National Republican., 1878-09-05
in his History Of England" an acknowl-
edged standard authority upon all ques-
tinna of rnlitinal annna.,.. anra. II

III HIS history OIL Englanu, an uekuoWi-
edged standard authority upon all ques-
tions of political economy, says:
The evils produced by bad state Of the
currency are not such rs have generally been
Thought worthy to occupy prominent place
i'll history yet II may be doubted whether all
the misery inflicted on the English nation In
quarter Of q century by bad kings, bad min
listers, bad Parliaments, aud bad judges was
equal to the misery caused in single year by
a bad currency.
This voice of warning is made more em-
phatic and more pertinent to the present
condition Of affairs in this country by the
coniirmatory opinion of another English po-
litical economist, JONI STUART MILL:
Although no doctrine in political economy
rests on more obvious grounds than the mis-
chiei oi paper currency not maintained at
the same value with metallic, by either con-
vertibility or by some principle of Limitation
equivalent to IL and although accordingly this
doctrine has-though not until after the discov-
cries OF many years-been tOlcrably cfcctually
drummed into the public mind, yet dissenti-
ments are still numerous and projectors every
now and then start up with plans for curing
all tho economical evils Of society by means OF
an unlimited issue eofinconvertible paper. There
is, in truth, great charm in the idea. To be
expenses of Government without taxation,
and, in fine, to make the fortunes Of the whole
community, Is q brilliant prospect when once
man Is capable Of believing that printing q
few characters on bits Of paper will do 1t. The
philosophers stone could not be expected to do
more.
The principle of limitation =" which Mr..
MILL here alludes to as the equivalent of
redeemable convertibility Is the happy
medium which the Republican party seeks
between irredeemable rags and the difficult
ties which are supposed to follow from the
use of coin only as o circulating medium.
1t is this happy medium which has been
reached by Great Britain that gives to a
note of the Bank Of England all the solid
value of the amount it represents, and at
the same time preserves IL from the lluctu-
ations which it would certainly he subject
ed to il IL had no redeemable convertibility.
These views upon this important subject
were also entertained by Americans in tho
earlier history OF our Government. One of
the greatest, If not the very greatest, iinan-
ciers who ever administered the affairs of
our Treasury Department, and who had
had much experience in experimenting
with deprecated, irredeemable, and incon-
yertible paper money in this country,
| ALEXANDER HAMILTON, wrote:
| Paper emissions by Government are of n
nature so liable to be abused. that the wisdom
Of the Government will be shown by never
trusting itself with SO seductive and danger.
Gus power.
This is, it is true, partial Endorsement
Of the strict hard-money doctrine but ii
can with fairness be construed as an admis-
sion of the possible good that would ensue
from guarded emission of paper money
HAMILTON wrote under the inspiration OF
the disastrous experiments which the coun-
try had suffered from the issue, partial re.
pudiation and so-calTed adjusted rcdcmp,
tion of the old-time continental money
But he was hardly less pointed in his opin-
ions than President LINCOLN, Who with his
ccar-sighted views, began to fear in 1852
when the grecnbacks were first issued, that
the Government might be discounting its
integrity in the future. In his annual mes.
sage to Congress of that year Mr.. LINCOLN
said:
| n TttNTn 10 SpcClc payments Ut lHc tulIlthl
period compatible with due regard to all in
tercsts concerned should ever be kept in view
Fluctuations in the value of currency are al
ways injurious, and TO reduce these fluctuations
to the lowest possible point will always be Il
leading purpose in wise legislation. Convert.
biity, prompt and certain convcrtibility iutO
coin, is acknowledged TO be the hest aud
safest safeguard against them.
OF course Mr.. LINCOLN wrote the mes
sage Of which this is part under peculiar
influences, which may account for his de-
termination to adhere to the strict idea o
convertibility into coin" Not the least o
these influences was the Democratic how
of that period that the greenback issue wa
unconstitutional, aud the widely -preva
lent idea within the Republican party thai
the issue could only be justified upon the
ground that it was war measure. lie this
as it may, his expressions at that tim'
serve now to recall the impulses and de
signs which surrounded the grconbacl
when 1t was first put forth. Those i'm,
pulses and designs are the traditions OF tn,
Republican party and its guiding influence
to-day, albeit they have been slightly mOdi
fled by experience so that the idea of re-
dccmablc convertibility is permissible and
very generally accepted.