Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1877-10-25
Historical Rooms

etary gravltatlon. Ihey would nave
the Government exchange bonds for
greenbacks and greenbacks tor bonds
at the will of the holder, repeating
the operation as often as the holders
inclination or caprice may dictate. 1t
is not easy to see good reason why
the Government should be at the ex.
pense of printing large amount of
greenbacks, arbitrarily forcing them
on bond holders, and then OF immed-
lately printing large number OF new
bonds, in order that those who have
Just been compelled to. surrender
their bonds for greenbacks may ex-
change the greenbacks again for
bonds. The operation would certainly
cost the Government large sum. 1t
is urged, however, that the interest
on the new bonds would be so low
that the men would prefer to keep
and use the greenbacks as currency /;
that they would be willing to lose the
interest on the bonds, for what they
could make by the use of the cur
rency. But if bond holders can find
use for such vast amounts of cur
rency, why do they not go and pro.
cure National Bank currency now,
when they can get it without losing
all the interest on their bonds when
according to the Greenbsck orators,
they can do it and double interest,
interest on their bonds and on their
circulation
In practice, the scheme would give
us a largely redundant currency.
which would oe rapidly converted
into bonds these would be used as
the currency Of the country, pass
ing from hand to hand, and involv.
ing calculation of interest at every
transfer. Nearly all the currency of
the country would be converted into
these bonds, and Che interest bearing
debt Of the country increased instead
of being diminished.
CONCLUSION.
Thus the schemes and plans of the
rreenback men break down when
subm tied to a careful examination.
Our constitution stands in the way of
I'll their wild and fanciful theories.
Congress has power to "coin money"
and to "borrow money!" but no pow
err to print money, or to make any
thing having no value, money. The
right to issue Treasury notes is held
by TIE Supreme Court to be inciden
tai to the power TO borrow. Every
greenback is forced loan from the
people. The Government, says the
Supreme Court, in announcing the
Legal tender decision, has right TO
require the people to accept its credit
instead of money, in the exigences
of war. The court justified the issue
OF the greenbacks only as measure
incident aud necessitated by the war.
Referring to the pressing needs of
the Government, at the time, the
Cont said :
"The treasury was nearly empty, the me-
cessity was immediate and pressing. There
was due the soldiers nearly a score of millions
Of dollars acquisitions for supplies exceed-
ed fifty millions of dollars, and current ex-
penses were over million day. Foreign
credit we had none. 1t was at such a time
and under such circumstances, that Congress
was called upon to devise means to support
the army snd navy, and, indeed, for the pres
ervation of the Government created hy tho
constitution. II was at such time and in
such circumstances that the Legal tender act
was passed" (See 18th Wallace, page ti0)
And Justice Bradley, giving his
assent to the opinion of the Court,
said
"This power is Incidental to that of borrow
ing money 1t is pledge of the National
credit. 1t is a promise by the Government
| to pay dollars. No one supposes the day of
epue;s Pey,,onts win MAYER return that these
| Government certificates will never be pau
Through whatever changes they may pass,
their ultimate destiny is to be paid"
Chief Justice Chase, who dissent
ed from the opinion of the court,
quoted from his report to Congress,
when Secreatry of the Treasury, as
follows: the Secretary recommends
that we have no mere paper money
scheme, but, on the contrary, series
of measures looking to safe and
gradual return to gold and silver as
the only permanent basis, standard
and measure Of value recognized by
the Constitution. Pages might be
quoted from the discussions in the
convention that framed the Consti-
tuition showing the intention to deny
to Congress the power to make paper
money, or even to Issue Treasury
notes except in times of the gravest
rational peril. Volumes could be
filed with the expressions OF our
most eminent statesmen denouncing
PAPER money--irredeemable promises
to pay used as currency--as the most
pernicious of public evils Mr.. Linz
coin said in his message to Congress
in 1862, GA return t6specie pay
inents, however, should ever be kept
in view. Fluctuations in the value
of currency are always injurious.
Convartibility, prompt and certain
conUerti6iLity into coin, is acknowl.
edged to be the best and surest safe.
guard against them" Let us "shnt
and bar the door against paper mon
ey forever" was said in the conven-
ton that made the Constitution. Aud
Daniel Webster said if we could ex-
plore all The motives that actuated
the men who established our Gov
eminent. we should find none more
powerful than the desire TO give a
safe and uniform currency TO the pco-
pie. They decided for gold and sill
yer, and to overthrow this decision,
he says, would be to overthrow our
whole system. All political econom-
lists and social scientists, recognized
as authority on such subjects, and all
statesmen Of character and learning,
agree with our fathers who framed
the Constitution. Shall we forsake
this well established principle, disre-
gard the solemn warnings of our
greatest men. and follow blindly the
call of those who invite us to disre-
gard the nations pledges, the spirit
and letter of the constitution, and to
plunge madly into the abyss of infa.
ton !? Our financial system is an