New-York tribune., 1874-11-21
HARD MONEY AND PAPER.
PETER COoPER'S VIEWS ON THE FOLLY
OF A PAPER CURRENCY.

PETER CO0PERS VIEWS ON THE FOLLY
OF A PAPER CURRENCY.
HISTORY OF THE UNITED STATES BANK-Irs CRASH
AND THE RUIN IT CAUsED-THE RESULTS OF
GOLD AND PAPER CURRENCY CONTRASTED-THE
RISE IN REAL ESTATE In NEw-YoRK-A WISE
REVENUE TARIFF NECEssrrY-FREE TRADE TO
BE DREADED.
TO the Editor Of the Tribune.
SIR: have read the able and most inter-
esting etter lately published in The Erenng Post by my
honored and respected friend the Hon. Charles OConor
That letter brought to my recollection conversation
held with distinguished lawyer Of this city some forty
years age In that conversation the counselor was ex
ceedingly Gen. Jackson's on the United
States Bank-an institution that he regarded as an IN
dspensabe promote the general welfare OF the
nation saw that counselor had entirely overlooked
the ighfu evils brought on the country by the paper
money issued by that bank during the first four years
OF Its operations, when 1t was found TO have lssueu
s000OOO Of paper money. and had In It's vaults ony
$4,000 In gold to redeem It, When this fact became
known the President had to hee.for his life. Langdon
Sleeves, distinguished gentleman from Cparies'on' was
invited to take his place as President OF the BANK
council was then held for five days, when IL WIS ue'er
mined to curta their 20 per cont per
MONTH by which means they barely saved the Dank'
and literally ruined all who were in debt by the shrihk
age Of all values throughout the country TO less tnah
onehaf the amount that property had sold Tor under
the imitation Of prices caused by the enormous amount
Of paper promises to pay gold that had been In crcuia
tion.
allowing anything to used money measure OF the
value OF property or labor that has not it the evidence
In real value of gold actually dug or mortgage on the
whole property Of the country to secure Its final pay
menh
After the counselor had completed his cepsures
the policy of Gen. Jackson. venured to say that
would, II he had objection. give opinion OF what
would be true financial policy for new nation. then
said that would suppose to illustrate and bring
near home what appeared to true financial policy,
that a nation unfettered by debt should adopt
In order to find out where We have drfted will now
ask you to go with through the rise. progress, and
development Of two nations To do this will ask you to
suppose that two separate, independent, Intelligent
colonies had arrived this island and one on the
Jersey Shore with only their implements. intending to
live what they could find or get out of the ground by
their labor. Suppose the river was the dividing line
between them, such people would soon find that the
exchange of commodities in kind with another was
attended with great expense OF time and labor An
Intelligent people would look for some means OF relief
from tho labor OF carrying heavy materials to places
where they wanted for immediate use in order
to be exchanged bartered III kind for things lndt5
pensable to their wants
II an Intelligent community should find gold and silver
that could obtained with great labor, they would
that gold and silver were durable maeable and easily
out in forms convenient for circulating medium In
order to make 1t just means to measure all forms Of
labor, such a community would employ one man to DIG
gold and silver and another to dig and potatoes
and when the had put his silver and gold In con-
venent forms for currency they would see the great
advantage they would obtain by exchanging the days
labor OF gold and silver for the days labor Of and
potatoes and all other articles that embodied labor.
This form Of currency would circulate from hand to
hand, carrying with 1t tho evidence of labor actually
performed. The whole community would be delighted
with their Improvement the and Of such
currency would be small and the saving In labor
great Such community would naturally grow and
prosper, until their number would 80 Increase as to
make 1t necessary send their gold and silver distant
places at great hazard and expense. An intelligent
community instead OF sending gold to New Orleans to
buy sugar would naturally establish a safe place Of
deposit for gold here. and then send order to New
Orleans that would the gold to be delivered to
any one holding that order. The order would be
valuable to the man in Neworleans who wanted some
thing from New-York than the gold itself such
order this would save the expense and risk OF send
ing the gold in both directions.
AS it happened in oden times when IL is said that
"the sons Of God" Tor tho sons of good "came to-
gethor," that "Satan" lin the form of seldshness)
"came also them," SO it has unfortunately come
to pass in our country; these not satisfied
with the advantages gained by drawing bills gold
deposited, instead Of sending gold backwards aud for
wards from distant place to another.
These artfu selfish persons whose proper business 1t
their living by digging gold, and putting 1t
into forms convenient for currency, found that
they working Just as hard as the
who digging corn and potatoes. These
promises TO pay gold on demand passing freely
from one hand to another. The cunning man whose
business it TO dig gold says to his weak-mnded
neghbor You see that those paper promises are Just
with them; II you will join with me- We will get char
ter that VIII enable US 10 get our corn ana potatoes
charter for q bank II objections should be made TO
giving them Gne such objections % are g1leted by giving
In this way pictures called money encouraged by leg
and class legislation have filled the mind OF the people
with false hopes OF vlDg without labor and have thus
made paper money the grand demoralizer Of the na-
tOn.s
wish you to keep the suppositlon in view OF two in
dependent GOvernmeni ssOBly dl lided.Dy river Bear
mind that one OF these governments continued the
of gold and silver, and drafts on the deposits OF
flyer chartered banks, with the power to pour paper
mOney promising to pay gold on demand into sne
pouring paper money into circulation would be TO
raise tie prices of all forms of property and labor
The prices of everything having been raised on one
side OF the river. the people would naturally go TO
the cheap labor Government tho other side OF the
river TO buy what they required. This trade would
on as long their banks continued to pay specie
demand 1t would not be long before the people that
inflated their currency with paper money would find |
that their trade going TO the Government that
continued all their property and labor by
cold standard That Government would undersell the
that had raised the prices OF all property
by their use OF paper money The people in the Gov
eminent of iD1ated currency would soon ask /
for a tariff TO protect them against the |
cheap labor the opposite side OF the rver and in
their prices Of all labor aud property In
creased cost, they would find excuse TO ask for
more banks and paper money as we have DONE In the
course OF time would go to the banks and demand
gold In large quantity when 1t would be found that the
had misah 10 wlpn
was entirely out Of their power
Tne men ought to have been digging gold bad got
their corn and potatoes for paper promises without
work. and paper money was easily made they were
enabled buy finer houses. moro costly furntro, and
aix-nlu md