Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-08-12
The \. Il. &. of Finance.

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NorEs EQrALLY Coon At ALL PLACES.
No bad note ha, been used as money in any
part of this land since January /. That was
never the case until thi, wear, since the Amer
lean Colonies first had a being and cursed
themselves by the issue of bad notes. After
them the Continental Congress tried to make
its rotes good bv "fat." Ii enacted that if
any man refused to take those notes. he
should be treated rs an enemy of his country
and an outlaw Men did not refuse. But
-four became worth 500 barrel and salt so
a bushel, and the Continental paper was fund
cd al last at the rate of one rent on the dol
lar. Then for seventy years notes Of State
banks flooded the country and robbed the
people The civil war brought with it legal
tenders worth less than forty cents on the
dollar. Since it closed. for nearly fourteen
years, we have been dealing in a money the
worth of which changed from day to day.
Never, until this year, have the people been
free from bondage To bad money. To-day
every note is good and alike good in every
part of the land.
How great this change is few men know.
More than half the grown men of this day
were too young when State bank-notes went
out of use to have clear idea of their eff
fects. There were as many kinds of money
as there were states, and if some systems
were comparatively good. many were very
bad. Under each system good or bad. there
were banks of all sertS from the best to the
worst. The resulting loss was great in every
part of the country. but the West and South
bore a tax it seems amazing that they en-
dured. Some of the older states. taught h.
early losses, took great care 10 guard against
bad banks and bad money. The East kept
most of its notes good by strict law, sharp
watching and quick redemption. But AT the
West and South banks ran wild. Many
failed; few were quite sound; and the notes
of all were at a discount in the Eastern mark
cts. Eastern dealers could not take Western
money at par for the risk about it was too
high. Yet Il Western man. who gave a bill
or note, might pay in the money current at
his home. In all dealings with him. there
fore. the discount on his bad money was ex-
acted he had to pay more dollars because
his dollars were bad. Thus it came to pass
that the rate of exchange was always heavy
against the West and South, and varied wide
" at different times, or as to different places.
If the only storekeeper in a country dis
trct finds that farmer gives him three
pounds of dirt in every hundred of cotton. or
three bushels of chat in every hundred of
wheat he can give only the price of ninety
seven good pounds or bushels for the one
hundred purchased. If the farmer buys
goods, TO be paid for in that kind of wheat or
cotton, he can get only ninetyseven pounds
of sugar, or ninety-seven yards of cloth,
where good wheat or cotton would buy one
| hundred pounds or yards. The West and
South placed and kept themselves in lust
such plight by using bad money. The
East made them pay, in the rate of exchange
on all bills drawn. "A part of the value of
every bushel of wheat or bale If cotton sold
and an added price on every box of goods
bought, TO cover the risk involved because
| their money was poor. There was no wrong
| in this. Those who chose to nave bad money
| paid for their choice. The East as the only
storekeeper Of the country, could not afford
to take bad money the same as good money.
There was no other cause for the enormous
rates charged at times against some regions.
| Thus in 1888. while the rate against some
| places in Pennsylvania was cents on the dol
! lar. ii was \ to cents against Virginia, 3
! to against North Carolina, 3 to II against
South Carolina, to 10 against Georgia
| to 20 against Alabama, ) to II against
Louisiana outside of New Orleans II to 80
against Mississippi ~ to 30 against Ten
nessee, to against Kentucky, > to J
| against lnulaNa ana ILLINOIS. ana 10 cents
| on the dollar against Ohio Nowonder "hard
times" lasted long when producers had to paw
| such rates Yet this tax to cover risk and
| loss by bad money scarcely ever averaged less
| than to 1 cents on the dollars, which was
! charged in 1889. Even at this rate the cost to
| the West and South was enormous. Not less
| than 81 900 600 900 is now drawn in exchange
each year by the West and South upon the
East; at the rate of 1859 the tax" would he
| from SIC, 600 900 to $50 000. 900 yearly
/ Though traffic was smaller before the war
| the rate in many years was much higher
! Daring the seventy years before the war. who
can tell how large a sum the West and South
! paid for the luxury OF having poor money?
Now, for the first time since the Western
| aud Soptho States were settled. thew pay not
| one cent Of tax because of any iufcrioritv in
! the money they use Their money is precise
/, as eoos a. tl,a; Vi NvS .vti; III Boston
| The trihins rate Of exchange now charged is
| barely enough to cover the cost Of shipping
currency from one point to another The use
of money that is equally good in all States
is worth to the West and South alone. at
| $50 900 900 n year-morc than their share of
the interest on the whole public debt.
But the whole country also gains. 70 the
people of every section there was a constant
! loss by the use os money that WAS in no two
! places of the same value, never and nowhere
| quite good, and at most places and nearly all
/ the time very bad. Who can compute the
! mere cost of detectors and the waste of time
in searching them for every strange note?
| The sharpcst bankers and dealers lost some.
! thing every year by taking bad notes. One
| keen business man keptthe bad notes taken by
| him for five years before the war. They made
| aroll as thick as a mans ann. aud pretended to
/ be worth more than small farm. BY far the
| greater part of the loss fell upon the millions
| of workingmen and plain people, who had
small chance to protect themselves. Some
j lost money bv counterfcits. some nv notes of