tend for the same doctrine. But you insist, also, that our irredeemable paper currency shall be augmented according to the supposed wants of trade. And who is to determine what the wants of trade are and to what extent the volume of currency shall be augmented? Of course, the Government. Have you considered what that means?
In specie-paying times the amount of coin circulating in a country is regulated by the circumstances of business. If there is more than finds profitable employment, it will flow out and go where it finds a better market. If there is less than the wants of trade require, it will become dear and flow in from countries where it is cheaper.
The issues of a well regulated banking system, based upon specie, will conform to the same rule. Temporary disturbances, brought on by panics or artificial operations, may arise, but on the whole the rule holds good. The Government has no arbitrary control whatever over the value of the currency. It sees to it that the coin struck in the mint be of the prescribed standard value; it punishes counterfeiting; it regulates the banking system so as to make it safe. And then it lets currency and trade in their relations take care of themselves. That is sound Democratic and also sound financial principle and practice in the true sense of the word. There the Government is reduced to its proper functions.
But how is it where an irredeemable paper money prevails? There the volume of currency is not regulated by the circumstances of trade. The paper money not having outside of the country that value which specie possesses, it does not flow out and in as the needs of business may require; the quantity the country shall have is determined by the arbitrary will of the Government.
This is a power of awful extent and significance. It is not disputed that the value, the purchasing power of an irredeemable paper currency is affected by the quantity
