Alpena weekly argus. [volume] (Alpena, Mich.) 1871-1893, 1874-12-02
Our Unsound Currency.

From Iomeioys Democrat,
1t is remarkable to what lengt
f the decentralization bred by govern
mental departures from moralit
will so, and in what unexpcctc,
quar.e,s its conseqr enc 5 will ap
pear. Perhaps it has not occurred
to most persol that there is lie
lation between our unsound cur
rency and the late bursting o!
dams in Massachusetts, which
wrought so much harm and grief ;
yet it is easy to show that without
the existence Of that currency, or,
at all events, without the irredeem-
able feature, these misfortunes
could hardly have happened. Their
physical cause appears to have been
insufficient strength in the dams.
For this, in one case, the jury
blamed the contractor and the
officers of the mill company; and
this case, where the facts seem to
have been not only carefully ascer-
tanned but bravely stated, will
serve to illustrate the subject.
The government discreditcd its
own promises to pay by making
them receivable throughout the
community as the equivalent Of
money or merchandise, when j.
fact they were not such equivalent.
He who went to bis creditor and
professed TO discharge his debt by
giving government notes, did not
in fact discharge it. He merely
substituted the governments prom
Use, which it acknowledged its
inibility to meet, for his own-and
this often against his creditors de-
sire. So long rs these notes were
convertible into gold-bearing
bonds at a fair rate Of interest, the
mischief did not show itself much
but when the privilege of CONVEX
sion was withdrawn and refused,
it came plainly out. The interest
on these unredeemed promises to
pay being repudiated, every holder
Of them lost confidence in the abil-
ity or disposition of the govern
ment to pay the principal within
any near period. Hence he sought
to realize on them-to exchange
them for some actual property
and he passed them out in the
course Of his transactions, keeping
what gold and silver he had till
necessity obliged him to part with
the latter. Thus these discredited
promises drove the precious metals
out OF circulation and became
themselves the basis Of business
transactions. Their volumr
being arbitrary, did not adap
itself, as that of the precious met
tails and paper based on them haC
done, to the varying demands o
trade; their purchasing power
changed from day to day accord
ing to the commercial operation,
or the fortunes Of war, and later
according to the Vaccinations o
spectators. Hence frequent op
: portunities for sudden wealth
! occurred and many become quickl,
} rich. These examples confuse,
the public mind, and men came t,
be respected chiefly according t,
the speed wherewith they increase,
I their possessions. A false socia
: standard having thus resulted
! with a large part Of the public
: from the governments Equalization
: OF unfaithfulness to the spirit O
contracts, all who accepted thi
I standard gradually ignored til
: requirements Of good morals whe
, those requirements interfere,
t with their own pecuniary advance
q ment. Instead of wealth beins
: as 1t naturally Is and should b,
g the reward and evidence of yea,
Q OF industry, judgement and sci
$ control, IL became the prize of il
! trigue, the fruit Of accident, nm
I the need Of any one who has Ina,
: pcncd TO see and seize the opro,