Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1878-10-11

The demand that the paper currency shall
be Issued by the Government, which Is one
OF the chief planks OF the GreonbaCk plat
form, seems plausible until it Is examined.
The actual grcenbacks are currency OF
necessity. They were Issued because the
Government in dire extremity had 10 o:her
resource. They were, in fact, = forced loan
The Government authorized debtor - pay
debts with them, and itself promised 10 pay
honest dollars to every one who took them.
Their issue was justified By the Supreme
Court or the ground of necessity. The
Government has now provided for the re-
demption OF its promise on 4 specified day,
but it has confused its own action and
thrown suspicion upon its honor by pTovid-
ing also that the notes may he re-iSSucd. 1t
is argued that if the notes are so convenient
and 50 excellent, and if they arc so much
better than bank-nOtes, they ought to take
the place of bank notes, and the Government
should issue as G,any as Congress may think
necessary for the wants of the country. The
same argument would apply to the manage
ment of railroads and Of every kind Of trade
and industry by the Government.
The proposition is really that the Govern
ment shall 90 into the banking business, and
that Congress shall be board Of directors,
with absolute powers. Paper money pre-
pcrly represents business transactions. IL is
issued by banks which nave capital to loan.
But the Government has no capital TO loan.
1t is not trader. 1t is not producer. 1t has
no money except that whiehit collects in taxes
and which it pays out for its expenses, and
it is its duty to keep taxes and expenses at
the lowest practicable amount II it issues
notes it is because it wishes to borrow, and
because taxation will not serve. But q bank
Issues notes because it wishes 10 lend. If
Congress is 10 authorize the issue Of Is many
paper promises to pay as It chooses, what
possible security can there he that it will he
governed by commercial and not by political
considerations? and if it authorizes an issue
larger than can be redeemed, what is to pre-
vent n stOppage OF payment and limi,less in
flation? Money represents capital. But
what capital has the Government? II the
United States are to 90 into the banking
business, Why not into other business?
Indeed, this question touches the difficult
ty. The real support Of Government issue
of paper currency is essentially communist
lie. 1t springs IRON the feeling that all
such things wOull he better done by the
Government. 1t Is a feeling that the Gov
ernment is great organized motive power,
which can be turned in any direction and
applied to any purpose. 1t is the confused
conception of Government as something
wholly distinct from the nation. as 4 kind OF
good genius which VIC can set to drawing
water and ehOpping wood and making fires.
liz is, in fact. communism, or the doing by
Government what each man ought to do for
himself. Ii is wholly foreign to the Ameri-
can instinct and the American idea. The
true American policy IS to redeem the prom
iscs made in the hour Of extremity, to with
draw the Government from the banking
business, and to leave the amount Of cur
rency to be determined by the legitimate
wants of trade, which can properly manifest
themselves through demands upon the banks,
but can not possibly be known in their con-
slant variations by members Of Congress-
HTycr's Weekly.