River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1874-12-18

ties d reoHle a. well a. the srui 81 tou- IS
I "a heretofore Indicated by the votes 81 the
two houses. must be accepted 80 one OF the
factors II the financial probiem. severn Dc.
lees the great aud Farampunt inPJitaLce 81
{ arriving at ultimate solution OF tiie matter
and of r. ztoTiHg 10 the HuNeihihtht Htu we
paople a sound aud stable cufrencNs iuuuceS
~ secrptarv 10 bGing the subject again 70
80 attention 81 Gougre -. and 70 ask thar lie
eisiva -tep- be n8W ta6en by the laN-maklug
rower for return 10 a specie basis.
IA .teupt an enumeration 81 the compli-
ted nisehicfs which flow nom IN unstable
~ fpc4nvertible enrrcucg would cary thls e
rort 10 ipeycusable length, aud, aIttr all.
,s,,,,Iid o.. but 4 teprtiiion Of what has been
often said No nation eau 10 hes ect Tue
,lols some uiarims uuded upon unlFerSal
,xpc. fence, that uphold public credll Nllhaut
suffering financial disturbances anu Diing NJ
serious consequences upon Us ptopir- a. WI
not be denied that The * sting issue OF legal
tender notes. as a circulating medium, would
never have De n made except ~ the grea.
emergency Of 2 war inyOi Ig no less az issue
than the preservation " the nation. Nhether
the Argument IN support OF the NilidilE OF the
legal-ttuder acts be rested upol ne val y W
ers conferred on The Government. By the con
stituuOn OF on other rroyl-lOus OF that lnstrn-
meBt. il Il clear Il at Congress could not nave
been induced TO pass such acts uLdtr any
other circumstance than IN time o. the
moot pressing aud urgent uecd, suoh a.
state Of war Only produces. Inc most car
nest defenders OF the power 10 issue govern
ment obligations and make them by law legal
teuder for all debts, public ana private,
wOuld scarcely be found 10 advocate thc eX
ercise OF the power except under clreumstan-
ces OF extreme necessity, and then only TOT
the time of the emergency, and there IS aDun-
dant evidence IN the debates and proceedings
, Z Congress. and In the statutes themselves,
that II was not intended TO make the legal
tender notes the permanent currency uf the
country The acts authOflZng the issue OF
such notes provided for their conversion into
boz Is OF the United States bearing interest al
the rate Of SIX per &C ntum per anLrim.
The a1t OF March Is, 1859, terms declares
that ''the TAI h of the Unitea States Is sol
emily pledged 10 the p ,yment IN com or ITS
equivalent OF all Obligations OF the United
states not be aring interes', known as United
States notes" Tue same act further athrms
that ''the United States sOemnly pledges ITS
faith to make provision at the earliest pract-
cable p, rod tor the redemption OF the United
States notes n cola
The Purpose Of the act is well expressed in
its title, which declares it to be IAN act to
strengthen the puobc credit and that such
was the effect of the act cannot be doubted,
for IT Is an unconditional assurance on the
part Of the government, not only that ITS notes
shall be paid in c 1in, but that this shall be
done al the earliest practicable period The
faith OF the government could not be more
clearly or absolutely pledged than is done by
this act of COngr, So, TO say nothing of previ-
Gus legislation.
The length of time thai has now elapsed
since the final overthrow OF the rebellion, as
well IS proper regard for the faith. OF the ma
ton, admonish ms hat initIatOry steps towards
the redemption of its pledges on 4ht not to be
longer postponed. Vi Is not unworthy of re-
mark that the era of the wal will not De closed
until the period OF redemption shah have been
reached.
