Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1875-08-14

suppose that the debtor has no gold |
or property to bring it, where wonld be
the creditors confidence? Shelby |
Uil5e ComDscrcial
We are Obliged TO the Commercial |
for pointing out to us the absurdity Of |
supposing that man, without money, |
or property, or character, can inspire
confidence in pecuniary matters. But,
not having fallen into the absurd
blander imputed to us, we repeat, that
confidence in the solvency and integri-
ty of the maker of note, has very
much to do with the acceptance of il
by others. Take greenbacks, for ex-
ample; they are not convertibie into
gold, and although they can be ex-
changed for gold by purchase, it is at
a heavy discount, yet they are at par
with gold in all pecuniary transactions
between man aud man. And why?
Because the holders of this paper cur
rency knows the ability, aud have faith
10 the promise, of the government to
make them good for their face value.
Is it gold or confidence which gives
value to greenbacks as a circulating
medium? There is superstitious
belief in gold as standard of values
which is due TO statute laws and Gus
tom, and in spite too, Of the fact that,
intriHsieally, it is of less value than
iron or copper, and either of the lat
ter, stamped with certain figures
representing values under the sanction
of law and put In circulation by the
authority of the government, would be
equal to gold as standards of values.
Hence it is clear that the character of
the crude metal has little or nothing
to do with the value of the coin of
which il constitutes the base, and that
the stability of a currency, whether
metallic, or of paper, is due mainly to
the confidence the people have in the
ability and honesty of the government
by whose authority the currency is
created and adjusted to an arbitrary
scale of values. Greenbacks, if made
receivable for all government dues,
would soon be at par with gold. and if
the latter were dispensed with as a
part of the currency of the country,
greenbaeks would become convertible
into real estate, manufactures and the
various articles Of merchandise, aud
thus prevent boarding of money and
give an impetus to material wealth aud
general prosperity impossible under
! the present financial system. 1t is con-
tended by some, that the greenback
currency would be strengthened by
making it convertible into interest
bearing bonds they recoverable
into greenbacks; but we fail to see the
wisdom of the arrangement. The
bonds would be upon no better basis
than the greenbacks, and one objection
to them is that the interest will have
to be paid by the people; another is,
that the bonds would offer an induce
ment to hoard them, and thus with
draw from circulation currency that
should be kept adoat by the spirit of
enterprise for the development of
every branch of industry. 1t seems
to us that nothing could contribute to
the general good, in a material point
ofview, more than a currency convert
ible only into property and such en-
terprises as tend to individual and gen
eral wealth-sueh property and enter
prises being recoverable int the same
currency. With no arbitrary standard
erected above it, such currency
would not depreciate, and its fuetua-
tions-if any-would not be those of
appreciation or depreciation as com
pared with some higher but arbitrary
standard of values, but solely the re-
suit of demand and supply as indieat-
ed by the business of the country.