Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1864-04-26

The New liOlA 1Slll.
The passage, at the suggestion Of Secy.
Chase, of the Senate bill to prevent specu
lation in gold is startling and Significant
These high handed, illegal efforts to sustain
the currency Of the nation arc not. worth
discussing upon the principles Of political
economy 1t may, however, be well to look
at their effects as Illustrated in history
We arc glad to see that many of our jour
nalists arc beginning to acknowledge the
folly Of trying to fcter the great currents Of
commerce by legislation, to perceive that
gold like wheat or corn is marketable sub
stancc--thc most sensitive barometer for
marking the rise and fall in the value Of pa
per money. by endeavoring to yoke gold
with legal tender which has no intrinsic val
ne, We merely force the former out of cir
culation, and dcpreciatc the latter and entail
the fixing by law Of a standard price upon
articles Of consumption such as corn, wheat
&c. Read the following extracts from
Theirs History Of the French Revolution
daguerrcotyping the effects of this kind of
legislation Assignments were the govern
ment legal tender notes, secured by the
lands of the old noblcs and ecclesiastics
coniscatcd to the public use
Specie continued to he regarded as the
real standard Of value; and nothing is more
hurtfulsto doubtful money than the rivalry
of . money OF which the value is undisput-
ed. The one is boarded and kept back
from circulation, while the other offers it.
self in abundance, and is thus discrc,litc..
Such was the pretlicanenti in which assig-
n,nts stood in regard to specie. The Reyo-
luton, doomed to violent measures was not
longer able to stop. II had put into torrsd
circulation the anticipated value of the Ma
tional domains it could not help trying to
keep it up by torced means. On the ilth
Of April, in spite of the Girondins, who
struggled generously but imprudently
against the fatality Of that revolutionary
situation, the Convention decrced the penal
ty Of six months Imprisonment against any
one who should sell spccic,-that is to say,
who should exchange certain quantity of
gold or silver for a considerable quantity Of
As ,ignants. 1t enacted the same punish
n mt fur every one who should stipulatc a
different price for commodities according as
the payment was to be made in specie or in
assignants.
These measures did not prevent the differ
ence from being rapidly manifest. In June
a metal franc, was worth three francs in as
signants and in August, two months after
wards. n silver franc was worth six francs
in assignants. The ratio of diminution.
which was one to three, had therefore in
creased i'll the proportion of one to six.
In this situation. the shopkcepcrs refused
to sell their goods ut the former price
because the money offered for them was not
worth more than fifth or IA sixth of its
nominal value. They held them back,
therefore, and refused them to purchasers.
This depreciation Of yaluc, it is true. would
have been in regard to the assignments, no in
convenience whatever, had everybody taken
them only at their real value received and
pad them away. at the same rate. In this
case. they might still have continued to per-
form the Office OF sign in the exchanges,
ana to serve for circulating medium like
any other money but the capitalists who
lived upon their income, the creditors of the
State who received an amnesty or compcn-
sation Tor an office, were obliged to take the
paper at its nominal value All debtors were
eager to pay Oft their encumbrances. and
creditors, forced to take fictitious value got
back but fourth, or sixth of their can't
~. Lastly, the working people. always
Obliged to offer their services and to viye
them to any one who would accent them.
not knowing how to act in concert. in order
to obtain two-fold or three fold increase. of
wages IN proportion to the deprecated val
ue Of the assignants, were paid only part Of
whetwas necessary to obtain in exchange
such things as they needed. The capital
list, half ruined, was silent and tliScontentad
but the enraged populace called those trades,
men who would not sell 1t the Old nr;ees
forestallcrs. and loudly demanded thai fore.
stai'ers should be sent to the guillot;nc.
All this resulted from the assignments. as
the assignments had resulted from the nc.
cess'ty Of paying old debts, making com
Pehsatlon ior offices, aud defraying the ex-
penses OF = ruinous war; in ike manrar
tne mdfsmum was destined to result from
inc assignants. 1t was, in fact. to l;ttle
purpose 1hat forced circulation had heen
gwen to this money, if the tradesman NV
raising his prices could evade the NECESSITY
OF taking Il Let forced rate then +.
M nxed for commidition as well as for money
Inc moment the law said such a piece Of
paper shall be worth six francs-it- o,,sht,
also to say, such commodity shall IS sold
Tor no more than six francs .othprrv;se ~
dealer, BY raising the price to twelve would
escape the exchange.
1t had therefore become. absolutely ns..,..
s n.rha - sp'te o. the Girondins, French cop
Pelaneads) who had, given excellent ~ress,,,
S ts;nss - 9 g the ordinary economy Of
great hardships for the lower =, c,sss. p Inc
want q bread. The crops were , no Is ~, Inc
Gent, but the farmers who wo,,la n not DEN
front he tumult Of the market ~ 10y sesi !. con
with thsir goods. p' away
On The "a and 4th ef Navs Ihe .Ce..,,..,
Nm Oo11l11t 8o4e tasS)nS { decSss ~ H.
wh6eh u 1mus nd earn dealers Ven IS.