Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1868-12-23
Projects for a Return to Cold as a
EPgal Tender.

tcntIon of the finauciers Of the country j..
How shall we get back to gold and silver as
the only legal tender? This question is
sometimes considered to be the elme as an
inquiry respecting how to resume specie paw
ments, and this misnomer is continually
leading t. erroneous theories, f%nancic1s treat
ing the question as though it were ID -
solved by doing now as the country has
heretofore done in resuming after a period Of
suspension Of specie payments. The condi-
lions of the present problem are. however.
unlike those which have characterised any
previous financial crisis. The repeal Of tie
legal tender act would destroy the legal ten
der character of g~reenbacks, but it would
not have the least tcndcncy to enable the
banks or the government or individuals 10
resume specie payments. If financial theories
follow precelents closely we shall be very
sure to be led into error. 1t Is necessary at
the outset of any discussion OF this question:,
to mark the difference between the present
financial situation and that of previous
periods during a suspension Of specie pay
ments, in order to get a clear comprehension
of the financial policy now needed. Unless
We know the nature of the disease, we shall
be very sure not TO stumble upon any pre-
scriptiOn that Will bring about 4 cure.
Formerly, when specie payments have been
suspended, gold has remained the only legal
tender, and the creditor has had d right to
insist upon it in payment of debts due and
ifTaper money was received in payment Of
debts, it was the voluntary act of the creditor,
and not because a tender of bank bills would
discharge the legal obligation. Then the
government collected customs, and paid its
debts, principal and interest, in gold, and
could not and did not interfere between
debtor and creditor. Now the case is en-
tirely different. The government Is tho
largest debtor as well Is the largest creditor
in the country, and receives and pays GU
hundreds Of millions annually. For thu
current year about half Of the business OF
the government is done upon a gold basis,
and half upon a greenback basis. The gov
eminent has made grcenblcks a lezul tender
for all private debts AMI all debts due from
the government except interest upon a p)r
ton of the public debt This does more than
Iegalise the suspension Of specie payments
it creates a new standard Of value and il
makes the question ofresumption totally AN
like what it has been at former periods. when
neither the suspension nor the resumption
made any difference with the value Of til,
money which could legally be a tender for ;
debt. gold being the only money answering
49, r,1ut-o-,.rk Ir-5Dr H. e-,-,o---a, u,
well as before and after. The financial con
dition now is. in fact, as though the govern
ment had dcblsed, and put a new value upoi
the gold and silver coinage of the country
making 4 new gold dollar containing oll.
three-fourths the intrinsic value Of th,
present one, and when all property and con
tracts had been estimated and made in til
new measure of value, should propose to re
peal the law thus debasing the coinage, an
return to q coinage of the old intrinsic value
During former suspensions prices wer
not necessarily inflated Gold was still tn
measure of value, and currency was quote
ut a discount and not gold as at a premium
A return to specie payments hurt nobod
but the banks, and if they could stand it tn
people and all business men could and tn
banks did not return to specie until the
could stand it. Tn panics and financi;
crashes then, We're just before or %cotempor;
ncous with the suspension. Speculate
and imitation preceded the collapse ar
brought it on, and resumption came abot
when those who were sound, both banks al
individuals, were ready to pay their debt
and those who were unsound quit busine
and went into bankruptcy or settled wit
their creditors as they could.
The financial situation is now different
important particulars. The business Of Il
country, in view of the law, has adiuste
itself to a grcenback basis of value. All col
tracts now existing have, in legal contempt
ton, (unless the Supreme Court should q
eide the legal tender act unconstitutiona
no other standard of money but these gree
backs. Property of all kinds is estimate
and bought and sold in that currency. T
consequence, therefore. of an immediate al
compulsory return to specie as a legal tie
der, would be very ~prejudicial to the debt
class in the country, as it would at once I
duce the valuation of all property to t
gold standard, and yet compel the debtor
pay his debts, contracted upon a curren
basis, in gold or, taking gold and Gu
rency at present valuation, he would
obliged TO pay one dollar and one-third, or
little more, for every dollar of his obligation
while his property, goods, land, labor, &
would be worth no more than now. L
man who owes nothing, or who owes no mo
than he has due him from solvent debtor
would not suffer. The banks ~througho
the country might, however, be heavy losers
and they certainly would be, unless the go
eminent bonds should appreciate and
worth as much in gold as they are now
greenblcks and anything that should sc
ously affect the banks would also most Sc
ously affect the business of the VIII,
country, and might produce wide spre
financial ruin. 1t would be hardly possiI
to repeal the legal tender actor have t
Supreme Court repeal it by a decision
without closing every bank in the count1
unless Congress at once so modified the |
under which our national banks opera e,
to allow them to suspend payment on tn
notes and then banks with large depos
invested in greenbacks or government
curities would still be heavy losers.
We have only suggested some of
dangers to the business of the country to