Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1867-11-11

Journal, we clip tho following extracts :
now, sir, c0me to consider one OF
the leading fallacies of the inaneiers
alluded TO 10 my third proposition, and
which has been used 80 successfully TO
prevent further issue OF greenbacks.
The theory, in short, is this Double the
amount OF greenbacks during suspension,
and it reduces the value of them one
hall--that is, if gold is now at 40, double
the amount Of greenbacks and gold will
| go to S0-a very pretty theory, very.
The great beauty Of il is that it is so
easily worked by one moderately ac-
quainted with common arithmetic; but a
great objection TO it is that it isn't true
1t is pretty rule for stump speakers
Governor Cox used it very happily in
a grand effort of his lately made
in Ohio, as was perhaps maliciously
suspected, ID the interest Of the
New York bondholders and bankers.
Now, many believe this rule to be true
because thep have heard il so often and
for such great length Of time. There
was some semblance OF truth in it when
applied TO bank paper, but this case is
altogether different. The gHaat trouble
with your immediate predecessors( Chase,
Fessenden and McCulloch) is that it had
never occurred to them that there was
any difference between a suspension by
government issuing paper money and a
suspension by banks. There is n vast
difference, as any one will see who will
consider the question well for moment;
and it is exceedingly important that this
should be borne in mind when treating
upon this question. The value of paper
depends far more upon the confidence
which the nublic may have. in the sol
vency and honesty of the maker than
upon the quantity in circulation. If in
place of issuing bonds to help banks
TO borrow money Of the peo-
pie without interest, the Gov
ernment had issued more greenbacks,
and if due exertion had been made to
give the people confidence that the Gov
ernment would be just-cOntidence that
the Government would sacredly use ell
the coin it could obtain for the protec.
tion of its currency, and not have the
bad faith and wickedness At did have in
pledging it all to other and more pre-.
ferred creditors-if the holders of these
notes had had confidence that the Gov
ernment would not sacrifice those who
had loaned their substance without in.
terest for the, benefit of ursurers, or
disgrace the nation as it,has lately done
by using their gold in shaving the Gov
ernment paper on the streets-and more
especially if the holders of this currency
could have had confidence that at any
time when they had any special need for
gold they could get it-gold would not
be to-day at 40 per cent. premium.
The great importance Of this matter
will appear when we consider the vast
mischief that is being visited upon the
country in carrying out the natural in
ference from this false theory that the
value of the greenbacks is enhanced just
in proportion as the quantity is dim lin
ished-that gold falls as the contraction
proceeds, they say, and it is the only way
of reaching specie payments. Coin is no
longer a currency, but merely ain article
of merchandise, being demonetised by
suspension. To reach specie payments,
all the money the people have is paper
money, and when all of that is drawn in,
specie payments will be reached Since
all the coin is pledged to the bond
holders, when the paper money is all
retired, we suppose when people want
money they must 90 into the gold broom
and buy i'll By that time ruin
and bankruptcy will cover the land.
Those who contend that the paper
money of the Government must neces
sariy depreciate in proportion to
the amount issued ought to have some
other reason for this opinion besides a
mere theory that they have learned by
heart. Perhaps they think there may be
something more injurious to the credit Of
the Government by having paper out
without any interest than by having it
on interest They say no matter how
many bonds are out, nor does it matter
much at what rate of interest, they will
stand well in the market but, if you
put out -uotes without, down they will
90! Good old Uncle Sam, having got
in financial difficulty, though possessed
of vast resources and numerous friends
who had loaned him vast sums, and were
ready to loan him as much more, with
out interest, with an understanding that
he might pay when he got able, was
exhorted to throw himself into the hands
of usurers, and pledge all his vast re-
sources to them for interest alone, and
his credit and financial condition would |
greatly improve That's the logic. He |
followed the foolsh advice, and here he |
is, the derision of the civilized world. |
His paper in Europe sells for less than
that of the Illinois Central railroad.
Would it not be q good idea for him to |
get that institution, having superior
credit, to guarantee his paper2
Again, it is known that, by the various
tricks and manipulations of the gold |
gamblers, the price of gold is carried up
or down without any regard to the guam
tity of currency in circulation. II the
theory alluded to be true, the price Of
gold could not be so affected, but would
be an exact index of the amount of our
reucy. The price of gold at the gold
board last week being As, and this week
40, ought to indicate with certainty the
exact reduction of one. ninth of the vol
ume Of currency, but there is known to
be no such connection between the tive
During the war, victories and defeats
had much to do with the rise and fall Of
gold. in England, dHriHg tie l1ps EaFs
with Napoleon, specie payments we're
suspended for about twenty five years,
and the premium on gold was generally
10 per cent only, rising at ene time, for
a few days or weeks, TO IS per cent The
fluctuations in price were known to have
no relation whatever to the quantity Of
the currency. When specie payments
we're resolved upon, the volume Of cur
reney was larger than ithsd been before,
but the price Of gold came down rapidly,
not because the soiaRe Of currency was