The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1878-08-28

the greenback platform oil Maine and
read the clause referring to the ma
tional banks and declared himself op-
posed to the doing away with them.
Ii the banks were to close up business
what would become Of investments ?
A worse financial panic would follow
than has been seen for many a day.
The difficulty is a want Of confidence
on the part o. these who have mon
ey. There is money enough, but the
question is what shall be done with
it so that it shall pay INTEREST,"
Mr. Montgomery-Wbe-e is conf
dence in real estate?
Mr.. Boutwell-Real estate is not
convertible in money at any time, es-
pecially at the present time. In 1866
the business of issuing bank notes
was carried on by States and the
general Government had no benefit
from the issue. When the national
banks were established the State
banks ceased. and now the govern
ment derives a revenue from the is
sue of the currency. This was q
cleer gain and was accomplished by
the republican party. The green
hackers say abolish this system and
give US greeabaeks. Here ] should
ike TO ask some one who makes this
cry what the greenback shall be re-
deemed in, if at all? Shall it be
gold or silver, or issued with no pur-
pose 10 redeem them?
Mr.. Montgomery-Suppose they
be redeemed like gold and silver.
Mr.. Boutwell-Which is not at all.
Mr.. Montgomery-They are re-
deemable,
Mr.. Boutwell-In. no place on this
earth is g man bound to redeem a gold
or silver dollar. They represent their
own value.
Mr.. Montgomery-We propose TO
redeem g~reenbacks the same as any
other money.
Mr.. Boutwell, gold dollar rep
resents 80 much value-that is, the
bullion Of which it ia made is actually
worth so much. IL costs labor to
mine it. 1t cannot be created by any
fat. You cannot make it in your
paper mill here nor print il Ia Wash
ington. II bis friend, the questioIer,
wishes to put all this machinery ia
motion then there will be no limit 10
the supply of paper dollars, and the
supply viii be as worthless as it was
in Continental times. There is a
difference between a dollar earned by
hard labor and one made with a
printing press.
Mr.. Montgomory-Will you tell
the difference between e gold and G
paper dollar?
Mr.. Boutwell-Yes, sir. Gold and
silver are money because they have
value in them and there is a limit to
the supply and TO the labor it costs
to produce them. With the 100. 600
printing presses in the country there
is no limit to the supply Of paper cur
rency. Tie effect Of such an increase
Of currency will work on no class as
badly as the poor man. The rich
men will in vest their money carefully
and not keep il, but The laborer's
wages will grow less and less. La
Dor advances last and falls first. No
more fraudulent scheme TO rob the
poor man can be thought of. As to
the payment of the bonds in green
backs. You greenbackers say that
the greenbacks are as good as gold
then why do you claim that the hold
ers CT bonds purchased them with
deprecated money? You are incon-
sistent. You know well enough that
since January, 1862, greenbacks have
not been as good as gold, and no ra-
tional man will claim otherwise.
Many of the bonds were Issued before
the premium on gold was 10 per CEN
half Of them before gold was l2k
Who now deres to risk the reputation
of the country by declaring now that
these bonds shall be paid other than
in coin. The credit of this country
ia what saved her when she was
threatened from enemies within the
camp. By paying in gold instead Of
greenbacks the country has saved
500, 600, 900 already. In 1869 the
six per cent. bonds were selling at
sd per cent. We had an interest
account then Of 1888, 600, 900. ]
thought we should get money cheap
er, and accordingly issued bonds at
lower rates and they were taken, and
six per cent bonds were soon at par /;
500, 900, 600 10 five, four and q half
and four per cent bonds were sold
and 5000, 600 a year saved by reduc-
ing the interest on the public debt.
In 1869 it was voted to pay these
bonds in coin, and was it not a good
thing to do? Does not my friend
Montgomery think so? If he does
not be differs not from the men of the
South who raised their hand against
the country a1d sought It's destruc-
ton. Every scheme which invites a
change is q fraud, | care not under
what name it appears.
Mr.. Montgomery-When did we
promise to pay?
Mr.. Boutwell-The republican, par
~ has declared that it shall ae paid
il coin, aud the holders Of the bonds
never expected that they should be
paid otherwise. five redeem in pa
per and then do not redeem the mon
is not that robbery? Even bond
holders, and they are not all bloated,
have some rights.
Touching the exemption Of bonds
from taxation. be said tn IT the con-
stitution of the United States gave
a right to borrow money
without limit. If States could be al
to tax the bonds Issued ty
Congress to raise money, any one Of
tie States, if hostile TO the measure
for which the money is to be used,
could levy such a high tax on them
as to drive them put of the market
How quickly New York would have
done this during TIE war, or Keutuc-
ky. The power must be supreme 10
The interest is so low
that the government gains considera-
BILE cut Of 1t. In answer to a ques-
ton, be said that the issue OF the
Bland dollar as a legal dollar, while
morally dishonest, was legally honest.
The act Of 1859 justified the issue, bat
was bad policy. Tor It bad a tenden