The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1876-03-08
SENTINEL SUPPLEMENT.
FINANCES.
THE QUESTION OF THE DAY.
DISCU SED IN DETAIL.
Full Text Of Mr.. Landers's Spe ech
in Congress on the Financial
Issues Of the Times
A SEARCHING REVIEW.

A SEARCHING REVIEW.
THE HISTORY OF PAPER MONEY TRACED
THROUGH TIME AND THAT KIND OF CUR
RRNCY CoNTRAsTED WITH COIN FHE
CURRBNCY OF THE COUNTRY.
From the Congressional kecord.l
Mr.. Chairman, In view of the PROSTATE con-
dillon OF the wealth-producing industries of
the country, the pecuniary ruin of so great
a proportion OF our business men, and the
threatened pecuniary ruin of thousands more.
1t Is the paramount duty of congress TO inves-
tgate the cause that has produced so disas-
trous and distressing condition Of affairs, In
entering upon this investigators, L am fully
aware OF the cause that divides the people and
mentous subject Were 1t not for this cause
of division, a remedy for the evils that aff1ict
the business community could easily be discov-
cred and speedily applied; one which the
mass OF our citizens would heartily applaud.
Mr.. Chairman, the difficulties that prevent us
from sp-e diI applying relief to the business.
labOring, and wealth producing Industries OF
the country arise from the simple fact that
there lies la our pathway contest between
two forms OF governms nt-a contest that Is as
old as the constitution, for 1t took its rise in
the convention ofl7S7 that framed the consti
tution-and until we come to a clear under
standing of the difficulties that bsset our
pathway, that divide US into parties, and pre-
vent US from united action, or any action at
a we g I moi Te aPe 10 apply tn ne %
arising nom contraction OF the circulating
medium OF the country, as 1 will clearly
ment to which L refer is a con-
test between the American system OF state
and federal governments and the British aris-
tocratic system, consolidating Scotland, Ire
Land, England, and Wales into one national
government, based on aristOcratic principles;
therefore, the effort with us to subordinate
the state governments and consolidate the In
powers Into despOtic national government,
based on q moneyed aristocracy: which OF ali
MI Ia fbo st Tn,
this contest over forms OF government, we
ind that the American system of full legal
tender money and the cash system of business
best accorded with the American system Of
governments while on the other hand, the
British system OF bank currency and the credit
system OF business sustain the British system
OF aristocratic government. On the 18th of
February, 1881 the Hon. K. g. Spaulding in this
House, In his speech IN favor OF
THB NATIONAL ANK CURRENCY BILL,
said: 1t is now most apparent that the poll cy
advocated by Alexander Hamilton OF a strong
central government was the true policy. Zee
page OF appendix to spaulding's History OF
the Legal Tender.) In the general convention
OF 1857 that framed the Federal Constitution
the contest was between national aristo-
cratic form Of govern m emit and q federal union
of equal states, with "sn power inherent in the
people o. each state. On this subject, on
June 49, 1857, Mr.. Hamilton said: We must
establish a general and national government {,
and annihilate the state distinctions and
state operations; and unless we do tnis no
good purpose can be answered. fore
see the difficulty on consolidated
SO extensive a continent to one place.
This, however, can be no conclusive objection,
IL II geventustes insn extinction OF state
governments. 1 believe the British
government forms the best model the world
ever produced, and such has been Its progress
ally gains ground. This government has for
Its object public strength and individual Sc
curity. 1t Is said with US TO be unattainable.
All communities divide themselves into the
few and the many, The first are the rich and
well born, the others the mass of the people.
Can a democratic assembly, who an
nuaily revOlve in the mass OF the people, be
supposed steadily to pursue the puf lie good
TSsr
uncOntrolling disposition requires checks. {.
Let one body of the legislature be constituted
tive be appointed for lifej who dares execute
his powers All state laws to be absolutely
void which contravene the general laws. All
anegative on ali state laws. All the militia
and the appointment Of officers to be under
tae aIs their
Of an excess of democracy. - Yates s
M Hamiltonis proposed scheme of ana-
tional" government having bsen adopted In
committee Of the whole and reported to the
convention, the federal union advocates
our the word national in the
words SGovernment of the United States >
which was agreed to. The national system of
Hamilton was abandoned, and the federal
as secretary of the treasury, proposed TO con-
gress the adoption of the British system of
bank currency; and on his Recommendation,
and company OF the Bank OF the United
states" was Incorporated for a period OF
ThnmQg Jefferson then aaCrafQFv n
gave written opinion denying the power OF
s congress to u inse;orporate ono, bank OF
powerful speech in congress as unconstitu-
tional; and, although General Washington
signed the bill, It is known that he was
specie for redemption, or 70 any paper cur
rency made redeemable in coin, even though
Sy be ssr dega i fq
the Maryland legislature, written at Mount
Vernon, February n, 1857; and al-o by the ac-
tutional convention Of 1877, which, by vote
OF nine states TO two, refused 10 delegate The
power TO congress- to emit "bill OF
promising payment In lawful money on de
mand and specially authorized by law to pass
as q circulating medium" Virginia was one
such power 10 congress. Mr.. Madison ap
pended a note to the proceedings OF the con.
isfed that striking out the words so emit bill,
OF credit would not disab e the government
nom the uss OF pubic notes as Tar as they
could be safe and proper, and would cut of
the pretext for a paper currency, and particu
larly for making the bills lof credit q tende
either for public or private debts" A ful
legal tender Is both money and currency
whereas a note. promising pay ment In Lawful
money, is mere currency and not money, AND
Is made to depend for It's value on
THE PROMPT PERFORMANCE OF THE PROMISE
TO pay in lawful money on demand. tn
notes of the United States bank, incorporates
in 1871, were made legal tenders TO the govern
ment and payable In legal tender coin on dc
mand, which made them "bills OF credit,
and therefore unconstitutional. The presen
national bank currency, redeemabl5 on de
maud In legal tender greenbacks, are also lie
gal tenders for public dues, and are therefor
mere currency or "bills of credit" AS tn
advocates OF national bank currency hav
ever commended that the promissory notes O
banks may be made legal tender, of cours
it Is both inconsistent and absurd 70