Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1875-12-04

| UOuu WOuiu Ot u new tuQ mlxuty {dc
tor in facilitating the transaction o
business, as it would add new ele
ment to the representatives of values
viz, the quality of immediate aroill
bitfty; consequently. the bonds woulc
be most desirable investment. Ant
the issues of moderate denominations
would be used in large monetary trans
actions IN place of paper money. and
without producing imitation in the
slightest degree, any more than the $40
bonds or other investments produce
imitation; for they are available,
though of fuctuating and uncertain
value, while the other would always
be convertible at their face value, with
accrued interest, and without the shad-
ow of risk in the investment.
Should the act establishing the
American System of Finance" au-
thorize the banks to hold convertible
bonds as their legal reserves, and also
to deposit such bonds for national
bank currency, and permit said cur
rency also tG be convertible into gov
ernment bonds, both banks and the
public would be greatly benefited, in-
asmuch as confidence would be restor-
ed, business would revive, the credit of
dealers with the banks would improve,
and their risks also improve In a like
ratio, causing an immense increase of
business, with corresponding increase
OF fdivldends to stockholders, and this to
the entire satisfaction of their dealers
and the public generally. Then the
existing prejudice against banks would
cease, and they be recognized and ac-
knowledged as indispensable aids to
civilization, and be sustained by pop
ular favor.
1t any continue to doubt, after our
past experience, that legal tender pa
per, when received for duties on i'm
ports, will keep on par with coin, they
need only to look across the Atlantic
to the French Government for confr-
nation. When the German war COM
menced it authorized the Bank of
France to double its issue, and made
said issue legal tender for all none
tary purposes. According to statistics
before me, at the commencement of
hostilities in 1870 the Bank circulation
was about $3.50, 100000, when an ad-
dition of an equal amount was author
lied, and all made a full Legal tender
for all purposes, and when hostilities
ceased, in 1871, it amounted to 1920
900, 900, at which time gold bore pre-
mium Of q o cent, when an addition
al amount being authorized, it soon
fell to par; and in October, 1873,
when it amounted to $6l2 ,000, ,000-the
highest amount ever reached-it re-
manned at par and has continued so
ever since.
The query arises: Why did it con-
tinue at par after the issue of so large
an amount?
Ans. Because it was made a legal
tender for duties on imports and for
all other monetary purposes whatever.
Then, why was there premium on
gold at any time? For the reason
that, in addition to the amount requir-
ed for the Indemnity, the requirements
to reeuperate and make good the de-
of vastation of war caused an excess
imports above exports, which ex-
cess continued until the Increased
flow of currency, by stimulating the
manufacturing, mechanical and agri-
cultural industries, created an excess
of exports and turned the balance of
trade in favor of France.
1t seems clear that the volume of
currency, by being made full legal
tender, revived and stimulated the pro-
ductive industries of the French peo-
pie to such an extent that their export
able products soon exceeded their i'm
ports, and turned the balance of trade
(which, when the war ceased, was large
ly against them), in their favor to such
an extent as to render them financially
independent and all other nations
became their tributaries. And who
can truthfully say, should America
pursue the same course, that the same
results would not follow This. it is
claimed, is proof which none can deny;
but, on being convinced of the fact, all
must confess that, had the act which
passed the House of Representatives
making greenbacks full legal tender
without any exception, and converti
bic into 6 per cent. bonds, become
law, coin could never have risen above
par from the day in which it became a
law to the present time. And who can
say that in consequence ofthe paper of
the Bank ofFrance being full legal ten-
der the French people are not in more
prosperous condition at this time than
at any time ia their long and eventful
history? With such wonderful pros
perity of the people of France promi-
nently in view, and the full knowledge
of is being the result of so simple a
cause as the making of its paper money
q full legal tender, will not the Amer
lean Government follow so glorious an
example and raise the American peo-
pie from their present state Of paraly-
sis, degradation and humiliation?
Some attribute the present troubles
10 over-production.' Over -produe=
ton, indeed Since the panic of 1873,
hes not production been constantly di-
miHishiDg? Have not the iron mills,
the msebanical and manufacturing es-
.ablishmen.s, been constantly reduc-
ng their projections, until many have
,eased .entirely7 IF there is surplus
production of asy kind in market,
INV is it so2 Is, it .aet because the
reat raasses of our peoYis are con-
tantIv reducing their consumption by !
mrtailin o their luxuries, their csm-
orts and even their necessarles OF
;fe9 And ere net thousands and tens
f thousands. if net millions, out of
nd are not many of them |
n The brink of starvation? 0ver-pro
uction. Indeed! On the contrary, by
outractiou of currency, business has
,ecome paraIyzed and prostrated, and
he millions been deprived of the means |
# procuring and consuming produc,,,
ion I" Instead o. Over-produetloD,
S not all this to be attributed 10 re-
luced consumption ?' and what is the
tmedy? Answer. The adoption OF
he American System OF Finance,
which, it is claimed, will, as III by mag
C, diffuse new life, energy and prosper
ty throughout the land.
1t is claimed that no valid objection
against the Interconyertible System
1as ever been made public; and that
no arguments have been presented
against it, which commended them
selves to the common sense of the peo-
ple: that ridicule aud denunciatlon
only have been resorted to.
1t will be remem bered that the late
Horace Greeley, through the columns
of his paper, the New York Tribune, |
for time ridiculed and denounced this |
system, until called upon by friend to
publish valid objection and adduce
reasons and arguments against 1t, which
would commend themselves to his read
ers. Subsequently, and after laborlous
l. hoI tho