Carson daily appeal. [volume] (Carson City, Nev.) 1873-1877, 1874-05-28
TconxuxlcArEp.l
NATIONAL CURRENCY.


4
United States is that of the currency OF
our country and the possibility of resum-
ing specie payments. Numerous schemes
have been brought forward but to-day
the question seems Just rs far from being
solved as at the beginning of the session.
Senator Jones, il his very able speech
on the subject of imitation, pronounced
the whole greenback system! OF commerce
Il fraud upon the community and disaster
to the business interests OF the country,
and further says that fifteen hundred
millions might have been saved in the
war expenditure had the nation tuan-
ces been conducted on Il cash basis: but
| what that cash basis should have been
he did not inform Us. 1t Will be recol-
ltt,tei by all persons who were living in
the Eastern States at the beginning OF
the rebellion that money became at once
a scarce commodity-that the millions
due from the South TO Northern rler-
chants and manufacturers WAS reludi-
ated-tl..t large ;.nticI pated money le-
ceip.s were CT. of: consequently the
and bank loans exceedingly limited.
Ih- imperative necessity tur money to
contig.ct the war cnntinrants induced
the Government 10 Issue demand notes
which were payable in com and rcce ived
fox customs and other dues. 1t WAS
soon apparent that tie limited amount
of specie in the country would prove
wholly inadequate for Business purposes
and the war expense; hence boarding
became almost universal. Not only VI.
all the specie thus coibied up sut all the
demand Il ties q: the Government dl~ar-
peared fcom circulation and even cop-
p.ers. which Ead been trI!cked a5out the
cities ii barrels. uys:eT!uu-iy dlSap
pra:ei Then followed, rs Il matter OF
course. a demand for specie and Il con-
.inUs,l increase OF premium until the
banks were Obliged 10 suspend specie
payments and the people toresort 10 the
use of Hostage stamps for change. Even
copper cents, which had been 50 rleuti-
full that brokers and other dealers in ar
ticles of small value were prone to sell
them as bulk copper. commanded ten
per cent. premium. Thus the whole
nonieti resource of the country had
merged into the repudiated promises of
State Banks which had no value outside
their immediate circulation. Govern
ment Bonds would not sell for coin ex-
c-pt at i, ruInous discount and then
only TO parties who did not believe i'll the
government and thought reDubiicanism a
failure. Then came the emergency of
our currency, q demand for Il circulating
medium coextensise with the Govern
'Rra.-T
must IauGuiSh and the w:.r become u
failure. Suspension Of >lte,se payment
WIS Il necessity produced through thu
belief that the I mon would sr dissolved
that the only ste provision for TIE
coin and precious metals. aud thus We
had fully illustrated the fact Of how easy
Il MATER it Is to swallow M al the
Specie in tine country wH=u there i Il
prospective tt :li;..il u increased valIe
Whatever theories individuals may at!
vance. or the subject. history records the
fact that legal tenders Were the only
issue that could hIve been made avail
able at the TIM. Government bonds or
notes. whether bearing interest or not.
would have had no liked value IL the
market and 10 man could have paid his
debts with them or with the notes OF
State banks except at option Of creditor;
hence half the business people IN the
country would have been made bank |
rupt because OF their Inability to pro-
cure that which the creditor MAS bound |
to receive us payment. The Government
too would have been entirely at the |
mercy Of the merchandising and nanufac-
turing Ct immunity and there would have |
been no limit to the demand OF capital |
lists who were furnishing war materials |
aud transportation for the government. |
Each community would have fixed Its |
own value upon government notes and |
so thvt a horse valued at Il
dollars in Maine would have |
cost the Government thousand i'll New
York. Sellers fixing their own relative
values, therefore, instead of vast sums |
being saved without the issue of legal
tenders. millions on millions would have
been added to our now great national
iebt
Legal tenders. or greenhacks, like ali
other promises to pay. contain IN them
selves no intrinsic value. As with indi-
vidual notes the value is contained in
he estimated ability of the party to pay
md this determines the cash basis of the
whatever it may be, SO that in
.eality the war was conducted on cash
,asis. or as nearly SO as was possible
1nder the circumstances. The whole
question rested ON the ability OF the
North to carry the Government through
he crisis Of rebsllion and eventually
meet its obligations; on this alone rested
he cash value of its bonds as likewise
hat of legal tenders. To carry ON It's
immense war operations by the use OF
merle alone was an utter impossibility,