The Fairfield herald. [volume] (Winnsboro, S.C.) 1849-1876, 1870-01-19

fostering, in its stead, a spirit of epec,
ulation, the money which we use to dc,
note tho valuc%of what we have tc
buy and sell every day, and in which
we fix the rate of wages, must be con.
stant in its own value and not liable
to oapricious fluctuations. .f.
! 1t is misfortune that We ever dc.
parted from the use Of the money OF
the constitution. Sooner or later we
shall be obliged to go back to it. we
have before US the alterpatesi Of re-.
turning to a sound condition by wise
and prudent efforts of our own, or of
awaiting the possible advent of Fl.
nancial panic of greater intensity
than we have yet witnessed, aud re-
turn to specie payments, at the cost of
great and protracted suffering, by the
operation of self-enforcing laws which
arc above our control. n. .sle aam
/ 1 do not believe that any contrac-
tion of the legal tender currency is
necessary in order to reach specie pay
ments. The amount of such paper is
limited, and it is not seriously depre-
ciated. We have not, as some other
countries have done, issued paper
money without limit and to an un-
manageable extent, making tho de-
probation of it so great as to render
it almost worthless and its restoration
to par hopeless. The whole sum of
the legal tender notes scarcely ex-
ceeds the amount of coin received in
two years at our Custom Houses
The amount Of legal tender notes
afoat on the lst of December last was,
including fractional currency, $685.
100000. The present annual gold
income of the Treasury from import
duties is $3.50, 100000. With the
abundant resources of the federal
Treasury it ought to be, and it is pos
sible, to leave this currency at its
present quantity, and yet put it, at
no very distant period, at par, and
thus to give settled prosperity to the
people and save them the distress
which will attend contraction.
After the peace Of 1915 England
returned to specie payments by con-
tracing the volume of her paper
money. She had no other means of
reaching the result. She was not, as
we are a gold producing country; and
was obliged therefore to curtail her
payer currency so as to force gold to
flow in to her from abroad. In con-
sequence of this policy the trade and
business Of her people we're crippled,
general distress ensued and immense
numbers Of those who lived by wages
were deprived Of their proper EN-
ployment and condemned to idlcness
and want. The ten years from 1915
to 1925 was period Of fearful suffer
ing in England aud Of repeated and
most disastrous financial oonvulsions.
We should take warning from her ex-
perience. We have no occasion to
force gold from abroad. We produce
it largely at home, and all we need
to do is to retain enough of our own
product to effect our purpose.
NO REPUTATION.
The government is as much bound
to pay its legal tender notes as its
bonds. 4 am for paying both in full,
and against the rcpudiation of any
portion Of either. :
The legal tender notes are the pro.
misses of! the government to pay mon
ey--that is, gold coin--on demand. -
They are in the pockets Of the labor.
er aud the farmer, in the tills of the
tradesmen, in the vaults of the. banks
as o part of and as security for the
deposits Of the people, which deposits
constitute available capital essential
to daily business 1aa!rHa iaaJ
The federal Treasury, in the hour
of its need, forced this irredeen,-
abhs paper on the people it is'a mat
ter Of simple duty, now,i in the time
of Its abundant RESOURCES, to redeem
it. This paper displaced the coin
which was before in use.a The bust,
ness of the country hos adapted itself
to the existing quantity Of our pres.
ent lawful money, and the people rely
upon thislegal tender paper! where.
with to pay all ordinary, debts it Il
the substance tooy In which bank
notes are redeemed and in which AL
that vast aggregate Of indebtedness.
known as bank deposits is,pa yable!4-
On this paper, therefore, the: whole
structure of our internal business nov
rests and upon it's soundness isr de-
pendent tho substantial prosperity Of
Of the people. 1t is bad faith to the
people to lessen it, quantity or to take
from it its loyal tender quality until
1t is paid. f t'5sa~ atyaa
| THE CONTRACTION THEORY.
When ooin occupied the sams place
in our money system which is nov
hela by the legal tender notes any se
rious withdrawal, from whatever Ga use
of the gold then in use from the gene
raj circulation invariably produced q
panoial trouble. The theory Of thost
who advocat 10 coatractiong is { that 90
soon as the legal tonAeti notes 3shal
have been reduced TO $26D, 600, 900 o,
some otheF thooretieal sum thoi gov