, 1878-11-14
A SHORT CATECHlSM IN FINANCE
AND POLITICS.

What is greenback?-A. A
Government note promising to pay
the bearer one or more dollars, with
out interest.
What is a dollar?-A. An United
States Government coin worth 100
cents.
If man takes up his own note
and gives new note Of his own
making for an old note, is the debt
thereby paid?-A. 1t is not; the OBJ
legation to pay is renewed, but not
paid.
If the Government takes up one
form of its obligation and gives an
other for it, is the debt thereby
paid?-A. 1t is not; the obligation
to pay is renewed in another form.
Can the Government pay its bonds
in greenbacks?-A. 1t cannot, any
more than man can pay his own
note by giving new note for the
old one.
If A. holds BIS note. drawing in
terest at 6 per cent. per annum, and
B., when called upon for payment,
should offer to pay his note TO A. by
giving him a new note, drawing no
interest, what would all honest men
think of B. and his proposition?-
A. They would think that B. was
either fool or knave, and bis pro-
position the emanation of weak
minded or dishonest man.
A greenback being Government
note, promising to pay dollars, what
gives it value?-A. The general be.
lief that the Government will fulfill
its promise.
Why is greenback worth more
now than during the late war Of the
rebellion?-A. Because of the near
approach of the time when the Gov
ernment will fulfill it's promise, and
the belief that the Government will
be able to pay in coin for all the
greenbacks that will be presented
for payment after the lst day of Janu-
ary, 1879.
How much would it add to the
value of greenbacks if the Govern
ment would receive them in pay
ment OF customs duties?
A. Not more than from J to I of
cent on dollar at the most.
What will make greenbacks al
WAYS worth as much as coin?-A.
making them redeemable in coin on
demand.
Can it be done in any other man
ner?-A. 1t cannot for any great
length of time.
What is money?--A. Coin.
Has not the Government the pow
er to make money Of paper by law
and keep it equal with coin?--A. 1t
has no power to make money of pa
per or to keep paper equal in value
with coin unless it be exchanged for
coin.
Is not greenback money?--A. 1t
is not money; it is promise to pay
money.
Is not a greenback just as good as
coin if made legal tender for all
debts?--A. 1t is not. There are
other uses for money besides paying
debts, and unless greenbacks are to
be payable in coin they must neces-
sarily be at discount, greater or
less, according to circumstances.
Is there enough paper currency in
the country?--A. There is.
How can we tell when there is too
much paper currency in the country?
A. When there is no coin in circu-
lation it is an indication that there is
too much paper aaoat. When there
is too much paper in circulation it
becomes deprecated in value below
coin, and the coin is boarded.
Why did the Government pass a
law refusing to accept greenbacks
ard payment of customs duties in
coin?-- Because the Government
needed the coin to pay the interest
on its bonds, and this was the sim
plest and easiest way to get it. And
Congress during the war did not
wish to place itself at the mercy of
the gold gamblers every time its pay
ments of interests were due.
Why not pay the interest on the
Government bonds in greenbacks?
A. Because grsenbacks are not
money, and the Government must in
the end pay money for its obliga-
tions, both principal and interest. 1t
cannot honestly forever refuse to
pay its obligations and continue ex-
changing one obligation for another
for all time.
If the national banking system
rDos Jastroya1 and tho GOvarnmant