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of the "balance of trade" will occupy an invulnerable position. While gold is king, the nation which absorbs it—that is, the nation whose exports largely exceed its imports—will surely govern the world. But dethrone this worst of despots, and that country will be the most powerful which succeeds to the largest extent in getting rid of its gold in exchange for products more useful. In other words, the republicanization of specie must precede the freedom of trade.—Liberty, March 18, 1892.


Some nincompoop, writing to the Detroit Spectator in opposition to cheap money, says: "If low interest insured high wages, during times of business depression wages would be high, for then interest reaches its minimum." Another man unable to see below the surface of things and distinguish association from causation! The friends of cheap money do not claim that low interest insures high wages. What they claim is that free competition in currency-issuing and the consequent activity of capital insure both low interest and high wages. They do not deny that low interest sometimes results from other causes and unaccompanied by any increase in wages. When the money monopolists through their privilege have bled the producers nearly all they can, hard times set in, business becomes very insecure, no one dares to venture in new directions or proceed much further in old directions, there is no demand for capital, and therefore interest falls; but, there being a decrease in the volume of business, wages fall also. Suppose, now, that great leveller, bankruptcy, steps in to wipe out all existing claims, and economic life begins over again under a system of free banking. What happens then? All capital is at once made available by the abundance of the currency, and the supply is so great that interest is kept very low; but confidence being restored and the way being clear for all sorts of new enterprises, there is also a great demand for capital, and the consequent increase in the volume of business causes wages to rise to a very high point. When people are afraid to borrow, interest is low and wages are low; when people are anxious to borrow, but can find only a very little available capital in the market, interest is high and wages are low; when people are both anxious to borrow and can readily do so, interest is low and wages are high, the only exception being that, when from some special cause labor is extraordinarily productive (as was the case in the early days of California), interest temporarily is high also.—Liberty, November 22, 1884.