The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-02-19

perty at half.prfce they bad yielded TO the
weaker inducement Of lending 1t out by In
vesting 1t in banks, still they would have
bad motive to demand full payment Of the
greenback In gold, that they might have more
TO lend. have spoken above of the Gov
erpment paying each of its debtors one dollar
10 four, while the proposition Is to pay off the
greenbacks, as presented in full, unit! one
fourth.of them has been redeemed in gold.
But the two cases are the same, 80 far as con-
Germs their effect In bringing the upredeemed
green backs to par with gold, and tbrs dis
pensing with passing them at all. If 1t is
expected to pay them in this way, they will
be paid, as have above mentioned, in cur
repcy Of more volume than if all the green.
backs had been paid In gold.
2. Another difference between the bank
and the Government is this: The opposer OF
the former, even if successful in his opposi-
ton, could only prevent an expansion OF the
currency, keep it in stotu quo, continue to
himself the same opportunity OF buying pro.
perty cheap which he had before enjoyed
and may be supposed either to have
fully availed himself of or to have con-
sidered not worth improving, while the
creditor of the Government, If Sue
cessful Ia his opposition to its scheme,
will bring about an actual contraction of the
currency and such opportunities Of pur.
chasing at low prices as he has never enjoyed
before, and perhaps never will again. In a
community where banks are established,
although the holder of debt previously
contracted may lose something in the value
of his debt by the expansion consequent
upon such establishment, yet by the oppor.
tunity he enjoys of investing his funds in
such bank in the manner above mentioned /;
by the accommodations they afford (Which
are always In proportion to the wealth OF
the borrower and his ability to furnish good
enderssrs), and by the opportunity he enjoys
of trading to the extent of bis credit (Which
may be four. or tive-fold his CASH; by the
of the value of his OVID pro.
perty by the existence Of banks, he is
more than repaid bis loss, and is enabled to
maintain or even to increase his relative
wealth. Banks are so useful in 'receiv-
ing deposits, in transferring credits, in
making remittances and buying bills OF ex-
change, in furnishing investments for the
funds of widows and orphans AID those held
by all fiduciaries, that they are indispensa.
Bile in business community. But the very
on which they are based-that of
leading their notes to three or four times
their specie-implies tacit understanding
that their notes are to be taken as gold, and
gold is not to be demanded on them; that
40 run is to be made on the bank unless
something has occurred to justify suspicion
Of dishonesty or insolvency. Unless the
bank be allowed to lend out more In notes
han it keeps on hand in cash, where would
be its profits, its compensation for furnish
n
pity? But with the Government there was
no such understanding, nor was it agreed
hat its notes should be paid off at one third
or one fourth their value. Ii not paid in
full they are discredited, and must sink even
below their present value. They must be
DEPRECATED, not from their redundancy, but
their non-payment, for it is known that the
Government cannot pay them. e.t
The best test Of mems sincerity in what
they profess to believe and intend is to COM
pare it with their acts done at the same time.
Even if they are sincere, yet if they have in
secret any doubts, fears, or misgiyings, these
will be detected by the same test. Now let
Us try the resumptionists by this test. They
profess to believe that resumption does not
imply contraction, and to intend redeeming
the greenbacks in gold, or making them
equal to gold; yet what are they doing at
this time! They are urging on Congress
bill providing that every debt contracted
after the first of January next shall be paya-
bic in gold and silver. Whist is this but con-
traction in its worst form! By rendering
greenbacks useless for present purposes,
though they profess to be preparing to re-
deem them in 1879, they compel every per-
soH who holds them, in order to buy bread
for his family, 10 sell them for gold at a
ruinous discount, certainly much greater
than now prevails. Now, when the pre-.
MUM on gold is fourteen cents,
paper dollar (national bank note or green.
back is worth about S74 cents in gold
a reduction of Que eighth in value. When by
this law the currency issued by the national
banks is driven out of circulation Congress
will be bound to let them go into liquida-
ton. In collecting their debts they will
draw in all their own notes the national.
bank notes. which they are bound to redeem
IN greenbacks, leaving only the greenbacks.
in circulation. This itself will be great
contraction ofthe currency from 1854, 900, 900
% S400,000,000; but it will be followed by
IT'LL further one when the $500, 100000 are re-.
iuced by the discount to perhaps 5000, 100000
u gold. The greenbacks will be bought up
u thousands by Spectators, who will hold
hem until 10, when the whole power Of
The lobby and the whole might of gold Will
be brought to bear to get Congress to make
every dollar good in gold. Talk, then, Of
paying gold for 81 in 81 and letting the
otber So unpaid greenbacks cireu.
ate as gold! No such thing! The
millionaires who will then have succeeded
10 the original holders will demand every
dollar in gold, either that they may buy pro.
perry cheap when the currency is contracted
Or may lend out bank-notes on it, three to
one, and receive interest uOn twelve dollars
instead of three. But how does this fulfil
to the original holders the promise of re.
dempion! at keeps the promise to their
ear, but breaks it to their hope" Ii the.
would employ its 800, 200, 600
Of gold in shaving greenbacks it might be
good speculation, though not exactly honest.
But to let spectators do it is neither honest
nor wise. But perhaps the intention OF the
law is not to favor spectators, but to make
every one who contracts debt after January,
1877, an advocate for resumption; for If
that takes place debt due in gold will be
worth no more than one due in green backs,
except the interest, until 1879, which would
have 10 be paid until the greenback could be
turned into gold. This the greenback debtor
would lose; but if he had the gold In hand he
could save that. The reason given for the
law is that it will compel the introduction of
gold before 10, so that then the Government
can borrow it more easily for redesmlng
greenbacks; thus compelling holders to lose
that the Government may GAIN. But what
ever the reason for the law, 1t is in striking
to the protested belief and in
tention of its advocates. If resumption is
not to end in contraction, why should it be-
gin with it? If greenbacks after resump-
lion are to be as good az gold, why should
hey now be depressed instead Of rising IN
valne. WHY should they be banished from