Daily Kennebec journal., 1877-09-03
(From the Lewiston Journal)
Inquiries Answered.

reader who signs himself "Laborer," and
SAYS be has been urged to vote with tho so-cslled
greeuback party at the next election, on grounds
indicated by his inquiries, couiteously asks us to
answer several questions proposed by him As he
candldly avows his desire 10 know the truth and
act undtrsiandngly, we viii answer his inquiries
a. seems to Us in accordance with long established
principles of political economy.
/. Ques. Have not the "hard times" been
brought on this country by the resumption act and
a contraction of the currency!
Answer No The resumption act was passed
in lS7j-a year and half after the "panic" struck
to take effect January l, 1879, and therefore
could not have had anything to do with our hnan-
cial troubles. When the panic struck, the
amount Of paper currency outstanding was S231,-
600 600, almost so per cent more than in the
"hush times of 1864 and $92 900 900 more than
in 1868. The amount of paper money now afoat
is S233, 600 900 more than in 1864. II any infer
ence is to he derived from the amount Of currency
afoat at different periods, it might be said that the
undue expansion of the currency had greatly in
creased the business prostration which has arisen
from causes connected with the war.
g. Ought not the resumption act to be repealed
and more currency issued by government, instead
ofledeeming any portion of that now outstanding
Ans The resumption act provides that on and
after January |, 1872 the government shall make
greenbscks as good gold by giving the holder
of greenback gold dollar in exchange when
ever be wants II. If we desile to have the labor
er's dollar continue TO be worth less than the
"bondholder's dollar, Of course We should favor
a repeal of the resumption act. If we further de-
sire to depreciate the laborets dollar still more
than it is now, then Of course we should favor the
Issuing of more irredeemable greenbacks. Other
wise, not.
3. Ques l. not an adequate supply of curren-
cy one Of the c"uses of the business depression
aud low wages
Ans. No! Most decidedly no. There never
was time when there was so much paper curren-
cy outstanding as there has been since 1873. As
we have already stated, the amount is 20 per cent
greater than in the flush times OF 1864. At all
the commercial centres, millions of dollars are ly-
ing idle, and can be hired on undoubtcd security
on call for or per cent. and on short time for 4
to per cent. No one is prevented starting up
any industry by stringency in the money mar
ket. If you say capitalists have money enough
but the common people" cant get it, we reply
that if this be so land it isn't unless you mean
by common people" those who have nothing that
will sell for money!, how can the printing Of
greenbacks help the matteri Government
wouldn't give away greenbacks. but would simply
offer them in exchange for their outsta nding
bonds. Ii you have no bonds aud nothing that
will sell for bonds, how do you expect to be able
TO get hold Of grecnbacks to be issued by govern
ment any better than greenbacks now held by
capitalists and freely offered at low rates.
A. Qles. If the government should issue more
greenbacks, would Lot every man lind the market
value Of his wages and whatever he has to sell ln-
cfeasedf
Ans. The more irredeemable currency issued
the greater its depreciation. If you dt crease the
value Of a greenback dollar so as 10 make it
worth but fifty cents. for examlle lie, and still carr:
"dollar," of course you double the price ol
merchandise measured in such currency You
might 20 on issuing more Iredeemabe green
backs unn it took thousand dollars to buy
breakfast as was the case when France issued
such large quantities of assignats in 1893. Bu,
would anybody be better off Indeed would not
business be completely parayzcd by such dis
tUIbalce of the measure of valuef Worse than
all wages would not rise in proportion to the de-
mcciation Of currency ard the increase in price
of necessaies of life, and the lab 3rcr would be
the greatest sufferer.
Webster has well said that currency which j.
not redeemabe in the money of the world cheats
the aboIing nan If on the other hand the new
greenbacks TO be issued and those already issued,
should be made redeemable in gold or that which
will at any time sell for gold, then that would be
resumption; and prices would be established on
the geld basis.
8. Ques. If the government should itself re-
ceiye gfeenbacks for all purposes, wouldn't that
make gleenbacks worth as much as goldi
| Ans. by no means Government now receives
greenbaeks for all purposes except payment OF
customs duties. For that it always demanded gold,
IN order Il at ii mil ht have coin to ply interest on
IT. debt, and not be obliged to purchase it in mar
~ IL receive greenbacks at custom, houses