The weekly herald. [volume] (Cleveland, Tenn.) 1876-1888, 1877-08-23


ness aud ommerc can not compel. What method
shall the Government adOptf
II has been urged thAt IL should make a further
issue Of legAl-lender notes, and Ieinhate their en-
isung volume. The objections TO this are insuper-
have almost achieved the descent from a Riddy
height OF Initiation. The marvel OF nnAneiers "a
thar IL has thus far been successfully made with
ont more seriOus cons9ouenees. 10 reinnAte is
but 90 again force up Mo ballOOn-to hazard II
may be, a much more disastrous descent when
we shall have returned 10 where we are, nothing
will have been gained; for interoOnYerlbility
will be as distant then as now
But u g further issue OF legaLtender notes we're
desirable, 10 IA impossible. Nothing 10 clearer In
the fundamental law than the denial 20 Govern
ment Of tho constitutional power TO make its due
1 balls a substitute for legal-tender money except rs
a measure Of defense In the emergency Of war.
The present lekaltender notes were held. constt-
muonal BY a divided Court on this ground alone.
We therefore ought not TO deceive ourselves,
ought not 20 deceive the people INTO demanding
an impossiblliiy,
tion 10 retire the National banking currency by
taking up and dIschArging the bonds held a. col
lateIals with a further issue OF legal.tender notes.
The public securities held by the banks are as In
ylolable as those held by ~individu.
ais; they can not be discharged
with the ,leeaLtender notes OF any issue
without violating the faith and honor OF the Ma
tion, originally and repeatedly pledged TO their
payment IN coin. II, however, 10 were otherwise,
TO do 80 would be unwIse. The present system Of
free banking, as authorized by existing laws, Il
the best ever devised by the wit OF man. Return
to specie payment, enable the banks 10 make lheir
notes nterconyertible with coin at the pleasure OF
the holder. and they will constitute an agency in
comparably superior TO the centralized political
power at Washington for regulating the volume
OF currency according 10 the wants OF trade. IL
furnishes 10 business interests and TO the business
men OF every locality, who know its wants nv per
sOnRl contact with them, facilities and power 10
supply these wants as they may arise. IL reeog,
nizes the principle OF home rule In furnishing and
regulating the volume Of currency.
Another financial school insists that the inter-
oonyertiDlllty OF coin and paper money can better
be effected by the arbitrary contraction and retire
meLt OF the legal-tender notes until their value
shall he brought TO par with coin. This implies a
discreuOn M the contracting power Mt Washing
ton that mightnot always be influenced by virtue.
Il is a power Shat can he much more safely exer-
oised by b fpeople at home through the ordinary
channels u business than by d central junta OF
politicians piled by the bull and bear lobby OF
Wall street.
IL Is the last straw that breaks down the camel;
tho last turn OF the screw that causes the fracture.
The existing strain upon Western interests and
Western capital by the shrinkage Of values with
out shrinkRge Of liabilities, makes O return TO in
teroonyerti5ility through contraction alone simply
suicidal. Augmentlng the value by sheer force OF
making money scarce, would dOubly intensity the
s~train-wOUld indeed break dow the camel, would
cause the fnal fracture. For these reasonsi II wonld
seem the dictate Of common sense that stability OF
volume, iDseDBiDle appreciation OF paper money,
and the gradual approach to coin values, are the
things TO - united, II possible. IN any plan or re-
sumption, bind hence, that either forced imitation
or forced contraction OF the existing volume by
the eNertlOn Of arbitrary power. Is alike hazardous
and unWise. The existing volume OF currency
embraces a portion OF gold coin. The gradual
replacement OF leRaltender notes with coin money
other than that already IN circulation would main
tain constRncy Of volume and lDseDsibly but
surely bring about intercOn vertibilitJ without
shock or disaster. This might readily, be accom-.
plished by the substitution OF an additional and
sufficient amount Of gold coinage, II IL were prac-
tieable 10 command 1t; but at present It Is not.
