The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1878-06-11

! ventlOn that his elder brOtner. VINO
had been acting as administrator OF his
deceased fathers estate. had paid the
heirs in assignats, and that he received
scarcely one three-hundredth part of
| the real value of his share. To meet
cases like this a law was passed estab-
fishing "scale OF proportion" TAX
ing as standard the value of the as
/ signat when there were two billions in
circulation, this law declared that in
/ the payment of debts, one quarter
should be added 10 the amount origin
ally borrowed for every Eve hundred
/ millions added 10 the circulation. In
obedience 20 this law a man who bor-
rowed two thousand francs when there
were two billions in circulation would
have to pay his creditors twenty-five
hundred francs when half n billion
more was added TO the currency and
over thirty thousand francs before the
emissions Of paper reached their final
amount. This brought new evils,
worse il possible than the old.
"But. widespread es these evils
were, they were small compared with
the universal distress. The question
viii naturally be asked, on whom did
this vast depreciation mainly fall at
last? When this currency had sunk 10
about one threc-hundredth part OF it's
nominal value, aud after that to moth
ing, in whose hands was the bulk of il?
The answer ia simple. / will give it in
the exact words Of that thoughtful his
torian from whom have already quot
ed: Before the end OF the end of the
year 1875 the paper money was almost
exclusively IN the hands OF the work
ing classes, employees, and men OF small
means, whose property was not large
enough to invest ia stores OF goods or
goods or national lands. The flnan-
ciers and men OF large means, though
they suffered terribly, were shrewd
enough TO put much of their property
into objects of permanent value. The
working-classes had no such foresight
or skill or means. On them finally
came the great crushing weight OF the
loss. After the first collapse came up
the cries of the starving. Roads aud
bridges were neglected; manufactures
were generally given mp in utter help
lessness. To continue, in the words
OF the historian already cited: "None
felt any confidence in the future in any
respect; none dared TO make an invest
ment for any length Of time, aud il
was accounted folly to curtail the
pleasures OF the moment TO accumulate
or save for an uncertain future
One last attempt was made by the
government TO sustain paper money
The old plates Of the assignat were
broken up, and it was announced that
the former issues were TO be replaced
with new paper money with n new
name which was 10 be "as good as
gold. Whoever spoke against the
new issue was 30 be punished by heavy
fine and imprisonment. In less than
ak months twenty-five hundred mil
lions Of the new paper were issued and
it had sunk below per cent. of its
nominal value. The most infatuated
then could not fail TO see that 10 pur-
sue such a course further was madness.
At once the whole thirty-eight thou.
sand millions were repudiated.
Again / quote from President White:
"The collapse had come at last; the
whole nation was plunged into fnan-
cial distress and debauchery from one
end 70 the other
"To this general distress there was
indeed one exception. In Paris aud in
few OF the greater cities, men, like
Tallien, Of the heartless. debauched,
luxurious, Spectator, contractor, and
stock gambler classes, had risen above
the ruins of the multitudes Of smaller
fortunes. Tallien, one OF the worst OF
the demagogue "reformers, and a cer-
tain number Of men like him. had been
skillful enough 10 become mi,liOnaires,
while their dupes, who had clamored
for issues Of irredeemable paper mon
ey. had become paupeTs.
So slow aud painful was the nations
recovery from the wreck that the les
sons OF that hour have ever since been
remembered by the French people,
Though the terrible strains upon their
fnahces during the Franco German
war compelled temporary suspension
OF specie payments, (as with Us during
the late war;, an early return 20 n con-
vertible currency has been ever kept in
view, aud il already an accomplished
fact. Let us profit by their experience
aud example.
Mr.. Keightly goes into the English
experience with resumption in 1922. at
considerable length, and calls atten-
tion 20 the case as being misrepresent-
ed. Instead Of precipitating hard
| times, as alleged IN some quarters, the
period following the arrangements pre-
paratory for resumption had less fail
ures by 40 per cent. as compared with
the period preceding. Their currency
ever since has been kept convertible 10
specie. They have enjoyed compara-
tive immunity from great commercial
reyulsions, and have well maintained
their position as the most wealthy,
prosperous and powerful Of civilized
nations.
The Bank Of Venice notes are refer
red to as an instance Of the successful
use OF paper money, hut their bills
we're certificates Of SO much bullisn,
| deposited in the banks vault, converti-
ble into the bullion itself at the de-
mand Of the holders.
This country has also had il expert
enco with paper money, the continent
al currency, which sank so low that a
/ Philadelphia barber shop was plaster
ed over with IL, and gave rise 10 the
phrase, descriptive OF anything utterly
/ valueless, mot worth a continental.
Mr.. Keightley gives extensive Quota
! tiOns from MEN who have passed into
history as the American statesmen of
/ broadest views. whose opinions are
most trusted by the people Of this
country. Among those thus quoted
arc Washington, John Adams, Thomas
Jefferson, James Madison, Andrew
Jackson, James Buchanan, Abraham
Lincoln, General Grant, Alexander
Hamilton, VIM. ii. Crawford. (secreta-
~ OF the treasury Salmon z. Chase,
Daniel Webster, Henry Clay, Charles
Sumner, and Horace Greeley, all Of
whom have left the most emphatic ex-
preston against irredeemable paper
currency. Daniel Webster said:
"Of all the contrivances for cheating
the laboriDg classes of mankind, none
has been more effectual than that
which deludes them with paper money.
IL is the most effectual OF inventions
for fertilizing the rich mans field hy
the sweat Of the poor mans brow.
Ordinary tyranny, oppression, exces-
sive taxation Der lightly on the masses
of community, compared with fraudu.
lent currencies aud the robberies com.
mitted by deprecated paper money.
Eve have suffered more from this
cause than from any other cause or ca.
lamity. 10 has killed more men, per-
vnded and corrupted the choicest inter.
ests Of the country more, aud done
more injustice than even the arms aud
articles Of our enemy"
Mr.. Koightley also quotes extensive
. r Al -. a.