The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-07
only safe basis Of 4 national currency. IN ms
Message TO Congress in December. 1883, Jackson

! The great desideratnm IN modern times IL an e'n-
| cient check upon che power OF banks, prcvenuns
that excessive issue OF paper whence arse those
fluctuations IN the standard OF vaiue whicu rcuuca
uncertain the rewards OF labor ~ was suppo5vu, ~
| those who established the Bank oil the uhlteu
States that we should derive rom that INSTITUTION
| all me security ano Dement'S OF SOUND curIenoy
| and every good end that was attalna0e uhuer lnas
I provision OF the constitution which authoriles
1 Congress alone co coin money ana regulate the
/ say that these anficipaiions have not been real
/ ized. II we can ultimately witness the
/ suppression OF all bank bills below SO u Is ap-
\ parent that gold and silver Will take their
\ place and become the priacipal circulating
medium: and we shall soon gain, In place OF the
Bank OF the United states, a practical reform IN
the whole paper system OF the country. fne at
talnment q sach result would form an era IN
the history Of our country which Will De dwelt
upon with delight by every true friend OF liberty
aud independence lt VIII tighten the great tax
which our paper system has 80 long collected nom
the earnings OF LABOR.
In HIS annual Message TO Congress. in 1886,
Jackson lard down the following principles
II Is apparent rom the whole context OF the
constitution as well as the history OF the times
whlch gave birth to n, that II was the purpose OF
the Convention to establish currency consisting
Of me precious metals. These, from their pecn-
liar properties, which rendered them the standard
o. value in all other countries were adopted N
TINS, as well 70 establish it, commercial standard IN
reference TO foreign countries ny permanent
rule, as 20 exclude Tue use OIL mutual neaium or
exchange, such as OF certain agricultural COM
moaities recognized b. the statutes OF some
STATES as tender TOR debts, or tue Sti
more pernicous eApealent OF paper cur
rency the last, rom the experience OF
The eyls OF the issue OF paper during the Revolu-
ton, had become 30 justly obnoxious as not only
TO suggest the clause IN the constitution orOddlng
the emission OF bills OF circuit by the States, but
also TO produce THAI vote IN the Convention which
negatived the proposition 70 grant power TO Con.
gsess TO charter corporations.
Nariableness must ever &c the characteristic OF
a currency OF when the precious metals are not
the CHE ingredient. or which can ae expanded or
contracted without regard 70 the principles that
regulate the value OF those metals as standard IN
the genei al trade OF the world.
lrN rn~ln "A n nn Fslf lnr 81
citation OF tne currency by excessive bank Issues
always attended by loss 10 the lahoring classes
When, 10y the depreciation in consequence oi the
quantity OF paper IN circulation. wages AS well as
prices become exorDitDnt, IL Is soon lound that the
whole eHect oi adaleration II !. tarIn on our home
industry Tor the dement, oil the countries where
gold anu silver circulate ana maintain uniformity
AMI moderation ~ piices. " Is then perceived
that the enhancement OF the price OF
labor produces corresponding increase IN the
ppT no o. products. ma these products
III otuer countries, ana then both
manufactured ana agricultural productions
cease TO bear expectation rom rae country OF me
spurious currency. because they cannot &c sold
cost. THIS Is the process by which specie is ban
isueu by the paper OF the banks rhcir vaults are
soon exhausted to pay Tor foreign commodities.
The next step Is stoppage OF aDecse payments
total degradation OF paper as currency unusual
accumulation OF property III the hanGs OF creditors
and cautious capitalists.
ia Again. in JacSson's farewell ADDRESS to the peo-
pie OF the United states, he reiterated these sound
views in the following emphatic language:-
The constitution OF the United states unques-
tiouaDy Intended to secure the people elrculat-
ing medium gold and silver. But the establish
ment o. a national pank 81 Congress, with tne
privilege OF issuing paper money eceiNahle IN pay
ment oi the pubnc dues. ana the unfortunate
course u iegislauou IN The several states upon the
same s;lttect. drove from general circulation the
constitutional currency and substituted one OF
paper in it, place.