Can II be done through the
RECONCILIATION OF snvERi
The Cleveland Convention supposed 1t could,
and therefore
Resolved. That we are in favor OF both silver and
ment OF all debts, except where otherwise specially
provided by law, with coinage and valuation 80 regu.
lated that our people shall NOT be placed at a disadvRn.
tage in our trade with foreign Nations, and that both
Nation as Contemplated in the Constitution, and we
therefore demand the demonstration Of silver"
What plan Of demonstration shall be adopted
gress, preferring TO leave details 70 that body as
did the Democratic Convention, which
Resolved, That we denounce as nm outrage upon the
measure Gemonetzing silver, aud demand the passage
, power"
for which every Democratic Senator and nearly
every Democratic Representative in Congress
voted Is a reflection on their intelligence, their
vigilance, or their virtue.
Whether the passage OF the act was effected
through fraud, Ignorance, or honest conviction Is
Of no significance now. II demOnetized silver in
fact, the legal effect and after consequence OF
which are the same whatever may have been the
motive. The living present must look at things as
they are, must deal with facts as they exist, and
: leave the dead past to bury its dead.
Both conventions having declared for remonetiza-
! superfuous. Neither having declared what, in its
opinion, should be the weight and fineness Of the
new dollar,tht would seem an equally barre issue.
But the Cleveland Convention having favored re-
storing to silver It's fun legal-tender power as
4 money, except where restricted by contract, l
, should be unjust TO myself, unworthy my position,
Il MT IN 1nVOtp aOma pnuaIdnTnfipp IN fha guhinaf
!. What are the varied interests which -emOnetiZa-
ton would necessarily affectH In view OF the prob
= able effect on these interests what restrictions
shall be imposed Can 1t be made an aid to re-
sumptloni Shall the old silver dollar be rein
stated, and nothing mOrea
The value OF the old dollar recently dropped as
far below that OF the legaltender note as the lat
ter was below the value OF gold. II IL bad con.
= tinued a legal coin OF the country, might IL, thus
Deprecated, be now employed in discharging the
public securities ana private Indebtedness without
dishonor or breach Of contract answer, yes; on
r the same principle that the holder OF an obligation
. for q stipulated amount OF any specific commodity
I is hound to accept IL, in discharge OF his obligation,
whatever change Its value may have undergone
from natural causes, Its quality remaining I'M
changed. The tuctuatiOn OF value by the operation
OF natural laws Is at the risk Of him who holds the
obligation. Further, | mink IL would be no breach
Of honor, faith or contract obligation to discharge
any debt contracted while the old silver dollar eX-
l listed, by payment In the restored dollar OF like
weight and hnencss; Tor, although II may have
been contracted with Immediate reference to pay
ment In legal.tender nOtes, yet, as they we're
/. re0eemaDIe IN tne Ou dollar, II must nave been
I contracted with reference to possible payment In
that coinage also, and as the value Of legal
0 tender could never rise above tho value Of the coin
T dollar in which they may be redeemed, however
y much IL should depreciHte, no substantial Injustice
can DO wrought to such contracts by diseharging
them In the dollar contemplated.
But many millions Of existing private indebted
ness have been contracted during the -four years
. elapsed since decentralization. This Indebtedness
has been entered into with reference TO pay ment
. in legal tenders, the value Of which since then has
been regulated by that Of gold coin alone. OF this
the evidence Is the decline in value Of the old all
, yer dollar below that Of legAl-tender notes, which
, could not have occurred II these had continued to
I be redeemable in that dollar; hence, compulsory
payment of such recent Indebtedness In q newly
issued dollar, of less value and purchasing power
than the legal tender shall have at the time when
payment shall be made, can not fail ~ work iu-
Justice, whatever may be the legal right and an-
thority for the eXertiOn OF such power.
Again, about seven hundred millions OF legal
tender and bank notes are outstanding, which be-
ing ntercOnveruble. are Of equal value. Make
} them redeemable 10 coin dollars OF value aud pur.
chasing power less than they possess and they
will Immediately drop to the same lower level.
Consequently the effect OF %reissuing the old dollar
or any other, the value OF which at the time shall
be less than that Of the legal tender, will have the
effect 20 annihilate q portion Of the existing
wealth OF the country equal TO this percent
age Of difference in values. II that differ
enco shall be ten per cont. then ten per cent.
Of lts value will be stricken from the legal tender
or other paper money which every man may have
and from the accounts and credits which NAV be
due him, whether he be laborer, mechanic, farmer,
merchant or millionaire.
No plan OF reconciliation can regard these In
terests US insignificant, or regard them with i'm
--.aa H. .o... AI.st In Krba1n GnwhpnpnanN