Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-07-09
The Credit of the Nation.
j. o. SMITH, Secretary.

monetary system on the credit OF the ma
ton. What is the credit OF the nation
1t is very much like the credit of an indi
vidual. The credit of an individual de-
ponds principally upon his ability to pay
what he promises to pay. The credit ol
the nation dope nds upon its ability to pay
and the fidelity with which il keeps its
fiuancial promises. An individual may be
compelled by the courts to pay il he is
able to pay but the nation cannot be sued
in the courts, and though able to pay wha
il owes cannot be comp 5lled to do SO eX.
cept by resort to war, which is only the
resource OF one nation. against another
The credit of nation then is based on il
willingness as well as its ability to pay
A nation may be able to pay, and Yet if il
repudiates its obligations to pay, it may be
without credit.
In time of war and great financial ne
cessity, our government issued its notes
promising to pay to the
holders of such notes The number Of dollars
stamped upon their face. 1t was under
stood by the people who received these
bills, and by the government which issued
them, that as soon as convenient after the
war was over they should be paid in coin.
This was the understanding of every sena-
tor and representative in Congress who
spoke or voted in favor of the creation oil
greenbacks. Secretary Chase in his Ie.
port OF December 1862 said: The Secre-
tary recommends, therefore, no mere
paper money scheme, but, on the contrary,
series OF measures looking to a safe and
gradual return TO g0id and siIUer as the
only permanent basis, standard and meas
ure of value recognized by the constitu.
ton"
The Supreme Court of the United State.
holds that the greenbacks are to be re-
deemed in coin. All the judges agree
with Justice Bradley in the opinion thai
the legal tender acts were''not an attempt
to make dollars" ''No one supp1ses, >
said he. that these government certificates
are never to be paid--that the day OF
specie payments is never TO return. And
ii matters not in what form they are issued
The principle is still the same. Instead
OF certificates they may be treasury notes
or paper in any other form. And TINS pay
ment may not be made directly in coin,
but they may first be convertible into gov
eminent bonds, or other government Sc
curities. Through whatever changes they
pass, thor alti1aate destiny is to be putt "
SO the credit OF the nation is pledged to
the redemption OF the greenbacks, not by
issuing other paper promises to pay, but
by payment in gold and silver, the MONEY
of the Constitution. 1T the pledge of The
nation to the peolle is kept then the cred
1t of the nation is maintained; if the
pledge is not kept what becomes of that
credit upon which the greenbackers pro-
pose TO build their monetary systemp Ii
will be gone, absolutely gone. The ma
lion which repudiates its just obligations
can have no credit. Nobody will trust it.
Should it turn from the error OF its WAYS
and pay its debts its credit might revive
but until that time ii would be AS destitute
OF credit as the beggar in the streets. Ii
might compel submission for a while ia
unjust measures, but as the sentence oi
outlawry upon the people of the early
days OF the nation because they would
not receive the Continental currency As
god and silver failed to keep that cur
reney in circulation, 50 compulsory me,.s.
ures TO keep irredcemable greenbacks IN
circulation would be utterly useless.
The greenbackers therefore arc in tho
absurd position Of claiming to rest their
monetary system on the credit of the ma.
tion while their course is such as n do.
stroy that credit. There can be no credi,
unless the nations faith is kept: and III.
very main proposition Of the greenback
ers Is that the government never shall IA,
never redeem-its notes, conseaueull,
be without credit. 1t is an Old saving thai
man "cannot have hi. cake and eat it =
but the greenbackers seem 10 exDeci N,
nation to have credit though they depol
ish the foundation on which alone credi,
is possible.