Pomeroy weekly telegraph. [volume] (Pomeroy, Meigs County, Ohio) 1860-1866, 1862-02-21
Legal Tender.

The Providence Post treats the "legal
| tender" question in an, off hand, prac-
| teal way; presents the whole matter in
| a short space, and with commendable di-
trectness,
;HDEMAND NoTEs A LEGAL TENDER
There is little panic at Washington,
and bigger panic at New York-ditto
in Philadelphia, ditto in Boston, ditto
here-all because it is proposed by Gov
ternment to Issue one hundred and fifty
millions of dollars worth of demand
Treasury notes, and make them legal
tender. Looking at the newspapers
in the interest of those panic manufac-
turers, one comes to the conclusion at
once that demand notes are the most ter
rible agents of despotism that the world
ever invented. No other kind of paper
money is dangerous. No other kind
will depreciate. No other kind will rob
widows and orphans. No other kind
will initiate and depress business. No
other kind can ever become absolutely
worthless. But these worthless, hum
4 bug demand notes-oh, who can picture
the ten thousand evils that must flow in
their train. Demand notes wouldn't be-
quite so worthless or quite so dangerous,
however, if they were merely demand
notes. But making them legal tenderl
That caps the climax! That seals our
fate and their fatel Why, says the
panic makers, they will not be worth ten
cents on dollar in six months, if you
make them legal tender! The reason
ing ON this point is as clear as mad
just abaat. If a treasury note is made
q legal tender you can pay taxes with it;
you can settle your butchers bill with
it; You can pay your note at bank With
it. Ergo, the demand note is worthless!!
If the notes will pass-if the banks, and
che tax-gatherers, and the groeers, must
take them, dollar for dollar, just as they
now take gold, of course, they will de-
preciatel This is the reasoning. x X x
Only few months ago, the reader
will remember, the Government, want
ing money, authorized the issuing of
certain amount of bonds, bearing inter-
est at the rate of seven and three -tenths
per cent Agents we're employed to
dispose of these bonds. In this State,
the Presidents of two of our largest
banks were selected, and their appeals
to the people were both patriatic and
successful. All banks, or nearly all,
Clipped in Business men invested.
Poor men and women withdrew their
small sums from the Savings Banks,
and bought bonds. The State of Rhode
Island was at the same moment greatly in
want of money, but paying only six per
cent. interest, found it hard to raise
dollar. Only thirteen banks in the State,
we think, would consent to loan Rhode
Island mill; our Treasury became actu-
ally empty, aud but for timely relief
from Washington, would have made its
emptiness known to the world. Every
body wanted Federal bonds, but nobody
wanted State bonds. Well the bond
fever was healthy fever, after all, and
we were glad to announce, from week to
week, that our people were sustaining
the Government in very substantial
manner. But, just following the bonds,
came batch of demand notes.
These were also part of the Cover
ments life-blood. They were in small
change, Soldiers were paid in them,
and poor women and children must de-
pend upon them for their bread. How
were they received by our banks-our
large banks, whose patriotic Presidents
had disposed of so many 73-1Oths per
cent. bonds? Why, they ,oere throrn
out-discountenanced, repudiated, treated
with contempt, at once. Whys Merely be-
cause these little demand notes n.ight hare
something to do ssifA forming a currency
for the people; might eonse into eon.pesi-
tion, by and BY, soith bank notes. And
SO these banks, every one of which had
to suspend specie payments-not one of
which could redeem tenth part of its
own notes, with anything but paper;
stamped the Demand Treasury Notes in
which the soldiers were paid, and on
which the Government depended for its
existence, as worthless. They are not
received at the big bank counters, to-
day, as money. New York and Phila-
delphia, and Boston, and Providence,
have put their shoulders against them,
determined to crush them out. More
than this, they have got up a panic, and
are making all the old ladies in the
country believe that demand note is
great humbug-will never be paid
can't be paid.
This panic is reality; and Mr.. Chase,
the Secretary Of the Treasury, perceives
that the interests at work against de-
mand notes-notwithstand the fact
that the property of the whole country
is pledged for their redemption-will
work their ruin in the market, rob the
poor soldiers, and perhaps stop the
wheels of the Government, unless they
are made legal tender. Hence the
movement in Congress- movement,
which has already brought down upon
itself the opposition of nearly the whole
banking interest Of the country, but
which ia, We presume, destined to tri-
umph. Demand notes will be made
legal tender; and then the banks will be
obliged to receive them in payment of
debts. 1t will, of course, no longer be
for their interest to cry them down.
at first, probably, the idea of making
them legal tender would not have
been seriously entertained By Congress.
Certainly the measure would have stood
little chancs of triumph, This is all we
have to say about Demand Notes, and
making them legal tender. That the
measure will work revolution in 6nan-
cial circles is possible. 1t may drive
bank notes out of existence. It nay
lead to the adoption of Secretary Chase's
plan for currency. 1t may, perhaps,
work some injury tc bankers ard eapi
talists and business men. But we do