The daily intelligencer. [volume] (Seattle, Wash. Territory [i.e. Wash.]) 1876-1881, 1878-03-30
DAVID HIGGINS.
Official Press Of King County.
Saturday, March 80. 1878.
SUBSTANCE AND SHADOW
OF WEALTH.

Of WEAAl II
A correspondent whose communica-
ton on the financial question appears
Ia another column. seems disposed to
take issue with our views as expressed
last Tuesday. though rather in seeming
than in reality. In his article he ap-
pears 10 have tilt at both sides of the
question at once, but a, his aim evil
IDENTIFY is rather to elicit light on the
subject than to c0ntrovert or estab-
lsh any positions or opinions in
particular, We do not mind ventila-
ting the matter to some further extent.
First-That the Government should
not exchange the greenbscks which
hear no interest for interest bearing
bonds. To begin with. unless the peo-
pie knew their greenbacks we're as
good as gold. and could be exchanged
for it. they would not have them, Re-
move from them the possibility. or
rather the certainty. of their collecta-
bility in coin, and you knock away all
tho foundation that sustains them.
They would ut once lose tho high esti-
nation in which they are held, and be
refused everywhere. unless at the paper
mills. As long as their issue is SO limit
od and their value and actual convert
bility 40 we'll secured as to make them
practically current at par, or nearly so,
Us is actually the case now. there 10 no
occasion for retiring any of them. But
If their appreciation and steadiness are
due to the Governments agreement
through legislative enactment for their
cash redemption nine months from now,
tho effects of going back OH that order
might he disastrous. That IS just the
point. The certainty of their ultimate
redemptibility is all that sustains them.
Next, we hold that if the said bonds
were authorized, they could not absorb
all the greenbacks if the people needed
them for currency. Those who required
the money to meet their payments
would not lock them up in bonds, be-
cause they could not spare them. In
effect. the arrangement would retire
only the idle surplus that might collect
in the hands of accumulators, to be, un-
less thus converted, a mischievous fac
tor of fluctuation and depreciation upon
the currency. The greenbaoks. both
treasury and national bank notes,
ought to be redeemed in gold aud silver
as rapidly as the specie can be accumu-
lated for the purpose, without detri-
ment to the interests of commerce.
Meanwhile provision should be made
for the concurrent absorption of the
former class by interest bearing bonds.
The 'lisuse of tho precious metals in
tho United States as money has caused
their acknowledgements into articles
of luxury and show. Their use rs
money will call them out again. Not
even the Government can make a mere
shadow simnlacrum, to be a thing
of real value by merely stamping it so.
A dollar is not dollar unless it is &C.
tually worth dollar. either in intrin-
sic value or for use-that is, able to buy
u dollars worth. or il not wanted to
spend, to earn dollars interest.
Again. the tact that this country does
not produce annually out of the earth
over 800. coo. 900 of gold and silver. or
less than the annual interest, does not
signify. If the interest is payable in
our own country to our own citizens,
the same coin would be used over and
over again. 1t is easy for the govern
ment 10y its power Of discriminating
legislation to get the whole of it taken
in tho United States. II, however, it
is I" he paid abroad. though payable
nominally in gold aud silver. it is not
really SO paid. The whole industrial
product of the nation, in reality stands
in pledge as the security of the national
debt. The governments obligations
are the preferred debts. az against any
other. whether State. county. municipal
or individual. Instead of being limited
TO an annual product of 500, 600, 600,
lthe precious metal yield. as an offset
to current liabilities, We really produce
many thousand millions of dollars
worth yearly. If for every hundred
millions in gold coin that we owe to
England for interest on bonds, they
owe Us tSo hundred millions in like
gold coin for beef, bread. fish, cotton or
what not, where is the embarrassment
2d. As to our statement in the sub
junctive mood thar tue United States
Government might safely authorize
the issue of ten times sc, 600. 000'of cir
culation, based on the credit of the
government if the needs of the people
demanded" the only answer is, that
the government has done so. and such
IS the fact to-day.
Sd. As TO the statement, that the
government conld not hold in bank. or