Robinson Crusoe's Money;: or, The Remarkable Financial Fortunes and Misfortunes of a Remote Island CommunityWells, David Ames
General
Robinson Crusoe's Money;: or, The Remarkable Financial Fortunes and Misfortunes of a Remote Island Community
Wells, David Ames
Currency question -- United States; Money
[33] After the Revolutionary war it was considered disgraceful to take
advantage of the legal-tender character of the depreciated Continental
or State paper money to liquidate debts with it; and the Society of
Cincinnati expelled a member for so doing. The State of Rhode Island
also, which longer than any of the other States endeavored to maintain
by law the legal-tender character and use of such money, was often
spoken of in consequence as "Rogue's" in place of "Rhode" Island.
[34] To any who may desire to know how far imagination has been
drawn upon for this picture, reference is made to the speech of
Hon. O. P. Morton, United States Senate, "Congressional Record,"
vol. ii., part i., Forty-third Congress, First Session, p. 669.
[35] The pertinacity "with which a mind befogged on the subject
of money and currency holds on to the delusion that the making and
issue of promises to pay, and calling the same money, is equivalent
to the creation of wealth; and, vice versâ, that the cancellation
or withdrawal, by payment, of such promises is the same thing as the
destruction of wealth, and also tends to make money--in the sense of
capital--scarce, and interest high, finds many amusing illustrations,
which for educational purposes are better than arguments.
For example, we have, first, the assumption of a leading Senator of the
United States (already referred to, and which, if not on record, would
seem incredible) that because an increased supply of horses and hogs
made available to a market make horses and hogs cheap, therefore an
increased supply of evidences that capital had been borrowed, used, and
never paid, would tend to increase the quantity and rate of interest
of loanable capital. A corresponding illustration is also to be found
in the case of the member of the Continental Congress mentioned by
Pelatiah Webster, who, when the subject of increased taxation for
the support of the war was under consideration, indignantly asked
"if he was expected to help tax the people, when they could go to
the printing-office and get money by the cart-load?"
The experience of the Irish mob also finds an appropriate place
under this head, which made a bonfire of all the notes issued by an
obnoxious private banker that they could gather, little imagining,
as they shouted and capered with wild delight about the fire that
consumed them, that, in place of impoverishing, they were really
enriching, their enemy.
Public-domain text, read in full here on John Shaqi.
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