Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-12-06
AHAsTY ASSuMPTION.

HASTY ASSUMPTION.
There is a passage in the Presidents
message that merits passing notice as
being the echo of frequent references
to a casual fact which has been offered
by some as an argument on the tinan-
cial situation. We select the Presi-
dents words, becausethey areas strong
a presentation of the matter as we have
met anywhere:
1.-The experience of the present panic
has proven that the currency OF the
country. based as it is upon the credit
of the country, is the best that has ever
been devised. Usually intlmes OF such
trial currency has become worthless, or
50 much deprecated in value as to m
fate the values of all the necessarles of
life. as compared with the currency.
Every one holding it has been anxious
to dispose of it on any terms. Now we
witness the reverse; holders of currency
hoard it as they did gold IN former ex-
periences of like nature.
This has been true of the present
panic. VIII it be true of the next:
Does it afford any assurance OF the
future? Does it give any basis broad
enough on which to rest the financial
interests of millions of freemen: Credit
and confidence are things that cannot
be measured; they are volatile as the
- S.,-y $780, 1-,-O - >~l1ie ''A-"
commands confidence; tomorrow he
has none. To-day a banking institu-
ton is fiourishing; tomorrow loss Of
confidence works its utter ruin. The
same is equally true of nations. No
one has more confidence than we IN the
credit and perpetuity of the United
States. and no one has a surer basis
for that confidence, for We rest 1t on
the restoration in high places OF Demo-
cratic principles and practices. Yet
we have seen the credit Of the United
States down to forty cents on the
dollar! True, it was in time OF war.
Perhaps one year of war with Spain
would bring us to a similar pass.
Again: Only one short year ago we
were told that mere change of admin
istration, the slight change of substi-
tuting lifelong Republican for new
convert-Greeley for Grant-would de-
range and impair seriously the nation
al credit. And millions of Americans
believed it,-and voted accordingly.
Where then was their confidence IN the
stability of government credit: There
is nothing so tickle as the confidence Of
the masses, nor is there any thing on
which they are SO nervous as the
safety of their pocketbooks. The
course of the present dominant
party is not at all calculated to inspire
or retain public confidence. and as the
President says, the full effect OF the
present panic is yet tobe demonstrated
With decreased revenues and gold GUS
toms. the national debt increasing at
the rate of nine millions month, and
the Government in the marketasa bor-
rover of gold to pay interest, 1t is not
impossible that panic might seize
our foreign creditors, who hold some
thing over fifteen hundred millions OF
the national debt This is no mere sup
but because a serious menace
when the Bank Of England ran up It's
rate to nine per cent. The effect on
our government credit from any wild
effort Of foreign bondholders to
unload. would not be predetermined
From these considerations two things
are plain: First, the reason why peo-
pie boarded greenbacks during the
panic is because greenbacks were
deemed the safest investment available
Men would not buy gold, because gold
was declining, and greenbacks were rls-
inc to its level. They would not invest
IN stocks or merchandise or other per-
sonaltv. because all these were depre'
ciatine heavily. Nor would they buy
,.aaI estate. because of the uncertainty
oftbe future: tickle government might
initiate. or it might resume. This pane
has differed from all its predecessors IN
faiI;no to enhance real estate; but even
,..ol astate becomes a doubtful invest
mont when all values are at the mercy
&c government. Besides, the tIxes
ON real estate are now three to ten times
what they were in former panics:
Secondly. it is evident that all Con-
s,ressional legislation on the subject
sbonId look to the early abandonment
e the i,redeemable system of currency
.,so,tad to as a make-shift over ten
,,oo,s 400. in an extremity of national
Ill II was a war device-a necessa-
~ evil perhaps Of that epoch, but sure
=, +ba time has now arrived when every
.t.n Of legislation on the currency
should be a step toward soidity and
permanently.