Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-03-26

OF It's existence as an independent Id
ton. committed on small scale nearly
all the financial blunders. and tried
nearly all the financial experiments,
which the greater nations Of Europe
have before and since committed and
tried on large scale, and as might
have naturally been expected, with an
almost parallelism of results. The de-
tails of this curious history, which are
presented very fully and infinitely by
Mr.. Wells, are condensed by the Chi
cago Tribune as follows:
Texas revolted in 1885. Specie fed
the country at once. In November of
that year, the finances of the State.
which then had an army in the field,
were in a ludicrous condition. The re-
ceipts from public lands had been
$3.50. The Treasurer's report said:
This money has been exhausted, and
also an advance by the President of the
Council of SS6." Money must be had.
Why should there be lack of 1t when
the State owned quantities ofland, and
when money based on land was a
rallying-cry of infationists? The
Commercial and Agricultural Bank"
was incorporated. 1t could do
about anything, but stockholders
must adequately secure the val
ne of their shares with real estate ia
the Republic" But 10 and behold,
bank-notes biased on land" did not re-
lieve the financial stringency. Texas
saw her error, and went it one worse
When land failed her, she took to wa
ter. She incorporated a bank which
was to gain revenue by digging canals.
But even currency based on water did
not suffice. This is a sad fact for the
financiers who now want to water the
currency. The notes Of banks IL the
United States came gradually into CIR
culatien, but Texas still yearned
fora frst-class. patriotic, gem
uine homemade currency Of her
own. She had banked ON land
and on water. In the nick of time she
bethought herself of the faith Of the
Government" Here was richness. But
before the requisite laws could be
passed. smash went the United States
banks. most Of which were based on
faith in the credulity Of the average
man and not much more. The State
retired from the business Of making
money" for three years. The Boston
reformers who solemnly resolved, the
other day.. that every man ought to
manufacture his own money, will be
gratifed to hear that many Texans en-
braced the dogma during these three
years and printed off quantities
of shinplasters. In lS40, the
issuers of such currency col
lapsed into general bankruptcy. Mean
while the State was raising a revenue
BY various ways and means. On Dec.
u. 1885. a high tariff was enacted. On
Dec. Is. it was revised. On Dec. q, 1t
was repealed. An entirely new one
took its place. Bonds were issued and
sold for what they would bring. Con
tributions were solicited. Nov. 80,
1856, the Council gave John Hutchins,
of Natchez, Miss, a formal vote Of
thanks for his donation of 500 to the
State. In December, 1886, it was de-
creed that properly-audited drafts OF
the State Treasury should be received
for all taxes except those on billiard
tables, liquor, etc. The exception was
A sweeping one, and only about eight
million dollars worth of such
drafts got into circulation. They were
for odd sums, which doubtless prevent
ed their serving as currency to any
GREAT extent. In December, 1887,
when the drafts had deprecated until
they were worth less than Is cents
n the dollar. the State declined TO re-
ceive them any longer for taxes. In
November. 1887, Texas commenced
printing her first series Of Treasury
notes. They were secured on the Gus
toms. the taxes, and, in fact, ON every
thing the State owned, and they bore
10 Dcr cent. interest. When they
were issued, the State could not sell
bond, and audited drafts on her
Treasury were at discount Of 50 per
cent. Nevertheless, the new currency
kent at par. or near it, for some
months. until over 100000 had been
mt forth. In other words, until the
simply Of currency exceeded SO per
cqDifq. it did not depyeciate. 1t Is a
curious fact that the Continental cur
repey did not lose more than , per cent
Of its nominal value until the issue ex-
eseded SO per capiia of the inhabitants
of the thirteen Colonies. The first
step was thus taken in Loganism. A
hin WIS soon introduced tomake money
cheap by manufacturing more OF it.
More was manufactured. ltbscame very
cbeap indeed. The new issues did not
hear interest. Their backs were print
cd in red, and they wereknown as red
backs" In January. 1889, they were
worth forty cents on the dollar. Soon
| il required Fifteen dollars in Treasury
notes TO buy three glasses of brandy
and water, without sugar" The ILL.,
nois Senators should be warned IN time.