The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1875-07-24
AN OPEN LETTER.
Elasticity and COnvertibtlity Axam-
lined How Guernsey Built a Market
House Without Borrowing Money,
and Paid for It by Rents, with mo- Cost
for Interest.

faction your calm, clear and temperate
letter in the WORKINGMAN's ADVOCATE of
July Sd, and note especially your excep-
tions to the feature Of elasticity proposed
to be impaired to the perfected legal
tender by the mutually convertible bill
and bond. You remark
~ must confess that | am much sur
prised to find Mr.. John &. Drew, (whO
has gwen us in one Of his works, that
beautiful example Of a Just currency,
adopted by Daniel De Llsle Brock, to
build market house in the Island of
Guernsey among the number Of those
who advocate this elastic currency system.
We will suppose that the system we have
referred to land which | hope you will
add to the end of this letter for the edifica-
tion Of many Of your readers, who perhaps,
have not seen IT. was adopted IN many Of
our States to build our railroads or canals,
what wonderful difference it would make
in the increase of our national wealth in
very few years.
The last quoted sentence contains a
parenthesis referring to some system,
which system we regret was not produced
with the letter as you requested, as by
that neglect have not the chance to com
pare your working plan with the one you
SO kindly and intelligently critIclse.
But, As you DO not elsewhere refer to
the system referred to, bat do Iefer to
the entirely successful and instructive eX-
pertinent Of Governor Brock, | copy the
same herewith from Jonathan Duncan
ant.l,l s-RanE Ehartara'
Daniel De Lisle Brock, Governor Of
Guernsey, was waited upon by deputa-
ton Of the principal townsmen OF st.
Peters. who requested his countenance
and assistance towards the erection Of a
covered market, much wanted in that
town. The Governor readily consented,
and asked in what way he could assist
them most etfectually. He was told that
the principal difficulty was to raise the re-
uuired funds. The Governor replied that
if that was the only difficulty he thought
he could surmount it, but would ask first,
il they had the requisite stores Of bricks,
timber. granite and flags, but, above all,
had they the skilled artizans and laborers
required for the building Of the market.
They replied that there was no want of
labor or raw material; that their difficulty
was chiefly financial. oh, said the Gov
ernor ,l'if that is all you want, | will, as
Governor, sign, stamp, declare legal tend
or, and issue FIVE thousand one pound
market notes With these pay for material
and wages Go to work and build your
market. The market was commenced.
The first effects were to animate trade by
the additional circulation for payment for
states, bricks, etc, and to Increase the
customs Of the shops by the expenditures
Of the workmeh employed on the market.
In process Of time the market was finished,
stall rents became due and were paid IN
these notes. When the notes all came IN,
the Governor collected them, and, at the
head of procession, with some little form
and ceremony, he proceeded to the town
cross and publicly burnt them by way Of
cancelment.
For the small amount of currency au-
thorized and created above, the element Of
elasticity was secondary, but the attributed
Of conpertibitity was provided for fully by
the legal tender character, and redemption
by stall rents
of elasticity has only been recognized as in
the interest Of our foreign creditors, who,
while everything was lovely at home, let
his funds remain on this side on call, but
when pinched by the direct requirement Of
his home trade, or the more indirect re-
auirement Of his foreign creditor, he would
call home the same in gold, and thus trip
US up, in finance, commerce and produc-
ton.
Our proposed redemption in bonds. bear
ing a low rate of interest, not only secures
Us domestic elasticity, but convertibility.
Not only does our inducuive logic point
10 the necessity of these elements, but
past history, il we mistake not its teach
ngs, indicate it.
In our revolution 80, 900, 600 Of Cont
mental paper I'VE are told by ApPleton's
were issued without depre-
,iAtion, as compared with gold, but after
hat, as no sufficient element Of redemption
,r elasticity was created, il 90 rapidly de-
oreciated that it took 800 to buy n much
Is single dollar did before the iTredeem-
lble imitation.
Pliny Freeman, Of New York, wrote to
Hugh McCullOch, Secretary Of the Treas
Try, Nov. 10th. 1866:
Had that (convertibility into bonds)
been adopted, Is it not equally certain
hat the nation would have come out OF
hat war, a. the North has out OF this,
icher and more prosperous than IL went
nj
Had the whole lesson been learned, anu
he bonds been recoverable into paper
yes, that paper which became 20 obnox
Gus N name, Continental paPer). the
Iation would have prospered from that
ime forward a. no nation ever prospered,
nd that same government paper would
ave been the circulating medium 10 this
ay, to the exclusion Of all other. The
eople Of the nation would have avoided
he probationary stages Of poverty and
estitution which they have passed
trough, together with the financial con-
ulsions which have followed periodically
ince, spreading bankruptcy and ruin in
very part Of the land. The war Of 1912
'as Of short duration, and no material
rogress with the currency was made.
The late war repeated the lesson of
he Revolution by issuing legal tender pa
er, and progressed one step further by
laking it convertible into bonds bearing