Fayette County herald. [volume] (Washington [Washington Court House], Fayette County, O. [Ohio]) 1860-1???, 1875-09-23
From the Cincinnati Gazette.l
The Contraction FalSehOOd.

The whole Democratic campaign is
based on the falsehood that the Re
publican party has contracted the cur
rency since the war. The official re-
turns show that the volume of curren-
CIV is now more than 136 millions
greater than at the close of the war, or
in 1865. But to make out the false
basis that it has been contracted our
Democratic financial statesmen count
various kinds ofinterest- bearing rscur-
tiles as currency, such as interest bear
ing certificates Of Indebtedness, per
cent notes, compound interest notes,
and 7-30 bonds.
To fasten the latter item Mr. Pendle-
ton said they were issued as legal
| tender for their face value expressly
to make them circulate as money; for
| their real value. But, in fact, the act
under which 900 millions of them were
issued had this provisol "ProVided
that nothing herein contained shall
be construed as authorizing the issue
of legal tender notes in any form "
And as to the other 234 millions au-
thorized, although the act gave the
Secretary discretion to issue them as
legal tender he did not, and in his an
nual return s, in which he divides the
legal-tender debt from the other, he
nowhere includes any of the 7-30s as
legal tender.
So vital was this regarded to the
Democratic foundation that the En-
quirer pronounced our denial that the
7-3Os were legal tender, 'stupendous
falsifcation," and so on, affirmed OF
its own personal knowledge" that
they were. But at last it has abated
in 600 millions of them but it sticks
to it that the rest were legal tenders,
And then it argues at much length that
whether they were legal tender or not
it made no difference in their circula-
ting as money. Which is just what we
said at first. Any banker or intelligent
business man will inform Mr. Pendle-
ton and the rest of the great Demo
cratic financial statesmen that 10 make
interest bearing notes legal ten der fer
only their face value, will not give
them a forced currency save at the
sacrifice of the interest.
1t seems to US that mere child can
see this. They will also inform them
that interest bearing notes or bonds
Of any kind do not circulate as money
that they soon accumulate an amount
of interest WHICH is consideration ir
every change of hands, and then they
are bought and sold the same as all
bonds. The compound interest notes
offered compound inducements tc
boarding, and no kind of securitie.
was mole quickly hid away. Yet Mr.
Pendleton, and the Enquirer, and Cary
and Ewing, and the other great Dem
ocratic financial statesmen count them
as currency, because they were lega
tender at their face. Who would sell
f them at their face, after they had beer
out three months
The 2Os and 10.40s were and arr
currency just as much as the com
pounds, certificates, and 7-30s. WIZ
} do they not. count these in their inda
ton ma rk? Because they would hav
to co unit them now, and then they
could not show enough contraction
Mr.. Pendleton cited over 200 million
as the imitation of 1865, and the mari
for the Democratic imitation. In ihil
he, as the Enquirer and other grOa