The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-07-22
A Short Essay OH Moneys OF Different
Kinds,
From the Philadelphia North A

From the Philadelphia North Americana
Somewhere down at the root OF this green
back heresy there is a radically detective
comprehension OF the power, and scope,
and effect OF statute law. The argument,
or assertion of the greenback apostle is that
when Congress authorizes the Treasury De-
partment to issue notes stamped, The
United States will pay to bearer one dollar"
it creates something of the absolute value
Of dollar, and that the paper so stamped
is "absolute money" 1t is Of very little
use to combat this error, no doubt, because
having no foundation in reason, we cannot
expect that reasoning will reach it, and hay
ing no substantial basis OF fact, no amount
OF fact brought into play by an oppo-
nent can command attention. There are,
however, some quite common errors into
which people fall by lack Of knowledge, and
these errors may possibly be corrected by
statements Of fact. For example, some OF
the greenback advocates persist in declaring
| that the decree or fiat OF Congress not only
can make something "absoIute money"
without reference to intrinsic value, but
that it has done this, and continues to do it.
In evidence OF this, reference is made to
our token coinage Of the denominations OF
five and three cents nickel and one cent
bronze. These, they say, are absolute
money in small sums, yet intrinsically do
not contain anything like their tale value.
This, of course, is true to certain extent,
but it is not true as stated. or as 1t is in
tended by these advocates to be believed.
The nickel and bronze tokens were created
for convenience in making small exchanges.
We have frequently said that currency is
simply a convenience OF trade, and there
fore strictly subject to the law OF conye-
nicnce. A piece OF copper, worth in the mar
ket one cent, would be very inconvcnient
piece Of money, and would not pass except
under universal protest. SO oil the nickel
coin. Did each piece represent its metal price
in market the coins would become Il him
drance to exchange in place OF conreniences,
as they now are. 1t is true, however, that
these tokens are legal-tender in small sums,
and in so much perform some Of the minor
functions Of "absolute money" But we
have never yet seen 4 reason for the "abso-
luteness /" OF this kind OF money offered
by erecnback advocate. There is a rea-
son, nevertheless, but in giving it the
greenbacker would cut the ground from
under his feet. The more intelligent among
them know this, but by far the greater
number probably know nothing about it.
These are the facts which explain why our
tokens perform some OF the functions Of
absolute values. Having created token
OF value, the Government found that the
coins would inevitably become drug when
they accumulated in any locality beyond
the wants OF local trade. And it was bound
10 protect its issues. Congress therefore
enacted that all sums in these tokens of
twenty dollars and upwards, when present
cd at the mint at Philadelphia, or at the Of
fee OF any Assistant Treasurer, or at any
depository OF the United States, should be
redeemed at their tale-value, and payment
made in Treasury notes.
The effect OF this will be recognized at
once. The token-coins were at once made
and maintained at par with Treasury notes.
In so much they were given the attributes
of what is called "absolute money!; but
not for the reason that geeenbacks were in
themselves absolute money. 1t is best to
take note OF that. But the green Backs
were also issued under contract to redeem
them in coin OF full value at their face.
Thus the tokens, worth much less than
their face intrinsically, are by positive law
made equivalent to gold whenever present
ed in sums Of twenty dollars or more. AS
a matter Of fact the Treasury redeems these
tokens to the amount of hundreds Of thou
sands of dollars every year, paying their
face-Yalue in Treasury notes. The busl-
ness is so brisk that the same iden-
tical coin may be redeemed and re-
issued three or four times in the course OF a
year. They are flowing in and out of the
Treasury every weekday. Were it not for
this wise regulation nickel and bronze
would have to be kept at loss or sold at
discount. AS it is, the only difference be-
tween twenty fiVe-cent nickel pieces and
gold dollar is, say one half OF one per cent.
And the reason why forty cents in copper,
tin, and nickel is worth ninety-nine and one
half cents is not because it has the mint
mark on it, but because supplementary
act Of Congress declares that the Treasury
will redeem such base issues in "abso!ute
The mint mark is only effective
as enabling the redeeming agent to distin-
guish the true issue from the spurious.
Another class OF greenback advocates ind
much comfort in the fact that while q stand
ard dollar of silver passes for one hundred
cents, the Mexican dollar, also Of silver, Is
ut from nine to ten cents discount In our
trade, This class at once points to the Diff