The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1874-05-02

kolu 10 easy 20 cAAcolAoo D0t Wn93S - IN
1858, the difference was 100 pr cant. snd
there being but hundred cents IN thu green
back dollar, the whole dollar must have been
wiped out, and, a. in 1854. when thers wAs
$50 per cent difference, the RrOenbeck must
have been worth Just fifty GENTS 49, 49,
nothing. perhaps they might then 1870
when 4 dollar gIeonback was onsr~u - -
n,ent for an article valued - nfty GEMS -
th. SreenbAck worth hftY ss = ~.'iJ
nothing. how the be~r@"" ~
make change.
P.rhaDs the same business men might also
furnish the information that during the whole
time the professors cOnsideF the gFeenbAcks
80 worthless, they, the business men, the
merchAnta, the mechanics, the manufacturers,
the farmers, all believed they were enjoying
q higher state Of prosperity than ever before
known.
You will remember that soon after the act
Of February 25, 1862, making United States
notes . legal tender, Secretary Chase pro-
claimed TO the world that by that act gold
was demOnetiSsd- no longer money,
but was . commodity, an article Of merchAn-
disc consequently, that law made legal
tender greenbacks, - far ~ law could make
them, the measure of value, the monetary
par.
Thus, gold being merchandise, its price can
no more be the par and standard Of value
than the price Of -four, the price of cotton,
par aud measure of value
That greenbacks are the measure of value
was again legally recognised by the law
authorizing the issue Of nAtiOnAl-bAnk notes,
redeemAble in the aforesaid greenbacks thus,
beyond perAdvsnture establishing them a. the
measure of value. Then. dOes It not follow
that the IL per cent difference IL 90 much
premium a. gold! And il 90, should not
the question be reversed, and ask why is gold
IL per cent above par To which / would
reply that it wa made % BY the act Of Con
gress.
You will remember that the bill passed the
House Of Representative making the nation
81 credit or United States notes . legal tender
for all purposes whatever, without exception.
Pardon the expression 81 opinion that, had
that bill become q Law. it would have been
practically impossible for gold ever 10 have
risen above the par Of greenbacks, for the
reason that all the gold in the country would
have been on the market without buyers,
and the prosperity Of our people At the pres
emit time would have surpassed any period in
our history. But the gold mOnopOles and
ShyIOcks Of Wall street took the alarm, and
saw If that ball passed their vocation was
such force and annoyed him with such per
sistency, - he said, almost worried his life
out, until he consented, and called upon
Mr.. Fessenden, Chairman Of the Committee
on Finance IN the Senate, having the bill 10
charge, and induced him to modify it by ex-
cepting that the interest on the bonds author
lzed to be issued by the same act should be
paid IN coin and, TO procure the coin, pro-
hlblted the receipt of said legAl-tsnder money,
and required that gold only should he re-
celved for duties on imports.
To that extent Congress repudiated its own
legal tender money in the very act creating
it.
Requiring al importing merchants to pur.
chase com TO pay the duties, at such prices a.
the gold rings might think best to ask,
firmly believe u the principal if not the only
cause Of the premium coin ever since.
Again, those faVOrlng contraction and i'm.
mediate resumption OF specie pa ments argue
that the grrerhaek currency must be con
tracted ssall further 70 bring gold and currency
on par.
10 &c pOsaible that they do not know the
fact. or do they shut their eyes to it, that the
experience Of the Last ten Year, has exploded
that theory.
Mr.. McCullOch contracted the currency,
a he proclaimed. SOLELY for the purpose Of
rAlsing greenbAcks to the par Of gold, and
failed, - follows:
Ii Appears from official returns that on De-
cember 81, 1856 the amount Of currency was
81, 59I, 7S7, $50 June %, 1859, it was reduced
70 $692, 6S7, So, from which it appears that
twO-thirds Of the currency had been called
in /; consequently, we're his theory correct,
the difference between gold and greenbacks
should have been reduced twO-thIrds, when,
10 it stood IL per cent higher, namely De-
cember 81. 1856 the premium was "a per
cent June 30, 1859, the premium was 80 per
cent.
currency dOes not affect the price Of gold, il
appears by the same returns that On June 30,
1854 the amount Of currency was $7S6, 49,,
S35 December 81, 1866. the amount A. atOre.
said wAs 81. 81. 7S7. $50; just double. How
stands the premium.
June %, 1854, it stood It l5S per cent
above greenbAcks December 81, 1866, il
stood 1t - per cent above greenbacks.
We're his theory correct, It would have
been 3l6 per cent above greenbAcks, when, AZ
above, it was only - per cent. Can proof be
more positive
Again, Mr. McCullOch began contraction
by funding fifty millions Of gVeenbAcks in one
week, causing . stringency in the money mar.
ket; but the price Of gold stood unmoved.
Many more comparisons Of the same charac
ter could be gwen but do not these facts
prove positively that since coin was demone.
tIzed the amount Of currency ms not affected
the price of gold any more than it has the
price Of cotton, tobacco, -four, or any other
commodity depending for its price on foreign
market?
If the foregoing conclusions are correct, it
does not follow that all the arguments of the
cOntractionists and immediate resumptionists
are withOuG foundation and mere fallacies!
In conclusion l would say that should Con-
gress adopt that interconvertible principle,
aud let US be permitted TO exchange at pleas
uTe the currency, both greenbacks and
natiOnAl-bank notes. into convertible bonds,
bearing moderate rate of interest, the peO-
pie will, In . brief space Of time buy of the
Treasury Department . sufficient amount Of
such bonds to enable the Secretary to pur-
chase and cancel the whole foreign bond in
debtedness, and thus not only reduce the rate
of interest, but stop the drain Of coin that
gOes ~ . tribute to enrich foreign nations and
TO impOverish our own.
Adopt the intercOnvertihle principle, and
firmly believe it will act like magic In infus-
ing new life, energy, and activity into the
PrOstTAte industries Of our people give en-
ployment TO the suffering millions, start the
springs OF legitimate enterprise, and increase
the products Of labor TO such an extent that
our exports will soon exceed cur imports, and
pay of ali foreign Indebtedness, when the un-
told millions of gold we have sent to foreign
nations will return 10 enrich our own.
Most respectfully, yours,
PLINY FREEMAN
(rO BIZ cONTINUED.l