Variableness must ever be the characteristic of a currency of which the
precious metals are not the chief ingredient, or which can be expanded
or contracted without regard to the principles that regulate the value
of those metals as a standard in the general trade of the world. With us
bank issues constitute such a currency, and must ever do so until they
are made dependent on those just proportions of gold and silver as a
circulating medium which experience has proved to be necessary not only
in this but in all other commercial countries. Where those proportions
are not infused into the circulation and do not control it, it is
manifest that prices must vary according to the tide of bank issues,
and the value and stability of property must stand exposed to all the
uncertainty which attends the administration of institutions that are
constantly liable to the temptation of an interest distinct from that
of the community in which they are established.
The progress of an expansion, or rather a depreciation, of the currency
by excessive bank issues is always attended by a loss to the laboring
classes.
Pages:
577
578
579
580
581
582
583
584
585
586
587
588
589
590
591
592
593
594
595
596
597
598
599
600
601