, 1874-03-14
talk with mon on financial matters, aliti draw out
their ppinioun will 1lrnr tim

HtAH HkALAA UP IL lUW l1kHllGCLuHl Hl9lbHltTkGat
onch Of whom thiuIts himself capable Of answer.
lug tho gentleman from Missouri.
Perhaps tho wdeHt OF wild theories Ia, TINT
tho Government can expnnd tho currency with
ott passing 1t through tho hal,tls Of Now York
spectators, by establishing loan-agcnoioB, and
lending people money on ren-ostnto security.
The Now Enpn,,d Colonies trlol this systom,
commencing In 17l3 and for about shirty-ve
years Tho efforts Of tho Government to COLLECT
tlo money lent were unaya!ling. Both principal
and t''torost were, In good moasuro. lost.
South Carona trlo1 tho system, making tho
Commissioners who iont tho money personally
responsible for the good security. but tue tlnse
OF payment was dofcrrel your nftor yoar with
uuvarying regularity. bocar1ao OF tho political
Influence OF the debtors.
But tho most dangerous popular fallaoy Ia,
tllat money. Us medium Ut oxyhango, IL
SIMPLY AN AnsrRAuTioH,-
something g-or.othor Which tho law sayB 8hall
bo logal.tenlor. Tho Continental money AZ III
we'll known, or ouglt to be woll known, could
not ba sustained by logal-tonlor laws.
About e200,000000 WIS issued, bnt tho
most stringent enaetmont to s,lstain It could
not proyont 1t from becoming outivoly worthless.
but it waH ia tllo State Of South Carolinn that q
"rapor-n'ctltun, pure ahd simple, received it's
fullest. trial. It waH pnpnr-eurroncy with no
provision for ita redemptIon and 1t would hnye
roioiced the hearts Ut men who love tho legal
tenders. All OF tho yisionares togothor could
hive sung itH praises, for it WIS loaned by tho
Government Oil real-ostate Hocurity, and became
aB plonty aa blackberries. It would ba pleasant
to rccor1 that thlB "pnper-notlium brought
about tho ilappy state Of Alfuira which it's authors
intended; hut, unfortunately, 1t did nut. From
170l to 1926, South Carolinn was engaged in
roaping the whirlwind; fur it was with gront dt-
- kht tunFt ttnJL kt
por-meduln Ind very little white yet It VIVA
hard to got rid Of, for it drove out lilo good
money, An inferior currcncy drivos cut tbs s,l-
pcrlor, III our g.cenbaolsB lave driven out tho
guild.
Quo Of tho qucorest financial ideas is that
our legal-tontor currency IL
PATRIOTIC SYSTEM,
and that our grcononckB are monoy for which
We fougat during four long yearH, and for wAiclt
400, ,ooU men laid down their lives. During tho
Revolutionary War. the peocle Of VirgInia took
a similar Wow Of their currency, aud In May,
1777, onactod d law declaring that whoever
passed this curro,cy at deprociatel value
should forfeit tho .ull amount 10 ngoa. This
act commenced with o formidable "WhcreaB" )"
III follows:
WHEREAS, The Continental money and tho money
Of this Commonwealth ought to 10 supported Mt tho
1cios artiates Of tic enrmea Of A,nerlca libcrty to
impair the credit Of tho paid bflis by raising Tho
nominal value Of gold and silver, any other Species
~ tAAUo1 "AEoeoFGAg oNkA' " 10 6A*AAlA AkAI44et
and prevented etc.
After this solemn "WhoroaB," II may be sup
posed that tho 1nonoy of Virginia atood at u
premium. Unfortunately, 1t fell III valuo, until
IL specie. ln l78l, this rnoney was funded al
tho rate Of $1,000 OF papor for 81 in certificate
given by tho State.
Nearly all men who wish for an expansion Of
the currency are deceived by the expectation
that, although money will not bo worth much
expanded, it WILL nevertheless. DO plenty. Tile
experience Of tho New England Colonies WAS,
that, however much paper-inoney Was issuod,
tho
PRICES nosE oonREspoND1NdLY,
and people wore NJ hungry aH Oliver Twist for
more.
porhaps tho moat instructive poriod Of Colo
nial times was when Massachusetts returned to
2 Specie, basis III about tue year 1850. Some
Trench City of Lousburg, and for this achieyo-
1llent wero paid large amount OF money. The
share paid to Massachusetts was used to buy up
it's paper at tho rate OF $l1 in bills to 81 Of
says:. "AlI prices aud debts wore adjusted to
tho new standard, and no shock took place.
Hutchiuson says tint the only shock Was to tho
other Colonies which kept paper, aud which
found trade dcsortiug them for the Siivor Col
ouy.'"
The effect Of IN irredeemable paper currency
is not bounded by simple gaips aud loBsos Of
property. It leaves its mark in
re notiaa 81 Etna OF s;ch THE PEOPLE
na,er nra refer.od t NJ havm" rtss,orn =,
cni,saonanca Snnotor Eo,,nry asva PtIo; tIop II ~
Eurooan statesmen coud heap T sueh % NJ ~ nsscr. w.
ton, they would receive it with melancholy
eu1ociated ind uctatiu orc IRON vr from,
l762 Until the present tinlo. Tho historian
1"asnta,,,, .,a ,,,e, 1a,a,.o, A.. uo.
,uausca on ,n ,ox's Of Tie peo,n Fruon1itv @ Und
diiieeuce wera lost virtues. V,Ijpar Observation-Disclosures
n, wild extrnynruuca hecn,ne iuinl evnn Il, liz
lowest casses 6f what uso to care for lie futuro7
Why not on}oy all tho pleasures Of the scses2 How
could ny onq hesitate 70 pay aoo qaen tor admission
10 tno o na !a '1u haa ~. nn ~, yn1ue aa
ot,,' ''S'sN A'A0~s' ~ 'sA' '''' D~'4 "Ao ''A''
r. !. .o,,o;t;,,o. q oone,,,t,,,, for oorao, ~
t,nn. tot nenn1o must Iaar ,ys,to M frn" ,lo ~.
na,,.i,v vhi" p,roi. nc,nna fron, 10 una,
" Na1uteh la". ous, "tleu VIZ ieueci ~" uany
noo s.us,, 'us @ a ~ uuuSu 4,;I HAe
int 6eone sbon1I iaarm a osaon from axna,is ,ne
euco now. If tboy eau loarn It at all.
IT is NOT HARD TO UNDERSTAND
the aub1oct o. money, 1t one looks ut 1t IS he
Wouia iooA o. any common tnlnB' anu not AZ