Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-07-15


two millions legal-tender notes proposed 70
be 'iretired and eanseled," instead Of be-
ing carried to the obstruction account in
the Treasurer Office and an end made Of
! theiii, ars ~ hs carried t0 the account Of
the sink NO fund and ststfred ''Sinking
| fund" and ) per cent. interest IN gold col
lected on them annually out Of customs
/ duties until the whole Of the public debt
shall be extinguished; and the Interest upon
| these Cancelled notes would require an in
! tresse Of four millions annual taxation 10
pay L.
This is an ingenotis specimen Of The
hocus-pOcrs science of taxatiOn-iO tase
free currency from the people aud at the
same time tax them under the g'iise of re-
! iitinsii
The eighth 5gdi0tf iisppses Of the re-
manning $500, 10000 legal-IsIilst 'kres Ly
providing for their exchange into coupon o.
! registered gold bonds. Here we reach the
rGstern OF tins sO-called specie basis. 1t
means con. sa,sisn. gold bonds, and taxa
ton, leaving Distressed fsOp's TO eoltend
as best thew can with the rapacity % ths
national banks, which have superseded all
other banks Of issue.
iAt tho country understand It's financial
position and its financial relations Tie
/ money mCnOpOlists, with skill equal to
| tlld, OF the successful military leader, have
been advancing under blinds and gaining
Dosition after position until they have
reached an eminence of power from which
they can rake all the resources OF the peo
pie.
Tie present Administration has reached
4 iinaBsisl extremity. II cOtild not, u 1t
would. give the people currency based on
coin. il has not increased tie gold coin Of
che country one gold dollar in five Sears.
Its bewiide-ed financierS are like mariners
| i'm strange waters mixing experimental
| soundings to escape from the reef. The
/ peOple need not look 20 them for any pc
/ IA .f,e--s relief. II will not come. The
/ wretehed sons q soil, who go out with the
opening of the day to make their bread in
/ the sweat of their brow, may look IN fsin
/ for 4 season of respite. Thousands OF
them have put the last strain upon the viz
tues Of industry and economy, and have
| failed to save their shelters from the iGexO-
rable grip Of Tho tax gatherer.
But the people are to be turned over to
free national banks. If these banks were
| -e,,r,r3i 5y law to begin specie payments
| afte- the GOyernr,sent sequeSters nearly all
| The cold for its own use, Try would wind
I'M and leave the country without : esE-
| rencv. They do not rest on gold basis
| Tg the extent Of their issues they rest on
| the credit n heGoyeTnment, and the Gov
| eminent rests its cfctlit Oh the productions
| and property of the people.
The deposit creditors Of the banks rest
] upon the personal credit Of the stockholders
To the amount Of their respective stOsk.
When the banks break their bonds held by
the Government stand rs security for their
ngtes. while the depOsitOTs are lefL to WORK
| for ANYTHING they can find amidS: the
| deiyifus Of lie remaining assets In court
of bankruptcy. Let not the people cherish
| the illusion that the national banks arr to
| usher the golden era upon the country
/ The TT history of American banking Is
bv no means prGi.isetie Of golden realities.
! According 10 Mr.. Walker, III his Science oil
| Wealth. the average proportion Of specie 70
! currency has been only one dollar 10 he
| dollars from the existence OF our Govern
/ ment.
About once in eseFy nine years since
/ 1884. coiucidCHt bank paaics IN England
| and the United states have rocked the
lands with financial commissions. They
have become historic as the panics OF llS4,
| 1913. 1910, 1919, 1926, 1857, lS4I, 1877,
| 1873. d lssing over "black F@diy each
| one leaving an attendant loss 10 the re
| spactiye countries OF It least $1,000, O0O,OOO.
| But | have said enough 10 show that the
| financial policy Of the Government IS
| failure. its iuexcusable blunder was in
| converting lis floating debt into funded
| debt. This floating debt would have been
much easier to paw. and could have been
| Maid in a shorter time than the funded
! debt. and paid. too, without material dam
ACE 10 contracts and shrinkage IN the value
of property. To have applied our gold re-
ceipts from customs, say AZ the rate Of
| SI5OOOO,OOO per aunum, in the payment OF
| this debt. il would have resulted IN keep
! inc the gold in the country, diminishing
/ the public debt. making more valuable the
| remaining portion OF the debt BY cOnfrac-
| ton. encouraging il 10 combine with the
industries, and giving TO it all the multi
| plyinr powers Of production and reprOduc-
lion. This would have been no Injustice TO
the holders Of the floating debt. TREE
| f1urtl.s of il were used as a currency, and 4
mart Of il was already bearing interest. The
| annual contraction would have been equal
in value 10 a paying interest on the deier-
| red balance Of the debt. And besides IL
| could have been lent ont as money and re-
ceived interest for the use. But suppose al
! times il might have lain idle and unpro-
duCtiye; this is nothing more than nearly
| every farmer has TO submit TO IN carry ilS
over his Idle capital through the unproduc-
tive seasons. His lands, his implements OF
! husbandrv. and work beasts are Of but lit
tie value. but more often an expense, TO
him durinc the winter months. This pro
cess of paving of the floating debt would
| haze filled the land with gold, which would
! have added to the permanent wealth OF the
| country and furnished the best Of all cur
rency to the people.
The Only way that l see open now TO
| repair the biunder is to reverse the policy
| oftbe Government. As the currency was
| swallowed up in the bonds, let the bonds
! give back the currency. Let the five
| twenty bonds be paid of in legal-tender
| notes. This would loosen the bands OF
| contraction on the country and the country
would "breathe freer and deeper 1t would
| appreciate the value Of lands and furnish
! currency for their purchase; so that the dis
| treSSed debtor might sell on a part ana
| save a uart for his home, and We might say
/ enable hundreds of thousands OF taX-ridden
| debtors 10 redeem their homes which have
! been sold for taxes. Then let the legal
| tender notes be redeemed in gold as Tast as
| financial nEilNtllCt " III NlNtet~ W. -A--N
| i'm the same gold collected from customs
/ and which is now applied to the payment
| of interest aud sinking fund to the foreign
| and home b0ndhOlders. This would turn
| the tide of the gold flow. 1t would bring
il home from abroad and keep at home a
| due share of the products Of our mines
l know that it is disputed legal prob
| lem whether the five-tWenty bonds, which
are by their terms payable in ''lawful
money! are sOl7able in legal tender notes.
| | affirm that they are by principles decided
| bv the Supreme Court Of the United States,
| which court in part was created by the
present Administration.
| Time will not permit IRE TO discuss the
| question now; but / should not feartomeet
| il before any judicial tribunal in any OF lis
aspects Of law, equity, OF national faith.
The bOndhOldeTs should remember thai
| they received bonds worth about S2,5UO,-
| 100000 for abont Sl,25O,OOOOOO in true
value. They should remember also, that
| their bonds acquired tlreefOld purchasing
| mower BY the contraction Of the currency
| CONSEQUENT upon funding it in the same
| bonds. They should remember that the
| bonded debt constitutes about Oue-Seyenth
| Of the assessed value of all the property IN
| the United States, and by the grace OF The