The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1879-08-07
THE LEGAL-TENpER.

Every legal-tender bears on its face these
words, "The United States will pay to bearer
One Dollar or more. That is promise of the
people. In resumption they are keeping that
promise. The bit of paper is a note, and re-
sumption is its payment The people pay be-
cause years ago they borrowed from individu-
ais gold or its equivalent in bread or bacon,
clothing or Shoes tents or medicines, iron,
lead or powder, or other things for the defence
of the Nation. If the original lender sold the
note, another person advanced to him the val
ue due, having faith that the people would yet
repay in full. So the note passed from hand to
hand, at each transfer some new person ac
cepting the claim against the people in place of
the property or value paid over to the previous
holder 1t passed because the people had de-
clared, by formal act of their Congress during
the war, that they would pay what they had
borrowed. In the Act of March, 1869, they re-
peated the solemn pledge Of the public faith,
though not ready to begin paying or to fix
day. In the Resumption Act of January, 1875,
they fixed a day, and gave a solemn pledge
that after January 1, 1879, the United States
would redeem any of its notes, if presented in
sums of not less than $50, at the Treasury in
this city. When resumption came, the people
began to pay back those who had trusted their
promises. Redemption of a note at the Treas
ury is really payment for the food, clothing
and arms sent to the soldiers who ceased fight
ing fourteen years ago. Behind each note
there is a most sacred debt Refusal to meet it
would be shameless and foolish.
Less than year ago. leading bankers said
they would give $4,000 to have the head of
the line at the Treasury doors on the day of
resumption. Because the Government had in
hand less cash than it owed, they thought its
store would be quickly drawn out. But before
the day came, the Government had made its
notes so good that few holders wished to be
paid. In four months from January |, only
-, ,125, ,512 in notes was handed in for payment,
while "a ,194, ,1S5 in coin was deposited at the
same office in exchange for notes taken out.
For four months, the desire to obtain notes for
use instead of gold was quite as great as the
desire to get gold in payment for notes held.
Yet If payment OF one note had been refused,
the deposit of gold would have ceased instant
ly, the demand for payment would at once
have grown beyond all limit, and the notes
would have sold for less than the gold due
thereon. The few who wanted the gold for
notes have been able to get it, and that fact
alone has made all the notes as good as gold to
every holder. Only because the Government
began to pay as it promised, have SO few hold
ers asked to be paid. Only for that reason
have so many holders of coin been glad to lend
it to the Government for notes, and found the
notes more useful than the coin itself. Re
sumption is merely common sense and common
honesty applied to the debts of a people. 1t
means simply good notes instead of bad-notes
that men are glad to keep, instead of notes
that men are anxious to get paid.
Jones and Smith, two farmers, lost their
houses and barns by fire, with their grain and
Ioxy +hair NIL aud
had to borrow money materials and help to
rebuild houses and barns, to buy implements
and cattle on credit, and even to borrow food
through the long winter, and grain for seed.
In due time new crops gave them some means
OF payment. Jones began at once to repay,
with the interest agreed, whatever he had
borrowed. But because he was ready to paw,
others were ready to trust. If some took back
the borrowed grain, others, not needing it
them left it to be repaid ON demand If some
received their money for things sold or work
done, others preferred to take notes with in
terest. If he wanted more money, many were
ready to lend, for he kept his honor brig ght and
his credit good. That was resumption; every
creditor was satisfied; But Smith, though
equally able to pay, held back. His creditors
must wait, he said, until he could spare enough
to pay all alike. His promises, he insisted
ought to be as good as cash to anybody Pres
emily a neighbor needed wheat or money in
stead of promise, but asked in vain Then
every creditor pressed hotly for payment. Men
began to doubt, and would lend no more
Notes were offered in settlement, but were
taken only at ruinous rates. So he went from
bad to worse. One poor crop made an end of
it; the sheriff seized his land, and Smith went
up and down railing at the ''money sharks"
the 'gold-bugs" and the "bloated bond-hold-
ers.'
If the people pay in good faith as soon as they
can and as far as they can, their notes become
good, and holders are glad to keep them. Re-
sumption does not abolish United States notes.