Fayette County herald. [volume] (Washington [Washington Court House], Fayette County, O. [Ohio]) 1860-1???, 1875-09-09
From the Knoxville CTenn.l Whig and Chronicle
just What We Think of "Rag
Money

in the United States Senate5 AM ~ ~ 7
letter of January, 1874. to tne ChLoIi- C
Gle. 1t takes our denunciatlon OF tne e
Ohio Democratic platform as rag
v,orav'' platform as inconsistent with a
onr views. We did and do now de-
nounce the Democratic platform upon
which Governor Allen stands as a
ssrao money! platform and the imam
eial schemes put forth in the speeches
of the Ohio Democratic leaders as l
ssspeculative'' and "wild," Is this in ]
consistency? Let us see. The Ohio
Democratic financial creed, as now
expounded, logically amounts to the
abolition of our national banking sys-
teua and the substitution therefor of
the old State bank system, with power
to issue an unlimited irredeemable pa
per currency, and to a prompt retire
ment of all our National Banks. Those
two schemes would give US "rag mo-
ney" in abundance such as we had be-
fore the war, when a traveller had to
carry with him bank note detector in |
order to judge of the trash showed at
him in every Srate through which he
journeyed.
The Ohio Democrats, in effect, de-
mand the reputation of our legal ten
der currency and the general demoral
ization and prostratiOn of the business
of the country. Mr.. Pendleton, who
is credited as the author of their plat
form, in 1862, from his seat in the
House of Representatives at Washing
ton opposed, on Constitutional
grounds, the issue of the legal tender
notes. He argued that they would
constitute an irredeemable currency
from the evil effects of which the
country would never rally, and denied
the power of the Government to issue
any money but gold aud silver. The
Ohio Democrats then endorsed Mr..
Pendleton and did all they could to
depreciate the greenbacks issued by
the Government as a war measure
They opposed the s'legal tender
notes then, and in their hearts they
oppose them now. They attempted
then to break down the credit of the
Government, and they are at it again
now by favoring financial schemes
which they know will result in the
general decentralization of business
and finally in national repudiation-
What can be their object but to restore
the old State Banks 1t is true, they
disavo this purpose, but if they have
been or are still sincere in their denial
of the Constitutional power of the
Government to issue a legal tender
currency, they can have no Interior
object. This would indeed give us
'srag money" Another "wild specu-
lative scheme of those Ohio Demo-
Gratis in their demand for the ''prompt"
retirement of the National Bank cur
rency and that which of course must
follow-the prompt close of all our
National Banks. What would be the
effect of such policy? Over $780,
100000 of capital is employed in Ma
tional Banks. Their business ramifi
cations are widely extended and close
ly identified with the most vital inter
ed out of their own capital and from
their deposits, some 5000, O,O00.-
All these loans would necessarily be
called in and borrowers compelled to
look elsewhere for the money which
they now have invested in their bust
ness. The Government would lose
the $2O,00O,000 of tax which these
banks pay. The bonds owned by the
banks-over $35O,OOO, ,OOO-would be
thrown on the market and sold, per-
haps to foreign capitalists. The $21,-
100000 of interest to be paid on these
bonds, instead of being kept in this
country as that much gold to ballast
our credit, would go abroad. What
would be the inevitable results of al
this ? What but general demoraliza
ton, far worse than followed the pan
ic of 1878. This is what the Ohio
Democracy want and such schemes WI
denounce Is there any theory in
this inconsistent with our speech il
the Senate or the letter to the Chron
icle? We have never committed our
selves to any such foolish, visionary
ruinous schemes. Governor Morton
who stood with us in the Senate, i
now in Ohio battling these "rag mon
ey" schemes. He is consistent will
his record and so are we.
We recognize the fact that on finan
cial, as on every other question of ma
tiOnal interest, men will find thei
views moulded by the wants of thei
State and section. But true states
manship and patriotism demands tha
national legislation shall be shaped 70
the greatest good to the greatest mum
Der. The Republican party for tn
first time defined its policy on thi
great ques ton of finance in the gree
compromise measure of the last Con
gress. That bill provided for fre
banking, and for a steady and gradus
resumption of specie payments. Un
der that law Tennessee can have q
many National Banks as MassachU
setts. If that system is so proftabl
as our Democratic friends claim, W
advise them all to go into that bus
ness. They can sell their rebel wa
bonds and rake up their old DemG
cratic "hard money" for which the
have fought all their lives and becom
national bankers. There is no enc
nopoly" about that business now q
they falsely claim. 1t IS free to ALL
There is no contraction of the curreE
cy going on under that law as thei
Lying newspapers claim. The ComL
trOller's report shows that since tha
law took effect the currency has in
creased, and if all these lying Demo
cratic editors and politicians will pr
the money they are stealing from th
people into banks we will still hav
more currency. The bill referred t
was not what we wanted exactly, bu
it has become law and the busines
of the country has now become ad
justed to it and we accept it as tn
best we could get, The whole bus
ness of the country has been unset
tied because of the uncertainty of lee
islation, but now that the Republica
party has compromised its confictin
views and committed itself to definit
policy, the business men OF the cour
try are working up to it. We there