Principles of Political Economy, Vol. 1Roscher, Wilhelm
History
Principles of Political Economy, Vol. 1
Roscher, Wilhelm
Economics
especially in the higher stages of civilization, where the importance of
commerce, of the credit-system, and of money-economy as
contradistinguished from barter-economy is so great; producing there a
state of uncertainty which is otherwise peculiar only to barbarous
medieval times.(937) All this discourages the best business men and the
best husbandmen more than it does any other class of people, and
demoralizes the whole economy of a nation; and demoralizes it the more in
proportion as it is easier for the state to influence the value of paper
money as compared with specie, and as its influence is more
irresistible.(938) The compulsory circulation of paper money is a much
more powerful and yet a much more simple screw by means of which to
practice extortion than is the most burdensome taxation or forced loan,
and at the same time the most comprehensive power which a government can
possess to carry out both these measures. (_Ad. Wagner._)
All the horrors of the later Roman republic, the draining of the provinces
by robber-governors with their publicans and sinners, the building up of
monstrous fortunes without any production proper, but through usury and
rapine alone: all this is made to revive again through the instrumentality
of the national-economic disease called a paper crisis, in a less violent
form, indeed, but in one which is much more insidious and scarcely less
pernicious.
Section V.
Resumption Of Specie Payments.
The healing of such a paper-money disease as we have described, it has
been endeavored to effect in three ways more particularly.
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