The Portland daily press., 1879-09-08
MONDAY MORNING, SEPTEMBER s.
Boston journal.
Fiat-Money Decisions.

There is apparently no end to the delusons
and fallacies which weak minds wrestling with
problems of finance, may originate; and one
hardly knows which is the more to be Won
dered at, the fertility which marks the pro-
duction of these crazy theories, or the vehe-
mence with which they are championed. The
convention of the National Greenback Labor
party in New York last week, for instance,
formulated declaration of principles which,
If they cannot be called original are at least
audacious and intensely amusing. They de-
mand, among other things, that all the money
of the country, gold silver or paper, shall be
issued by the Government, and that its aggre-
gate volume shall be about 800 per capita;
that the volume of the currency shall be in
creased from time to time sin direct ratio with
the increase in the business and population of
the country" and that "all new issues of pa
per money shall be used to cancel the interest
bearing debt of the nation, to promote needed
public improvements and to pay current ex-
penses." Here are three charming theories:
First that the volume of currency should be
regulated by the population, whether men,
women or children, producers or consumers, in
business or out of it, SO that for population OF
forty-ive millions a currency OF oO,0oo,O00
would be needed; second, that for every baby
that is born, and for every immigrant who
lands the Government should issue a $50 note;
and third, that the quickest way to
''cancel' an interest bearing debt is
to "pay" it in Notwithstanding de-
mand notes. This last it may be remembered,
was the theory of that eminent fnancier, Mr.
Wilkins Micawber. If that estimable gentle
man were living in this country at the present
time, he would probably be the Greenback
candidate for the Presidency. If the proposed
ratio for the increase of the currency were
adopted it would have depressing effect on
the Malthusians; and it might be said there
after that babies were born, not indeed, with
''silver spoons but with $50 greenbacks in
their mouths.
1t is, of course, quite superfluous to urge
that such copious issues of paper money as the
New York Greenbackers clamor for, would
stay in the country, because no one outside OF
the country would give more than three cents
q pound for them, and that gold and silver
would speedily betake themselves TO countries
whose financial policy was steadier, though less
diverting. Commercial isolation would be the
inevitable and logical consequence OF Green.
backism. But the Arkansas Vice President OF
the Southern Cotton-planterS Association, Mr..
S. r. Cockrill, publishes in the Little Rock
Daily Gazette, and that journal indorses,
theory which goes little ahead of the New
York Greenbackers. Mr.. Cockrill says:
"The circulating medium must be paper. The
South must have its own paper; issued by its own
banks; anc managed by its own directors. We
want it at home; don't want it to 60 out of the
Confederacy-never to cross the Ohio river We
promise to redeem it on demand in silver. We
found it cotton plantations and cotton bales and
the intelligence and integrity of the Confederate
bankers. We propose to send out cotton bales, and
bring home silver dollars annually. We know then
we can redeem the promise to pay on demand.
Combine the cotton growers, combine the cotton
plantations combine the cotton bales, and make our
own money good among ourselves, and as 1t will
not go to the North they have right to complain
This requires combined move Congress"
For national commercial isolation this de-
lightful proposition would substitute sectional
isolation, being grounded on the astounding
delusion that the South can do all its business
satisfactorily v it'll sectional currency, which
is mot to go out of the Confederacy, not to
cross the Ohio river" 1t was scarcely neces-
sary that so much stress should be laid on this
point; there would certainly be no demand for
such currency north of the Ohio river. But
the fiat-money deluSon reaches even lower
grade than this, and we find Georgia news
paper advocating the reinstatement of Confed-
crate money in that State, by act of the Leg
islature the use of the currency to be confined
to transactions within the State. So we pass from
national to sectional, and from sectional to
State isolation in this wild, fiat-money craze,
and the rest of the descent would be easy, un
til every township should have its own curren-
cy, and indispensable requisite to every
business house should be printing press with
ample supplies of paper and ink for the manu-
facture of money"