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Politics.

OUGHT MONEY TO BE INTRINSIC OR SYMBOLICAL?

INTRINSIC.-IV.

in exchange for a piece of ground purchased from the sons of Heth, Gen. xxiii. 16. As commerce increased, the trouble of weighing the metal in every exchange would soon be felt, as well as the difficulty of deciding as to its purity and consequent value, and hence, in process of time, the invention of coining, or marking, each piece with a stamp declaring its weight and fineness.

In the earliest periods, after the invention of writing, pecuniary engagements would be committed to paper. A short time only would elapse, before individuals having written engagements from others, would begin to present them in payment to their debtors. None would object to receive as money the promissory note of a man of known wealth, and hence the origin of symbolic money. Those who advocate money possessing an intrinsic value, do not object to the use of a limited paper currency as supplementary to a metallic one. Our opponents may cry out on our behalf, “Gold! gold! nothing but gold!" but they do it unauthorizedly. J. H. may amuse himself by recommending that 3 merchant having a thousand pounds to receive, should be followed by a clerk with a wheelbarrow; and we have only to add that he who suggests the plan should perform the labour; and certainly it would be very suitable employment for " a man of progress," as our friend evidently is!

One of the principal objections to gold being used for money, was its scarcity, and

now that the productiveness of the mines of California and Australia has demonstrated the futility of this, we are told by some that this productiveness will materially alter the price of gold, and seriously derange the relationships of property. To such we commend the following recent remarks of the Times:-"Gold constitutes the general measure of price, and is therefore the only thing that has not a price of its own. It is simply receivable at the rate mentioned; that is to say, when one man talks of owing another £3 17s. 9d., he means that he owes him an ounce of gold. To speak literally of money price of gold is just as if a person were to ask how much tea he must give for a pound of tea."

Thus many and various are the considerations which belong to the discussion of a question like this, and though much may be said against our present system, yet remembering the melancholy proofs which history supplies of the dangers and difficulties arising from tampering with the currency of a country, I, for one, would oppose any change unless the necessity could be shown to be great, and the utility to be evident. This determination I more strongly hold when I find perhaps the greatest of moneysymbolizers, Dr. Franklin, living long enough to change his opinion, and to declare to posterity, "I am now convinced that there are limits beyond which paper money would be prejudicial." SCRUTATOR.

SYMBOLICAL.-IV.

As a general rule, the value of commodities the future permanently fixed standard; for a is determined by the amount of labour ex- standard that requires "adjusting" cannot pended in their production and distribution. be a correct standard. If it be one thing Then why not make labour (which thus to-day and another to-morrow, how can it gives value to all commodities), instead of always be an exact measurer of value? gold (which is only one commodity), the Take, then, the present value of the pound, standard or measure of value? Why not as measured by the present value of some issue notes which shall represent an amount one description of labour, and let this be the of labour equal in value to the money deno- future unchangeable pound sterling, whatever mination put upon them, and thus prevent the future changes in labour or commodities; the greater or less quantity of one commodity and, although labour or commodities then (geld) from affecting the value of everything might rise or fall in price, it would not be else? This might be done by fixing upon from alterations in the currency, but from some certain quantity and description of alterations in the quantity or value of labour, labour, the present value of which is equal to or in the commodities themselves. The curthe present pound sterling, or sovereign, and rency would only show that their then value substituting it for the existing standard of was so much above or below their value in 5 dwts. 3-274 grains of gold, and making it 185-, when the currency was settled. What

I propose, therefore, is, that the pound sterling shall represent the value of a certain quantity and description of labour at the time of the basis being fixed, not that it would or could be made always to represent the precise value of that exact quantity and description of labour under every future change or aspect of that labour.

ing legal-tender currency should form the groundwork or body of the new circulation, or that amount or portion of the new circulation which the every-day wants and necessities of the people would require to be constantly afloat. All additional issues of national notes should be dependent upon the legitimate demands or requirements of trade or commerce, and should be supplied in quantity in exact accordance with those demands, whether that quantity be greater or less; or in other words, as your correspondent J. H. phrases it, "they should increase with production and disappear with consumption." To do this correctly the bank of issue ought to issue its extra or additional notes only by discounting good bona fide or genuine bills of exchange, and only where sufficient or satisfactory collateral security is afforded-the nature and description of security acceptable to be well and clearly defined—and the rate of discount, an uniform or fixed rate, say the present minimum rate of the Bank of England, or 2 per cent. per annum.

