus it will be seen that an abundant currency creates a great rise in
agricultural products, and in all kinds of real estate--agricultural,
manufacturing, and commercial, (including railroads); and, at the same
time, causes manufactured commodities to become various, abundant, and
cheap. While, on the other hand, a scanty currency causes agricultural
commodities, and all kinds of real estate, to fall in price; and, at the
same time, makes manufactured commodities scarce and dear.
It is a particularly noticeable fact, that those who claim that an
abundant paper currency inflates the prices of _all_ commodities,
relatively to gold, never find it convenient to speak of the variety,
abundance, and cheapness of manufactures, that exist under an abundant
currency; but only of the high prices of agricultural commodities, and
real estate.
The whole subject of prices--a subject that is very little understood,
and that has been forever misrepresented, in order to justify restraints
upon the currency, and keep it in a few hands--deserves a more extensive
discussion; but the special purposes of this pamphlet do not admit of it
here. But enough has probably now been said, to show that the great
changes that take place in prices, under an abundant currency, on the
one hand, and a scanty currency, on the other, are not occasioned at all
by any change in the value of the currency itself--dollar for
dollar--provided the currency be equal in value to coin.
Enough, also, it is hoped, has been said, to show to all holders of
either agricultural, manufacturing, or commercial real estate (including
railroads), that the greater or less value of their property depends
almost wholly upon the abundance or scarcity of currency; and that,
inasmuch as, under the system proposed, they have the power, in their
own hands, of creating probably all the currency that can possibly be
used in manufactures and commerce, they have no one but themselves to
blame, if they suffer the value of their property to be destroyed by any
such narrow and tyrannical systems of currency and credit as those that
now prevail, or those that have always heretofore prevailed.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account