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2." But there is no sufficient reason for believing that an international monetary treaty could not successfully maintain gold and silver at a fixed ratio, and the necessity of an adequate supply of money materials leads strongly to the support of such a measure."
What are we to look for as the results of this new bill ? Its most striking feature is the increase in the number of Treasury notes. Owing to the general growth of the country and the increasing number of retired bank-notes, so large a number of the new notes will doubtless find their way into general circulation that the government may be able to hoard any excess without any great financial embarrassment. We may therefore expect that the new silver currency will be issued at the start as smoothly and with as little effect as that of the past, leaving out of consideration unexpected revulsions in foreign and domestic trade.
As to later results, we may soon reach a stage when more notes will be issued than can be used. To be sure, the Government might hoard the excess but this would be advisable only as a temporary measure.
Sooner or later the notes will be issued whether they find a ready circulation or not and we would then have a forced issue of new currency and a period of inflation and its attendant evils.
Now unless an issue of Government notes affects the volume of bank deposits and that of the payments made through them, it cannot greatly affect prices. Suppose the notes are issued at a period of business depression, when the banks have an abundance of cash in their vaults and business men are not increasing their deposits. The Treasury notes paid out to bullion sellers would accumulate in bank vaults and a larger proportion of Government revenues would be received in these notes. Gold would still be paid to those who called for it and it would tend to flow out in foreign payment. The Treasury would be drained of its gold and at the same time, the cause of this—the note issues—would have had no effect on prices. The continuance of these note issues would lead to inflation if banks and the business community were in a mood to respond.
Suppose times and business were good, the demand for accommodation from banks great and reserves small in proportion to deposits. Then new issues might increase deposits and so become the occasion of a very effective addition to the purchasing power in the hands of the community. This would be followed by a rise of prices and, finally, by inflation. In this case the outflow of gold and the “ ultimate break-down ” of gold payment would follow inflation.
Let me quote in closing the prophecy of Prof. F. W. Taussig :
" Whatever the condition at the moment, the issue of new notes in larger amounts than would be used in any case at the existing range of prices, must bring, ultimately, the rise in prices, the outflow in gold and the break-down of the gold standard ; but the peculiarly elastic and elusive condition of the most important part of the modern machinery of exchange makes the time and the mode of these results very difficult of prediction.
C. E. V., '91.
Over the fields where the soft wind blows,
Careless and happy she passes by
The grasses cling to her trailing gown :-
But Rosalie, careless passes them by
Whispers the clover down at her feet,
See how boldly she holds her head !
But Rosalie careless passes them by,
Bearing her daisy sheaf.
But Rosalie laughs and passes him by,
De Temporibus et Moribus.
In the heart of the busy commercial town of Bristol stands the beautiful old church of S. Mary Redcliffe, one of the finest specimens of Norman architecture in England. Entering its dim silence from the noisy, glaring streets, one is straightway carried from the commonplace present back to the long dead past, when the knights and merchants of Bristol, whom these battered effigies represent, thronged the church at high mass on feast days; and the names recorded on these dusty tablets were names of those still living in the minds of men.
Over a hundred years ago, there wandered among these tombs a child-a boy of seven, quite lost beneath the dusky, echoing arches which towered high above him. Day after day he came, and strolling about in the great empty church, spent hours in dreamy musings. If you had happened into the peaceful place, and seen the little lonely figure sitting with its head leaning against the stone tomb of “William Canynge, Founder of the Church," the sexton would have told you that it was his nephew, Thomas Chatterton, an idle little dunce. This, at least, was the flattering opinion which his relatives held of the silent lad who would not mind his books.
His mother was a poor sewing woman ; his father, dead before his birth, had been master of a free school in the neighborhood. It was his mother's great hope to have her child educated “as became the son of a scholar.” But when, at the age of six, he was sent to the same school of which his father had been master, his teacher bade him go home again, saying that it was impossible for him to learn. His mother was bitterly disappointed at his stupidity; there was no place for him at home, and so the poor child sat alone crying silently for hours, with a hopeless sense of wrong upon him.
One day, however, a pile of old parchments from the muniment-room of S. Mary's was brought into the house by his sexton-uncle, and the child's eye was caught by some illuminated capitals. He gathered up armfuls of the musty old documents, and trudged upstairs with them to a lumber-room under the roof. Here he pored over a black-letter Bible until he had learned to read. Then he would shut himself up in his garret for hours, and when his mother or sister came to see what he was at, would fly into a passion with “I wish you would bide out of the room-it is my room !" He was seized with a passionate desire to learn. Even at this early age he felt that those about him were not with him, that he had an inherited right to a kingdom of which they knew nothing. If he could only enter it—the wonderful kingdom of thought!
At last, as he supposed, the opportunity came. He was elected, when eight years old, a pupil of the Bluecoat School at Bristol. Now he should learn everything in the world, he should be able to understand what those strange thoughts meant which came to him when he was alone. He went to school, and was instructed in "the principles of Christian doctrine as laid down in the Church catechism.” The bitterness of that disappointment, and the scorn and hatred of the narrow minds around him which came upon
child! He must find resources in himself.
In these days he would run away from his school-fellows, and seek his old sanctuary in the great dim church; and here the friendless boy created for himself a friend and helper. As he took refuge from boyish persecutions, and lay still by the old stone tomb, in fancy there came to him the figure of a priest of the old days-a wise and wonderful man to whom he told all his troubles, and who gave him that for which he had such a passionate craving