Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-01-24

but, says tne harU money man, 1t II
not redeemable-in gold;--but then a,
have shown, it answers all the pur
poses of gold, and at the same rate o.
taxation. 1t furnishes bread to IA,
poor and Injuries to the rich, almost az
cheaply as they were had before the
war, and if there were no more import
duties now than then, foreign products
would be furnished the people at an
excess of price not greater than is wit.
messed in other portions of the world
But the Bentonian Democrat and Re-
publican does not expect that our pa
per money shall be redeemed, but he
desires it to be made equal to gold, and
its purchasing power inflated land the
value of everything else diminished by
the amount of the present premium on
gold)
This might be accomplished In a
very few days by redeeming more of
these notes IN the way of taxes. Say
for instance Congress were to author
ize Collectors of Customs to receive
legal tender and National bank notes
in payment of one-half the import du-
ties-how long would gold and United
States bonds maintain their premium
of ten to twenty per cent. 1t seems to
me it would be easy enough to make
the value of worthless paper money
approximate very closely that of gold,
but it might be at terrible expense to
our credit abroad
A government, great or small, hav-
ing a right to exact services and pay
ment for privileges, may within the
limits of its jurisdiction give to any
thing bearing the government stSmp
and authority value, which NAV be
controlled by the wisdom c,r 1.-THE govern.
ing power. If the Government could
ascertain the exact. amount necessary
Tor purposes of government, fuctua-
ton IN Tlr1ces would result from the
supn.y and demand of the article to be
sid or purchased and not from the
character of the money.
1t is not denied that the power of
the Government to issue paper money
may be abuSed-so may all the other
powers of Government. In the present
state of our finances and currency,
can see no cause of alarm at thevolume
of the circulating medium. And now
as to the
BANKING SYSTEM.
The banks give Government secu-
rites" as pledge to the people for the
notes they issue. As long as the people
hare confidence in the stability and
solvency of the Government, they will
feel sure of a stable circulating me-
dunn. The present banking system is
not dissimilar TO the free banking sys-
TEN, which was passed in this State In
1852, and yet preference has been ex-
pressed by leading papers for the
old State system. The very feature
of the National Bank system, de-
nounced by the UNION AND AMERI-
CAN and other papers, was the basis of
our State system. State bonds were
deposited with the Comptroller, and an
equal amount of bank notes issued to
the party or association making the de-
post. The interest on the bonds de-
posted were paid to the banking asso-
citation. So you see that this nefarious
system of lending money to banks with
out interest, and paying interest to the
banks on the bonds deposited as a Sc
curity for their circulation, was force
in Tennessee before Mr.. Chase ever
thought of a National Bank. But
here the parallel ceases. The State did
not become endorser and guarantee for
the notes of the Exchange Bank"
State bonds deprecated in value, and
In the same proportion the notes of the
free banks were deprecated. Not so
with the National Banks, which have
deposited for every nine hundred dollars
of their circulation a thousand dollar
United States bond, worth nearly or
quite thousand dollars In gold mLon-
don and New York.
Under the State system it was de-
clared, "that nothing contained in this
act shall be considered as implying any
pledge ON the part Of the State for any
payment beyond the proper application
of the securities pledged with the Comp
troller." These bank notes were not
receivable for taxes, and If they had
been, their value would have depreci-
ated the moment they were carried be-
yond the limits of the State. The
national bank notes are secured as
above stated, arereceivable for all taxes
TO the United States, except import du
ties, and are a legal tender in the pay
ment Of all salaries, fees and services
payable by the United States. Among
the masses Of the people, there has not
been eyinced the slightest want Of con-
fdence. When the panic of last sum
mer was at its height, there was not the
least indication of fear as to the contin-
ued purchasing power of the currency.
Where, then, is the necessity or the good
to the people of a change, either by con-
traction or expansion, or initiation of
values. If you change the standard of
value, you necessarily change the prices
of all commodities whether of the farm,
the mill or the mine.
WILL INITIATION INFLATE?"
We think not. though we are not IN
favor Of expansion any more than we
are IN favor of resuming or attempting
to resume specie payments. The issue
of another hundred millions Of currency
might slightly effect the price of gold,
but We doubt whether that amount
would change the price of cotton, corn,
wheat, or mules. On the last of No
vember, 1870, the volume of currency
was somewhat less than now, and yet
at that time gold was higher and has
since that time frequently been much
higher than it has been at any time for
the last six months.
WILDCATS AND WOLVES"
When we remember that in Tennes-
see the scalp of a wildcat or wolf has,
by legislation, been made equal, or
nearly equal, to the amount of the poll
tax levied, whether that tax was one,
two, or five dollars, it is apparent that
all values are not intrinsic. biased on
the amount Of labor required to produce
or acquire it. and that thing worth
nothing in Europe. and with gold for
the standard of value, may be worth its
weight in gold here. D.
JAN. %, 1874.
THE HOHENZOLL4ERN WRATH.
Berlin letter to the Cincinnati Gazette.
More than four hundred years
ago, a princess of the Hohenzollern