The herald. [volume] (New York [N.Y.]) 1835-1837, 1837-05-19
THE H E X AID.


men of intelligence and sagacity, are: "WiH the
country sustain paper currency in time oil peace
"Wil cur active business people support al the eA-
pense Of their property and prosperity nredee"aD's
paper issues to any exlentW "Can sensible 'rouing
community be persuaded that insolvent ana broken
banks capable Of furnishing currency sunicich'
TO command csnhdence?
These are questions of the highest Importance at
this crisis Let rs examine them, by the lights of
hist.ry with all that GOODNESS and moderation which
the subject demands.
In only three countries and at four distant and Pc
culjar periods of time have whole nations given
credit and currency, for any length OF time, to IRE
deemabe issues of paper money. In the United
States during the revolution, and again during the
last war; redeemable paper issues were resorted to
once in England, between 1897 and Iceland once
in France, during the revolution Of 1892.
Unlocking the history of these periods, remark
able heprogress OF three great civilized and CONNER
cal communities will find that Of these attempts
at issuing rredcemable paper money failed, and that
two succeeded In France, 1892, and in America,
l776-both ended in ruin desolaton, folly and utter
hatred to the system by which they had been brought
about. The two attempts at paper issues which sue
ceeded and which, after the lapse of ti.ae, revived
their credit and restored specie payments were the
attempts in England beginning in 1897 and ending in
1914, and ending in 1917
Nor in looking over these periods, can we gather
ny light from which to form just and correct opin
to the fate and character of the present mighty
,,,er.nt !, issue an irredeemable paper money?
Jetus ana, re il coolly, calmly, firmly sternly phi
losophcaly.
One of the leading atures in all former attempts TO
issue paper currency Is connection with political
revolution, and association with the general feel
ings of PATRIOTISM, liberty, and love OF country In
France it is well known that Miraoeau and the ia
NOUS Assembly, opposed the issue Of ASsignats until
thew possessed the sole controlover their transient
ability and influence That remarkable measure was
the foundation ofthe revolution of 1872. TWAS asso
cia,ed with all the hopes and aspirations after liberty
and eqsality. The republic started on paper
capital to vndicate the rights OF man, ana 10 ASSIST
the independence Of glorious France against the COM
bned despets Of Europe. The assignats were the
instruments by which the enemy was beaten back
the foe itself invaded-and the triumphant banner OF
France carried from the upper Rhine, down its dark
rolling streams, to its mouth in the German ocean,
PAPER money, at that period in France received the
confidence of an excited asd chvalrous people, be-
.-eause il was connected with liberty, glory, and ma
tional independence. Yet even based on such feel
ines tie bubble burst in less than three years, ond
not wreck was left behind
The other experiment in the paper money system,
but prior in point of time was that system generally
called the continental money, on the credit Of which
the liberty and independence of this country were
placed on a stable basis The moral, financial and
political circumstances intimately connected with this
experiment, resemble in remarkable degree the like
experiment made by revolutionary France in 1872
Indeed the latter may be said to be only the imitation
of the Concordance only following the example set
them by the United States. social and political
convslson in both countries, alarmed the possessors
Of gold and silver They fled, and all specie fed with
them. Both countries therefore compelled to re-
artificial expedients Ii necessary for .er
very existence. Life or death-liberty or slavery,
were staring them the face In such case Patrl-
otsm came in and supported the paper money for a
season. and the character of Americans in 776 was
less mercural and unsteady than the French of 1892
the paper money system of that age lasted fer several
wears and only gradually went out Of existence and
credit with general excavations. The present consttu-
ton Justly termed hard money system"
It's RUNS
These are brief and true sketches Of the expert
ments in paper money, that revolution and liberty
set motion. They both failed in their financial hopes,
though the political movements succeeded.
Let turn to the two other experiments, and
first that of England.
In 1897 the Bank Of England suspended specie pay
ments, and did till several years alter the
close ofthe great originating in ths French revo-
luton. limited amount of paper money became
part Of the circulation in England The country tel
Grated and supported it, because they believed it was
necessary for the liberty and independence of the
ton assaied at all points by the gigantic power Of
Napoleon. Patriotism and love Of country were,
therefore brought into action to give stability and
dence to these paper issues Yet in spite Of this
tive current Of national feeling in us favor paper sunk
70 ~ or Is per cent below specie, and continued at
that rate for many years Had the with Napo-
leon ended NJ his triumph and the subugaon OF Eng.
land the system would have fallen with it, As was
1t survived and afe- glorious pence and overwhelm
ing triumph the sam> spirit Of patriotism that sup
ported the paper issues nov vigorously went TO work
and triumphantly rcstorea specie payments Previ-
Gus to this resumption it is well known tina, Mr. Peel
declared that unless the banks were compelled by the
action Of the government the paper money system in
time of peace, would ruin and destroy the govern
ment and all its institutions
TIE other experiment IN The paper money system
a. 49,