The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1874-04-21
History Of Paper Money.

There is hardly any doubt but that the
average Western and Southern congressman
represents his constituents on the currency
question, but this sentiment is the result o'
: the lessons of their own experience. LII
their sections money is very scarce anu posi-
ness dull from which they conclude lnat the
former causes the latter and that the remedy
is in more currency. This is what they call
experience and while they are laboring under
the delusion they will be quite slow to listen
to the teachings of history or the experiences
of foreign nations. If the whole question of
the currency could be settled this year, when
shrewd rascality and ignorance are in league
to produce financial ruin, the future would
be dark indeed; but this question which so
involves the welfare and reputation of ma
tion cannot be determined this year; and by
the present Congress. In 1868, an Ohio
democrat declared in favor of the payment OF
the national debt with greenbacks, issuing
them in sufficient amount for that purpose.
The Democratic party made that sugar
coated theory of reputation the leading
plank in its national platform and certain
republicans including Messrs. Morton. Lo-
gan, Stevens of Pa, Butler of Massachusetts
and Pike of Maine became converts to the
same delusive but dishonest scheme. 1t was
claimed that the country was heartily in
favor of it. When first enunciated such
might have been the case for it was very
plausible. 1t would not, however, bear the
scrutiny of fair investigation and the result
was that the country decided against the Pen
dleton plan because it was found to be repu-
diation.
Hence we now conclude that when the peo-
pie fully understand the consequences and
possible aims of the imitation leaders, no con
siderable portion OF them will be in favor of
the Morton-Butler policy. The present ten
dency of the large part of the people that are
inclined to look with favor on the false thee
RIGS, is the result of ignorance or narrow
conception of the subject, drawn from what
they mistake for experience.
When the real facts are brought before the
every day people, West as well as East, and
South as well as North, there will be no diff
ference of opinion. The practical regulators
of 1874 will be regarded in the same light as
those of 1868.
This change of sentiment must be brought
about by education. The newspaper must
continually teach that the only solution of
the present financial troubles is to return to
specie basis. As teaching in this direction
we are glad to notice that William G. Sum-
ner, professor of political science in Yale Col
lege, has just written book entitled the
History of American Currency"
We have not seen the book, but from the
extended notice of an exchange, conclude
that it appears at a most fortunate period in
our country's history. The work is history
OF our paper currency and the experience OF
other nations with paper money. Among
the examples OF warning to us in the history
OF paper money are Austria, which is more
striking than the history of our continental
currency and the French assignats, both of
which have passed out of sight. The latter
simply became worthless and passA out of
sight, having wrought its impoverishment OF
individuals. In the spring of 1880 the bills
of the continental congress (of which proba-
blv not more than $20O,OOO,OOO were out at
any one time) were worth two cents on the
dolla-, and then ceased to circulate. The
paper was worth more for au advertisement
or a joke than for redemption. A barber
shop in Philadelphia was papered with it. and
dog, coated with tar and the bills stuck all
over him was paraded in the street. But the
suffering the currency caused was widespread
and intense; and it fell most heavily on the
patriotic and the helpless. 1t is to he noticed
that the British, seeing the ruin the paper
currency was working, helped on the move
ment by introducing counterfeit currency
through the lines. THE high-minded Eng
llsh committed the same fraud during the
revolutionary period, by introducing counter
felt paper into France.) But the injury of
the irredeemable paper currency to Austria
does not pass away; it is a national calamity
OF the first magnitude, and remains disease
in the blood, undermining the constitution
and spreading decay through all the arteries
OF business. The ablest foreign writers, com
menting on the character of the city of Wen
ma, outwardly grandiose and pretentious, but
badly drained and otherwise provided, and
upon the light and frivolous character of the
people, refer these phenomena to the finan-
cial disorder and paper money as chief causes
From 1862 till now Austria has been under
the dominion of paper money, and every
year has seen deficit in the finances. 1t
has been century of desperate financial
measures and disasters.
By keeping the warnings of history con-
SANITY before the minds of the people, and
by constantly declaring, in and out of season
that there is but one kind of money-specie
the currency of the world-let us hope the
people will in time, condemn financial hum
bugs like the Mortons as they have the Pen
dletons.
A ST I.0IrIG hauI aa IL