The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1878-10-31

EHR FOUR HUNDRED MILLION ARGUMENT


lrgt section authorizes the borrowing Of
$4OO0O0,O00, and the issue therefor Of
bonds of certain denomination. The
second section authorizes in lieu Of por-
ton of such bonds not exceeding 5000.
100000, the issue OF Treasury notes bear
ing 3 10 interest, which should be a le-
gal tender at their face value without in
terest, II also authorizes the redemption
and cancellation of any Treasury notes or
United States notes Heretofore iesued
under authority of previous acts, and sub.
stitution therefor an equal amount or
Treasury notes such as authorized by the
second section, or other United States
notes, The power being thus given to
make new loan of $400 000,0 GOO and to
issue bonds and Treasury notes 10, Nand
also to redeem and cancel old Treasury
notes, and United States notes Issued and
outstanding under all the many laws
which had been enacted since 1861, and
to issue in their stead new Treasury notes
and new United States notes without
having specified any limit as to the
amount, the law proceeds: provided
that the total amount of bonds and Trea'
sury notes authorized by the first and
second sections of this act shall not ex-
ceed $400,000000, in addition to the
amounts heretofore issued, nor shall the
total amount of United States notes, is.
sued. or to be issued, ever exceed $4OO,-
100000 and such additional sum not ex.
ceeding $50,000000 as may be temporari'
ly required for the redemption of tempo
rary loan."
Neither the circumstances, the subject,
the language nor the power indicate any
intention to pledge the public faith or
to make contract with the money'lend'
ers.
/. The Limitation of the legal.tenders
has no relation whatsoever to the new
loan.
2. The war was fragrant; the success
of the Federal arms had not been great;
peace did not appear to be near; the ex'
penses were more than million day.
No Administration would, have been
willing to limit its resources.
s. The subject was the borrowing of
money, providing ''the sinews Of war;
obtaining the vital means of making
either war or peace, or even of holding
the Government together. GreenbaCks
had been found the most efficient means
Of borrowing money. No Administration
would have been willing to make con-
tract that 1t would not borrow money, or
would not use the most effective means
Of doing 30. ,..
4. And, if willing, no Administration
had the power to barter away, to sell any
great governmental power vital to the ex-
istenCe of the Government, 80 that a sue
ceeding Administration should not have
the powers vested in the Government by
the Constitution.
Congress shall have power to raise and
support armies, to borrow money. One
Congress cannot sell, bargain away, limit,
impair these powers, or the means to
their effective exercise which are grant
ed by the Constitution equally to each
Congress. ~
5. The language Of the act, when taken
In connection with the other provisions,
Is clearly mandatory upon the officers of
the Treasury. 1t forbids them to issue,
under authority of this act, more green
backs than will, when added to the
aTOunt authorized and outstanding un-
der previous acts, amount to $4,000 600
and an additional $50,000000 for tempo
rary purposes. II does not limit the power
of the Government to authorize another
and fuller issue.
deny that the most sensitive aud del
cate honor could hold this pledge of
faith or contract in any sense. 1t might
be claimed to be good rule of action and
therefore proper to be followed; but that
Is family dispute with which outsiders,
creditors, bondholders, have nothing
to do. That argument we would meet
when it is admitted there is nothing
else.
To whom was it a pledge2 What con
sideration did they give? Your bonds
were being sacrificed at q rate 80 low
that the coin interest made every Capi-
talist in Europe eager to get them. Your
greenbaCks circulated 80 freely that, not
withstanding the destruction of capital
and enterprises by war, the volume Of
business was meyer greater. Besides,
they were legal tender-they paid debts
and tsxes-the active and busy men
were eager for them the capitalists and
creditors were Obliged to receive them.
But if it were pledge, it vas given to
the bondholder, and intended for his
benefit. Why2 Because he had taken
his fve-twenty bonds and they were pay
able in legal tender paper. He was in
vited to take more bonds payable in the
same way. Perhaps some may have
thought it would give greater credit tothe
new loan, If the legal tender paper in |
which the principal was payable, should |
be limited. But if that was the true in.
tention of the act, the pledge was more
than redeemed by the law Of 1869 making |
those bonds-all the bonds-payable in |
coin.
But, seriously, does any man pretend |
that either bonds or notes were taken |
on the faith of that assumed pledge |
Does any man pretend that in war, in |
peace, in the changing of exigencies of
affairs under whatever stress of diff.
Guilty, or danger, the GoVerement can |
never issue more than the specified |
number of greenbaCks without dshonor?
CONsTITUTIoNALITY OF GREENBACKs.
Beware how you permit statements to
be msgniied into pledges and promises.
Weare also told that greehbaCks issued
In time Of war only are constitutional /;
that this is the decision of the Supreme
Court of the United States, and that this
tribunal would declare all others unCon-
stituhonal What the Court will hereaf-
ter hold, l do not care to predict. What
it has held know. And as to this there
ts.su egregious mistake, 30 often repeat
ed as to be in many quarters believ-
ed. Once for all, l desire to correct it.
1t is not necessary to admit that the de-
cisicn is altogether or in any degree cor
rect.
/ dissent myself from the extent and
scope of the argument, and from the lati-
tudinsrian views of the powers granted,
and therefore enjoyed by the Federal
Government. Let us, however, be can.
did and ingenious enough 10 determine