The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1875-12-04

home to pay interest on lts bonds. and A,
our mines produce more bullion than car
be required for the balance Of trade
there will be no further demand for it
hence, IT must fall to par
would most respectfully but emphati
cally assert that the day IN which SAID
American System Of Finance becomes a
law, gold end legal tender money will be
on par And | would as emphatically
assert that is not within the power of Con.
<ress, BY any materially different act oi
legislation, to produce the same result and
restore the much desired specie basis. IN
ui our exports exceed our imports IL an
amount sufficient tJ cause a natural return
How Of specie to our shores
lt is claimed that the Government
stamp, which makes the gold dollar worth
100 cents, when affixed by law 70 the pa
per dollar, would make that worth the
same
Il Is also claimed thai such paper doliar,
when substituted in place Of the present
issue, of promise to pay will answer ali
| the purposes Of money that the coined gold
or SILVER dollars ever dId; that then ali the
outstanding . 20 bonds could be paid of
40 par Sith either cOined guld money Or
coined paper money, At the holders APP
tlon. and to the satisfaction Of all parties.
7 1t Is claimed that the convertible bond
would be a new and mighty factor in fa-
cllItatlng the transaction OF business, AS II
would add new element to the repre-
seitatlves IF values. VIZ. the quality OF
'm1le'tiate drdijdb,iitu; Consequently. the
bonds would be- most desirable invest
4 ment. And the ISSUES vt moderate de-
nominations would be used in large none
tary transactions ID place ~ paper money
and without producing initiation in the
slightest degree. any more than vhe 20
! bonds or other Investments produce intia
ton; Tor they are available. though Of
\ nuctuatng and uncertain value, while the
I other would always De convertible AT then
| nee value, with accrued interest, and with
out the shadow Of risk IN the investment
Should the act establishing the ''AmerI-
crn System NJ Finance" authorize the
banks t0 hold convertible bonds as their
1 legal reserves, and also 10 deposit such
/ bonds for national bank currency. and
I permit said currency also to be convert
| ible into government bonds, both banks
and the public would be greatly benefited,
lnasmuch As confidence would be restored,
business would revive, the credit u deal
ers IN the banks would improve, ana their
risks also improve IN like ratio, causing
an Immense increase of business. with a
corresponding increase OF dividends to
stockholders, and this to the entire salts
faction " the dealers and the
public generally. Then the exist
ing prejudice against banks would
cease, and they be recognized and acknDw-
iedged as Indispensable aids 20 civilization.
and be sustained by popular favor.
Ii any Continue To doubt. after our past
experience, that legal tender paper, when
received tor duties Oh imports. will keep
on par with cpiu, they need only to look
across the Atlantic 60 the French Govern
neut for confirmation. " hen the German
var commenced IL authorized the Bank uf
7 France to double its issue, and made sand
Issue a ivgai tender for ali monetary pur-
poses. According 10 statistics before me,
at the commencement of hostllites IN
/ 1870 the Bank circulation was about $3.50. 4
600 600. when am addition of an equal
amount was authorized, all made t,ai
tegdf tender for dH purposes and when hos
tihtles ceased IN 1871, 1t amounted To
/ 1920 900 600, al which time gold hore a
! premium Of q per cent, when an addl-
/ tlonal amount being authorized IL soon
| fell to par; and IL oct her 1873. when It
amounted t. S0I2. OOO, UOU-the highest
amount ever reached 1T remained at par
and has continued SO ever since.
The query arises Why did it continue
at par after the issue of 50 large an
amount
Ans Because it was made legal tender
/ for duties on imports, and for all other
monetary purposes whatever.
! Then, Why Nas there premium Oh gold
\ AT any time For the reason that in ad-
dIuOn to the amount required for the In
\ demnIty, the requirements to recuperate and
\ make good the devastation of war caused an
4 excess of imports above exports, which
excess continued until the increased flow
of currency, by stimulating the manutac-
turing. mechanical and agricultural indus
tries. created an excess Of exports ana
turned tAe balance Of trade II favor "
France.
II seems clear that the volume W eur
rency, by being made f,H legal tender
revived ana stimulated the productive in
dustrIes of the French people 10 such An
extent that their txpurtable products
soon exceeded their imports, and turned
the balance Of trade (Which when the war
ceased was largely against them). m HEN
favor to such am extent AS To render them
hnancIally independent; and all other ma
tlons became their trnutarles. And who
can truth.ully say. shuuld America pursu,
the same course. that he same results
would not follow THIS, II Is claimed ],
proof which none can deny, but. "a tein4
- H..
tnat, had the act which passed the Hvus,
of Representatives making greenhacAs
full legal tender without any exceptlun
and convertible into 6 per cent. bonds
become Law. coin could never have riser
above par trum the lay IA which II becam,
a law to the present time. And Who cAI
say thar IN consequence ot the paper tn,
Bank Of France beng a full legal tender
the French people are not ia a more pros
perons condition at thus tlne than at aul
time IN their hong and eventful history
MI ith such wonderful prosperity uf the peo
pie ot France prominently III view, ans
the full knowledge Of Is being the result
OF 50 simple a cause as the making Of ii
paper money a full legal tender, will no
the American Government follow 50 10
y rious al example and raise the American
people from their pres at state Of paraly
SIS, degradation and humiliation
Seme attribute tie present troubles t,
production production, III
deed Since the panic of 1873, has no
production been constantly diminishing
Have not the iron mills, the mechanica
and manufacturing establishments, beer
constantly teen reducing theIr produc
tions. until many have ceased entirely
If there is a surplus # production 9
any kind in market, Why Is It SO Is
not because the great masses If our peopl
are constantly reducing their consumption
by curtaillng their Injuries, their comforts
and even their necessarles of life : An