Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1875-08-27
ncycr,uy johnson ON the urrency.

sagacious and clear-headed consideration
of the question from the standpoint both
of principle and policy. 1t is a welcome
contribution TO the literature of the discus
sion, and will be read with special interest
at the present time when so many of Mr..
Johnson's political associates in Ohio and
Iowa and elsewhere are doing their ut
most TO force upon the nation policy of
dishonesty and ruin. Considering first the
question what the currency should be and
what control the general government
should have over it, Mr.. johnson starts
with the proposition that gold and silver
alone constitute the only safe currency,
and that no nation can prosper which a.
dopts currency not convertible ON de-
mand into gold and silver. A paper cur
rency has no intrinsic value, while a spe-
Gle currency has. The effects of an ire
deemable currency fall upon every depart
ment of human industry aud injur all the
dealings between man and man. The ten
dency of an rredeemable currency is al
ways TO lis own increase; thus the first is
sue authorized by Congress in 1875 was
three millions of dollars, and notwthstand-
ing promises to the contrary the issue was
increased to the enormous amount of three
hundred million dollars, and finally, in
spite of legislative contrivancos died value
less in the hands of its possessors. Unless
we desire to subject ourselves to the same
losses which our fathers sustained during
the Revolution, we must reform our pres
ent currency and make it equal to gold and
silver.
The Constitution gave TO Congress tie
exclusive power ITO coin money, regulate
the value thereof, and Of foreign coin,' and
prohibited the States from making any
thing but gold and silver tender in pay
ment of debts. This power given TO Con-
gress embraces the currency, and is exclu-
sively confined 10 coin and the debaters
in the Convention show that the body was
aware of the dangers of an irredeema bic
currency, and these provisions were inten-
ded to guard against them. By this view
of the subject Congress has no power 10
create an irredee mable paper currency and
to make it legal tender. On this point
Mr.. johnson analyses the legal tender de-
cision of Judge Strong and his colleagues
of the Supreme Court, which he regards as
founded on the mistaken assumption that
emergencies may happen in the history of
the country, which would be fatal 10 its
existence unless the Government possesses
this power of issuing paper money. The
right to borrow money involves the obli-
cation to pay, and it is impossible that the
Convention intended that Congress should
be empowered to authorize the debtor TO
repudiate his engagements in whole or in
part, which is the operation of compelling
his creditor TO accept irredeemable paper.
Mr.. johnson does not believe that the
wants of trade need, or have ever needed
more srecie money, as they are adjusted,
for the most part, by rredeemable bank
notes, checks, transfers Of credits, bills of
exchange, etc. Even admitting, for argn-
ment's sake, that there may be an cXigen-
cy which requires for the preserva ton of
the nations existence an issue Of paper
money, and the making it legal tender,
no such exigency now exists, and an iu-
crease of the currency is clearly unconsti-
tutional in time of peace. The following
are the conclusions which Mr.. Johnson
reaches:
First-That the only currency known TO
the Constitution is gold and silver, or pa
per convertible into it on demand.
Second-That nothing but gold and sill
yer can be made legal tender.
Third-The Government now being per-
fectly safe, no danger threatening it or be-
ing apprehended, Congress has no power
TO authorize the issue Of an irredeemable
currency and TO make it legal tender.
This is the clear meaning of that part of
Judge Strong's opinion quoted above.
Fourth-That the credit of the nation,
the true, permanent prosperity OF every
class of our citizens, and the arrest OF the
decentralization consequent upon the pres
ent state of things demand as speedy a re-
turn as practicable 10 specie currency.
Reducing Mr.. Johnson's argument, as
in this hasty summary, TO its lowest terms,
the most striking thing about ii is its OBJ
viousnesS. The points stated are so clear
and simple that they seem almost like tru-
isms. We should be tempted 10 regard
them as such were it not that so large a
number of the politicians of Mr.. Johnson's
own party in the West and South are busy
in the endeavor TO disprove them, and, in
spite of the lessons of history and the die
tates of prudence and honesty, are attempt
ing to force more irredeemable paper cur
rency on nation already nearly ruined
by the fluctuations of values caused by
that which we have. And if Mr.. Johnson
has had any thought Of inslrucIing his err
ring party brethren, in the preparation of
this letter, he may as well prepare himself
to oe called a "bloated Eastern bond
holder" for his pains, as .hat is the only
appellation they bestow on the advocates
of honest money.-BostonJ Journal.