Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-06-12
THE RULING CRY.

.Interconvertible bonds triumphant
No show for bankers and usurers.
Legal tenders and low interest the
ruling cry from all sections.
1 Such was the greeting exchanged on
Wednesday between the Independent
State Conventions of Illinois and Indi-
ana, and it tersely indicates the animus
of both bodies. Itisnot unnatural that
Republicans, to whom Democracy has
been misrepresented and maligned for
years, should, when they become out
ragged at their own party, seek to form
a new oneinsteadof crossing the line to
their old enemy. Neither is it unnatural
that thepeople, when first arousing to a
sense of wrongs that they have suffered
supinely for years, should, in their
first efforts, mistake the proper rene
dies. That they are aroused, and look
ing about for remedies, renders 1t pref
ty certain that they will not stop till
they find the true one. They deserve
all encouragement, but it is not true
friendship to encourage them IN trying
remedies that might prove baneful.
Interconvertible bonds bearing 3.65
per cent interest is not the remedy.
First, it is hardly to be expected that
people would invest, in such bonds,
money that commands in their own
neighborhoods from six to twelve per
cent legal interest. They might find a
market in glutted European capitals,
but we have enough Of foreign holders,
and Americans can do better with their
money in a young country than three
per cent. Secondly, if it proved oper.
ative, it would give more ''show" than
ever for bankers and Insurers. A fifty
million pool of Jay Goulds and Jim
Fisks could contract the circulation IN
any section or city, just in the nick of
time to swindle the needy producer
out of half his earnings. The currency
would be forever an uncertain volume,
to which the business of the country
could not adjust itself. The scheme
is worthy of its originator, Pig Iron
Kelley, of protected Pennsylvania.
mo show for bankers and usurers, "
means no available capital. 1t means
that every wealthy man must put his
wealth In lands, or mines, or factories.
This arrangement would suit if the
wealthy man always possessed the en-
ergv and skill to use lands, dig mines,
and run factories to advantage. But
skill, energy and wealth are seldom
combined in one person. God divides
his gifts. No interest, means no capt.
tai. No capital TO be borrowed, means
that energy, intellect, and skill must
rot, when they have no capital of their
own.
"Legaltenders and low interest.
Never since the world began, have
these two things been brought togeth-
or. Never was there paper currency
without enhancing the rates Of inter-
est The rea son is that a paper cur
rsncy breeds speculation, and 1t is the
latter which runs up interest. Let our
neonIe think back when the interest
zv,s lowest in this country or IN any
narticular section of it. They will lind
ONE or both of two facts then existing
= snecie basis or an inadequate volume
Of currency. These are facts and an
ounee of fact on finance is worth ton
of theory.
The people of a new and growing
country can pay higher interest than
;S current in Europe, because their IN,
vestments grow in value with tnt
oonntrv. We have, perhaps run the
rota too high in Tennessee, by Imltat'
nc Western States which grow faster
VT # we do not compete with these
t;g5 rates. capital will continue to GO
- ibsm and build them up, leaving US
n tbe lurch. Which horn OF tae "''
Iemma shall we take'