New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-04-05
ENLARGED CURRENCY AN AID TO Re-
SUMPTION,

"DondhOlder organ loses no opp0
tunity to vindicate the correctness Of tt
: appellation. It denounces Limitation.
Pray what is imitation? 1t is hickman
5 given to an increase Of currency. rendere
necessary by the growth Of the countr
and the wants of the people. And tn
is the opinion Of majority OF the repre-
sentatives of the people. The organ d.
nounces the position of the REPUBLICAN
which does not think the wants Of tn
8 people should be resisted to promote tn
interests of the bondholders and broker
because of a deficient currency. Thi
deficient currency would give an abnorma
price incidentally to the market. for th
: national bonds, without any actual in
crease of the ability of the nation to com
ply with its obligation to redeem them
We deem the wants Of the people, ant
especially the just demands of the South
ern people, of more Importance than any
adventurous advance in the price of ma
tional securities. We deny that the people
should stint themselves by limitation
inadequate to the wants Of commerce and
agriculture, for the purpose Of giving an
increase of market price to public obliga'
tons, not based on corresponding appre-
citation in the actual value of these obliga-
tons. The bondholders, many of whom,
like the holders of our State fraudulent
and tainted bonds" have. laid in national
securities at very small consideration,
must take the fluctuations Of currency in
value and quantity as condition of their
purchase.
We do not suppose when these national
bonds were emitted it was understood
that the people Of the republic would re-
strict their own circulating medium to
promote the market price of these bonds.
Still less did we suppose that the repre-
sentatives of the people had thereby ex-
posed themselves to the reproof Of the
bondholders' organ.
Let US cite Iecimen of this bond
holder logic. 1t is assumed that Con-
gress designs to 'fdepreciate the public
securities in order to prevent the foreign
holders from making money!
Here are two fallacies. l. The slight
increase in the circulation was not in
tended to depreciate the public securities.
2. The increase Of the circulation was not
done ''to prevent the foreign bondholders
from making money therefrom.
The small increase of circulation was
necessary for the purposes we have stated
Suppose it be granted that it postpones
resumption of specie payment. Have
those bondholders who have seen specie
at twenty to fifty per cent premium in our
currency right to complain that it is
now less than fifteen per cent? Did they
not have the same right to protest against |
the issue of any currency at all, and de-
mand that their interest and principal |
should be payable in specie? They pur-
chased the bonds and took the chances of |
their appreciation to par. The increase
Of circulation was not intended to advance |
or depreciate the value of the outstanding
national obligations. 1t was no violation
Of faith or contract. Yet this exercise of
he undoubted right to enlarge or diminish
circulation is treated as if it were an i'm
moral act. This is the imputation:
This is the morality of the party in
power. To induce foreign capitalists to in
vest in the bonds of the nation, every ap-
peal and effort were made to convince them |
If the good faith of the natiOn-of its
lbi.ity to meet it's obligations in a short
lime, and of its purpose to reduce and grad
tally retire it's paper currency and resume
pecie payments Having by these repre-
entatiOns passed Oft our bonds upon for
ign people, it is regarded as honorable and
quitable to initiate our paper circulation in
rider to depreciate the value of these bonds
l. 1: is assumed that the regulation of
urrency according to the wants of the
eople is violation OF the good faith of
be nation.
2. That the government, in order to sell
IS bonds, advised foreign capitalists" Of I
S ability ''to meet its obligations in a
hort time'-which, We suppose, means at
laturity. Now, does this regulation Of {
lie currency affect the ability of the ma Z
on to redeem its obligations at maturity? '
1hatever may be the market rate of cur
,ncy when those obligations may sever
~ become due, we apprehend the ability
the nation will be as great as when (
lie obligations were purchased, and its Z
18th will have been redeemed to the full G
Itent of its pledge. 1t seemed no part t
the contract to guarantee the bonds in a
arket against any intermediate huctua- a
ons, whether such fluctuations be caused 6
2 increase Of currency or any other like P
cidental influences. t
g. That the government assured these a
reign Capitalists of its purpose 'to re- r
Ice and gradually retire its paper cur Il
ncy and resume specie payments. Il
Did the government ever promise, as
is organ states, to ''retire its paper cur "
ncy" and return to an exclusive specie d
.culation? Yet this is the pledge, as h
tied by the bondholders' organ, if its A
nguage means anything. c.
As we understand the whole argument IL
the organ, it is that for the Congress Of p
e United States to regulate its currency C
thout the assent Of the foreign capital b.
and bondholder first had and obtained m
q viola ton of national faith, and an act m
gross immortality in the Republican b
rty. hi