The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-08-30
the Imitation Problem.

eXITlFdSduI paCiohos
The Imitation Problem.
Editors Dispatch: Every day ! read In
the newspaDers statements to the effect that
il Congress were to legalize and direct an
expansion of the currency there IS no way
bv which the amount could be put into cir
culation.
Suppose that the Secretary OF the Treas
ury were to use S500,000,00 OF the new
issue in the redemption OF United STATES
bonds, what would become OF the green
backs ? Would the eX-bondholders keep
them in vaults, or give them start as an aC-
dition to the present currency? INQUIRER.
ANSWER.
The notes would doubtless be used il any
use could be found for them. But the Ell
feet upon the country would be similar to
what would result to an individual il he
should compel his creditors to surrender
his bonds bearing interest, and take III
place OF them notes bearing no interest.
The depreciation in the value OF the green
backs thus put out, and those already out,
would be so great that the country would
lose five times five hundred millions OF dol
lars by the substitution, instead OF making
money by it. Our cores pondent would at
once find his salary The is receiving salary
diminished by-we suppose twenty per
cent; but we will say ten per cent. That
is to say, his deprecated greenbacks would
buy one tenth less sugar, coffee, flour, &c.
Now, il he will calculate how many mil
lions of men there are in this country
working, like himself, for salaries, or
monthly, or weekly, or daily pay, he will
be able to form some idea as to the disas-
trous efforts Of the scheme he suggests.
The loss to the workingmen Of Richmond
alone would be millions of dollars annually;
and to the same class in the whole country
incalculable: whilst nobody but money
brokers and spectators would be bene-
fitted.
However, we do not care to argue these
questions. We cannot imagine that they
Will ever become practical ones. Sow will
conclude this answer by reproducing few
paragraphs from speech recently made by
Mr.. GARFIELD:
HlfSL. IDdU II Is u lfuU ftOIdLlOu Va IuC Soil~
stltution. Every Democratic member OF the
Supreme Court has declared that even our
present issue OF greenbacks is unconstitu-
tional. The majority Of that court defended
them only as war measure.
Second. The proposed substitution rem
ders resumption impossible. As the law
now stands the Government must maintain
S346, 600. 900 OF greenbacks at par with coin,
and the Treasury is amply able to do it. The
national banks are required to march abreast
with the Government, and at their own eX-
pcnse keep their own notes at par. The
Democracy propose to release the banks
from this duty, and throw the whole bur-
den upon the Treasury and the people. By
an additional issue OF 1924, 000, 900 OF green
backs they make the Treasury responsible
for maintaining SG70,000,000 Of paper.
Every intelligent man knows that the TIea-
sury cannot keep so large volume at par.
Third. This substitution would entail
grievous burdens upon the taxpayers OF
the country. AS the law now stands, green
backs arc exempt from taxation. Poor
men, who hold but few, gain little advan-
tage from this exemption; but it is aWeIl-
known practice of our capitalists to put
their surplus means into greenbacks on the
day when the State assessment for taxation
Is Iluue, atiu 10 CSSipS u ohoA VI thS
public burdens. Both the stock and notes
of national banks are subject to heavy taxa
ton. The Government taxes their crcula-
ton, and States tax their stock and out
standing notes. The Democracy
propose to- abandon all this, and create in
its stead privileged currency Of 1924, 000,-
900. which will be exempt from taxation.
Fourth. II this attempt is successful it
will resutin the restoration OF the wretched
state-bank system that prevailed before the
war.
Fifth. A fatal objection to the substitu-
ton of grcenbacks for national-bank notes
is this: that it makes a complete divorce
between the business Of tine country and
the volume of its circulating medium. Now,
under free banking the volume will increase
OF diminish according to the demands CT
business. Under the proposed system OF
issuing all our paper-monoy directly from
the Treasury the volume must depend upon
the uncertain. caprice of Congress. There
never was and never will be Legislature
wise enough to fix by any arbitrary rule the
proper volume of circulation. What would
be sufficient for one month may be insul-
ticient or two great for the next. The hckle
and changing opinions Of Congress are an
unsafe basis on which to regulate the value
OF all the business transactions OF the coun-
try. TMr. Garfield here quoted from
speech made in March, 1874, in which, Mr..
Thurman took the same ground, and ex-
pressed himself very strongly.l