The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1875-09-29

sorry notes, and declared these notes TO DC
lawful money.
THE LOSS ny BAD CURRENCY.
Secondly: Il Redundant and Vicious
Curency-Redundant. because when the
war terminated there was no legitimate de-
mand for so large circulating medium;
vicious, because il substituted legal but
artificial measure of value for the true
measure, thereby violating the higher law
which makes gold and silver the standard
"a law which has never yet been viola
ted without commercial disturbance, nor,
if the violation was long continued, with
out national disaster.
That the legal tender notes and the
notes of the National banks made the cir.
culating medium redundant is proved by
the artificial prices they created and sus-
tanned. by their great depreciation, and
by the uses that have been made of them.
Their viciousness is made manifest by the
facts that they were and are irredeemsble;
that they have familiarized the people
with disbonored obligations which they
have been and are compelled to treat as
money; that they were and continue TO be
constantly fuctuating in value. making
business gambling, and business men
gamblers. That an irredeemable curren.
cy is a tax upon industry and fruitful
source Of decentralization requires no argu-
ment to establish. If the truth could be
arrived at, it would be discovered that de.
preciated paper money has been heavier
burden upon the industrial and producing
classes of the United States than all the
taxes, direct and indirect, to which they
have been subjected, and that it has done
more to debase and corrupt the public
sentiment than all other causes combined
The substitution ofinconvertible notes for
coin, is an old game of distressed mon
arches. 1t has frequently been resorted
to by bankrupt nations, and always with
the same disastrous results 1t was re-
sorted to by the United States, under the
pressure of what seemed to be a great
emergency. That it should be adhered to
so long after the supposed emergency had
ceased and still have intelligent and hon
est advocates is difficult Of explanation, in
view of the fact that over-issues of paper
money have been the cause of every f.
nancial crisis, every deep-rooted financial
disorder, that has occurred in the United
States Let US glance at our previous ex-
periences.
THE LEGAL TENDER BILL.
No one. l admit, can say with any
precision how much currency is requ ired
in country like ours for legitimate bust
ness, but there are always indications OF
an excess which cannot be mistaken
Between 1880 and 1887 it was indicated
by speculation in wild lands and town
lots, by large importations. expanded
credit, and visionary schemes of internal
Improvements. Between 1913 and 1857,
by extraordinary activity in trade-the
reaction from long period Of stagnation,
and another unhealthy expansion OF the
credit system. From 1864 to 1873. by a
continuance of the high prices which
were unavoidable during the war, by ex-
pendatures, by gambling of all descrip-
tons, by a mania Of sudden enrichment,
and by imprudent outlays in railroads.
There has never been, l again remark, a
financial crisis in the United States which
cannot be Enthusiastically traced to excess
sive issues of paper money. The exist
ing financial malady is wider spread and
deeper rooted than any which has pre-
ceded it, because the propelling cause has
been greater. If it were only bank notes
we had to deal with, the main cause OF
our troubles would soon be removed. for
the people would not long tolerate ire.
deemable bank notes. Unfortunately we
have a currency issued by the Govern
meut which, in opposition to all econo-
mic laws, and in dis regard of the expert
ence OF other nations, has been made
lawful money, which has so distorted the
public vision and so depraved the public
judgment that former hard-money men
have become its defenders, a currency
which has led such men as Gov. Allen,
of Ohio, to pronounce specie payment an
idealty-a "barren Ideally" There
ought not to be much difference in senti>
ment among fair-minded men in regard to
the cause of our embarrassments and
prostrations. The important question to
be settled, and the difficult one, is what is
the remedy for them? This question l
propose to consider in my next.
HUGH MCCULLocH.
London, Aug. %, 1875.
The Frankfort YeOnHl is mistaken