The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-11-19
INDEPENDENCE, SHOWING HOW MUCH PAPER
MONEY WAS Equal TO one SPANISH DOLLAR.
ON THE RETURN OF PEACE

S S:::$s::: ~ e $s s IS
ON THE RETURN OF PEACE
no attempt was made to cancel the original ObiiQa-
ton by redeeming the bills, tor as the deprecanon
mad been slowly progressing While e paper money
gradually circulating it was obviously iDpossi-
Bile TO measure tie exact loss which eacn no der had
suffered. IL was, indeed, strongly urged at one
time that tho depreciation Of the paper money
issue was made only TO relieve the people from the
necessity Oh paying tax; and as the currency cr-
culated among the Whole people-rlch and poor be-
Ing holders 1t and suffering from its depreciation
in proportion to the amounts OF their purchases and
sales-the whole loss would be divided among them
very nearly in just proportion TO their ability
Of the ' Whole value borne A on iHo the ea' fes
OF the bill to who had received 1t, perhaps at
the rate OF one hundred for one could nave been
made only by a second tax on the same persons
who had been fairly and heavily taxel by Its de-
probation. That this method however, which
savored strongly Of repudatlon notwitnstand ng
plausiDlliry, was NOT adopted Is OF no consequence
rejection at the time wnen 1t was first Droacned
the question belongs 10 the dead past, and but Tor
the broad practcAl lesson II teaches would not be
worthy OF particular and detailed mention.
OTHER FORMS OF PAPER MONEY.
IL was not the intention OF the writer In CON-
mencng TINS article to aliude TO bonds his purpose
being merely 10 show now the issue OF Treasury
notes, irreleemable currency ana '.legal tendet''
We're brought auout In TINS country how the people
became accustomed TO the UNPLEASANT advent VI
paper money and what c1ect ii nad upon national
events. The financial history OF tie country con-
Germs bonds, warrants and Treasury notes. not legal
tender Is therefore passed for the present. But the
condition OF The national finances when The war OF
1872 broke out, cannot be overlooked. The
pressure brought TO bear on the gOvernmt mt
on two years for Treasury notes as a circulating
medium was 80 great tnat the matter had 10 be
the country was financially prosperous me Debt
which mad been contracted during the Revoutlon
was In course Of gra .ua liquidation, with the pros
pect OF soon being extinguished; the civil expenses
OF the government were comparatively lighr; the
burden OF taxation was no longer ieIt; trade -four
isheu, commerce progressed ana expanded, ana a
bright future expanded itself. The rude shock or
war. however, disturbed this, ana The question how
best 70 raise money for the expenses VI the War,
without IisNing national bankruptcy had W DO
squarely met.
II was the opinion OF many private bankers and
hnanceis that it would be proper policy Tor the
government 10 issue large amount OF Treasury
notes OF smaller denominations without interest IKE
the present grccaDack currency, ana With them buy
the government stocks, and thus save the interest,"
Ii Was thought that thrty millions could thus al.
vantageotlsIy be put anoat ana kept in circulation
making an annual saving 10 The goyci nment OF two
mllliOns, whlcn would otherwise nave to lie PAID in
interest. The Fact that the Treasury notes were
current In Canada Ut par for coin contributed TO
make ths ldea popular. There were others, how
ever, who 81 ongIy opposed paper currency, and
who commended mat IL WAS always fayoritc measure
with desperate adventures and lnsoyent merchants
The discussion OF Ihis Important question grew
until the wnvle country engaged IN IL. All clas3e,
Of the people eagerly discussed the several points
raised by the advocates and opponents OF unlf rm
currency The secretary OF the Treasury in his an
nuai report, dated December 0, 1915, brought the
matter before Congress and submitted the following
queslons:- First Whether the State banks could
be successfully employed to furnish uniform cur
rency, whether national bank could be employed
more advantageously lor the same purpose, aud
whether the government would itself supply ana
MAINTAIN paper medium OF exchange 0. permanent
and unilUrni value throughout the United states
A long and exciting discussion in Congress and
throughout the country followed the Introduction
. bnis based on the second proposition resulting
finally In the establishment Of the United States
Bank. The history OF that Institution is 80 wei
nnXrn IN cpro
marsc IL here. mere mention, however, Of the
issues OF treasury and bank notes from the CONT
mental epoch TO the breaking up OF the for Tie
Union VIII not he without interest
THE ISSUES OF THE YOUNG REPUBLIC.
The first issue was OF Treasury notes on the 26th
OF December, 1914; the second emission OF paper
money look place in 1875 the third in 1887 (dcnomi-
nations Of 800 $loo s6oe, sl,ooo and blank; the
1siI denominations OF 500, 500, $500, looo $4,000
aud the sixth and last In 1857, being notes OF The
denominations oil $50, 9l0), $780, $1,000 and $4,000.
DIFFERENCE 'TwIxr NOW AND THEN.
1t Is worthy OF remark that on the notes u the 1914
Issue were the following printed words:-"kecciya-
dutes taxes and public lands,n and each nole had
on Tie lower part OF It's face the rate OF interest,"
SIS 30 per cent per annum. These notes were legal
raE NATIONAL BANK ISSUES.
No national bank currency was Issued until about
the lst or January. ls54 After tfat time II was
gradually issued. On the LIST OF Juy 1864, the sum
or s25, s25, sos had been lssued ana the I'D OF
April, 1865, the whole amount OF national bank Cur
culation issued TO that time was only Sl46, 9Z7, 315.
1t will therefore be that little direct aid
realized from his currency uni alter the close OF
the war. All the channels Of circulation were well
1ed up with the grecnDlck notes, compound inte-
rest notes and certificates OF Indebtedness, to the
amount or over S500,00l,0 00 be ore the National
Bank act got fairly into operation. Tns bank issue
was, III iact an additional imitation Of the currency
SUMMING UP.
In the matter OF the legality and force OF the great
greenDacK issue, Mr.. NORTH, OF Vermont, VINO Is no
mean authority, ana VINO Is generally admitted TO
be the most logical and Iaf-seeiDg OF all the New
England menoefs IN matters Oi financial charac-
Ter SAID In Il place in Congress that it was with
consfaint that he gave MS vote Tor the measure APP
propriatng $500 000 for the conduct OF the war;
lie neld MS opposition 10 legal tender in allegiance
SO lar as 10 Allow money for the army ana navy 10
be raised in this way II Ii could be raised no
other.
lie was opposed to the National Bank BILL though
ne said IL was argued with great zeal and ability BY
Tue secretary OF the Treasury.
me question concerning TIE legality or otherwise
OF tue acI, however, Is not now under d.5cusson
Here are the figures that show what the greenbaCkS
diu:-
The expenditures Of The War De-
WSfe... OH $50 10
FOR navy department. .............. l22,5B17I6 IL
Total waste OF war In one year. SOL 1856 Of
Tue history Of the human race shows no such con-
SUMPTION and waste In any war uuiing single
year. One Diilioa one hundred end i.ty-three mil
hon eight hundred anu ninety-uae thousand ono
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