The Cecil Whig., 1877-11-17
HARD AND SOFT MONEY.
We take the following from the New
York Trib"ne, of Wednesday. 1t will ex-
pain itself.

York 7'rib"ne, of Wednesday. 1t will ex-
plain itself:
r" The Ehi"r Of The Tr'oas-slR:--I plain,
uneducated man. and would he pleased 10 have plain
terse answer TO the questions ask. am and always
have been Republican. Numbers of my Republican
friends tainted with the grecnhack hresy socaed
believe it To lie false and mlschiesous, but cannot give
clear reasons for the faith within me. What read
upon the subject seems To mystity me- and l. with
others The TRIBUNE to condense the argument in
favor of honest money SO that uneducated men like
myself may clearly understand it,
My Greenback friends Let the Government call
i'll all bonds for which gold is expressly stipulated
and pay their value in greenbacks (egateners for all
debts public and private) ther by stopping the inter
est, an immense and releasing the CAPT;
tai locked up in such bonds OF course, they say this
capital must seek immediate and profitable investment
in the various forms of industry thereby giving speedy
relief TO the present stagnaon. On the contrary they
say, if this plan be not adopted. financial ruin will
shortly sare all in the face This is plausible
theory Knock the bottom ont of it in as few words a.
possible.
They also say that the National Banks are receiving
upon every 100000 of capital 5000 annual interest
from the Government the people, although the Treas
ury Department holds only $1,000 of this amount as
reserve issuing Government notes for S9OOO the actual
working capital. which. in this State. per cent
thus making rate OF 10 per cent earned on tn" greater
part of their capital stock which ought not be. Why
not they say canc the bonds, issue Government
to the banks and stop this leak:
Another question which cannot solve: Suppo,ing "A
house was built IA few years ago when gold at IL
premium of 20 per cent, which then in currency
|
If this property had been kept in order and repair, it
would not bring at this time, and in this place, with
currency nearly at par more than - 90 Where has
the difference of 81 800 gone, and WHY is there great
depreciation;
Please answer these questions, and oblige
AN OLD READER OF THE TRIBUNE.
|. Not single bond is now outstanding
and bearing interest for which coin is mot
expressly stipulated" The older six per
cent bonds specify coin, and the Govern
ment has no power to call them in until
1881. The 20 bonds of 1862, about which
there was dispute, have all been called in,
and, excepting about 1921, 900 on which in
| terest has ceased, have all been paid. AS
TO the consols of 1S6J-7-S, issued in ex-
change for 30s, all dispute was ended by
the express stipulation of the Public Ceedit
Act of 1869, pledging the faith of the Gov
ernment for their payment in coin. All
bonds subsequently issued specify coin.
Therefore there are now no Uuited States
bonds which can be paid in greenbacks
without naked reputation of a contract
But if there were, such payment would
nevertheless be dishonest.
ii. United States bonds are promises to
pay coin with interest. United States
notes (greenbacksl are promises to pay coin
without interest. If A has borrowed
money of his neighbor, and has given a
note binding himself to pay interest regu-
larly, and the principal at maturity, his
neighbor will think him swndler if he
attempts to discharge that note by another
promise to repay the principal without in
terest. A government might have the
power to compel simil substitution of
demand notes, not bearing interest, for in
terest bearing bonds, but it would be none
the less swindling to exercise that power.
Ill. Any increased issue of legel-tender
notes, whether for bonds, or in any other
mode, would be an act of dishonesty and
bad faith. For the value of such notes de-
pends very largely upon the quantity is
sued. If every person could gather up
and cart away greenbacks as freely as dirt
or dead leaves, nobody would take green
backs in payment for property or labor.
Hence, without limitation as to quantity.
they have no value whatever with that
limitation, their value depends in part
upon the demand for them in use, and in
part upon the faith that these promises to
pay coin will be redeemed. If they sink in
value, labor is robbed of part Of its wages,
and the millions who have save something,
in savings banks, insurance companies,
building associations, or other Investments,
are robbed of part of their savings. There
fore, the Government has made two formal
pledges Of the public faith first, that the
amount of greenbacks issued shall never
be increased second, that these promises
to pay coin shall be kept by payment to
every holder who may demand the coin on
or after January l, 1878. But for these
promises, and the faith that the Nation
will keep them, wages would be worth
much less than they are. and all the savings
of labor, now payable in legal-tender
dollars, would be worth less, because the
"dollar " itself would sink in value. But
any issue of legaltenders, in excess of the
amount fixed by law, would be a violation
of the pledge, an act of bad faith, and
proof that Government could not be trusted
in any of its pledges. Moreover, it would
increase the supply of notes in proportion
to the use for them, and thus render them
less valuable. In both respects, it would
rob those who have saved money, and
those who are earning money, by taking
part from the value of the "dollars' due
to them.