, 1875-01-05

OF the Legislature feel no aversion toward him
for doing what most Of them would havo
only been too glad Of the opportunity OF do
ing. Professions Of Democratic oAlccLolders
before election is one thing, and their acts
after tho election is quite another thing.
----
"THE FAITH OF THE NATI0N.n
Persons who wish our business interests to
swim in seas of izredeemablo paper profess
to have discovered substitute for gold Us tho
cornerstone Of currency. Theirnew-fanglcsl
foundation is tho intangible something which
they style tho "faith Of the nation" Occa-
sionnlly they alter tho formula by making it
+" tho faith and resources" but the change is
meaningless, because tho only part the re-
sources (whatevcr they may boz arc to play is
that of source Of faith. This is trav-
cling in circle. We come back to
tho theory that milton which has broken
faith with its creditors by refusing to redeem
tic promises for the redemption Of which its
faith was solemnly pledged nevertheless has
such a sioux Of faith on hand that it can
issue few billions Of greenbacka md mako
them good as gold. believers in tlis fantasy
think TINT Secretary CHASE made groat mis-
taRs in not demonctizing gold entirely by is
g.1ing bonds payable, principal md interest,
in irrcdeemablo paper, md, by making the
grcenbaclis C. legal tender for all transactions,
including the payment Of duties and, as vo
have said, the interest on tho public debt. We
would then have had & currency based solely
on the q faith Of the nation" What would
the result have been? The Supreme Courts
last Interpretation Of the Legal Tender act has
made it lawful to pay all debts, no 1natter
when contracted, in our dishonored pnper.
The currency would therefore havo been ia
demand until tho debts then existing
had been wiped out. The cancellation Of
each Of these debt1 would havo diminished
the demand, and would therefore have
diminished tho value Of tho thing offered to
supply thai demand q. e., the groenbacks).
When oil these taebLa, or tho great bulk Of
them, veto satisfied, Government paper
would not DO entirely worthless, because it
could still bo used to pay taxes due to the
States and tho United States, md these nro
debts Which man inours by simply existing
under Government. Our own history fur
uishes proof that demand Of this nature
is insufficient to givo q pnper currency
my val11o worth mentioning, In 1889, q Gov
eminent paper dollar, receivable for taxes,
was rcckonel ut less than ono-tifth Of cent!
"Faith proved n very poor substitute for
cash. II Secretary CHASE had acted In tho
way these mistaken zealots would have had
him, tho greenback would now be in about
tho condition OF the whitebacls of 1852.
It would be used only to pay taxes. The
Government could buy nothing with the
rags it received from the people for
taxes. A. man could buy nothing with the
currency. Congress can mako the dIshonored
drafts Of tho nation legal tender, and force
creditors to accept them for debts already ex-
isting or to exist, but it can compel no man
to give the credit which must be given In Or
der to create debt. That game was tried
in franco WHOM LAWS Mississippi bubble
vas at the bursting point, but it could not
prevent the collapse. No man holding corn,
wheat, o house, or q piece Of land, would c1-
change lis tangible property, which
ho could use In gratifying his own
desires, for a few bits Of paper
with which ho could do nothing except pay
his taxes. Special contracts would bs mado
on gold basis, Is they were when tho bot
tom dropped out Of tho Continental currency
anil out Of tho lats Confederate notes, and
the greenbacks would vanish from circulation
as both those currencics did. CHABE'a "mis-
take.' Is the papor-moaoy men call it, has
saved LIZ from this disaaser.
One Of ths conclusive proofs that m IT.
redeemable currency is bed Is, that
it furnishes no standard Of real
value. Value Is fixed by cost Of
production. Aplecs Of paper, with "Ono
Dollar printed on 1t, would 10 worth just
what the paper cost to produce 1t, or perhaps
less. Tho cost OF the paper, ink, plate. labor,
etc., used In turning out ono bit Of paper
would bo about ono-tenth OF cent. The
Government could not receive its revenues In
such stuff, because it could make no use OF it
beyond paying 1t to tho unfortunate
bondholders, who would then bo the
reverse Of F" "bloatsl." Before long, the
public revenues would lsave to DO collected in
something Of tangible value. Then the capi-
tal and labor consumed in producing tho
gseenback would be totally lost and It would
bs worth nothing, So the result Of the ID
bors spent In order to mako money plenty
would be that we should have no money ct
all This Ia a 9eduetia ad abSurIum which
would do well to con-
sides. It Il the function OF money to make
exchanges. An exchange 10 the transfer Of
for property.
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