Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1866-03-29
GREENBACKS vs.. GOLD.

GREENBACKS vs.. GOLD.
The upper districts of this State have
been, in our opinion, guilty of a great f.
nancial error, in disposing of their saleable
products for gold instead Of currency. The
loss to the community by such transactions
amounts to a large per cent upon all the
cotton or other products disposed of for gold
At the close of the war, the people of
the South we're dstrustful of q paper our
rency. The unnatural expansion to which
the Confederate paper money system had
reached, and its constant depreciation, had
furnished to them practical evidence of the
uncertainty of a paper currency; and con.
sequently, without examining the basis up
on which the present currency was support
ed, they became distrustful, lest it too,
should, day by day perish in their hands,
as its unfortunate predecessor had DONE
The enormous revenue of the country
amounting to upwards of S600,000,0 ,0O0-
its wealth and resources-and the anti-re.
pudiation sentiment of the country, was
left out of the question. Reasoning from
the single example presented by the Con-
federate notes, without seeking a better
logic, the verdict of opinion was that the
national currency would, in time, become
correspondingly worthless.
This mistake was unfortunate, and>Ye
have paid a dear price for our distrust.-
For example: the Southern merchant
bought his goods last fall in New York on
credit, to be paid in currency at, say sixty
days. Gold was worth $3.50, and differ
ence of so per cent was added to bis bill
above what the price in specie would have
been. The retail dealer opens bis wares in
some Southern town, and finds that the peo-
pie have nothing but gold to buy with. He
is compelled to take so per centless in gold
than his retail price in currency. But bis
sixty days expire and his New York credi-
tor must be paid Gold has fallen to 81 33 !;
he sells to broker and pays out 12a per
cent more gold for Greenbacks than he
would have done at the time his goods were
purchased. The difference between the
price then and now, is clear loss to the
Southern dealer, and consequently to the
country. The profits of his industry have
been swept away at single dash, simply
because he was obliged to accept gold for
his goods instead of currency. But the
loss is not his alone. 1t falls upon the com.
munity of which he is part. Twelve
and half per cent of the capital of that
community has been wasted and there is
Just that amount less left to meet the de-
mands of trade. The gains have gone to
New York merchants. Their goods were
sold originally at paying profit, on sixty
days time, and at its expiration they get
another profit of II! per cent by reason Of
the greater value of the currency at the
time of paying than the time of selling.
But if the country dealer has been un-
fortunate and fails to meet his paper when
due, he may get an indulgence for 80 days
more. At the expiration of 80 days then,
he is compelled to sell all the gold he has
accumulated at Sl.26, in order to get cur
rency to meet engagements made when gold
was worth $3.50. Here is loss of Is per
cent. of the money resources of the country
1t is loss in actual cash, and not merely
speculative. Had the farmer sold his cot
ton for currency at As to so cents per pound,
and expended the proceeds in buying,
the retail dealer from whom he bought
would have held the currency to meet obli-
cations that he knew must be met in cur.
rency. The sacrifice of his gold would
have been spared; aud his earnings would
have contributed something towards the ad-
vancement of the community about him.
The farmer would have saved lS per cent
of the money he retained on hand by the
advance in the value of currency and eve.
ry man who held dollar so distributed,
would find it worth lS per cent more now
than when received three months ago
Another important feature in the choice
made by the people in the selection of gold
for their currency, was, perhaps, at the time
forgotten. Their dues to the Government
in taxes, licenses, &C., are now to be paid
out of the pocket of the community. The
Government makes no distinction between
gold and greeubacks. ltaccepts either, de-.
manding dollar for dollar alike, of which.
ever may be presented to the Collector
If there is not currency enough in COM
munity to pay its taxes, gold must be paid