Page:Speeches, correspondence and political papers of Carl Schurz, Volume 3.djvu/476

redemption, in some cases without it; in some cases issued under the stress of circumstances, in some cases for financial speculation; and whenever an inflation of paper money was either a part of the scheme or forced by necessity, the final result always the same;—depreciation of the paper money, that depreciation leading to new issues, the new issues bringing forth more depreciation, and so on; everybody believing himself rich for a time, until finally the whole airy fabric broke down in general confusion, bankruptcy and ruin, when it became apparent that the grand indefinite something upon which the paper money was based, the power of the Emperor of China, or the wealth of the country, practically amounted to nothing as a mortgage security; and uniformly in the breakdown the poor people, the laboring classes suffered the greatest distress. And in every case after the great collapse, people came painfully to the old conclusion again, that, after all, the precious metals were the only safe basis of a money system; and they gathered up the few coins they could lay their hands on, and upon the ruins of their foolish hopes and windy fortunes they began a sensible business once more, in a cautious and prudent way. And now the same old scheme, exploded again and again, with a thousand years history on its back full of ruin and disaster is dished up to us as a brand new discovery, and as the great progressive idea of the century. Why, gentlemen of the fiat money persuasion, the Chinese, a thousand years ago, were just as wise and progressive as you are now, and when they had got through with their great progressive fiat money experience they were a great deal wiser. It is a matter of wonder, as well as regret, that at this day there should be so many good people giving, even for a moment, countenance to a fallacy so hoary with age and so utterly condemned by the painful and repeated experience of mankind.