Suppose, then, we were to say that the present average value of unskilled manual labour is 2s. per day—ten hours' labour to the day. This supposition would serve well for a decimal system of currency, if a decimal system should be thought preferable to the present, for the pound sterling would then be the representative of the present average value of ten days' unskilled manual labour; the tenth of a pound, or a florin, would be the representative of the present average value of one day's unskilled manual labour; and the hundredth of a pound, or the tenth of a florin (or about 24d. of the present coinage) would be the representative of the present average value of an hour's unskilled manual labour, &c. Thus the "pound in account" would be a tangible pound, and not Thus the quantity of money afloat would an abstract term having no definite meaning always exactly adapt itself to the real wants or foundation at all. And the superiority of and necessities of the people and the state of such a pound over the pound founded on or trade and commerce. When more money convertible into gold would be, that the cur- was wanted, as commerce expanded or bills rency would then be dependent upon no one became due, more bills would be discounted particular commodity for quantity or value, at the national bank of issue or its branches, but might be made perfectly fixed and steady and when less was wanted fewer bills would in price, and always procurable in quantity be discounted. The extra issues of the or amount to suit the exact wants and national bank would, therefore, simply be a necessities of the people under every phase substitution of cash, or legal-tender money, or emergency of trade or commerce. But for bills of exchange; consequently, there for the better accomplishment of this pur- could be no danger of over or excessive issues pose, and for the national instead of individual to act injuriously upon the currency, as bills benefit, a national bank of issue ought to be of exchange (upon which the extra issues established, which should be the only bank of would be based) are themselves legitimate issue (except its branches, for convenience), currency, being called into existence by the and should be entirely free from all party state of production and the actual demands control in the management of its issues, so of trade and commerce. But as, from their that there might be no "tampering" with very nature, they are not adapted for legalthe currency. All existing legal-tender cur- tender currency, a substitute for that purpose rency should be called in, and the national is required, which shall be equally as harmnotes made the only legal-tender currency less in its effect upon the general quantity for the future, except small currency. And, and value of money, as well as be always in order that there may be no alteration in available or procurable upon uniform terms; the present purchasing or legal tender value and this I consider would be accomplished of money by the change of standard, national by a really national bank issuing notes, by notes should be given in exchange for exist- way of discount, on good, genuine bills of ing legal-tender currency, at equal value. exchange, as above. Perfect freedom of The notes thus issued in exchange for exist-dealing and banking in the national issues

"inconvertibility" of the currency (and the possible "expansion" thereby created), but mainly by the enormous sums spent in carry

ought, of course, to be permitted, so that money might get properly and thoroughly diffused amongst the people, and that those who might not have the requisite meansing on the wars, which added so extensively to obtain it from the national source of issue to consumption and demand, without a cordirect, might obtain or procure it through responding increase in supply. As soon as the instrumentality of others. Moreover, for these enormous sums ceased to be spent, the satisfaction and convenience of the public, trade collapsed, and prices fell. And this as well as a detective check or security would still have been the case, ultimately, against fraud or forgery, the national notes had the currency remained unaltered. But should all be "convertible" at the national the alteration of the currency coming at or bank or its branches, not into gold at a fixed near the same time as the collapse, the price on demand, but in lieu thereof, from alteration of the currency has got all the larger to smaller amounts, or from smaller blame (though undeservedly) laid at its to larger, at the will of the holders. With door. By the extraordinary demand for such a system of currency and issue gold commodities above supply, created by the might be left as free as any other commodity wars, prices had increased beyond their to find its own natural price in the markets natural level. The reaction was, therefore, of the world; but, nevertheless, the certainty inevitable, sooner or later. It will hence be with which its comparative purity and ge- seen that I am not of that school of currency nuineness can be ascertained by the skill of reformers who think that taxation can be the assayer, and, consequently, its real mar- added to price, by the issue of what they call ketable value known, might still point it out" taxation notes." With a legitimate system as a necessary and useful instrument in balancing foreign exchanges, until a better or more convenient medium could be agreed apon and adopted.

