National Republican., 1878-08-10
THE NATIONALS AND MIR. CALHOUN.

the Nationalists or Gieenbackers ore the dis
ciples Of Mr.. CALHOUN. An examination of
his advocacy of the eSub-Treasury bill Of forty
ycaB ago discloses similarity almost idcnti-
cal between his views and those Of the nd
vocatcs of the issue Of an unlimited vol
ume Of Treasury notes at the present time.
He would have made them redeemable only
in Government taxes and dues, and would
have made their value rest entirely upon
the faith of the Government. This Ian
guage sounds very familiar to our ears. We
hear II almost daily. And IL is so seductive
that II is gaining numerous converts in all
parts Of the country, more especially, per
haps, among those Of our people whose
recollections do not extend back over the
forty years which have elapsed since the
famous sub-treasury bill was passed.
In . speech delivered in tho Senate on
the 18th Of March, 1888, Mr.. WEBSTER re-
viewed the newly avowed States Rights doc
trines of Mr.. CALHOUN, and, after showing
their utter inconsistency with his previous
declarations regarding the theory of this
Government, he gives his financial views the
following ventilation:
The honorable member says he belongs to
the States Rights party that party processes
something of an uncommon love of liberty an
extraordinary sensibility to all its dangers. and
of those dangers 1t most breads the union Of
the political and money power This we learn
from the authentic declaration of the gentle
man himself. And now, oh transcendant con-
sistency! oh, most wonderful conformity Of
means and onds! oh, exquisite mode Of graft
flying high desires behold, the honorable mem
Der proposes that the political power of tho State
shall take to itself the whole function Of sup
plying tho entire paper circulation Of the coun-
try, by notes or bills Of Its own, issued at its
own discretion, to be paid out, or advanced TO
whomsoever 1t plssses, in discharging the oh.
legations Of Government, bearing no pronise 10
pay, and to be kept In circulation merely by
being made receivable at tho Treasury! The
whole circulation Of the country, excepting
only that which Is metallic, and which must
always be small, will thus be made up Of mere
Government paper, issued for Government pur-
poses, aud redeemable only In payment Of
Government debts In other words, the entire
means Of carrying on tho whole commerce Of
the country will be held by Government In its
own hands, and made commensurate exactly
with Its own wants, purposes and opinions, the
whole commercial business Of the country be-
ing thus made assmere appendagc to revenue.
But, Sir, in order that may not misrepre-
sent the honorable member, let me show you
little more distinctly what his opinions are
respecting this Government paper. Tho hon
orable member says Sir, that to make this sub
| Treasury measure successful, and to secure it
against reaction, some safe and stable medium
Of circulation ITO take the place Of bank notes
| In the fiscal operations of the Government
ought to be issued !" that, Sin the present con-
dtion Of the world, paper currency in some
form, II not necessary, is almost Indispensable
In financial and commercial operations Of civ
| ilized and extensive communities !" that tho
great dosideratum Is to ascertain what descrip-
ton Of paper has the requisite qualities OF be-
ing free FROM fuctuation In value and liability
to abuse in the greatest perfection :" that
bank notes do not possess these requisites in
degree sufficiently high for this purpose"
And then he says: Il go farther. 1t appears
can give the subject, that no Convertible
paper, that is, no paper whose credit rests
upon promise to pay Is suitable for
currency" "On what, then" he
asks, ought paper currency to rest2'
II would say" he answers, "on demand
aud supply simply, which regulate tho value
of everything else-ths constant demand
supplies" He then proceeds to observe that
there might be = sound and safe paper cur.
rency, founded on the credit Of Government
exclusively !" that such paper, only to be
issued to those who had claims on the Gov
ernmcnt, would, In its habtual state, be at or
above par with gold aud silver;' that moth
ing but experience can determine what
amount, aud of what denominations, might be
safely issued, but that 1t might DO safely a..
sumed that tho country would absorb an
amount greatly exceeding Its annual income.
Much Of its exchanges, which amount to a vast
sum, as well as its banking business, would
revolye about 1t, and many millions would
thus be kept In circulation beyond the de.
mands of the Government"
BY this scheme, Sir, the Government In Its
disbursements Is not to pay money, but to is'
sue paper. This paper Is not otherwise paya,
BILE or redeemabe than as 1t may DO received
at the Treasury. 1t Is expected to be let out
much faster than 1t comes in, SO that many
millions will be kept in circulation and Its
gold and silver.
Now, Sir IL there Is 10 be found anywhere
a more plain and obvious project Of paper
money in all Its deformity, ! should not know
where to look for 1t.
Aud now pray you to consider, Mr.. Presi'
dent, in the next place, what MI admirable
coutriyance this would bo TO secure that econ
ouy in the expenses of government which the
gentleman has 50 much ut heart. Released
from all necessity Of taxation and FROM til,
consequent responsibility to the people, no
called upon TO regard at all the amount Of an
nual income, nANlng hn hutnOrlty 10 Clusi
Treasury notes to issue whenever II pleases-
In multitudes, like which the populous Nortl
Poured never from her frozen loins 10 pass
Rhenc or tho Danau.'
What admirable restraint would be imposed
on Government how doubly sure would as.
surance be made for it, that all Its expenditure,
would be strictly limited to the absolute and
indispensable wants and demands of the publ,
service.
But, Sir, fortunately, very fortunately,
, scheme so wild, and which would be so mis-
chievous, Is totally iHpracHcabe. 1t rests on al
assumption for which thIro Is not tho loas
foundation, either In reason or experience. II
takes for granted that which the history o
, every commercial State refutes, and our own
especially, in almost every page. 1t suppose,
that irredeemable Government paper can cir
culate In the business Of society and be KEEP
at par. This is an impossibiiiiy. The honorable
gentleman rejects convertible bank notes
which are equivalent to specie, since they will
always command 1t, and adopt in their steaC
= Government paper with noprOmise to pay, bu
T a promise only to be received for debt auC
taxes and he puts forth the imagination, as
have said, so often and SO long refuted, tha
this paper will be kept In circulation In tn,
. country, aud will be able to perform tho grca
business of currency aud exchange, even thougl
1t exists in quantities exceeding, by man!
millions, the demands OF Government
. N IL ba T. IAaak2ary Sir Mt thia day In ref nh