The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-11-02
SATURDAY NOVEMBER 2, 1867.
The Cues ton of Paying the National
Debt in Greenbacl1s.

1 ne SuQGcn CONVERSION VI DESNE1I, u
short time ago, from a Republican into
Conservative was, as it was supposed to
be, "a sure indication that Radical ascen-
dancy was about TO come to an end in the
northern States. When the triumphant
shouts Of the Democracy over the results
Of the elections in Ohio, Pennsylvania,
and California were ringing through the
land, BENEFITS voice, which had for seve-
raj weeks been attuned to join in the jubi-
LIANT strains, was heard in full chorus and
accord with the rest. He has no political
prcindices whatever. He is as free from
them as the types upon which he prints
his paper. He goes with the crowd. He
"follows a multitude to do evil" or
in the support Of good cause, with
stolid Indifference as TO "the evil"
or "the good " itself. He is therefore
a "reliable man"-reliable rs Their
momcter, which does not cause hot or cold
weather, but indicates with accuracy that
the weather is hot or cold. This valuable
indicator of public sentiment has come out
decidedly in favor of paying the national
debt in greenbacks. He is eminently prac-
tical, however, in his ideas upon the sub
ject, and does not follow BUTLER, whose
scheme is humbug which would benefit
nobody, nor PESDLEToN's, whose plan is
highly Objectionable, if we understand it
Alright. BENNETT proposes to keep as
much greenback currency afoat rs the
country can reasonably bear, and not to
contract the amount until large portion
of tho national debt shall have been paid.
He says:
"If the national bank currency We're TO be
withdrawn and three hundred millions OF
greenbacks issued iii its place, with which the
Government could buy up and cancel three
hundred millions of its bonds, the interest
bearing debt would be lesSened that amount
alouce. Then, MIR. McCulloch has on hand
ana unemployed all the time gold and notes
amounting in currency TO about two hundred
millions The application OF this, together
with the three hundred millions OF cancelled
bonds, rs proposed would reduce the debt 1--we
hundred millions. This could all be done
within a wear or so. The Secretary of the
Treasury does not need such Il reserve; for
with an easy currency and money market the
revenue would always come III as fast us the
100. would b. the shortest way 10 reach specie
payments. With five hundred millions OF the
debt paid, and the process of payment going
on, we would soon return to aspecie basis.
But with the national bank notes in circula-
ton, and with the ruinous financial policy OF
Mr.. McCulloch and the bondholders we shall
b. long while coming 10 that The true
course is 10 pay the debt oil rs rapidly rs pos
sibIr in grcenbacks, and with the means At
oUr command, before we attempt to force Spe
clr payments And this, if we mistake not the
signs OF the times, is what The people VIII de-
mand.'
We Of the South are experienced po-
litical economists as respects financial
questions. We have seen and used cur
rency which varied from gold valuation
{or nearer it than grcenbacks now are)
down to one-SiXtieth of that valuation. We
know exactly who will be benefited by q
worthless currency, and who injured. We
know what kinds of property will keep
pace With the diminished value Of the cur
rency, and what kinds will not. We know
how untrue is the theory that the curren-
cy is valuable in exact proportion to
its volume. We know that there are
many elements beside volume to be taken
into the calculation before we can arrive
at correct conclusion in regard to the
effect of an oYer-Ssue of paper money.
We know that ten dollars can do the work
Of hundred if necessary, but that if the
hundred be in existence it will be en-
ployed, and that practically the volume
of the currency will remain the same. !
But above all, We know that the willing
ness and the ability Of the iSsucr of the |
currency to redeem il are elements which |
fix in the public mind the relative value of
gold and the currency. 1t is with Govern
ments as with individuals. If JOHN SMITH,
pauper, puts upon the market negotiable
paper to the amount Of one hundred dol
lars, 1t will lack at least ninety-nine cents
on the dollar of having a par value with
the currency in which he promises to pay,
whether that be gold or greenbacks. But
ii JOHN SMITH, the millionaire, who is
known to have houses and lands in abun-
dance, puts upon the market negotiable
paper to the amount of hundred thou
sand dollars, it will, notwithstanding its
large volume, stand at or near par with
the currency in which it is to be paid. So
il was with the Confederate Government.
Its notes were better than greenbacks
now are when it was in the full tide OF
prosperity and its ultimate success was
deemed certain but when its political
sky became overloaded, and its destruc
tion seemed imminent, its notes became
almost yaueleSS. The Confederate Con-
gress, drawing inspiration from the theories
O, the books, and induced by the belief
that the reduction Of the volume Of the
currency would impart additional value to
the remainder, passed . law requiring one
third Of the treasury notes to be funded,
thereby reducing the volume Of the cur
rcncy by one-third. But the result proved |
that the theory was faulty. Instead of
approaching by one-third, the currency
deprecated by one-half. Coal, which was
selling before the law was passed at
twenty dollars per ton, immediately rose
10 thirty. And SO with every other arti.
Gle. TWAS the ability of the Government
to redeem its notes, its willingness not being
doubted, that had given them their value,
aud, this ability failing, no reduction in
the volume of the currency could avail to
Z b. J. i