Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1862-01-09
COMMON SENSE AND CURRENCY.


over again the difference between the use of
thing and the abuse Of it. Because an ire
deemable, baseless paper currency always has
been and always must be, bad thing, and be-
cause governments have sometimes issued such
currencies, it is assumed tha any national issue
of paper money is a mistake, and must be a
failure In this country especially, because our
past experience has been, in this matter, unfor-
tunute because at the close of the American
Revolution, continental money could be bought
at about dollar bushel and because, half
a century later, United StucS Bank fell into
the hands of Stockholders, shayers, and swim
/ dlers, there are many short-sghted people who
are persuaded that system that has been
SO abused cannot possibly be used to any ad-
vantage. They cannot be made to understand
/ that the continental currency was worthless be-
cause it was issued by Government just strug-
Cling into existence, possessing neither money,
nor credit, nor commercial resources nor any
sort of industrial prosperity; and that the
United States Bank was failure, not because
it was national bank, but because dishonest
men were intrusted with its management
! With this class of persons it is almost useless
to reason, for they have natural incapacity TO
discern the difference between cause and effect.
The question really is, not as the argument
against national currency assumes, between
specie currency and a paper currency, but be-
tween paper currency based on the good faith
of the Government, and one resting on the
credit and character of institutions under state
charters in the hands Of individual men. The
first we have never fairly tried with the evils
of the latter we are only too familiar. The
"wid- cat" banks of the West have been and
are a reproach and drag upon the prosperity
of that whole region nor are we without some
practical experience of them in our own Stctj ~,
as this moment is a witness, when our hin>S,
as has been long anticipated, have b"en c1m-
PEELED to suspend specie payments That the
evil in our section Of the country is acute
rather than chronic, is owing to the more care
legislation of the Eastern states, and to the
older and more fixed condition Of society,"
But we have now, as the events ot the week
show, mere paper currency and one from
which we suffer all the inconvenience which
the enemies of national currency predict
would follow its establishment. Every West
| ern farmer who has a bushel Of wheat to sell
for the New York market, and every shop
keeper of the West who sells piece of calico
for which he has to pay in this city, know that
they make certain loss on every dollar they
receive but they never know whether the
money they receive to-day may not be abso'
lutely worthless tomorrow. They can only do
business at all because their neghbors trade
with the same worthless stuff that they do, and
all share alike the risk of being caught with
pocketful of ''rags" at the next weekly recur-
renee OF the suspension of some bank, or the
failure of some dishonest or unfortunate bank
er. They put up with paper currency OF the
worst Sort because they have 70 substitute
either in specie or in a currency with national
guaranty. We labor everywhere under dis
ability the same in kind, though less N degree,
as any man will learn who, even in ordinary
times, will go to Boston to make purchase OF
any extent with New York bank-bills in his
/ pocket. or come to this city with Boston bank
bills for the same purpose New York
bank-bill to-day derives all the real value 1t
possesses from the confidence the public have in
their essential soundness and integrity. Can
we not have at least the same confidence in the
character of the Government? The annual
loss the country sustains from the present sys-
TEN is almost incalculable. While it has only
some of the advantages, it has all OF the evils,
considering the whole country, of paper cur
rency.
What we want is to substitute better one
one that shall be universal in its application,
and be based upon the faith of the Government
We have already u mere paper currency, based
not on specie, but on credit The question Is
simply whether it shall be one regulated by the
leblSlullNu on u slllSlc Ouulj uhu uSPV"NNH'
for its soundness upon the Federal Govern
ment; or one subject to the capricioious legis-
lation of twenty states and resting upon the
solvency of hundreds Of corporations and IN
dividuals. If there is any safety or conven-
ence at all in the currency we now have me
safety and convenience are thousand ioid
greater in that which we now use in place OF It,
| We must have one or the other. II paper
money is an absolute evil, let us choose that
system which is the least objectionable. Few,
however, will maintain that it is any more alb
solutelv evil than the credit system based on
notes of hand is so. A Government bank Of
circulation is perfectly in accordance with the
, laws of political economy. There are immense
, advantages attending it in providing uniform
currency for the whole nation, in equalizing
exchanges, in the substitution of circulating
medium in which confidence is universal and
unwavering for one which has all the dsadyan-
tages and positive evils of currency in which
nobody has faith, because it is governed by no
uniform laws, and is subjected to individual
misfortune or bad faith. In time like this, 1t
is especially valuable and especially necessary,
for il is in effect an indirect loan from the whole
people, and can be created without drawing
upon the pecuniary resources ot the country,
as a direct loan must do. And hnaiiy 70
subject to the legislation OF the represen'sa
, tiyes of the whole people, and can De so geaIu-
, ed nnd so used as to be for the good oil the