The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-06
What the Fathers Of the Republic
Taught Upon Imitation.
1redeemable Currency Prohibited
In the Constitution.
JEFFERSON, ADAMS AND MADISON SPEAK.
The Ruin of Labor and the Down
fall of the Nations.

at would be an excellent law for all countries, u
Gays Aontesqueu, Ito ordain that none but
real money should be CURRENT II Congress will
deliberately reject irst principles will throw over
board all the lessons derived from the experience
81 nations; viii legalize fresh emissions OF unreal
money and irredeemable paper, and VIII launch
the country upon an ocean OF speculation without
shore or bottom, we are determined that they
shall not do it without due warning. II 1t IS too
late to stop the mischief II Is never TOO lata 10 ex-
pose error and TO proclaim true principles.
While volumes might be filed with the almost
unanimous declarations OF political economists
against the evils and dangers OF an irredeemable
currency while the eminent publicists OF all ma
tions are unit in favor OF real moneyas the only
sale currency OF mankind, we are aware that the
wisdom OF books awakens in the minds OF our
bubble-blowing statesmen at Washington only emo
tons OF incredulity and contempt Their power
full int elects superior 10 precedent Indifferent
to authority, oblivious OF reason and contemptu-
GUS OF the united experience Of the world To put
before them therefore, the utterances OF the great
est masters of economic science or to attempt
to draw any reasons for their warning
fr0m the experience OF 'the efete nations OF
Europe,' would be throwing pearls where they
are very sure to be trampled under foot. But
even the American politician has some regard, at
sors in the field of American politics. We propose
TO assemble a few extracts from the speeches and
letters OF our practical statesmen from the period
OF the Revolution down, all bearing upon this
question Of irredeemable paper money.
GEORGE WASHINGTON.
George Washington has been sometimes sup
posed to have evinced good practical Judgment
and sound sense in public and private affairs This
eminent man wrote thus 10 Richard Henry Lee,
President OF the Continental Congress, under date
Of Mount Vernon, August y, 1885,
never have heard, ana hope never shall hear,
any serious mention OF paper emission in tins
State (Virgnia), YET such thing may be IN agita-
tlon. Ignorance and design are productive OF
much mischief Those wlth whom have con-
versed on the subject IN this part oil the State rep
rebate the idea exceedingly.
And under date OF August l. 17s6, Washington
thus wrote to Thomas Jefferson
Some other States are, in my opinion. falling into
very foolish and wicked plans OF emitting paper
money. = General McDOugal who was a
brave soldier and disinrerested patriot is dead.
1he last act Of ms life was after being carried on
the emission OF paper currency.
THOMAS JEFFERSON.
The opinions OF Thomas Jefferson, the great ex-
enplar OF liberal and democratic opinions upon
the subject OF finance, were more than once re-
corded in strong opposition to an irredeemable
currency. The best succinct account of paper
money In America, in the days OF the Revolution,
was written by Jefferson for the French .'Encyclo-
pedie Methodque.n and is to be found in the ninth
volume OF his works. In 1918, the scheme for
Congress to establish a national bank being under
discussion, Jefferson thus wrote from Monticello
to John W. Eppes:-
Excepting England and her copyist, the United
States, there IL not nation existing, | believe,
which toerates paper circulation The expert
ment Is going on, however, desperately IN Eng
land pretty boldly with us, and AZ the end o. the
experience approves, for / believe it
70 be one Of those cases where mercan-
it is corrected by ruin. And it is for this
petty addition to the capital OF the nation. this
cent ha, we are 10 give No our Gold and sP Per
medium, its intrinsic soidty, its universal value
and ts SAVING powers in times OF wa, and to sub
Bttute Tor 1t paper, with all Its train OF evils,
moral. political and physical, which l Will not pre-
tend TO enulnerate
And IN the following extract from the same
letter the prophetic instinct of Jefferson appears
10 have ioretold precisely the catastrophe towards
which the folly OF the present Congress appears
TO be rapidly drifting the country:
The 0verbearing clamor OF merchants, speed
latOrs and projectors will drive before them.
with our eyes open. until, as IN France, under the
Mississippi bubble. our citizens will De overtaken
by the crush OF this Daseess fabric, without other
satisfaction than that OF execrations on the heads
OF those functlonaries who, from ignorance, pusil-
their industry into tue hands OF projectors and
Bwindlers
BENJAMIN FRANKLIN.
BENJAMIN Franklin has been often quoted by the
advocates OF imitation on their side OF the paper
money question IL Is true, indeed, that Franklin,
when IN his twenty-third year, wrote and printed
. juvenile essay in defence OF paper-money sys-
tenn for the young colony OF Pennsylvania. But
the ripper wisdom Of his later years efectually
Lf..1 A, !,
the Continental Congress lending the powerful in
nuence OF his voice and vote against those inflated
issues OF irredeemable paper which remain unpaid
unto this day; and in l777, writing from Paris to
James Lowell, Franklin used the following Ian
guage:--
am glad to understand that you are taking
measures to restore the value OF your money by
taxing largely to reduce the quantity believe
no fnancier in the world can put you upon more
edectual method.
Again, IN letter to Josiah Quincy, dated Passy,
September II, 1888, Franklin thus placed the seal
OF his reprobatton upon an irredeemable cur.
rency:-
lament with you the many mlschiefs. the injus-
tlce the corruption OF manners, &C., that attended
Q depreciating currency. IL is some consolation
to me that washed my hands OF that evii by pre-
dieting 1t in Congress and proposing means that
would have been eneetual IN preventing IT, If they
had been adopted Subsequent operations that /
have executed demonstrate that my plan was
practicabie, out IL was, unfortunately, rejected.
RICHARD HENRY LEE.
Richard Henry Lee, one OF the presidents OF the
Continental Congress- thus expressed himself in
1855 In a letter to General Washington
Is IL possible that plan can be formed for is
suing large sum OF paper money by the next
Assembly | do verify believe that the greatest
foes we nave in the world could not devise a more
efectual plan Tor running virginia. / should sup
pose that every friend 10 his country every honest
and sober man. would JOIN heartily TO reprobate so
nefarlous a plan OF speculation.
JAMES MADISON.
Madison was an innczible opponent 10 paper
money in all its forms, except when made equal
In value to specie. In 1855 be reprobated 'the
itch for paper money! which exhibited itself in
the Legislature OF Virginia. In letter to Jerer
son, August IL, 1885, Madison places at the head or
the evils then prominent 1.-The general rage fer
paper money"
"PcnDsylvania and North Carolina" says ne,
'tooE the lead In tins folly. In the former the
sum emitted was not considerable, the