Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1846-02-18

to expect any frequent resort on the part o
governments to measures OF this kind. They
are too odiously oppressive, and too apparent.
ly fraudulent to be often adopted. II will o,
do for government to say, that every debtor
shall pay twice as much as he honestly owes,
that every creditor may exact twice as much
as he can claim.
| We have said enough on the subject of o
coin currency. We might; indeed, say much
more. Volumes might be written on tho ex-
! pedients which have been employ yed 10 aid in
debted governments, or to 6lfexhaasaed treas
uries, by increasing the amount .of c6ttency,
j by debasement or otherwise, and on. the dis.
astrous conseqnencessafa al sch espedieytsj
and after volumns had been Written the thealt
would not be exhausted. Our purpose, how
ever, was to shew that the substitution of o
coin currency for paper currency, will avail
little. unless some restriction can be devised
upon the power Of government to debase the
standard, and to compel the receipt Of the de-
based coin in payment at its nominal value.
Some persons are of opinion, that the exclu-
sion of paper representatives of money from
ciruation, IS a panacea of ali evils. But the
observations we have submitted, are sufic ent
TO show, that all such expectations are delu-
sive, unless debasement of coin be prohibited.
We shall now proceed to consider the sub
ject of paper money, and give our views upon
it, rather as suggestions, than as selected con-
clusions. 1t is subject Of great difficulty. 1t
has employed for more than a century the
best minds Of civilized nations. Opinions are
still unsettled. Men of equal abilities defend
positions diametrically opposite. And yet we
think there can be seen in the midst Of all the
ru nf ,pip tn nal
While gold and silver have been the gene
rally adopted materials or coin, and while all
most all values have been estimated in terms
which denote equality to certain amounts of
gold and silver, the circumstances Of different
nations have induced them sometimes to ems
ploy, temporarily other articles than the met
ais as the medium of exchanges, and some
times to substitute for the metals, paper rep
resentat!on.
For example, in the American Coione.
previous to the Revolution, various article;
were made legal tender in payment of debts
Virginia had kind Of currency composed o
tobacco, the value Of which was fixed by law
and the people were compelled to receive i
in payment ut that rate. They even paid fo
their wives at SO much per wife. This is ex
planned thus. The first colonies were princi
.
meet their wishes for help-mates, the director
1920, ninety girls, WHO are described asllayin
, been young and lncorrupt. These sold readil
at one hundred pounds of tobacco each. Th
next year, sixty more, young. handsome an
well behaved were imported. For these thu
comp petition among purchasers was so grea
that the price rose to one hundred and tilt
| H., oF tot,o Il.
encouraged this trade by giving to the selle
the first lien on the property Of the purchaser
for The amount OF purchase IN ,ney not pait
down. History does not inform Us whether or
not the lien extended 10 the person sold.
Pennsylvania also had laws making tobacco
and Indian corn legal tenders in payment Of
debts at certain legal fixed rates.
Massachusetts egallzed the use of cora and
wampum for the same purpose,
These laws, however, can hardly be regard.
ed as anything else than regulations Of barter,
and the practices which prevailed under them.
are no otherwise interesting in connection
with the subject of this article, than as show
ing what was the medium oftrade in the ab.
sence of coin and before the introduction of
paper money.
The first emission of paper money was made
by Massachusetts in 1890. This emission had
its origin in debt contracted tor the expens,
es of military expedition against Quebec.
The revenues of the colony were inadequate
to meet the increased expenditure. Govern>
ment was averse to resort 10 taxation to de.
fray the debt and therefore concluded to throw
the burden on posterity, by issuing paper mon
ey to be redeemed in after years. Having once
begun the issue, it was not easy to stop. The
emissions were increased therefore as emer
gences seemed to require, or supposed policy
required. The paper of course deprecated, al
no adequate means of redemption were pro-
yided. An ounce of silver was equal to six shil
ings and ten pence in 1909, and to six shil'
lngs in l749.
To meet the expenses incident to an Indian
war, South Carolina in 17l2, established a
public bank, and issued G48,000 in bills. These
bills were lent on interest, on good security,
and were to be redeemed at the rate of E4,-
900 year. Of course great depreciation
followed, and the paper fell te one seventh
of it's nominal value.
In 1928, Pennsylvania established loan
office, which differed little from the public
bank of South Carolina, except that the
guards against depreciation were more effects
i've, and the depreciation much less. This
Circumstance may be accounted for by the
fact that Pennsylvania had little or no war
debt to pay, and the customers of the loan Of
flee were persons of more means and better
dlsposition to pay, than the borrowers of the
South Carolina bank.
Upon various grounds almost every colony
issued paper money. All pursued nearly the
same line of policy in respect to redemption.
All increased their emissions from time to
time as circumstances seemed to require ol
Justify. None made provision for the con
vertibilily of these evidences of debt into golt
and silver on demand.
They pas. ed of course at different rates ant
the notes Of each colony circulated in tht
neighboring colonies, just as the bank notes o
each state now circulates in other states.
The consequences Of these were precisely sucl
as flow from tho debasenent of the coin. Acua
coin disappeared from the country The pape
being made in most cases a legal tender in pay
ment of debts, debtors paid claims against ther
with nine tenths, ono half, one fifth, one eight