The Grange advance. [volume] (Red Wing, Minn.) 1873-1877, 1876-02-16

gTeeU00CRS, 7CNzCN 7Oefe men con-
uerti6le into $50 b0nds at tile 0b-
ton Of The holde,., IN sums Of $50 Or
any multiple thereof:
Just so, and as long as greenbacks
were SO convertible, they continued
to be good money, nearly at par
with gold; but as soon as the con-
vertibility provision was repealed
they declined in value, until, IN
June 1864, $4oo,ooo,ooo would pur-
chase only $14o,ooo,ooo Of gold
coin. The year previous $3oo,ooo.-
900 had been equal to about 2S5,.
100000 in gold. In other words:
while they were convertible into
bonds their greatest depreciation
was to about IS cents, but when no
longer convertible they sank to
about IS cents. Why? Mr.. Blaine
tells us in one place, that it was be-
cause they became to be regarded
as lrredeemable, and, in another
place, that il was due to ali increas-
ed issue of $1oo,ooo,ooo. But it
is obvious that the true cause of the
depreciation is to be found IN the
repeal Of the convertiblity provision,
for it is not true that the public have
ever regarded the greenback curren-
cy as irredeenable.
AS long as they were convertible,
when not needed as currency they
could be invested at par in interest
bearing bonds; hence, their value
was always nearly at par with that
Of the bonds. When no longer CON-
vertible but really redeenable in
gold whenever the gold was obtain
able, they became subject to the
same law that governs ali paper cur
rency based upon gold redemption.
That is: they deprecated in value
in proportion to their excess Of VOL
ume over the quantity of the re
deeming medium in circulation.
Had that provision never been re-
scinded, and had the volume of
greenbacks increased to the aggre-
gate value Of both greerback: and
bank-notes now in circulation, the
same influence which maintained
them at par with the bonds in 1868,
would continue to maintain them
at par with the bonds, and above par
with gold. This is obvious to every
careful and unprejudiced thinker
who has ever studied the subject of
finance.
In his advocacy Of the national
banking system, MIR. Blaine, also,
makes it evident that he has looked
at this matter only through partizan
spectacles; and in attempting to
fasten the responsibility Of this most
outrageous swindle upon the late
Salmon P. Chase, he does the men,
DRY Of that gentleman gross wrong,
for he must know that the scheme
was devised by New York bankers,
who were called in and consulted
by the congressional finance COM
mittee. That circumstance was
notorious in Washington at the time,
and ought not to have escaped Mr..
Blaine's memory. We think he is,
also, in error in saying that Mr..
Chase requested the repeal of the
section Of the law providing for the
convertibility of the greenbacks into
$40 bonds; for, if our recollection
is correct, it was that provision, and
not its repeal, which Mr.. Chase rec
commended.
We regret this speech deeply, for
we had hoped that the republican
party would ultimately adopt curren-
cy reform principles and reduce
them to practice; and we cannot
even yet believe that it will allow
itself to be used by the great mon
led monopolists to effect the utter
| inonoxyerichront If thic courtr,y ~,