The daily Argus. (Rock Island, Ill.) 1873-1877, 1874-05-04

hook the Chicago Tribune says it is time
" publication, coming when the public in
terest 10 finance bids fair to equal that dis
played when the Bank of the United States |
was fighting jackson. II is pity that 1t |
has been issued in such costly form: Inc
clear, heavily-leaded print and the wide mar
gins are a delight to the readers eye, but
the price of such luxuries keeps many
wouid-be readers eyes from the book.
Still the demand for it is satisfactory. The
first edition was exhausted within day
or so of publication, a1d the second is now
rapidly selling 1t should be put forth in
a cheaper form, in order to give it the wi
dest possible circulation.
Until this treatise appeared, there was
no complete history of American currency,
It's story had to be sought in old speeches
and in books which treated of short periods
of time. This explains the few appeals to
American history made in the recent de-
bates on imitation. The men who have
pooh pooh d all the lessons of European
experience as inapplicable on this side of
the Atlantic will find them taught, in this
book, by the experience of America. Prof
Sumner has gathered the hitherto scat
tered facts into a continuous narrative, which
tells, again and again, the old story over
again,
ISSUE OF PAPER MONEY.
disappearance of specie, more paper, spe-
culation, extravaganza, stringency, smash.
The Puritans brought out little money
with them. They had put their currency
into capital, tools, and clothing, and
household goods, and weapons and merch
andise for the Indian trade,-before sail
ing They soon needed currency. As
they issued no paper to keep hard money
away, the currency quickly came from
England in the shape of specie. 1t was
an early illustration, on American soil. Of
the fact that country which uses coin has
the worlds specie reserves to draw upon in
time OF need. There were soon illustra
tons enough and to spare, on American
soil, Of the fact discovered by Sir Thomas
Gresham, in Queen Elizabeth's time, that
two currencies OF unequal value cannot cir
culate together, for the worse will drive
out the better. Massachusetts soon began
TO use a barter currency. Corn, beaver,
wampum, musket-balls, and many other
things were made q legal tender. Gold
and silver disappeared with the rapidity
with which these sensitive metals always
leave place where they are apparently
not wanted. The "pine-tree' coinage be
gan in 1852. Specie was steadily export
ed, Notwithstanding the law made this a
crime and attached heavy penalty to it,
The laws of Nature are more powerful than
those OF man. This was proved again in
l704. A royal proclamation fixed the
value of Spanish and other foreign coins
II was, OF course, of no effect whatever
The
FIRST PAPER MONEY
i - - n
unlucky expedition against Canada The
notes were receivable for taxes, and faint
efforts were made to redeem them, but
they were at one-third discount In 1892
it was ordered that the bills should be
taken at the Treasury at per cent over
coin, and redemption within year was
promised. This kept them at par tor TWEEN
ty years. At this time Connecticut was
blessed with
THREE OR FOUR CURRENCIES.
Merchants sold goods for pay" ''pay as
money money and trusting. PAY
was barter-currency at the legal rates
Pay as money was barter One-third low
er. Money" was coin, with wampum for
change. Trusting was credit. A six
penny knife sold for cd in money, Sd in
pay as money, I'D in pay, and more still
brought in its train of curses the usual one
of paper money. Massachusetts,. New
Hampshire, Rhode Island, Connecticut.
New York, and New Jersey issued bills of
credit. They were speedily discredited,
though made legal-tender and hedged
about with the severest laws against those
who refused them. Speculation followed
paper, and then came the cry: More
money" There were fresh issues. Notes
were loaned to the people on land mort
gage The time of repayment was put off
from year to year. Little interest, less
principal, was paid There was almost
endless trouble. A writer of that time
said The evils obligation abound. Peo-
pie OF estates cannot raise money unless
they dispose Of them at half their value.
individuals depending on their labor are
forced to take for their toll from one-balf
to two-thlrds in goods, while their credit
0rs mperiously demand cash Of them.
This was in Massachusetts Yet the Col
ony had Just added 9l00,000 to its swollen
volume OF currency. Two years afterwards,
IN l72l, another 100000 was put forth.
Buying and selling silver was prohibited,
with as much effect as was trading ia gold
during the recent war. 1t is sweet 70 think,
however, that our ancestors
WERE AS GREAT FOOLS AS WE.
80 the game went on. More paper, more
demand Tor IL, fresh paper to redeem the
old issues, commercial dishonesty, specu-
laton, suffering among the poor and per-
sons living on fixed salaries WOndrous
schemes we're tried New tenor" bills,
one good for three cid ones, were put forth.
When they deprecated, new new tenor"
bills we're fOated. The old became mid
die tenor" or new tenor second" Rhode
island and Connecticut tried the same plan.
Commissioners were appointed to deter
mine, from time to time, the depreciation
Of the last issue. One of them stated il
correctly, and was vehemedtly abused. A
curious thing, in strict accordance with the
law that worse currency displaces bet
ter, now happened The Rhode Island
paper was worst of all. 1t drove out the
others, which were boarded In l744,
when Rhode Island had out 940O, 900,
E3oO,C0J were in Massachusetts. This
money kept on depreciating, and so cost
Massachusetts EDS. 900 in nine months
In TAP the issues of the Colonies, reduced
to old tenor" were:
Massachusetts. 90 .ee -,O
S5II ii 291 900
No. III a ai '''''''''''''............ 55OOOO
NeW hampshire. ACKNOWLEDGEMENTS. 45OOOO
The Massachusetts, paper was at II TO
in gold. The ransom of Luuisburg enabled
the Colony to redeem it at this rate. This
was a reputation of ten elevenths of its
iace,-a fact that the friends of shinplas-
tiers would do well to ponder. There was
bitter opposition to specie resumption. 1t
WINS snid thof - xxo,,lJ x,,,n 4roIa y,