The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1878-06-11
HONEST MONEY.
Lectures on Finance by II. M.
Nichol, Esq.
From Grand Rapids saturday Post.

From Grand Rapids saturday Post.
Large audiences have listened to Mr.
Nichol, Secretary Of the Northwestern
Honest Money League, at Luee's Hall
this week, and judging from the inter
est taken and the hearty applause Civ
en-, his addresses have been highly
successful. He talks by the book yet
not from the book. having the matter
not only "well in hand" bat on the tip
of his tongue, as it were. Therefore
his rcjoinders have been ready and apt
and rarely failed to "bring down the
house" III the greenbackers asked
questions for the sake OF information.
they have been fully enlightened, il
for the purpose of embarrassing the
speaker aud making points for their
side they have no cause TO congratulate
themselves.
The address was very compact, logic
al aud convincing. Mr.. Nichol first al
luded TO the charge that our financial
system was organized aud developed in
corruption and was the result Of con-
spiracy between capitalists in this
country and in Europe to promote
their interests at the expense of the
masses of the people. By all sorts OF
exaggerating and incondiary language
the attempt had been made TO bring
our government into contempt But
our financial system had originated
with pure and noble men like Lincoln,
Chase, Sumner. Fessenden, Stevens
and others. The principle of paper
convertible into coin on demand, which
we advocate to-day, has been held by
all the
WORLDS GREAT STATESMEN
Of all countries without exception, and
in our own country distinctly enuncia-
ted by such incorruptible patriots as
Washington, Adams, Jefferson, Madi-
son and all the great men of our his
tory. The charge of British influence
was equally absurd, as few of our
bonds were sold abroad until after the
war. They took Confederate bonds
and probably hold them.
Mr.. Chase in his first report said he
could not recommend treasury notes,
but did suggest National banks, and 10
this Mr.. Lincoln assented. Mr.. Spaul-
ding drew the National bank law, but
anticipating delay in its passage he
drew up n supplemental section TO pro-
vide for immediate necessity. an issue
of one hundred millions OF treasury
notes. The National bank act could
not then be passed because of the OPP
position Of the State banks, which
were issuing from TO five dollars circu-
lation on one dollar Of actual capital,
whereas the National bank act required
ten dollars OF actual capital in bonds
deposited with the Government for
every nine dollars issued. The bank
ers therefore did not oppose the issue
of greenbacks but of National bank
notes. To raise money in this exigen-
cy it was necessary to separate the
greenback section and enact that into
law, but with the universally express
ed opirion that the issues OF
GREENBAcKs WERE A TEMPORARY ExPR-
DIESr,
whereas when tho National bank act
was passed creating sound currency
based upon capital and in accordance
with the only financial principles which
have stood the test of time, that was
always spoken OF as permanent sys-
tenn. The greenbacks were invariably
regarded rs a forced loan and iustifa-
BILE only as temporary war measure.
their redemption IN coin or funding in
Understanding bonds. being provided
for in the act.
Speaking Of the wild, irresponsible
aud false utterances of prominent
speakers OF the other side he alluded
TO Gen. Cary, who had said in Wiscon-
sin that there we're three millions of
men out Of work, three millions b1rely
living by doing odd jobs, aud three
millions who would be paupers If they
we're 10 lose their present situations -
Now the census shows only 9i millions
able-bodied men In the United States.
Such men we're either ignorant or un-
truthful, or both. and are not safe
teachers. Mr.. Nlchol next showed the
utter falsity Of the statement that
there were over two billions of green
backs or currency in 1864 and that
81 800, 000,0 900 HAD BEEN RETIRED.
The total amounts Of greenbacks an
thorized had been 450 millions and 430
millions had been issued. There are
still ont $50 millions. The highest
National bank issue was $50 millions
and the amount OF both never reached
500 millions. Yet here is a statement
that sum much greater than the en-
tire issue had been retired. The i'm
mense sum irst mentioned includes
not only the currency but the bonds
then on the market, all bearing inter
est, and no more currency than our
Government, State, county land city
bonds now. The 7:30 bonds we're all
to be paid within three years and were
so paid according to their terms. Was
it dishonorable in the Government 10
perform it's obligations? These bonds
were all retired before 1868 and in ad.
dition 81, 900, 600 in currency. leaving
the circulation less than at any subse.
quent time, for after this there was a
gradual initiation. What was the effects
UNDER CONTRACTION THE COUNTRY
FLoUMsHED
exceedingly, aud not until five years
after the temporary period Of contrac-
ton did the panic strike us.
But they say that the fve-twen,ies
were payable originally IN greenbacks.
Tie speaker read from the legal tender
law-also quoted from the speeches OF
Stevens and others in advocacy of the
bill just before its passage, showing
that the contrary was the fact.
The "legal-tender act, so-called, il
entitled IAN act to authorize the issue
OF United States notes. and 90 provide
for the redemption and funding there.
Of" The fret section provides for the
issue OF greenbacks. The second sec.
ton provides for issuing the $40 bonds
for what? "To enable the Secretary
OF the Treasury to fund the treasury
notes." etc. Over and over again
these bonds were spoken OF by Thad
deus Stevens and others at that time
as coin bonds, payable in gold in
twenty years." and the greenbacks ht
called notes. "fundable IN specie-pay
ing bonds" 80 by the terms Of the
law itself the notes were not issued tc
paw the bonds, but the bonds we're is
sued to fund the notes.
Again, the law provided a coin fund
| from duties on imports, and declared
that this coin should be used, first, :,
/ pay the interest on the public debt
second, to purchase or pay ore pei
cent. Of the principal Of "the entir'
debt" annually. Now il bonds are an,
part OF the entire debt the
bonds ARE PAYABLE IN COIN,
and that fund Of coin is provided 70
for this special purpose.
The act Of 1869 did not change thu
law. II was a declaratory resolution
adopted 10 settle all doubt, as TO wha