The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1875-09-21
The Whiteback and the Greenback,

VeIe tuo OhiuSu Otates tne only country
which has attempted the experiment of a
deprecated paper currency, were the expert
ment wholly novel one, and its issue mat
ter of conjecture, the American people, ever
bent on discovery, might be pardoned for
wishing "to see it through" with view to
testing its advantages. But history tells us
of not a few nations bankrupted because of
large issues of irredeemable paper money,
and Of many greatly distressed and impover-
ished on the same account. Nor are these
instances of folly confined to the past. Ma
tions about us to-day are trying the danger
GUS experiment.
Years ago Austria became involved in debt
by indulgence in governmental extravaganza
and exhausting wars. She issued a currency
consisting of government notes printed on
white paper. Successive issues of this cur.
rency were made to meet the "wants
of the debtor class'' and the ''demands of
trade''. The paper became greatly deprecia-
ted, values rose, speculation set in, collapse
came, commerce was prostrated and public
credit was greatly impaired. In short the
Austrian empire ran the same course finan.
cially that we have run. Then wiser
counsels prevailed. The volume of currency
was reduced by successive contractions. The
whitebacks were brought near par, and for
some time the resumption of specie payments
has been expected. But there as here
political partyl has arisen which demands
more currency in the shape of an increase in
the volume ofgovernment notes.
The power of issuing notes has been placed
under the control of the National Bank of
Austria. at the time of the Austro-Hunga-
rian union under the new constitution the
Hungarian legislature entered upon an ex-
pensive and extravagaut system of public
Improvements. To lefray the cost Of these
Improvements bonds were issued to a great
amount-so great indeed that they under
went heavy depreciation. How to pay these
bonds has become serious question. A
party has arisen in Hungary which demands
that the bonds shall be paid by further issues
of irredeemable paper currency; which be-
lieyes that the printing press is the motive
power of prosperity; which confounds debt
with capital. The Hungarian rag money
party has its counterpart in this country to-
day. The raliying cries of our infationists
are but echoes Of those of the pleaders for
more whitebacks. The Hungarans com.
plain OF an unequal distribution of the
currency. They pretend that Austria has
more rights than Hungary; that cur
rency was issued to meet the wants of
Austria in her debt and distress, and that the
same relief is denied to Hungary day.
These arguments are not unfamiliar on this
side of the water. The complaint has
touched Hungarian national pride, and the
initiation scheme has a strong support in the
nation. Specie resumption has been indefi-
nitely postponed, the paper currency is again
deprecated, public credit has been shaken,
and trade disturbed.
The lesson is apparent enough. IF the fall
elections make it evident that large and in
fuential section OF this country desires an in
fation of our paper currency and pronouuces
for an indefinite postponement of a return to
specie payments, our national credit too will
suffer, our government notes will undergo
further depreciation, trade beginning to look
~ again, will be struck own, and we shall
have once more to go through period of
wild speculation, followed by panic, by dis.
truction of confidence, by disturbance of
values, by impoverishment, and perhaps
national bankruptcy and ruin.