Page:Speeches, correspondence and political papers of Carl Schurz, Volume 2.djvu/509

it would be under a healthy condition of business. Instead of so much currency being used to float speculation as can be spared from legitimate business, only so much currency will be apt to go into legitimate business as can be spared from floating speculative ventures. Upon the extent of that speculation, therefore, it will depend how large a proportion of currency will go from that center of speculation to North Carolina and other points; and the more extensive that speculation is, the greater the quantity of currency it will strive to press into its service and it will succeed in controlling, and the smaller the proportion, therefore, that will go into the channels of legitimate business. It follows, as a natural consequence, that everything which tends to excite, to stimulate, to increase speculation and gambling, will not remedy, but will aggravate that evil. Now it is a notorious, undoubted fact, a fact not questioned by any sane man, that an irredeemable paper currency will incite speculation and gambling to a fearful degree; nay, that by its fluctuations it will force people into speculation and gambling. The greater the inflation, therefore, the more speculation will control the currency, and the less a proportion will be left for legitimate business. Far from giving greater facilities to the transactions of legitimate business, increased inflation will only tend to increase the want far in excess of the supply. Inflation will increase the want, for it will run up the premium on gold, and have the effect of raising general prices, rendering thereby a greater volume of currency necessary to effect the same exchanges. Inflation will not in proportion increase the supply, for it will drive a larger proportion of the currency into the channels of speculation and divert it from the channels of legitimate business. One hundred millions will not help you, and if you put out two hundred millions it will help you still less, for the