The Portland daily press., 1878-09-09
A Catechism In Finance.

What is a government bond? Answer. A
printed obligation of the government to pay
certain number Of dollars with interest.
What is a greenblck? A. government
note promising to pay the bearer one or more
dollars without interest.
What is a dollar? A. An U0ited States
government coin worth one hundred cents.
If man takes up his own note aud gives
new note of his own making for the old note,
is the debt thereby paid? A. 1t is lot, the
obligation is renewed, but not paid.
IT the government takes up one form of its
obligation aud gives another for it, is the debt
thereby paid? A. 1t is not, the obligation to
Day is renewed in aoother form.
Can the government pay its bonds in green
backs? A. 1t cannot, any more than man
can pay his own note by giving a new note for
the old one.
If A. holds BIS note drawing interest at six
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
| proposuon? a. rney would THINK tnat d.
was either fool or knave, and his PROPOSE
| tion the emanaton of a weak-minded or dis
honest man.
greenback being a government note prom
Using to pay dollars, what gives it value? A.
The general belief that the government will
fulfill its promise
Why is the greenback worth more now thau
during the late war of the rebellion? A Be.
cause of the near approach of the time when
the govern ment will fulfill its promise, and the
belief that the government will be able to pay
in coin all of the greenbacks that will be prs-
sented for payment after the first day Of Jam
uary 1879.
greenback ii the governments would receive
them in payment OF custom duties. a. Not
more than from to of a cent on q dollar at
the most.
If during the late war when gresnbscks were
worth thirty.hve cents IN gold coin, the govern
ment bad passed law making them receivable
for custom duties, would that have made
greenbacks worth as much as gold? A. 1t
would not; such q law could have increased
their value but few cents on the dollar at
most.
What will make greenbacks always worth as
much as coin? A. Making them redeemable
in coin on demand.
Cannot it be done in any other msnaer?
Ii cannot for any great length of time.
What is money? A. Coin.
Has not the government the power to make
money by law aud keep it equal with coin.
A. IL has no power to make money of paper,
less it be excbangeable for coin.
Is not greenback money? A. 1t Is not
money; 1t is promise to pay money
Is not greenback just as good as coin IL
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 necessarily be at q
discount. greater or less, according to circum-
stances.
Is there enough paper currency in the coun-
try? There is.
How can we tell when there is too much
paper currency in the country? A. When
there is no coin in circulation it Is an indica-
ton that there is too much paper sfiost.
When there is too much paper in circulation it
becomes deprecated 10 value below coin, and
the coin is boarded.
Why did the Government pass q law refus-
ing to accept greenbacks and demanding pay
the Government needed the coin to pay the in
terest on its bonds, and this was the simplest
aud easiest way to get it. Aud Congress dur
ing the war did not want to place itself at the
mercy OF the gold gamblers every time its pay
ments of interest were due.
Why not pay the interest on the Governments
bonds in greenbacks? A. Because greenbacks
are not money, aud the Government must In
the end pay money for its obligations, both prin-
cipal and interest. Ii cannot honestly forever
refuse to pay Its obligations and continue
exchanging one obligation for another, for all
time.
IL Tue ndtlOnal banking system was ueslrOyeu
and the Government issued all the paper cur
rency of the country, the amount being equal
to that of its bonds issued since the commence
ment of the late civil war, what would be the
result? A. The country would be flooded with
deprecated paper, prices of everything would
te unsettled, confidence and credit would be
destroyed fortunes would be made and lost on
paper, all coin would be boarded, and all shrewd
business men would prepare for the final crash
which would be inevitable sooner or later.
Why is not a greenback based on the re-
sources of the nation the best paper currency
in the world? A. Because it is based simply
on the policy and will of political parties in
Congress assembled, and in the event of the
policy Of Congress being controlled by those
who once fought to destroy the country, the
value of the greenback would be greatly i'm
perlled, and might be destroyed, by adverse
legislation.
Why have so many honest people adopted
the greenback or National" scheme concern
ing national finances? A. Because they have
not thoroughly examined the other side Of the
uupsti0n