Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1862-01-30
An Irredecmabie Paper Currency -
The High Road To Financial Ruin.

The Rochester URioR in discussing the fnan-
cial schemes proposed in Congress to raise the
means u carry on the Government and to sustain
the public credit. remarks:
The Committee of WAYS and Means of the
United States House of Representatives have re
ported their great financial scheme on which they
have been celebrating for seven long weeks; and
such a schemel IL is in brief that the Secretary
of the Treasury may issue $40, 900 ,9G0 of paper
currency, not bearing interest nouin ally payable
demand. which shall not only be receivable
for all debts due the United States but which
shall also be legal tender between private par
ties. precisely the same gold and silver The
committees report also recommends authorizing
the Secretary to issue $500 900. 900 of coupon or
registered bonds bearing per cent. interest and
rceeemable IN twenty years but the legal tender
paper is the only peculiar feature of the commit
mttees financial programme.
Now let u inquire briehy-is il either expe-
dent just. TO make the Government promises
10 pay, legal tender IN the payment of debts be
tween man and manf But in order 10 enable us
10 that question intelIigently let Us i'm
quire preiminarily-WiH the Government fulfi
us promise to redeem these notes in specie on de
mandf Ii IL shall all times paw them in specie
at It's agencies in New York and elsewhere, thew
will always stand fully up to par in parts of the
country; and at points where exchange ON New
York is in brisk demand, thew will command
premium In th at event the legal tender feature
of the law. will be totally imperative and hence
clearly inexpedient. 3ut If the Government shall
fail thus to redeem its promise to pay in specie
demand. then not all the jas and gibbets i'm
Christend0m can possibly prevents its notes from
falling below gold and silver i'm value. Both his
tory and common sense teach that such will be
the inevitable consequence of the Government's
inability. failure from other cause To fulfil its
promise 10 pay, at all times and with the most
scrupulous fidelity by turning back to our
history we shall learn that notwithstanding the
"Clntinental Money" was made legal tender
and all creditors we're required by law u receive
it on par with Spanish miled dollars. on
pain of forfeiture and of being deemed enemies
TO the liberties OF the United States.' yet that
money deprecated steadily and rapidly until 1t
finally became substantially worthless. The iuan-
cial history of other countries which have resort
CT to pains and penalties to give currency 10 pa
per not readily convertible into the precious met
ais. and which hence worth less than those
metals, teaches precisely the same lesson: aud
why should the COMMITTEE anticipate n different
tate fOr like paper issue now
We have vet to aIl-N e. the questions il Just
t'eonIl e. the creditor u receive this paper at par
e have seen that IA t.le pluer Is at all con
verlbe into coin in New York and elsewhere. it
will pass at or above par IN the absence of ali
compulsory statutes And IL only remains 10
consider the justice of compulsory measures in
this ency fall below the par of REAL
MONTY
On this hypothesis. let us suppose that prior 10
the war. a had given his obligation te b tor ten
thousand dollars lawful money OF the United
States. which. when the contract WAS made.
meant gold and silver only. When this Obga
ton reaches maturity. \ finds that law has
been passed which will permit him to pay and
coripets 10 receive at par. these Treasury notes
lie further hnds on inquiry that he can bay these
Treasury Notes ~ exchange for gold aid silver
=, say ,iqh;y cents on the dollor 50 he goes 10
the broker PAYS 3 600 81 real roasg and gets
$1,000 Of Treasury Notes with which he pro
eeeds 10 pay the deot of dat amount Bv this
transaction viii have lost anl have gained
$1,000 And thus We answer tie preceding ques-
tion-is II Just
We would rot leave il 10 be inferred that the
proposed issue of Treasury notes NAV become a.
valuelesS a the continental money of the Revo-
lutionary period The country Is vastly richer
nov than il was then. and inaSmuch as n note
made by party known 20 he ultimately reSpcn
sible worth more in the market than the note Of
party of doubtful responsibility. the propos-
eli Iresrary notes will N no imaginable event be
come worthless. nor cease 20 possess the faculty
OF purchasing al some rate. whatever the Gov
eminent may desire Ia buv But the difference
between the par value and the market value 81
these notes will constitute an approximate meas
people while they viii also involve los Of ma
tional reputation for which there j. no money
equivalent
Ia Indians We have had some experience in
Government scrip IL viii be recolectod o,
most Of citizens that the State. To carry on
her internal Improvement system, issuei large
amount Of scrip of the denomination of s.
some bearing one quarter OF one per cent AMI
some six per cent interest At hrst it passed
current in the payment Of debts. but. il was
irreleemable. not convertible into coin. il soon
currency OF this character must decline in value
il the Government. when it ISSUES il. ioes not II