Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1877-08-30
'ERMs. s2.OO PER YEAR
WHOLE NO. 1893.
Greenbacks Galore.
From the New York Weekly witness.

One OF the plank5 OF the labor
platform, according TO the letter
which we publish from Mr. Bows,
of Syracuse, is an issue of
Government greenbacks to every
owner of real estate of q certain pro-
portion of the value of that proper
ty, as q loan at q moderate rate of
interest. That is to say, the Gov
eminent would give its promises to
pay for an equal amount of the
promise TO pay of each proprietor,
the promise in Mother case to be full
filled. This is clear, seeing the is
sue of greenbacks on the property
of the country would be so vast
that no government could redeem
them except by selling that proper
ty, and no government could stand
day that would propose to sell
every mans homestead. The plan
contemplates low rate of interest
to be paid by the people for this ex-
change of pieces of paper, but this is
evidently superhuous. The green-
backs would cost the Government
as little as the mortgage would cost
the borrower, and would be equally
irredeemable. and therefore there
could be no right for interest on the
one hand more than on the other
Besides, if the people did not pay
the interest on these loans, which
many or most of them would not do
after they had spent the principal,
what was the Government to do for
said interest ? Sue everybody, or
sell out oil who did not pay2 In
that case there would be far more
formidable unions and riots than
anything we have yet seen. Re-
member the anti-rent riots of the
barn burners near Albany.
But supposing the whole arrange
ment could be carried out honestly
on each side, what would be the re-
suit ? Each farmer or owner Of
house or lot would have his proper
ty mortgaged, which is not a pleas
ant position, and as he would not
take the greenbacks to lie idle in
his drawer, he would spend them in
some way. He would thus spend
portion of his property, and find
himself in the position Of the man
who discovered that he could not
both seat his cake and have his
cake"
Let us, however, consider how
much t b ese greenbacks will
buy. AS there would be an issue
out of all proportion to the business
of the country, their value would fall
just as it did during the war when
they were issued by hundreds of
millions. Then a dollar in gold
would buy two or at one time two
and half dollars in greenbacks. In
other words, the value of the dollar
in paper had fallen to fifty or forty
cents, and could only purchase goods
or property in that proportion. Peo-
pie thought it was prices that had
risen, but it was the greenbacks that
had fallen.
If the proposed issue of green
backs on the security of real estate
doubled the circulating medium of
the country. then the greenback dol
lar would fall from its present value
of 81 cents to 46 cents. Every body
would get twice as many dollars for
his labor or produce, or any thing he
had to sell, but when he got those
dollars each would only go half as
far in buying anything he needed to
buy. All parties would therefore be
Just where they were before, (only
calling half dollar dollar) except
those who had to pay debts previ-
ously contracted, and those who had
to receive the payment. The latter
would be cheated out of one half Of
their just claims for the benefit Of
the former. And just here Is the
woeful outlook for America, There
are great many persons, though
we hope not majority, who would de-
hbcrately and intentionally sanction
this swindle, and that for their own
advantagel Is there any hope for
them ? Yes, in the progress OF the
Gospel, which requires full tale. full
weight, and full measure in the set
Element of oil business transactions.
II is to be observed that in the
case supposed the expenses of all
our governments would be doubled,
and consequently taxation of all
kinds would 90 up in similar ratio.
But what would hinder the issue
of greenbacks on property to in
crease till they were three times the
amount adequate for the business of
the country. In that case three dol
lars would only go as far as one dol
lar now, except in paying debts, and |
all who had given credit when
greenbacks were worth fifty cents
in gold, would have to take pay
ment when they were worth only
thirty three-and-one-t third cents
But what confidence could there be
in any enterprise or contract or
transaction on credit whilst such a
contingency was imminent2 -Obvi-
ously none.
Finally the question arises is this |
a new way of making money plenty |
and everybody rich ? Does the past |
throw no light upon the project
Certainly it does. The French cre-
dit foncier and land banks in various
other countries have proceeded on |
the sams principle. The bank gave
the proprietor its promises to pay
at J ear more or less, for his prom
ise to pay, secured by mortgage on
his property. He could then use
the banks promissory notes, to pay
his debts, or make bis purchases,
and everything went beautifully till
the bank was called upon to redeem
its promises. Then if it could not
renew the transaction it had to cal.
on its borrowers to redeem THERE,
and if they could not do so, as was
the case, it had to sell
their property. Thus in hard time
much property was sold at once at |
a great sacrifice, causing widespread |
ruin.
Whilst roonaxv vau ahnrdant 4ha