New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1871-09-03
nIEDILL AT CoLUMBUs.'


| semi Mediu addressed the Young Mems Re-
| publican Club tonight. Reviewing the
! Ohio Democratic financial new departure,
as set forth by General Ewing, he contrast
ed the financial plank in the State platform
with the plank in Vallandighams platform,
! showing that while the latter was to return
| to the ancient faith of Democracy, and
| wiling to pay the national debt. the former
means reputation. Not the least remark
able thing connected with this new financial
| departure is the fact that only the ONO
Democracy have taken it.. The Democratic
organization in no other State, West or
East, South or North, are advocating IN
their platform the payment OF the debt In
| irredeemable rates, or a material expansion
of this distinct currency. The Ohio Demo
cracy must think-they hold mighty good
| hand to play this greenback game alone;
| The effect of General Ewing's scheme would
| be to destroy the value of the currency. A
note or bond, said the speaker, is worth to
! the holder that in which it is to be paid,
provided the maker is known to be solvent
| and punctual. Ii it calls for gold, wheat,
| cattle or iron, it is worth what they are
worth; if it calls for chips or chat, 1t is
worth so much, no more; if it is to be paid
| in another promise, and that promise is re-
| deemable only in the first promise, then it
| is worth nothing, because it is merely wind
redeemable in wind. The interest on such
| a bubble bond might as well be thirty or
| thirty five per cent as three per cent, as 1t
| will cost the maker no more to pay any rate
| OF bubble interest.
| 1t is obvious that the authors of the Dem
| ocratic financial plank have discovered
| the science of political economy, and treat
! the experience Of mankind with contempt
| They cOolly and contendedly brush away
| and reject the universal conception of the
difference between capital and credit value
and promise, money and notes, the nature
| and function of gold. and that which gives
value to promise to pay. They leave en-
tirely out of sight payment and redemption,
and teach that the federal government has
the power to stamp actual value on that
which in itself has none that it can put
forth; an almighty fiat that will transform
an airy nothing into an equivalent of all
values. or give that which is now worthless
the purchasing power of solid coin. The
Democratic convention propose to make
the greenback read something like this:
The United States promise to pay the
bearer ten dollars, payable at the
Treasury of the United States at
Washington" But this promise is
made in a Piekwickian sense, and is
never to be redeemed in any tangible sub
stance especially not in gold or silver This
is the idea, whatever the form of words may
be. Il is impossible to conceive any scheme
more preposterous. The speaker then con-
sidered the questions of political economy
and finance involved In the propositions in
the light of experience and accepted prin-
ciples of the world, to show how the pro-
posed new departure Is at variance with al
these, and what the effect would be on the
business of the country. He said the Dem
Ocratic financial plank sets forth this reason
for paving the bonded debt in new issues of
irredeemable and, as | have shown, worth
less uOtes namely: that the public creditor
is entitled to be paid II the same currency
he loaned the government; that when he
loaned greenbacks he should be paid in
greenbacks, unless the contract otherwise
provides, and when he loaned gold he should
be paid in gold General Ewing, who
heartily indorses this proposition, seeks to
create the impression on the public
mind that the government only realized
forty per cent OF gold value for its
bonds, therefore the present holders,
regardless Of what they paid, should
be forced oyield them back upon receiving
forty per cent OF what they call for. This
he showed was a Misrepresentation of facts.
During 1861 the currency was at par, and
the first sl50,000,0e0 Of greenbacks issued
under the act of February p, 1862, realized
to the government almost par The first
issue of bonds, the skies of 1881, realized
nearly gold value to the government. The
amount sold was 2S3,0O0,000, and the aver
age realized during the four years of war
was seventy-two per cent. 1t is true, at
one period only forty per cent was realized,
but that was during the darkest period of
the war in 1864, when the Democrats in the
national convention declared the war a
failure and by their acts tried to make it no
longer possible to deal with the original
purchasers of bonds and as most of the
present holders paid between ninety cents
and par for them, | desire General Ewing,
on, o,:-n 1,,,, -l,ot
mean by the expression, paying bond
holders in greenbacks.'
Are greenbacks, worth forty per cent, to
be rendered to the holders of bonds that
originally realized the government ninety
nine per cent, or eighty-six or seventy or
any other sum above forty per cent! How
is the present holder of bond, who paid
par for it, to be forced to receive note
worth forty or fifty cents on the ground
that it was sold in 1864 for that amount
BY what process can the government iInpart
to one irredeemable note the commercial
value or purchasing powerOt forty per cent,
and to another fifty, seventy, eighty, ninety
or one hundred per cent for, unless this
can be done, the whole proposition falls to
the ground. Is a greenback ten cents on
the dollar to be considered as payment for
bond costing holders the ninety-eight per
cent General Ewing had paid! He said
that an increase in the currency will estab
lish moderate and nearly uniform rate of
interest. The speaker said greater finan-
cial fallaey never was uttered by man, en-
titled to a respectful hearing. The pro-
posed bonds, not being paid in gold
or other valuable thing, will be moth
ing more than one form of irredeem-
able notes. This issue will initiate the
currency just the same as an issue of notes.
Imitation always increases the rates of in
terest, as all experience has demonstrated.
Before the war the ruling rates of interest
were far lower than after the imitation, and
a. consequent depreciation set in. The in
hation causes an expansion of prices, and
while the watering pr oeess goes on dealers
seem to gain large profits. This stimulates
speculation, and there is reckless rush to
borrow money. The dealers advance their
rates on account of the extra demand, and
the probability that the principal will be
paid in less valuable currency. This in
hation always results in high rates of inter
est contraction. on the contrary, if not
too sudden produces a reduction of interest
rates, because, as the dollar becomes more
valuable, fewer dollars will transact the ex-
changes OF the country, and the chances of
being repaid in a better currency make
capitalists anxious to loan money ON the
best attsinable terms
Attempted Suicide in n Sleeping Car.