But let me here remark, that, with a correet system of symbolic currency, it is of little consequence what is adopted as the standard for the currency, provided it be of the same real and exchangeable value at the time of its adoption; for it is not the nature or material of the standard, but the mode of isse and the conventional value conferred upon the currency by making it the legal tender, that gives to it that fixity of price so essential in a measure of value. This doctrine may seem somewhat new; but, notwithstanding, I consider it the true one. The difference in value betwixt gold and notes, during the period of the late wars, I do not attribute to a depreciation of paper or notes, but to an appreciation of gold, owing to the "inconvertibility" of notes (and consequent conversion of gold into a commodity), added to the then extreme scarcity of gold as compared with the demand for it: the "inconvertibility" of notes was all that time considered a necessary step to provide a sufficiency of currency for carrying on the business of the country. Neither do I consider the then generally increased prices of goods to have been produced, to any considerable extent, by the mere fact of the

of money issue, the prices of commodities must always be governed or regulated by cost, supply, and demand. The "taxation" principle of issue I consider a fallacious one, inasmuch as I can see no essential difference, in respect to the effect upon prices, betwixt a certain sum of money issued by the state, and taken back in payment of taxes, and the same sum issued by, or procured from, the Bank of England, or any other bank, and returned to it by the state, as taxes are received. If the amount of "taxation" money annually to be issued by the state were not to be called in, but allowed to remain afloat, and the yearly additions to its amount left to accumulate in the country, then I admit that such "taxation" money would affect the prices of commodities, just the same as did the annual issue and funding of large amounts of exchequer bills during the late wars.

But the constant accumulation of the notes is not what the advocates of "taxation" money propose. Therefore, seeing that the professed object of issuing "taxation" notes, viz., that of adding taxation to the general prices of commodities, is incompatible with the means proposed for its accomplishment, I am at a loss to know what other advantages can be specially derived from that mode of issue. If it be sought to reduce the burden of the national debt, so that the present real value of the interest of

that debt may more nearly correspond with the real value of that interest when the debt was contracted, there is a more simple and effectual way of attaining that object. For instance, the minimum rate of interest at the Bank of England has ranged, within the last few years, from 2 to 8 per cent. per annum. The national creditors have, through all these changes in the value of money, been constantly receiving the same fixed sum as interest upon their debt. If, therefore, the national debt be a money debt, and the price of money should hereafter be permanently fixed, what is there to prevent the national debt being then made to correspond in value with money? that is, to have the same interest allowed as the national money would then be worth at the national source of issue. The national creditors have hitherto enjoyed the full advantages which inventive skill and ingenuity have exercised in diminishing the money value of all descriptions of goods and produce since the debt was contracted; consequently, although the interest of their debt might be nominally reduced by the above process, its real value would be as

great, or probably even greater, than when the money was lent. And what injustice could there be to the national creditors in giving them the same, or it might be even a greater, real value than that which was originally contracted for? It must be borne in mind that, under the circumstances supposed, the value of their debt would not then have to suffer from fluctuations in the quantity or price of money itself, the price of money, at its source, being then fixed.

I will now conclude by stating that I think the establishment of a good sound system of symbolical currency would be the most effective remedy for the present state of things in Australia. What is the physical and moral value of a few paltry tons of gold, compared with the disruption of society, and the breaking up of all the regular sources of wealth and industry in the country? If gold were "disfranchised" there would not be the same inducement for deserting other and more important callings for that of digging gold. Its price would be less certain, and the market for its sale more doubtful. C. E. R.

Social Economy.

IS THE CONFESSIONAL IN HARMONY WITH INTELLECTUAL AND MORAL FREEDOM OR SOCIAL WELL-BEING?

NEGATIVE ARTICLE.-I.

No institution of the Roman Catholic privately. This more agreeable mode brought Church is more cherished than that of Con-with it a large accession of influence to the fession. It is to this that the church is church: the clergy, ever alive to the interests indebted for its boasted unity; but if any of that, had it adopted generally. It was other church, purer and more liberal in its ratified by Innocent III., at the date above principles, were adopting this as one of its quoted. The requirements of confession are tenets, defection from the mother church-sorrow for sin, confession to a priest, the would immediately ensue. The fierce oppo- performance of the penance adjudged: its sition given to the Episcopal Church in Ire- purpose is the reconciliation to God of such land arises from this-it lacks the power to as have become alienated by sins committed forgive sin. Did it possess the power of subsequently to baptism. The Rev. Stephen absolution, it would be popular. Auricular Keenan (a Roman Catholic divine), in the confession dates its introduction from 1215. "Controversial Catechism," p. 186, says:→ Previously public confession was the only "The penitent, to be absolved, must detest admissible form; but the affluent, that their his sins; he must be firmly resolved to avoid character and their status in society might sin and its occasions in future; he must be not be compromised by discreditable revela- willing to submit to whatever penance the tions, were granted the privilege of confessing priest imposes; and, if able, he must confess