Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-07-08
Currency Catechism.
AMERICAN VOTERS ARE INVITED TO READ AND
THINK OF 1T.

AMEkltAN ' OlEhs AXE Invited III MEAD AND
THINK OF 1T.
Question.-Why was the gieenback or legal
tender dollar issued
Answer.-lo defend the American Union
az ainst armed traitors.
Q.-Were the first grecnbacks a legal tenderi
A.-Ihey were not for seven months after the
law authorizing them had passed.
Odd these earliest greenbacks, called "de-
ma I'd notes." fall below coin in value
A.-Ihey did not, bat were always equal to
coiu at the treasury, Oh for the payment Of TAT if
duties.
Q-Is it necessary to make paper currency e-
ga tender, in order to give it circulation at par
value
Att is not. The old United States bank
notes were of uniform value with coin through
out the land, and the present national. bank bills
are now of tue same value, yet neither OF them
have ever been legal tender from man to man.
Q-.What was the proiessed reason for making
the second issue of greenbacks a legal tender
A.-Io enable the government to raise the sim
cws OF war, by forcing its promissory notes on
the soldiers, contractors, and all others from whom
It needed services or supplies
Q.-Was their provision made in the legal ten
del law for the payment or redemption of this
currency
Ayes. The law expressly stated that it was
issued for temporary purposes" only, and provi-
ed that 1t should be exchangeabe for United
States six per cent. bonds and Ivable for all
loans made to the United States.
Q.-Was this promise made by the government
A.-No. The exchangeabiiIty of legsl-tender
notes for six per cent. bonds was forbidden after
july 4, 1868.
Q.-What was the effect of this limitations
A.-To crowd down the value of our paper cur
rency that it fell from about rs cents on the
dollar in July, 1868, to 50 cents the dollar one
year afterwards.
Q.-ls 1t necessary to have coin basis for our
currency
Ayes, SO long we trade with countries
which have that bass. Our annual export and
mpor, trade with snch countries averages more
than S3,000,0oO, for every day in the year. We
cannot hold our own, much less make profit on
this trade, unless the measure of value which we
use agrees with their measure of value.
Q-What has made England the richest nation
in Inc world IN money capital
A.-rhe perfect stability of her financial svs-
em. All values for several centuries have been
reckoned wholly in coin.
Q.-Can the United States wrest this financial
supremacy from Great Britain
Ayes, If we adopt an unvarying standard of
money value. We have a vastly larger territory,
more productive soil, greater variety Of staples
a more inventive and enerprlsng people, cheaper
food, cheaper materials for clothing, more abun-
dant coal and iron, and large quantities of gold
and silver LINED within our own borders.
Q.-What is needed to make the United States
he imperial business nation OF the world'
A perfectly stable monetary sy stem, where
he planned and calculated with a certainty that
the cash results will neither shrink nor swell.
rhe profit of one farthing yard on cloth is
enough TO keep British mills in motion; but if
then currency was liable to shrink two tarthlugs
before the cloth could be sold. hundreds of mills
would stand still.
Q.-ls it just for the government to pay interest
on money borrowed for its benefit
Ayes, the same As to pay wages to soldiers
and officers or to pay Tor their meat, bread, cloth
ing, and weapons, or to pay for the carrying OF
mails, or the printing OF its advertisements or the
building of its public edl6ces, or anything else
which 1t requires. The government ought to paw
Interest on money just rs much as individuals or
firms pay It, There is no moral difference be-
tween 50,0OO,OOO people and one person, when
they take away your property.
Q-Coud the government have ever been es-
tablIshed or preserved without the power to bor-
row money
A.-No, and this power Is expressly given in
the federal constitution.
Q.-Could money have been borrowed without
the promise OF the government to pay interest on
A.-No, for this would deprive man of his
property without just Compensation, which is for
hidden 10 the constitution.
Q.-Whst Is the basis of credit
A-COntdenCe.
Q--liow is confidence gained!
A.-By the fulfllment Of agreements
Q-Can a government ever secure good credt
without fulfilling its agreements.
A.--No.
Q-Hss the United States government ever
been without credit
Ayes, during the revolutionary war
Q-What happened them
A.-The government had issued so many paper
promises that they sank into worthessness. Moth
ing could he borrowed and our troops were starry
ing to death. Robert Morris, Philadelphia mer-
chant Pledged his own credit for vast sums, raised
supplies for the government, and enabled it to
gain our liberties.
Q-l4 it not therefore nonsense to talk about
government creating" money value by its
mere fiat" or law
Alt IS. The simple promise Of one man was
worth more 10 an emergency than all the pledges
which the thirteen United States could give.
GLOW then shall we re establish confidence
and prosperity
A.-By an exact fulGllment of all the promises
and Bargains which the United States has ever
made, to the end that individuals can form their
business plans and be sure the finances will not
be disordered OF the currency shrveled up in
! their hands.
Q.-Did any nation ever flourish permanently
on paper currency which was not convertible
INTO colo at the will of the holderi
| A'-NeYer, but many nations have fallen into
rum by Issuing lrredeemable paper notes.
u" hat did Abraham Lincoln say of our cur
lency IN one of his annual messages
A.-"A return TO specie payment at the earliest
period compatible with due regard to all interests
concerned should ever I've kept in view Fuctu.
stiohs III the value OF currency are always in
Ilunous. and to reduce these fluctuations to the
lowest possible point will always be aiding pur
pose in wise legislation. Convertibility, prompt
and certain convertibility into coin, is &C.
knowledged TO be the best and surest safe guard
| against them"
Q-What did Andrew Jackson say on the
same subiecti
A.-"lhere never was Ror never could be use
for any other kind Of currency than is redeemable
10 specie, except for speculstois and gamblers In
stQs nsaad this TO the utter ruin of the labor and