, 1874-04-12

CHAPTER or HISTORY.
4 correspondent of tho New York 1Faoo''e LUZ
nishes that paper some Interesting remlh1seense7
On the subject Of American Papef-money' al
English clergyman visited the American colon'es'
and NJ, his return, in 1853, published book. In
the following passage lie refers to the theh-e1-
isting paper-monoy of New England:
The Sovang1ans in general, the Rhode Islanders IN
particular the only people on earth who nave n on
thu art of enriching themselves by running IN oeot.
This will remain no longer mystery than hase re-
1ated to your Honor that have no money among us
Int donreciated p,per-currency and this in the cur
rent of thirty years nB dwndlcd down from I'd anu oo
tn 4s per ounce He who dspoaes Of hts goods On long
credit md another who lends his money at 1o8 anu
even Is per cent the first loses his profits and tho ass
soznc Of his PRINCIPAL beside eli tho interest," 1naoeo'
a new net Of tho British Parliament, l-penncd, was
passed last winter to restrain us but such tn1nEs ara
only bruta ful,nina, aud shan go on, doubt, IN
the old WY Of paper emissions, unless the Lord IN
mercy to us, should dispose tho sovereign power TO
vacate our patent, and prevent cur destruction BY
taking us out Of our own hands.
vet tbs majority Of the American Senate and the
American Congress at this day propose to repeat
the folly of the Rhode Islanders. A Senator
even from Rhode Island voted last week to make
tho country rich by issuing more depreclated Pa
per-money. Tho people Of Rhode leland ao-
hered to their worthless money, and thirty years
later it formed the great obstacle to her joining
the other States in forming the Union. In 1787
that State refused to send delegates to tho Con-
yention to form National Constitution, and Mr.
Madison, in letter to Edraund Randolph, thus
commented on the proceeding:
Rhode Island has ncgstiyed motion for appointing
deputies to tho Convention by minority OF - sotes
Nothing can exceed the wickedness and folly which
continue to reign there. Ali senso Of character as
we'll "a Of right IL oblterated Papermoney s their
idol, though 1t Is debased to eight for one.
In 1887 James N. Darnum thus described the
inaationists Of Rhode Island, in L letter to Geo.
Washington:
Tho majority OF the Assembly lfcent!ous NUM-
ber Of men destitute of education, and many Of them
void Of principle From anarchy and con1us1on tney
de1ive their temporary consequence and this they Ell
deavor to prolong by debauch1ng tho minds OF the
common people, whose attention ts wholly deToed to
the abolition Of deb.s public and private With these
arc aasociated the dsaneced Of every description par
ucularlE those who were unfrendly during the war.
Their papermoney Bysteu, founded in oppression and
fraud they are determined to support at every hazard
and rather than rcinqus their favc1tto pursuit. they
tru1nple upon the most eacred obligations.
The National Constitution was completed in
September, 1787, and submitted to the several
States Rhode Island WAS opposed to the rati-
fcation of the Constitution, because Of the clause
prohibiting States from emitting bills Of credit
or making anything else than gold and silver q
legal tender. It was not until May, 179o, that
that State ratified the Constitution and became
member Of tho Union. Washington had been
President, and the Government in operation,
more than yenr before majority in Rhode
Island could be obtained to giyo up tho local
legal tenders" Horton aud Butler, Logan
and Oglesby are but playing the same part in
1874 that these Rhode Island demagogucs did
ninety ycnrs ago. "Monoy backed by the
wealth and property Of the whole State Of Rhode
Island II was good enough for tho people of that
State, said tho Logans and Mortons OF tho
Providence Plantations. 1t VAS true it was not
worth more than feW cents on the dollar, but
tl,su 1t rzs plenty ana 1t WIS - Cheap, ana
the State could say that she had moro money
'sper capita than any other State.
In the Federalist, among the arguments in
favor Of the adoption Of the Constitution, occurs
tho following, from the pen Of A1r. Madison
The loss which Amezics has sustained since the
peace from the pestilent effects OF pacrmoney on tho
necessary confidence between nan and man, on the
necessary confidence in tho public counsels, On the
industry and morals Ct the people, and Oh tho charac-
ter Of republican government constitutes IN enor-
nous debt against the States chargeable with this un-
advised measure which must long remain unsatis1ed
or ratler IN accumulation Of guilt which can be e1-
piated no otherwise than by voluntary sacrifice on
the altar OF justice Of the power which has been the
instrument OF it.
In tho Convention to frame Constitution, the
clause authorizing the Government to 'semit bills
On tho credit OF the United States " was stricken
ont by q vote OF nine States to two. at TINT
time paper-money Vas the great evil, and it Vas
correctly assumed that there could be no nation
al credit until it was abolished and prohibited
| and gold and silver alone made q legal tender,
| II there ever was time OF peace when tho issue
| Of nntional paper-currency might bo conRid'
cred ' necessity, it was when the new Govern
| ment vas created; when it had neither money
| nor credit, nor commerce, nor wealth; when tht
peoplo wero go scattered and the meani
Of commercial communication so fcw,-then, i
ever, there was demand for cheap and plentiful
money backed By the property of the whole na
ton. But the men of TINT day had tho example
OF other nations before them; they were Wit
nessca OF tho dizeful fnct that al "confidcnc
between nan and man +" Ind been destroyed b,
paper-morey, and that there WIS but the on
course to pursue to establish and maintain
national credit, and that WAS to exclude peremp
torily all authority, either in the General Gov
ernmcnt or in the States, to issue paper-money
or to ever make anything but gold and sill
yer legal tcnder. We L.1e seen tho "pesti1en
effects Of paper-money quite as sensibly zinc
1855 az it was seen at the time OF the founde
ton of the Government. For nine years, durin
which We have been at peace, the national credi