Currency fallacies refuted, and paper money ... - University Library

56 PAPER MONEY VINDICATED.producer to keep his goods to himself, if hewill not take a fair remuneration for them.consequence of this, the extra notes retire :and the effect of the home and foreign competitiontogether is,Inthat the unproductive classescan never be charged, for the commodities whichthey consume, more than the lowest sum necessaryto remunerate the English producer.And since prices generally would be thuskept down by competition, foreignas well asdomestic, the price of gold in paper could notsuddenly rise from 1/. 10^. to 31., at the willof any man or set of men, which is anotheraccusation preferred against paper money.There could be no sudden increase of value ingold as compared with paper : a fixed and inevitablenecessity would govern at all times therelation of the two ; for the difference betweenthem isnothing but the expression of the relation,which natural value bears to both naturaland taxation value ; and when that has oncearrived at its proper point, it will remain stationary,neither receding nor advancing, exceptunder well defined circumstances of universalnotoriety, which, when they did arise, wouldact slowly, and which, in their origin, are placedbeyond the power of one man to control, orprofit by, more than another. Whatever contributesto augment or diminish the expenditureof the State, will affect prices : as taxationadvances, the difference between paper