Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1878-08-29
Impracticable and Absurd.

The demagogues who are trying to make
people believe that good times will come
as soon as the Government issues a vol
ume OF irredeemable paper money, "sufii-
cient to pay all the bonds of the United
States for the employment OF labor and
the requirements OF business" must be
ignorant respecting facts in the financial
history Of the United States or so uuscru-
pulous as to deceive their fellow citizens
by ignoring them. The history OF our own
country during the war shows that beyond
q certain point even the promise OF the
Government that its paper notes made
legal tenders shall be redeemed 10 coin.
could not keep them from serious depreci-
alton aud immense loss of purchasing z
power.
For instance, the amount of legal tender
notes outstanding June ~, 1868. was s297 =
1s1, III. At that date, in the money in
which the commercial world buys and
sells. and which measures the value OF all
the great products OF the soil and the
manufactorv, the S29I ,1G1lli was worth
S22s 1903 ,0O6. In the course of the next
year the volume of legal tender notes or
greenbacks outstanding was SO increased
that June 80, 1864. the amount OF such In
circulation was si3l, IFS GO; and this sum.
In the money of commerce, was worth
only Sl66 s6j ,9i5. In other words, By in
crelsiHg the uOlume Of such MONEY Sl33,-
6ill .5G6 in one year, the purchasing pOloer
0f the trhole quantity tsds reduced $50 ,437 !,
06l And this depreciation took place In
face of the promise OF Congress that no
more than $3.50, 900 900 OF such money
should ever be issued. Without such a
positive pledge In the form or joint reso-
luton. the purchasing power OF the sii7,-
300 OOO the gross amount Issued would
have suffered greater depreciation. What
would have been the effect, if Congress
had not passed the restrictive resolution
and had recklessly gone on to issue double
that amount? Simply that the purchasing 2
power OF the entire mass would have been
so reduced that 4 barrel Of -four would
have cost 500, and other articles of prime
necessity would have commanded like
pr ices IN the deprecated currency. With
$500 900, 900 OF such paper money ailOat,
redeemabiity would have been out OF the
question and it would be In effect fiat
money and pass as currency upon It's
merits.
When GreenbacAers demand an issue of
absolute money" sufficient 10 pay all the
bonds OF the Government, at least d 800
900 900 will be required aside from that
material msllennium. Waving the
question of constitutiOnality, what would
be the result? II Increasing the volume of
a paper money redeemable in coin at some
time Sl33 400 900 in one year. making the
whole amount outstanding S43l 900 900,
reduces the purchasing power of the whole
amount S59, 400 900, what would be the
effect of issuing more than three times as
much, so that there would be nearly 81
900, 900 outstanding? We leave the reader
to make his own calculations or rather to
draw his own conclusions.
Various New England GreenbacH Con-
yentions and General Butler are very
strenuous in their demands for a protective
tariff Ia the interests of labor. They also
demand that the Government shall receive
this absolute money" which they would
have Issued in almost unlimited quantities
for all dues, including customs" II any
thing near the volume OF irredeemable
paper money is issued which they demand,
one dollar in coin will purchase at least
twenty or twenty-five dollars in our paper
The importer would under such a sta, .''
things be able to pay s25 OF duties with Vi
OF coin. This would as completely restore
free-trade in practice as II the present tar
III laws were repealed, SO that if any great
WAC aOlC ~ ou'
vive the deprecated currency, which they
could not do in France during the period
when the dssigRats were legal tenders, the
practical overthrow OF the protective tariff
by allowing the duties on imports to be
paid in deprecated paper would remove
the last barrier which kept it from de-
sfruction.
The declaration for such All increase of
the paper money OF the country as would
render il worthless and that 10 favor OF
protective tariff serve to illustrate not only
the utter absurdity OF the Greenback
theorists but some of the contradiction Us
into which their heresies lead them. A
few hours study of our own financial his
tory will serve to convince any sensible
and candid man that the whole scheme is
either the intention of dishonest or de-
luded men. For pure idiocy, it never had
ami never can have a PARALLEL Boston
Journal