The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1868-12-22

1ucing our imDortatIOnS OF foreign
goods. This is a clear case of putting
the disease for the remedy. Gold,
like every other commodity, is gov
erned by the great commercial law of
demand and supply. 1t goes where
it is needed, and leaves the country
where it is not in demand. In this
country there is now but one demand
for gold, which is to pay duties on
imports. The great use to which it
is ordinarily applied, to constitute a
currency and medium Of exchange. |
has been cut off for five years, and
our gold has steadily flowed into
other countries where it Is demanded /
for a currency.
In whatever country paper money |
has been made legal tender, it has |
invariably driven gold and silver from
the circulation. and IN great part |
from the country. Thus it Is that
Canada is now flooded with American
silver. Thus it is that American gold
has gone to Europe in a steady stream
for five years Thus it was during
the French Revolution, when the
dssiqnats, legai-tender currency like
our own, drove French gold into all
when the GssignGts finally collapsed,
as they did in single day, France
found herself almost destitute of coin.
And thus it was during the long sus-
pension of the Bank of England,
when English gold went steadily out,
and was only recalled by the prepare
tons made to return to specie pay
ments.
During the first five years of the
decade ending June 30, 1868. our
gold exports were 1851, 268, 297.
During the last five years of the dec
ade, while specie payments were sus-
pended, our exports were $4l3,-
800. 900; showing an increase of $I5z,-
$4,000. During the first five years,
our imports of gold exceeded those
of the last five years SIS, 369, 600,
which, added to the $l52, 422, 900,
would make Sill 81. 900 OF increased
gold loss during the last five years.
We cannot retain our gold at home
except by making demand for 1t.
| The holders of it are not patriotic
enough to keep it here for nothing.
If We would reduce the importations
of foreign goods, we must withhold
the gold with which they are pur-
chased. And this we cannot do ex-
cept by making it more profitable
to keep it at home than to send 1t
abroad.
Until we create this home demand,
the annual product of our mines in
chief part will go Co England, France
and Germany, to swell the rich vol
ume of their currency
Again, it is said that specie pay
ments cannot be brought about by
special legislation, or materially aided
| thereby, but can be produced only by
tbs operation of general causes, such
as the increase Of the tariff, the IN
crease of population and the develop
ment of the resources of the country.
whereby the general credit of the Gov
eminent will be improved. To under
stand the merits of this proposition
We must consider what are the causes
of the depreciation of the currency,
and this | will do In answering anoth-
er proposition which is said to pre-
sent the best and readlesJ method OF
returning to specie payments. LII Is
alleged taat we can only raise the
value of our currency by raising the
value of our bonds in the market ;
that as we bring up the price Of our
bonds we shall thereby bring up the
value of greenbacks; that we can only
improve the value of the currency by
improving the general credit of the
Government. as shown by the value
of our stocks, and to this end the
surplus gold in the Treasury, and that
which is to accrue, should be applied
to the purchase of our bonds In the
| l. nA 2 u 10
ing the number of them and lmprOv-
ing the value of the balance.
This view of the question | hold to
be total misconceptlon. L do not
believe that the existence of our
bonded debt has anything, or scarcely
anything, to do with the depreciation
of our currency. | believe our cur
rency would be deprecated as it is ii
the Government did not owe single
bond, or if all our bonds were at par.
Why is our currency deprecated!
And why would it be deprecated If
the Government did not owe a single
| bond? Because the greenback note
is a promise by the Government to
pay so many dollars on demand, which
it does not pay. The promise is daily
broken and has long been disho1ored.
The note draws no interest, and the
Government has fixed no tIme when
it will pay it. Under such clrcum-
stances the note must be deprecated.
The solveRey or ultimate ability OF
the promlser never kept overdue
paper at par, and never will. To DO
that, something more is required than
the ultimate wealth or ability of tho
promiser. There must be certainty
In the payment and time of payment,
and ii the time of payment be
deferred compensation must be
made by the payment of interest.
Let me suppose, by way OF
argument, that A. Il. Stew
art, the great merchant IN New York,
should pay off his numerous en-
ployees in due bills or notes payable
on demand, which draw no interest,
and which he refuses to pay on de-
mand, aud will fix no time when he
will. Notwithstanding his immense
wealth and his entire ability to pay,
his notes would inevitably depreeiate,
and could only be sold at a large
discount, which would be increased
if it was admitted that there was no
legal remedy by which he could be
compelled to pay them. One of the
wealthiest men in the Northwest, now
dead. who left some five millions of
dollars to be divided among his heirs,
had an unfortunate habit of refusing
to pay his small debts. Instead OF
paying he would give his note for
them, refuse to pay the notes at ma
turity, suffer himself to be sued,
, then hire a lawyer to fight the
cases. The result was that his
paper was hawked about the streets
at sixty or seventy cents on the dol
lar, while, perhaps, that of his near
neighhor. who kept q small store and