Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1877-10-24
Greenbacks and the Debtor Glass.
Chicago Tribune

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The demand for paper imitation,
however, is persistent. It is not based
upon any hope or desire for improve
ment of the currency, or wish to give
it stability. 1t does not want green.
backs to become as valuable as gold
nor does it want silver made equivalent
to gold. It's aim is to exclude metallic
currency altogether. 1t does not want
a redeemablo paper currency. Itseeks
an exclusive paper money, and wants
that paper money deprecated to the
lowest point of value. The lower its
value, the more acceptable would be
the paper currencJ OF necessity, the
man who wants initiation and cheap
greenbacks is as much opposed to the
silver dollar as he is to the gold dollar.
and greenback worth 100 cents on the
dollar finds no more favor from him
than the coin. The object of depre.
clated currency is an obvious one; it is
not polite for the individual to confess
it. Traced to its inspiration, it will be
found to rest on the fallacious idea that
it will help the debtor class by enabling
them to pay their debts at the rate of
80, 60, so, or 40 cents on the dollar.
There is no occasion for denying the
truth, that the end sought, and the on
ly end sought, is the debasement of the
currency for the purpose of paying
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dollar as possible.
Leaving out of discussion the NOR
ality of this motive, let US see if this
plan OF paying debts by short cut ex--
pedients is any more promising of sue
cess than any other invention of that
kind, and whether the invention may
not, boomerang fashion, return to
plague the inventors. The greenbacks
are now worth 81 cents on the dollar
One thousand dollars of that currency
viii purchase 1910 in gold. To enact
a law providing for an increase of this
currency to the extent Of three or four
hundred millions of dollars, if that were
constitutional, it would have the effect,
even before the notes were issued, of
depreciating the value Of the present
outstanding notes to 80 cents on the
dollar, and, as the additional notes
were issued, that value would fall low
er and lower. Such law could not
be passed without tremendous struggle,
agitation, and alarm. Such agitation
would imperil the whole credit system
In anticipation Of such law, and after
its enactment, there would be no cred-
its given payable in the uncertain cur
rency of the future. The man in debt
would be no better off than before.
His application for renewal or exten
sion OF mortgage or the renewal of a
note would be met by point-blank re-
fusal The alternative would be pay
ment or foreclosure, or suit, jud dgment,
and. execution. The only terms upon
which any creditor would extend an
old debt or make new loan would be
under contract that principal and in
teresr shall be payable in gold. The
man who should have the greenbacks
might pay his debts, but unless he had
the whole sum needed he could not
borrow the greenbacks, nor obtain an
extension or renewal of the debt, except
by making new contract, payable in
gold. How many debtors who need
cheap money-dollars worth so cents
each-to enable them to pay their
debts, are now prepared to pay what
they owe, or are prepared to pay off
their mortgages: or will be able to ac-
cumulate within the lifetime of these
mortgages enough Of greenbacks to
pay off the whole of their debts? The
serious results Of the passage of such
law would be that it would practically
suspend credit, except on the gold bas.
is. No man could get credit on mort
gage, or note, or bank account, except
on contract to pay In gold, and with
the greenbacks he could only purchase
at their value in gold, wi tn a margin
off to cover fluctuations. In point of
fact, the ''debtor class would be far
worse off with the money Of the count
ry reduced to So cent dollars than they
arc now. The depreciation of money
would visit terrible loss on the debtor
class and the men of small means, or
to whom credit is essential. The
working class, or those who live by
daily, weekly, or monthly wages, would
suffer directly and continuously The
creditor class, the men of capital and
Of means, on the contrary, while bear
ing portion of the general distress
and loss, would have within their own
hands the means of protecting them.
selves, and of throwing the direct loss
on the unfortunate victims of this
greenback-watering delusion and fraud.
MATT CARPENTER recently applied
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