1t Is sometimes urged by the advocates OF
a continuance OF our paper circulation that,
its amount being now definitely fixed by law,
1t is not liable to the fluctuations in volume
which attach to a currency that may be IN
creased or diminished at the will Of thu Sec
retarv: but this suggestion leaves ont OF view
entirely the tact that it is OF little insequence
where the power To change the volume OF cur
rencv rests. the difference being only in the
degree Of probability Of its use. The exist
ence OF the power a all, and the apprehension
OF its being called into exercise, is the evil
from which misrhieyOus consequences are
like IL to flow. lie quality OF tlexlbility gov
erned by the law Of trade ana commerce, and
which regulates Il Q Increase or diminutiOn of
the volume of the circulating medium accord
ing to the requll ements OF legitimate busi-
ness, is of value; but that which Is controlled
by the leg slatye will and may depend upon
marty Nige 3cles or the supposed necessities
of the treasury, or the demands of specula-
tive enterprises. Is objt eiiOnable in the high
est degree. Such currency Is liable to sud
den and violent expansion or conilacti0n,
having no necessary connection with the le
inmate demands of trade and commerce.
In a country like ours, with varied midas
tries and EXTENSIVE cOmmel slal relations
among it's different sections aud with other
nations and peoples stability of the circulat-
ing medium Is Indispensable to the genera.
Credit, which necesraril eaters
largely into commercial transactions, can only
be steady and secure when il has FOR its fOuu-
,latiOn a stable currency. Tue quality of sta
bihty in money attaches only to coin,
which, by common consent to mankind. Is the
medium of exchange, aud paper currency
repre- sentative OF com, because convertible
INTO il at the Will If the holder. The reason
i Obvious for coin besides being recognized
throughout the world as a medium OF ex-
change, las a high intrinsic value, can be pro-
cured only By labor and IN limit, quantities
which cannot be increased by statutory laws,
nor suddenly by other means, while iueonvert-
bic paper money may be produced IN indeh-
llte quantities at a nominal cost, note of
toe highcst denomination costing no more
han tie lowest. and the volume depending
solely on legislative enactment.
The history OF ITrcdeemable paper currency
-epeats itself whenever and wherever IL IS
Is, 4. IL increases present prices, Heludes
he laborer with the idea that he is ge. ting
higher wages, and bring fictitious prosper
ty from which follow imitation OF business and
,Tedit and excess Of enterprise in EVER in-
,reasing ratio, until it is discovered that trade
nd commerce have become fatally diseased,
Hhrn confidence is destr iyed, aud then comes
he shock to credit, followed by disaster and
and demand for relief by further
ssues.
A dollar legal tender note, such as is now
n circulation, is neither more or less than the
PROMISE of the Government to pay dollar to
he bearer, while no express provision is made
Dy law for paying the dollar at any time what
ever; nor is there any existing provision tor
1t into anything that stands in
tangible ratio to coin dollar. As far az
existing laws &C. tbs re is no reason why the
legal tender note of the denomination Of a
dollar should pass for one cent OF gold, except
so far as the government cOmpels creditors TO
accept il IN discharge of Obligations to pay
money. aud obliges the wealth and commerce
of the c0un ~ to ado Il 1t as a medium OF eX-
change. To this may be addtd a. an element
Of the value of the legal tender dollar, the
nope that the government Will at some time
or other redeem its paper romises according
to their import. The universal use Of, AID IG-
lance upon such a currency, tends To blunt
the moral sense aud impair the natural SELF
dependence OF the people, and trains them to
the belief that the government must directly
assist their individual fortunes and business
help them 10 tbelr personal affairs, and enable
them to discharge their debts by partial paw
ment. This inconvertible paper currency be-
gets the deiusloH that the remedy for private
pecuniary distress Is in legislative measures,
and makes the people uumlndful of the fact
that the true remedy Is in greater production
and less spending, and tuat real prosperity
comes only from individual effort and thrift.
When exchanges are again made IN coin, OF
in a currency convertible iLto il at the viii OF
the holder, tins truth will be understood aud
acted npon.
1t is not intended to call in question the
validity OF the legal tender acts,
nor The wisdom of those who. in the midst of
a rebellion which taxed the utmost resources
and energies of the nation, deemed the Issue
of such notes essential to success. Repeated