Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1878-07-25
How to Enable People to do a Cash
Business,
From the Boston Journal /

From the Boston journal
In order that the people may be enabled
| to get the "mOney necessary to do a cash
| business" which the Gfeenback conven-
lions declare it to be the duty of the GOV :
ernment {" furnish. leading Greenback
doctrinaire proposes that Congress should
issue volume of Treasury notes, which
shall be fiat money" sufficient to COM
plete the unfinished public buildings
throughout the country, construct them
wherever needed. and make those improve
ments In our rivers and hsrbors for which
various sections so loudly clamor. These
objects would require an expenditure OF
SlOo,OO0,O 900 at once on the supposition that
the currency holds its present purchasing
power. If the internal improvement
schemes demanded were carried ont which
have been advocated the past few years,
| SJoo,oOo.OOO could easily be expended in
| the next five wears. OF course these pub
! lie works would give business to contrac-
tors and employment to labor OF all kinds
which would give those occupied money to
spend which in time would diffuse itself
through every department OF business and
/ interest.
Let Us briefly examine this very attrac-
tive plan. Ii all the demands for public
buildings and other works were answered
by Congress, $50. 600, 600 or 500 900 600
might be expended the next year The
plan, of course, assumes that the Resump-
ton theory, upon which our legal tender
paper currency Is based, has been ignored
and made TO give place to the absolute
money theory OF the latter-day flnanciers,
which IL, that the Government can make a
piece OF paper upon which It stamps the
word lone dollar" good for that amount,
and so absolutely a measure OF value that
II Is never TO be redeemed except by anoth-
er paper dollar OF the same description.
lhe present volume Of greeubacks. now
about 10 be redeemed In coin, is TO be de-
clared irredeemable and new issues made
to carry on public works. Thus the Gov
ernment Is 10 create value bv printing
press and pass 1t of Tor capital and labor
The Greenbackers themselves hold and
complain that the present legal-tendcr
notes o! the Government have been made
more valuable by contracting the volume
aud by the PROMISE to redeem them In
coin. This is one OF the grayeSt charges
against the Republican financial policy II,
as the GreenbacAers declare, the purchas-
ing power OF the greenbuck dollar has been
increased more than 80 per cent By re-
duclng the volume OF such paper money
fom 500 900 600 to $3.50 600. 900. what will
be the effect upon that dollar ii its volume
is increased 100000 900 and the promise
OF coin redemption is stricken Oh. 1t
contraction OF the volume OF greenbaCks OF
II IL per cent, with promise OF redemp-
ton IN coin, has added 80 per cent. to the
purchasing power Of that currency. what
VIII be the effect of Increasing the volume
- per cent. In one year and declaring that
II IS never to be redeemed: Every sensi-
Bile man Ia the country not siilicted with
mi. - Inf 4
this question by giving the opinion that
such change would destroy from 30 to
10 per cent. OF the present purchasing
power OF the greenback dollar That j. to
say, the greeuback referred to would pur-
chase but one-half or one-iuurth a. much
OF the neces,tic, Of life as that 10 circua-
tion now.
absolute money AuvOcate-, ruaac mucu
account OF the flat" Of the Government.
One might lake some stock In this theory
bad not the power Of governments TO stamp
piece oil paper with words representing
value, aud declare 1t stable currency
worth its face. been tried and proved
failure so many times. The truth Is the
prices o. food aud ramcnt are fixed BY the
demand OF other nations and their values
measure IN gold. These prices are beyond
the control OF Congress. II the demand of
the world makes wheat worth 81 per bush
el 10 gold. Il will take as many Greenback
dollars TO purchase that bushei OF wheat ~
il will require to purchase 81 In gold.
When our paper money Is declared ire
deema6le by the Government, and the vol
ume is expanded to meet the expenditures
for public buildings, it may take s. or $40
or sl0O TO purchase two dollars IN gold or
It's equivalent in wheat, according TO the
degree Of expansion.
What would be the result OF the policy
OF Issuing fiat or irredecmable paper money
TO complete the public bulldings2 First,
TO state it within bounds, the purchasing
power OF the Inflated and irredeemaOle cur
rcncy would be $50 diminished that at the
outset ii would take three or four times as
much paper money TO accomplish a given
purpose as at the present time. Second,
the prices OF all articles OF food aud raj
ment. for which there is foreign demand,
would increase three or four times, aud a,
new issues of money were made, eight, ten
or twenty times as much as at the present
time. Third, the price of wages would in-
crease, but because the labor supply is IN
excess of the demand, the advancement OF
the price OF labor would not keep pace
with the advance in the cost uf the articles
necessary to support existence. Fourth,
a. the volume OF the currency was increas-
ed, its purchasing power would diminish,
thus requiring greater issues, which would
constantly diminish in value, until. like the
ContIpeatal currency and the French dSsig-
mats, 1t would become utterly worthless.
There Is one other consideration. Sup
pose the fiat dollar could be made to re-
tain its value, assume that Congress can
work miracles with paper and printing
presses, what would there be for the labor
y, .han oil
ments have been completed? Suppose
S500,000 of new greenbacks were issued to
complete the Boston Post Office. That
would give employment to large number
of mechanics and laborers for season.
and would increase the ndmber of such by
drawing them hither from elsewhere. but
what would become of them, where would
they find employment, when that building
should be completed? There would pro-
badly be double the number of working
men who would be thrown out OF employ
ment, and, consequently, greater deprlva-
tons than now. Would the l,ovei ument
devise new public improvements and make
new issues OF absolute money therefor, in
order TO afford them employment Ii so,
would there ever be an end of printing
paper money and constructing public
works? Yes, there would be an end, and
that end would be the collapse of the fiat
money system in entire worthlessness. We
beg these doctrinaires to read the history OF
our Continental currency and the French
dssigRats. IF any well-disposed person of
means Is desirOus OF making himself a
blessing to the community, we advise him
to cause to be published for gratuitous and
widespread distribution, brief histories of
the experience of our forefathers and ofthe
French Republic with fiat monev