The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1868-08-17
The snort cut TO bankruptcy

Ia Coy. Stanton's remarks upon the
proposition to convert the bonded debt
into greenbacks, printed elsewhere, he
traces the consequences of that act no
further than to show that II 1t were an
absolute certainty that the greenbacks
would be redeemed in gold at the end
ofiwenty years, they could be worth at
the time of conversion nc; more than 25
cents on the dollar, because the present
vaiuo ofany note without interest, due
ut a future day, is just that sum which
placed at compound interest would pro-
duce the face of She note when due.
Az II matter of fact, however, IL the two
thousand million of bonds were con-
verified into greenbacks they would not
bs worth the fourth of that. They could
not remain worth anything. A green
back is not money: Il is only the
promise of the Government to pay
money, not at any specified time, but
when the Government pleases or finds
itself in a condition to pay. 1t must be
impossible for the Government to re-
deem these notes (f they are not TO be
runded(, in other words TO resume
specie payment, until business is grad
unlly restored to ordinary channels,
until the country has recovered from
the losses OF the war, until the actual
gains In wealth and the consequent
growth OF confidence appreciate the
currency TO the value of the money OF
commerce.. or course it Is only the
prospect of redemption in money that
gives thcse notes any value at all. Sup
pose then two thousand millions more
o. them were thrown upon the country,
what would be the probabilities of their
payment, and what would they be
worthi What could tho country do
with two thousand millions of ire
deemable paper? 1t would BIO payable
when the Government might please.
The Government would have already
repudiated its contract TO pay interest
on it's debt, that being II larger sum
many times over il the debt ran fifteen
or twenty years thnn the present worth
OF this paper il its payment were az
sured o. the end OF a like perlod-and
might it not with equal facility repudi-
ate the contract 10 redeem this paper at
all2 But at best, such vast amount
OF currency, by the memorable self
acting principle that money Cheapens
as 1t is multiplied, would send prices
of everything else up like rocket-or
speaking with more accuracy; would
bring the value of currency down like
stick.
An instant realization of the evils TO
follow the launching OF FIVE times the
present volume of this greenback cur
rency upon the country, and an appre.
hension of other calamitics not clear
~ foreseen, would create panic that
would oYerturn the business OF the
country even before the issue took
place. The securities now, by virtue of
the confidence felt that they will be
paid, represent, and practically have, a
money value. Every branch of busI-
ness in the country rests on them, as In
ordinary times it rests on IA basis of
specie. Their conversion in the way
proposed would operate as the total de-
struCtion of money value TO their
amount; aud what then could happen
bu1 Nhhl AIS WbbiS luStlS Vi SOhAAISASS
and business in every ramification
would tumble into ruin2 With the
best intentions, the Government could
not redeem its paper without heavy
taxation. The destruction OF the secu-
rites and tho substitution OF irredeem-
able non.interest. bearing paper would.
even before the act took place, SO Grip.
pie the country that payment OF taxes
would be impossible. This would add
to the certainty that The Government
paper could not be redeemed: all con-
fideuce would be lost; so that. cause
and consequences alike conspirtnr 10
deepen the depression, there could be
but one result. Everything would 20 to
the bottom; all paper money would
become wholly worthless, and uniyer-
sal bankruptcy overtake both Govern
ment and people. In this condition we
should be at the mercy OF foreign pow
ers that might. and very likely would,
improve the opportunity TO enforce the
claims Of foreign creditors by such
measures as would add ,immeasurably
to the national suffering and hnmilia-
A. sr