Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1878-08-01
How More Greenbacks" Affect the Rich
and the Poor.


One Of the eommonest claims OF the ad-
vocates OF the Greenback heresy Is that an
iunatiou Of the currency Is for the advan-
tage Of the poor man aud works against an
unequal accumulation and distribution Of
riches. II ia indeed upon this ground that
the Nationals base their sppeal to the me-
chAnic and the farmer. Now the logic Of
facts Ia conspicuously against this claim.
An inflated paper currency tends. to use
the compact and forcible statement of Ben
ton. to sggravate the inequality OF Tor
tunes. to make the rich richer and the poor
poorer" That IL the lesson of history.
That 10 the experience of all nations who
have tried the experiment. We zee IL ia
our history since the opening OF the civil
war. There IL today far greater inequal-
nv Of fortune Ia this counfry than existed
before the war. The number OF poor men
has alarmingiy Increased. while wealthy
men have greatly added to their posses
sions. II Is asserted with great plsusibilry
thu, the landed property of the country is
passing from the hands of The many to the
hands OF the few. That is direct result
OF an inflated aud irredeemable paper cur
rebcy. Yet the Nationals would have us
continue this condition Of affairs. 10 further
initiate the currency, and thus 10 sggravate
our bad estate.
That upon the poor man must fall the
loss resulting from the use OF an inst able
standard OF value IL practically demonstrs-
Bile. suppose Congress on r-ass-mbling
next December should Yield N the demand
OF the Nationals should repeal the resump-
ton act snd should issue n hundred mil
lions or more, OF greenbscks. How would
this imitation OF the currency affect the rich
maa and the poor mani The rich man,
k.u 81. 81. 49,.
soon rise and that the purchasing value OF
the yreenback will decrease. 1T once takes
advantage OF the fluctuations In value which
are sure TO come. lie 81 once calls In with
rigorous severity all the money due him.
He has to do this Ia save himself. for he
sees that the hundred dollars owed him by
his neighbor will not buy 80 much, that Is
will not be worth so much, by third or
half In few months. lie knows that the
prices of all articles will 90 up and that his
money to-day will purchase far more than
II VIII year hence, SO In order to avoid
depreciation he calls II In. Then, with this
and the money he has on hand. he invests
largely In all articles OF necessity. He fore
sees that thing worth fifty dollars now
will probably sell for q hu ndred dollars In
six months. He Is rich. he Is not COMPEL
ed TO sell his possessions. he can hold on
TO his goods until they have doubled IN
price, or buy and wal, FOR rise. Or II he
chooses, he can contract large liabilities.
put part OF the money thus gained In gov
ernment securities which he buys at low
figures because OF the depreciation OF gov
eminent credit. but which will rise In value
rs that credit improves. pay of IN. liabili-
ties IN money of less value (for the paper
money Is steadily depreciating) tn,n that
In which he contrscts.-snd then ~si,.
Having enough to live upon. he can afford
to wait :nd only cell at great advance.
In the end he multiplies his riches many
fold.
How IL Il with the poor mani The Ia
borer for time get the same age. for hts
work. hui the cn.t uf il,Iuy -f,Adi'x .o.-
up. lie pays more tor all lac eat. and
wears. but receives no more. His expenses
increase while his Income is the same. The
only thing lac has 10 dispose of is his labor.
and he cannot afford To wait. like the rich
man. until the price o. what he holds al
vances. He must work or starye. If Lr
has been fortunate or frugal enough 10 lay
something away he perhaps has to draw
upon his Accommodations 10 pay his living
expenses. Or If he can leave those accu-
mutations untouched they depreciate on
bis hands. The sum he put BY was perhaps
sufficient 10 build him lille house or buy
him 4 small farm. But prices of everything
rise so that he hnds when he SEEKS to use
his money |. will scarcely buy an acre OF
land or build q wood-shed. Amer a time
his wages may advance. hut never So fast
as his living expenses; and all the time the
money he may save Is losing Ia put chasing
power. II will no. buy so much next year
AS II did this. nor SO much two years a. IL
can one year hence. Thus while the rich
man is constantly growing richer the poor
man Is constantly growing poorer.
Finally the crash comes, A. Il always does
come. What I. the resuliY The employer.
the rich man who finds his sales diminish
Ing and his profits shrinking. at hrst cuts
down the price OF labor-a and his while The
price OF hving Is full a. great. That loss
falls upon the Door men, thoss employed.
Then the employer. alarmed at the lessen
Ing profits, goes out OF business altogether.
He can do this. for be has q surplus To live
upon until business revives. He discharges
his workmen. And his workman Is the
poor man with no surplus who depends
upon his daily work for his daily bread.
There is no work for him, and he is len TO
stsrve. He cannot wait for better times.
Tha. IS the story Of irredeemsbe paper
money. As IL has been told Ia this country
duriSg tie last few years. Does the poor
man wish TO have Il repeatedf Is IL for his
interest 10 have another Imitation Of paper
cur'sticy, or 10 return 10 the good old times
OF stable prices and fxed rewards for lab
orr Portland Prss.