The Monetary System Essay

614 words - 3 pages

The support, which Mr. Franklin’s Modest Enquiry has raised, for a large addition of paper bills, to the current circulating coinage, is alarming in of itself, and, added to the quickness with which the commoner entrusts himself to Mr. Franklin’s opinions, has the opportunity to bring ruin and poverty upon our nation. His arguments for such a hasty addition are hinged upon the fact that this nation is now in want of money. Is this true, fellow countrymen? Are we not a prosperous nation, by the blessings of Him who sanctifies us with His dedications? Do we not receive pilgrims, from the shores of the eastern world, who wish to share in our fortune? The honorable Mr. Franklin no doubt intends well with his illustrious pamphlet; however, I find myself obligated to explain the failings in his otherwise eloquent Enquiry.
Firstly, Mr. Franklin’s opening consideration reads as follows, A great Want of Money in any Trading Country, occasions Interest to be at a very high Rate. As a foundation for this assertion, he argues that men, in a time that occasions severe measures, are forced to demand high interest, even to eight and ten percent. In his resulting argument, Mr. Franklin has made a hazardous error in overlooking an ostensibly obvious exemption to his initial statement. Especially in times of monetary stress, the value of competition is realized. For, of course, during such times, money-lenders experience an increase in business, and, desiring to surpass their competition, will maintain low interest rates in order to facilitate more business! Such is the importance of competition in a trading country, indeed, in every country, and such is the significant exception to Mr. Franklin’s consideration.
Mr. Franklin’s second statement equates the want of money with reduced prices...

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