“I? I think specie basis all rot. It is simply a relic of barbarism—when there was no commerce, only barter. Then, when civilization advanced a little, and men wanted to sell their ivory, and the buyer had not rhinoceros hides, or whatever was wanted in exchange, there arose the necessity for something, to give in exchange for the ivory, that would buy what the seller wanted. Naturally the first money was bright beads, bright metal coins—things of intrinsic value. As civilization progresses, barter ceases, and commerce commences. We have arrived then at the conception of value, and use a mere symbol of it. We don’t want money now that has intrinsic value, any more than we want a figure nine with nine positive strokes in it, or a yard-stick made of gold.” “But you must have a basis of wealth,” said one of the listeners. “I know we don’t want coin for business purposes. It is unhandy and cumbrous. The commerce of to-day could not march a step without bank-notes and checks. Now the United States issues our paper-money; but it must keep specie in its treasury vaults to the amount of the paper issued, according to some.” “Which it does not do,” said the doctor, “and everybody knows it. You are mistaken in supposing that. It is required simply to keep a certain specie reserve; that is all.” “Why don’t we bust up then?” asked an awkward new-comer, who felt the heavy responsibility of citizenship. “We can’t ‘bust up,’ my friend,” said the doctor, with a very broad smile, “because we have a much better foundation for this paper-money than rhinoceros hides, wampum, or gold coin. That foundation is the wealth of the nation, and the credit of the people.” “I don’t understand,” said Kendrick, “how you would fix your basis.” “My idea,” said the doctor, “is that of many who have studied the subject profoundly: that the basis should be the cereals and certain other commodities necessary to the support of life and comfort. Average their prices during twenty years, in order to get at your unit of value, or dollar.” “Ah! but that of necessity would fluctuate; one year is fruitful, another unfruitful.” “But the averaging process would preserve the equilibrium,” replied the doctor; “and gold! you forget how that fluctuates. Why, the discovery of a cheap method of extracting the gold from quartz and gold-bearing sands, liable to happen any day, through our constantly-increasing knowledge of chemistry, and your gold would become ten times as plentiful as it is now. You see that is not the scientific basis. The scientific basis should be the products of industry: the wealth of the nation.”