Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1877-10-17
IMMEDIATE EFFECT OF DESTROYING THE

hG uCoti ltCUIOll Ol tlle DdnkS would,
for some time at least, completely para
lvyze the industries of the country. The
traffic In grain, live stock, etc, is di-
rectly dependent on National Banks for
working capital, the banks either loan
ING to those engaged in these occupa-
tlons, or else cashing their bills of lading,
notes, etc, and carrying them till
they mature, which the m en- themselves
would often be unable to do. Now were
the Bank Act repealed, and the banks
cOmpell0i to settle promptly with the
Government they would be forced to
cease extending such assistance and to
collect all dues; this would not only
paralyze business, it would bring to
forced sale the property of thousands
OF poor men now mortgaged to secure
small loans to help them in their bust
ness, and thus make harvest for the
class that is in position to profit by
mortgages and tax sales. Then, unless
we can compel Governmen creditors to
accept a new issue Of greenbacks for
their bonds-to accept non interest
bearing promise to pay at definite
time-When we had destroyed the
Banks we should have destroyed nearly
one half our currency.
WHAT WOULD THE PEOPLE GAIN BY III?
But would the people reap any adj
vantage from this? If we destroy the
bank currency and pay the bonds, which
secure that currency in greenbacks, vio-
lating the nations plighted faith, the
new greenbacks will be placed in the
hands of exactly the same men who
now own the bonds, viz: the bankers
and the people could get them in no
other way than they do now, by Dor
rowing or buying of those men, nor is
there reason to believe they could Dor
row them at lower rate of interest than
at present. The greenbacks would GER
talnly be no better than our present
currency, and, if they were not far
worse, they would prove an exception
to any new issue of irredeemable paper
that has ever been put forth by any
country IN any age of the world. It
would be an exception to all past human
experience, If such paper did not de-
preciate and bring upon us all the de-
moralizing evils of a violently fuctuat-
ing currency And if we went further,
still violating the oft repeated and sol
emn pledges of the Government and it's
official agents, and paid not only the
bonds held by the banks, but all bonds
in greenbacks, it would require an issue
of over a thousand millions! Our pub
lie credit, instead of being equal to that
OF any other country, would sink be
low that of Turkey or Honduras, and
we should be justly regarded as ma
ton Of swindlers and repudiators.
And even when we had plunged
into this bottomless gulf of dis
honor, we should still leave all the
greenbacks thus issued in the hands OF
the men who are bondholders now
Not greenback would go direct to any
other class, and the people wanting
greenbacks would still be compelled to.
go to the men who owned them, to
borrow Or to buy them just as they
borrow or buy currency now. Nor
would the Government be any nearer
out Of debt; it would still owe the
amount of the greenbacks, which are
as much debt as the bonds are. But
we are told the greenbacks bear no
interest, and the Government would
save the interest on its debt Would
this be honest? The Government con-
tracted to pay the interest; can it ar
bitrarily substitute another contract
and give new note auAhoM interest and
aU1thoat date for one Wih interest and
NTH date? The Judgment of mankind
long ago put its seal Of condemnation
on all such transactions The laws of
emerged from barbarism to have laws,
prohibit the violation of contracts by
individuals. Can great nation afford
to affront the moral sense of the world
by doing that which it forbids it's indi-
vidual citizens to do, in the interest of
justice and morality? Be sure such a
crime would bring its own punishment,
in the ruin and digrace that would in
evitably follow it.
INTERCONVERTIBLE BONDS.
But the Greenback men want an III
terconvertible bond "a sort of financial
perpetual motion, which is to set at def
ance all the laws of monetary gravita-
ton They would have the Government
exchange bonds for greenbacks and
greenbacks for 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 expense Of printing large
amount of Greenbacks, arbitrarily fore
ing them on bond holders, and then Of
Immediately printing a 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 a large sum. 1t is urged
however, that the interest on the new
bonds would be so low that 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 currency. But if bond holders can
find use for such vast amounts of cur
rency, why do they not go and procure
National Bank currency now, when they
can get it without losing all the interest
on their bonds !; when, according to the
Greenback orators, they can do it and