Future Paper Money of This Country [pp. 1-25]

FUTURE PAPER MONEY OF THIS COUNTRY.
HE people of this country want a sound paper currency,
in a supply as ample as consists with its soundness and
instant convertibility into coin for its face. If there were no
stronger reason for this, the habit of using it has mastered them.
This habit, however, is due to reasons which are intrinsic
and weighty. They will insure its general use in the long-run,
all demonstrations of doctrinaires to the contrary notwithstand ing. It is far safer and more convenient than coin, even if it
be gold, which is some sixteen times more convenient than sil ver, except for fractional currency. If lost or destroyed, there
is no absolute destruction of property. A piece of paper has
been lost; the coin constituting the real value represented by it
remains. The title to it has indeed gone from the loser of the
bank or Treasury note, but it remains in the hands of the bank
or government, whose paper note, now lost, promised to pay it on
demand. There is no destruction of value, but only a transfer
of its ownership. Moreover, the loss from wear and tear and
replacement of paper money is infinitesimal. That from the
necessary abrasion as well as the clipping, punching, and sweating of coin in constant use would be very onerous, as all history, especially the state of English coin before the establishment of the Bank of England, and of the old Mexican coins not
long ago current in tlt s country, abundantly proves. Nay, aside
of all wear and other loss, the simple cost of the necessary coin
to take the place of its present paper substitutes would be enormous; likewise the cost of handling and guarding it. The quantity required for the purpose would be immense; the cost of
exchange, and by consequence of the articles exchanged, would
thus be much enhanced. Prices would rise enormously even
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