National Republican. (Washington City (D.C.)) 1872-1888, 1875-10-14
HONEST LABOR AND ras 5ssou SYSTEM

1t has heretofore been abundantly demon
strated IN these columns that all paper
money that is not redeemable in coin is
''credit money" and that the difference be.
tween its value and that of coin is shown
by the comparative amount of the fruits OF
labor which the two will buy. 1t has also
been shown that crtdIr cannot in the nature
OF things be the equivalent of cash as a
purchaser IA the market because of the
greater risks involved. Credit is destructi-
Die, liable 10 fucludte with the vicSsitudes
of trade, while coin, possessing an intrin sic
value and heing measuHhy indestruc ble,
maintains certain uniformity of value
which the multiform evolutions of trade do
not affect
Ii should be remembered that all species
of credit are based upon promises of some
character for the payment of money or its
equivalent in value. That is why all paper
currency is rightfully denominated CT edit
money. Its value is consequently greatly
dependent upon the faith maintained by the
public in the performance of the promise
borne upon its face. Faith" we are in
formed upon high authority, sis the sub
stance of things hoped fol" but it has also
been learned by dear experience that ''hope
deferred maketh the heart SICK The
hearts of American laborers have been
sickened by the deferred hopes of the re-
sumption of specie payments by the re.
demption of the greenback promises.
If it be true that ''the laborer is worthy
of his hire, - is it not equally true that his
rather than In the promise of it Take,
for an illustration of the manner in which
the credit system defrauds the honest labor
of the country for the benefit Of the drone,
the case of the merchant who credits all
his customers. When payday comes he
is entitled to his money, but there is always
some one who has other pressing uses for
his wages, or he has been prodigal and ex-
travagant; or his employer has not paid
him; or he has been on a spree and earned
nothing; or he has been betting on cleo
tons or faro, or specializing in some other
manner, and lost so that he cannot pay. In
common parlance, we say this is the mar
chants loss. Is it sol If it be true, he
must break sooner or later. Ifhe does not
break from bad debts, it must be for the
reason that he charged those of his custom
ers who did pay him such prices as covered
his bad debts, besides paying his ordinary
expenses. If all his traffic had been upon
the pay as you CO. principle it is clear
that he could have sold his goods to the
honest portion of his customers lower by
the amount of his bad debts, and have been
just as well off as he is now.
But this is hot all of this credit system.
1t extends its ramifcations all over the
country, and innoculates all the channels
of trade with the same evils. The mer-
chant who gives credit must buy on credit
and he must, in turn, pay for the credit
which he receives. Consequently he pays
higher prices for the goo is than if he took
the cash and enjoyed the choice of the
market His credit is circumscribed to
that circle with whom he is in the habit of
dealing, and who still have faith in his
honor and ability to pay. He pays 5, 10
or 10 per cent. more for his goods with the
credit attached than he would be Obliged
to pay if he had cash in hand and could
take the run of the market" In like
manner his merchants are obliged to have
credits from manufacturers and importers,
and, of course, must pay accordingly.
The reason why credit prices are higher
than cash prices, with simple interest added
would be, is obviously because credit gives
opportunity for bad debts, and the time or
credit prices must be so scaled as to cover
these contingencies. Initiation, then, is the
child of credit, and credit enables dishon-
esty, extravaganza and profigacy to levy
upon honest labor a tax for their support.
In view of these facts, is it not clearly in
the interest of all honest men to vote against
any further extension of the credit system,
and especially of credit money! Is it not
also clearly the duty of Congress and the
Executive to set the example of redeeming
the promises Of the Government, In the
shape of greenbacks, at the earliest possible
moment?