The Democratic press. (Eaton, Preble County, Ohio) 1860-1865, 1862-02-27

very grave error mas Deen lallen
into in this debate. The notes of
the Bank of England were not
made a legal tender during the
suspension from 1897 to 1922
The bank was by act of Parliament
prohibited from paying in specie.
The taxes were then very heavy,
the expenditures enormous, and
the notes of the bank were received
as cash in payment of the public
dues. For this reason, mainly and
not because they We're, either di-
rcctly or in effect, a legal tender,
the notes, until the issue of the
bank became excessive, did not
depreciate, at least until also gold
had begun to disappear in spite of
penal legislation. But in three
years the depreciation began, and
from 1900 to 1914, it varied from
eight to twenty-five per cent. In
1916, after the war, it was sixteen
and three-fourths. And yet there
were public men then, just as some
are found now, to maintain that
the value of paper money had not
fallen, bur tile value Of gold had
risen. 1t was precisely the argu-
ment over again, Of the French
National Assembly, nearly twenty
years earlier-H was not tie assig-
nat which had lot, but the franc
which had gained, But, sir, the act
also of 1884 which, it is said, de-
cla.ed the notes of the bank a legal
tender, has been totally misunder-
stood. They are not now and never
were a legal tender rs between the
bank which issues them and its
creditors, or the holders of its
notes. Not at all, sir. A PROPOSE
ton so iniquitious and monstrons
never was enacted into law by
English legislators. 1t belongs to
the present Secretary Of the Treas
ury of the United States, in the
year of grace, 1862. Justly did
Mr.. earning boast, in 1911, that
"Never did the widest and most hostile
~prophosicr of ruin to the finances of Eng
land, venture to predict that a time should
come when, by the avowal of Parliament,
nominal amount in paper, without reference
to any real standard value in gold, would be
the payment of the public creditor"
But neither are these notes a le-
gal tender at all, except so long as
the bank pays specie, and, Of course
while they arc equivalent to, if not
convertible at any moment all over
England into gold: so that in fact
the observation of Mr.. Burke, sew
enty years ago, is equally just and
true now
"Our paper is of value in commerce, be
cause in law it is of none. 1t is powerful
on Change, because in Westminster Hall
it is impotcnt."
I propose, then, Mr.. Chairman, a
) substitute for the bill, emitting SC
much of it as purporta to make
/; these notes Il legal tender. But ]
| 90 further. The Treasury notes
: authorized by the act of July last
and those provided for by this bill
: are both declared to be payable
the one on demand, and thC
, other cat the pleasure Of tho
United States" Payable in what
, You have no gold and silver
1 You can borrow none. 70,
propose to collect $3.50, 100000 il
taxes and imposts. But you Issue
at the same time $150,000,OOO o
; Treasury notes, declared to b.
> money, made a legal tender, re
! ceivable for the public dues, and t.
u be circulated generally as currency
c and you thus drive gold and silve
: into vaults and hiding places, o
under ground, and bank paper on
y of existence. What, then, Cal
> you, will you receive, except thes'
= self same notes again into you
Treasury And if so, what bu
Treasury notes will you have tt
ply out? Sir, your bill is a delu
; sion and q snare. These are no
. demand notes. They are not to b.
: payable to bearer, nor to any on,
y else, at any time, norat amy place
They are not to be "paid" at all
: They are to be funded or converted
- into six per cent. stocks, redeem
: able in twenty years. Sir, the pub
lie credit cannot be maintained BY
a public lie. Your notes are no
money they will not circulate a
= currency; they will not be takcl
> as a legal tender, and in discharge
Of judgments and contracts anc
:, State debts, orprivate debts, thougl
} you should send them forth bear
ing ten times the image and super
scription-the fair face and form
i of Abraham Lincoln, now Presi
= dent and C@sag of the America
: Republic.
Sir, I propose to abandon thi
false p%retense, and to change TIN
q form Of the note itself. A Govern
"a ment note, payable on demand o
at the pleasure Of the Government
to bearer, in gold and silver, i
e necessarily and inevitably a delu