IL was rot cay Tor men engaged n the ordinary
pursuits II business. whose attention had not been
partcnlari> drawn 10 the subject To loresec all The
consequences oI currency exclusively u paper.
and We ought not on than account. 10 DC surprised
at the faculty with winch laws were obtained 10
carry INTO ehect The paper system Honest, and
even enlightened men, are sometimes inlsed ~
the Speeious ana plausible statements VI tie de-
signing. BGt experience has now proved the mis-
CHEF ana dangers o. paper currency, ana IL rests
WIN Aou 10 Geiellniiie Bheiner che proper remedy
snail De applied
Inc paDer :, stem beng founded on public CON
hd@nce tnu having OF ttse no intrinsic value it
j. Fable 10 great anu sudden fluctuations thereby
rendering property insecure anu the wages oil
labor unsteady and uncertain.
MARTIN VAN BuRgS.
The most emphatic dec laratons against an ire
deemable currency, whether OF national or state
issues. are TO be found IA Mr.. Van Burens Message
t. Congress waIle President OF the United states.
on the ath OF september, 1897. ne thus wrote
There can be no doubt that those VINO framed
ANA adopted the constitution having IN mme-
eracy. intended TO prevent the recurrence OF
similar evils. They gave TO Congress ex-
late the value thereo-; they refused TO give IT
power to establish corporations the agents then.
rencg, they prohlbted the states rom making
anything nut gold and silver a legal tcnaer IL the
pay nent 0i debts, and the Grst Congress directed
by positive law tnat the revenue should be re-
eeived IN nothing but gold ana silver.
After giving a resume. the memorable paper
money expansion OF 1874 To 1887, IN which the
banking capital OF the country was Increased
twenty-five per cent. the paper circulation
panded fifty per cent and the loans and discounts
Increased over forty per cent in the short space
three years. Mr.. Van Buren, exhib ted the vast
increase debt foreign and domestic, indvidual
anu corporate, which, with the imitation referred
to, mad produced the panic OF 1887 both in the
United states and in Great Britain. Mr.. van
Buren, added
In both countries we have witnessed the same
redundancy Of paper money and other i..cllities OF
credit, tie same spirit OF speculat non, the sane
martial successes and at length nearly the same
overwhelming catastrophe.
Again Ia his third annual message December
u. 1884, MIR. Van buren, said:
scarcely were the government and country re-
nered iu degree ironi the difficulties occasloned
by the general suspension 0! 1887, when partial
one occurring witnin thirty months Of the former,
produced new ana serious embarrassments,
tuousn " had no iaiiatlon IN such circumstances
u were ai!e-cd III justiacatlon OF that which had
previously taken place. There was hing IN tile
CONDITION Oh the country 10 tndanger a wen man
ageu banking institution: commerce was deranged
by uo Iurel9n war; every branch OF manufacturing
industry WAS crowned with rich reward and the
more than usual abundance OF harvests had
lett our granares and storehouses filed with
surplus Tor expectation. 1t Is IN the midst OF this
that an ,Iredc cmaDle and depreciat ted paper cur
reney is entallcd upon the people by a large por-
ton OF the banks
new dangers TO the banks are also daily dis.
closed from the extension oil that system OF eX-
travagant credit oil which they the pillars.
Aided 10y the facilities Afforded by the banks mere
credit has become too commonly The basis oil
trade. Many OF the banks themselves. not con-
tent with largely stimulating this system among
others. have usurped the business, while they
impaI the stability OF the mercantile community ,
they have become borrowers instead Of lenders :
they establish their agencies abroad; they deal
largely ia stocks ana merchandise: AMI, unsatis
ned Win the legitimate use OF their own capital
and the exercise OF their Lawful privileges, they
raise by large loans additional means for every
variety OF speculation. The paper cur
renCy which might serve for domestic purposes Is
useless TO pay the debts due in Europe. . the
intensity OF the pressure on tine community Is IN
proportion TO the previous iperality OF credit and
. 49, - o.