The Portland daily press., 1877-08-31
1he "Currency Reformers. y

1he elShteen gentlemen who met at Con-
gress Hall in this city, yesterday, seemed to
devote the most of their time to abuse of the
national banks. There may be wide and
honest differences of opinion as 10 the value
OF the national banking system. While be-
lieVing that system one of the best ever de-
Vlsed TOR the purpose it was intended to full
hll, we do not propose to discuss its merits
now. But we ask all thinking men if the
remedy proposed by the Congress Hall con-
vention is not worse than any disease from
which our financial system suffers.
These gentlemen call for the substitution
OF Treasury legal tender notes for bank notes.
But they do not tell Us how two very formid.
able obstacles are to be overcome. The first
OF these obstacles is the law which Congress
passed during the war pledging the faith of
the government that the issue of greenbacks
should never exceed $4OO, 1000. The Sec
ond of these obstacles is the decision of the
Supreme Court that the acts of Congress
making Treasury notes legal tender were in
exercise OF the war power under aeknowl-
edged circumstances of national peril, to
meet an overwhelming necessity, in effect
that no such power exists in time of peace.
The power of the government to issue cur
rency, that is, to put out non-interest bear
ing notes. may not be disputed, but to issue
irredeemable notes, compelling people to take
them, is quite another thing. There are diff
fer ences of opinion on the question of
mn xUho lie
economical for a government to issue it
or to give the power 10 corporations.
There can be no constitutional question as to
the want of power of this government to is
sue legal tender notes, to make forced loan
in time of peace. Even did government pos
sess that power it would be dishonest to use
it unless the notes were to be redeemed in
the current money of the world. It would
be robbery to compel men to take pieces of
paper which have no intrinsic value and are
not exchangeable for the precious metals, in
exchange for labor or the products of labor.
1t would be folly, if the notes are to be re-
deemed, for the nation to increase the already
great burden of its debt. There is no need of
more paper currency. A considerable por-
ton of cur currency is not now in use, for
there is no call for it. Capital is eagerly
seeking employment, and finds employment
limited. Money is ''cheap," the rates of in.
terest are low, and any man who can give
satisfactory evidence that he can repay can
obtain the use of money cheaper than ever
before in this country. Currency reformers
can ask nothing more unless they wish to
force capitalists to lend money to men who
can never repay it; and that would be rob-
berry, which is of course very far from their
thoughts.
The Greenback men do not reflect that
paper money!" whether issued by banks or
others, is not real money, but mere promise
to pay money, which it is optional with any
person to receive or not. Every man has the
privilege to issue his note or check payable on
demand or on time, il he can find any person
TO take it. No man need take national
bank note unless he choose, but knowing
That there is security on deposit for its re-
denption he has no hesitation. The green
back, which it is proposed to increase in
humber, is naked promise without dollar
behind ii, but We must accept 1t whether we
wish to Or not.
The difference between greenback and
pank-notes, and all other forms of substitutes
ior or representatives of money is that it is
forced note or legal tender in the payment
Oh contracts between individuals. Congress
never by any charter authorized the issue Of
legal ten der notes by banks or individuals; it
never authorized the issue of any form of
money. What it authorized was the issue OF
paper promising to pay money, leaving every
man free to accept each bank note or reject
1t IN the payment Of debts at his pleasure.
Inc greenback has far greater powers than
that. Every man is compelled to accept this
paper promising to pay (but never payingl