Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1862-02-17

The Treasury Note scheme.
The Republican leaders do not appear to have
the courage or sagacity to meet and overcome
our financial difficulties, or TO profit by the ex-
perience of The past. Every Governmental at
tempt TO make paper equal to coin. based simply
upon the public faith, has ended not only in dis
aster to the citizen individually but national
bankruptcy. paper currency to a limited ex-
tent would doubtless be temporary relief in our
present financial necessities, and that may be
justification for the issue, spropesed, of one hun
dred and fifty millions Of Treasury notes and for
making them legal tender in the payment of
all public and private obligation, but unless this
measure is accompanied with a tax levy Sufficient
to meet the pecuniary obligations of the Govern
ment and inspire confidence in its ability TO fulfill
its pledge of faith, the Treasury notes viii inev-
itably depreciate in value. So long as they pass
current, or even at small depreciation, as it is
the easiest way to provide for the payment
of the public Indebtedness, the temptation
will be almost irresistible TO depend upon
that resource to meet the current obliga-
tons of the Government. And il this is done
ultimate result, and that too at no distant day.
Congress should not authorize the Issue of a sin
gle treasury note without at the same time pro-
yiding tax levy which viii be ample to give con-
fidence in the ability of the Government to meet
its pecuniary obligations. Financiers will not
invest funds in Government securities unless the
ability Of tie Government net only but its will
ngness to fulfill its pledges of faith is demon
strated. If this is not done all descriptions of
Government securities must decline in value. A
similar kind of inanciering to that now proposed
was tried during our revolutionary era. To meet
the necessities of that period s2O00,O0O of CONT
mental currency was first issued That sum went
at its face. That amount increased to $780,
900 and it was made legal tender. But
this did not prevent its depreciation, until bush
ell would not buy breakfast
During the French Revolution there were two
issues of Treasury notes, both of which became
entirely worthless. In April, 1870, 400 900, 200
francs of Government notes were issued, called
"assignats." Forg months afterwards the amount
was trebled. In all forty thousand millions of
In six years only these "assignats" became val
ueless. Subsequently, another description of
Treasury notes. was issued called mandates -
and landed property was specifically pledged for
for their redemption. Six hundred millions of
francs were first issued, and this sum was increas
that security, and the pledge of public faith. these
mandates" followed in the footsteps of the cas-
signats,' and became entirely worthless.
Ths Bank of England notes, which were made
an absolute tender during the wars of Napoleon,
period of thirty years. notwithstanding the Sc
curity upon which they were based, deprecated
near thirty per cent. below the specie standard.
These are facts which should receive consider
alton, especially by our law makers. And our
Treasury notes" will likewise depreciate in
value unless the amount issued is restricted to
what is required as a circulating medium for the
conduct Of the business of the country and tax
/ levied sufficient to maintain the credit of the
Government and fulfill its pecuniary obligations.
Eighty years ago JOHN ADAMS announced princi-
piles for the management of National finances,
which are equally applicable to the present
period as then, and which, if we are wise, will be
adhered to now. He said:
A certain sum of money is necessary to crcu-
late among society in order to carry on their
business. This precise sum is discoverable by
calculation and reducible TO certainty. You emit
paper money any other currency for this
purpose until YOU reach this rule, and it will
not depseciate. After you reach this rule it will
depreciate, and no power or act of legislation
hitherto invented can prevent it. In the case of
paper, if you go on emitting forever, the whole
mass will be worth no more than that which was
emitted within the rule.
The principles of the Democracy are directly
averse to the financial schemes of those who now
have the control of the Government, and it will
be wise to let the responsibility rest entirely with
them.