New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-08-14
PAST EXPERIENCE WITH PAPER MONEY.

a. D.
Ii,ion Ohio Aug. G, 1873.
PAST EXPERIENCE WITH PAPER MONEY.
THE CURRENCY FORMERLY UstD IN THE WESTERN
sT,TF,-IlOw ruE BAD MONEY DROVE OUT THE
GOOD
To he EditOr Of The Tribune.
SIR: Ny experience as q Western banker
during the stunptail" days OF 1857 to 1861 q thnk
John Paul will still have somo vivid recolections OF those
day s.. shocked all Old Wing paper notions into moon
shine and made bulllonis although my pocket in
tcrc-s the side Of pictured lies as with them
more money could be- made out of the people. There
never has been I'm the history OF the world such variety
OF " Bed Dog" Wild Cat." AMI pictured lies Ton
specie basis tool called money. as there WIS from 1874
1861, in the Upper Mississippi River towns or the
1000 State banks il operation during three years don't
think there single whose notes did not Mt some
time circulate with money. Besides we had all the
Canada banks, with many thousands of cOuntcrfes.
person to whom had paid $50 in small notes asked me
what banks they found ID States represented
and as many banks there were different notes Al
time gold very plenty, and In NewOrleans was
at discount Of u per cent We bought silver thcrc AT
23 per cent discount IN exchange FOR Louisiana OahK
notes But those golden days did not last long First came
New England and New-York bank notes by the million
10 be put in circulation a. far away from home rs pos
sibe the hope that they might never return These
notes being in New-York and Boston from Is to l. per
cent discount caused our gold to be sent there to pay
debts and make exchange. Next came Ohio ana indi-
ana NcwYork discount 3, 90 per cent, ana soon New
York and New gland notes found their homes sooner
than the desired. Next came the Wisconsin ana
Illinois free banks very good physic they proved Tor
Indiana and Ohio notes, which soon Disappeared Ncxt
cano Georgia Red Dog " notes, ana Nebraska " VIA
Cat" Geo. Smith Of Chicago opened a bank on re-
ported specie capital OF cSs than slOo0)G He Issued
81 100000 of the of the Atlanta Bank, and In
fren1 Ia
country bankers at 10 per cont per annui and they
lent them TO their victim. at from per cent to per
cent Der month In every where the local bankers
were Geo Smiths correspondents and had Dor
rowcd his Georgia Rcd Dog" even Wisconsin
"Swamp Cat" had TO leave the fled.
Now for the benefit of Mr.. Kelley and Mt Brindle "uu
their dcudcd followers will suppose case In lu@ra
ton aud think that many will acknowledge has 10
all intents and purposes been practically shGwa Two OF
in the last 30 years 10 he true suppose an
island. population lO,0OO,00O. having SiOooDOoo OF
coin its entire circulating medium ana hr Kelley ana
Mr. Brindle living there, each having on deposit IN INC
bank gold owning city house ana lO leased III
81 900 gold per annum and valued at TloOoo ana y
country farm giving them net Income oi ~l,ooV gou
AMI valued at $4,000. suppose that both men lal lnto
Kip Van Wrinkle sleep and when they awake ma '.aa
their bnkbOOk, show 70 their credit III place ol inc
$1,000 go,a Sioo c % od Pr pnt LETTER. and II
the holders of tbs T99SOooo now nave
500 800 900 of the stuff Well Mr.. Kelley being
OF thrifty turn decides to buy more iea estate, as ii,e
capital doesn't pay. He meets Mr. Brindle, "len
the latter mas been awake long tHoiHu W
that thing, have grown be-ide bank accounts ior
ne has sold Lis real estate for 100000 iii 3.6JS mere
fore when Mr. Kelley offers him $4,000 thc pilco before
they went sleep Mr.. Brindo rctOrts by Offering MI
Kelley 100000 for his real estate. Done sys nr'
Kelley and cickCs to himself. Mr. Kelley therefore mas
To his credit in the Balloon Bank S.OoOoo MI Brdi.
has large balance and all Mr hclleys real estate Mr
Kelley soon gets sick and he Offers Mr. Brindc the r2o
900 and a gage for 100000 10 Duy his property
back again " Done" says Nj. Brndic, for lliendsns
and has no gold 3G5s MI Brudlc sells the mortgage
and he has 5000 600 i'll beautiful 800 pictures. lhc
gold ha, all out OF tho country ana everybody
the property is bid in $4,000; he 10000 has
no gold real estate, and not even pictured s 10 pa!
his debts with Mr.. BlIndlc has S6OO,cO0 III nne PIC
turcs worth cents per pound lie owes nothing ana
has no gold or real estate IL bother him.
When Mr. Biindlc viii show sane men IN pane run
nin. To "Bavon Banks" with solid gold TO exchange
for :3.65s or any other paper huinbugS then we
Will try aud think that rags are Ter than goa
white that an excess OF gola as lchIat
iu medium exchange Will initiate prices, Yet
500 OO 900 If paper viii initiate more than 800 5000
OF gold, as thousands will hoard gold who would not
paper Again. Will take more RISKS IN lending ana
using paper than gold. y wise and LOVING creator mas
scattered and covered gold that only enough can be
honest people and nations, without causing the evils OF
gambling and wild speculation. California even Woud
not have been an exception to this rule II il had not been
for lis close proximity and connection with nation so
covered up and buried III picture Hes rs to De lost 70 non
Is, and manly shame. am afraid that nothing viii save
Ii, from Il lower deep Of inamy ana National Disgrace
il not destruction, the farmers ana the mass oi tc
common people know little or nothing OF the true prn-
cipcs of finance business, and are easily ted by the
gambling scol.idrcls and knaysn dcmagOSues who only
'"'' '" = BLUE RIDGE PLANTER
amherst c. H., Va, Aug. 3, 1870