Gallipolis journal. [volume] (Gallipolis, Ohio) 1837-1919, 1869-10-07
The Financial Question.

are using the specious greenback the
ory during the present campaign with
more industry and art than any other
argument laid before the people. On
its face the theory is plausible. Not
only the unrefecting. but many of the
more intelligent and thoughtful OF bu-
siness and professional men accept it,
and not a few Of them will go over to
the side of those who advocate it, not
as sound principle of finance, but as
one that is in strict accordance with
their sympathies and acts during the
war--as a measure that will break
down the credit of the Government. and
make more complete the disaster and
distress that the war has already
caused.
If the advocates of greenback cur
rency-the class who assume to want
no other currency, and that to be reg
ulated as to quantity only by therat Of
interest-such as we have, unredeema-
BILE, can determine how much of it will
be precisely adapted to the wants Of
the country, even granting that they
can make the rate of interest satisfac
tory, their wish may, with safety, be
granted. This, however, they can not
do, for there exists no standard by
which that measure can be determined
The rate of interest would be no guide,
for, whether on a real or a nominal
gold basis, large volume of currency
has certainly, by its tendency to pro-
woke speculatious and to over-stimulate
trade, been accompanied by, or caus-
ed, high rates of interest, as its ex-
treme scarcity.
Further, if those who look to an ex-
elusive greenback currency as the best
form of circulating mediums will place
it on geld basis, or win determine
how that currency may be made elias
tic--or, in other words, be made to
conform to the constantly varying con-
dition of trade-their fayorite theory
might be adopted. But this they can
not do unless they make the Govern
ment party in trade, and empower it
to become a great discount bank, fol-
lowing the variations of commerce, or,
at its caprice, controlling them.
This essential feature of currency
the adaptability ofits volume to the
necessities of trade--is wanting in the
greenback currency as it is. 1t will be
wanting in that currency should it be
redeemable in coin. For that reason it
is currency which is not suited to the
wants of our country, and should, at
the earliest practicabl period, be dis
pensed with.
1t has not been shown that it has
ever been a part of the duty of the
Government TO furnish a circulating
medium. 1t has, though, under pecu-
liar circumstances, at times of pressing
emergencies, been assumed as an extra
prerogative of the Government to force
a loan from the people in such form
as our greenback currency, by which
its credit could be made a circulating
medium; but the exercise of that dan
gerous prerogative muslin view of
the requirements of commercial inter-
course with the world at large, as well
as of it locally--cease as soon as the
necessity for it has passed away, for as
long as it is continued trade will in
evitably be disturbed, and all indus
tries hampered, if not crippled.
1t is pleasant to look with confidence
on the credit of the Government, as
shown in its promises to pay, and pa
triotic, perhaps, to prefer that credit in
the shape of notes of one, two, five,
ten, and other denominations, for cir
culating medium, but it is not the func
ton or the policy of Government to
furnish them, for another reason than
those named, which is that the Govern
ment is not trader, not a merchant,
not a manufacturer, nor possessed of
any of those privileges by which its
credit as a party in commerce have to
be used. Its only authoritative, legiti-
nate relation to money is to stamp up
IN it an agreed measure of value, leav
ng the people to create it out of coin
having cost value, or out of credits of
heir own make, for which somebody or
is responsible. 1t is true
hat the Government has to have
money, but it must get it by formally
assessed taxation, not by making it. If
he process of taxation is inadequate in
crises, and it is forced
o borrow, it must pay as the individ-
lal must pay, and not embarrass its
'reditors by forcing an indefinite exten-
ion of its credits.
1t is not more money that the people
equire, but better kinda kind that
S convertible into gold, in quantity
hat trade, not quack doctors of finance,
hall regulate. How shall it be had?
BY making the greenback dollars as
,ood as gold dollars; in other words,
into gold dollars, retiring
hem at an early day, and letting bank
ng be free under one uniform, well re-
tricted system for the whole country.
low this may be related to or affect
he bonded debt of the Government is,
f course, worthy of consideration, and
nay receive it hereafter.--Cin. Com
oerrfoI