The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1880-01-09

instantly demand has money Inc panks
would not wait until bill had passed to wind
than up. As soon as the passage Of such
bill seemed certain, they would draw out gold
for notes. man who is crossing railroad
track and sees an engine coming, does not
wait for the engine to strike him before he
Jumps. At once the banks would draw from
the Treasury Sllo,OOO,OC0 in gold for notes
which they hold. The Treasury must pay or
break. This would alarm others, and savings
banks, insurance companies, State and private
banks and private nose-holders by the thou
sand would rush to the Treasury 10 gel gold
for notes Just at this cr,sis. II the bill should
pass. the Treasury is TO begin paying out $780,
600, 900 of now due-bils. Yet it would then
have left, alter the banks alone had drawn
their gold, scarcely s30,oO0,oOo IN specie-not
one tenth enough to redeem the new notes to
be issued. Who would take those notes? Not
one bank In the country. Holders OF bonds to
be paid would refuse notes and demand coin.
Gould the Treasury borrow more coin? After
the Government would find no one to buy its
bonds. In short, the Treasury would be bank
rupt before the execution of the bill could begin
Reputation Is the real aim as we'll as the in
svitable end OF this scheme. II has been viz
tually declared by the Supreme Court that any
issue Of more United States notes in time OF
peace would be unconstitutional. But il the
Nation had the power, it has thrice given a
solemn pledge not to increase the volume OF
legal tender notes. No pledge can be gwen OF
greater Importance to public creditors. To
break it would be an act OF bankruptcy in
itself. Men of the South, who trample upon
pledges made by cities and States, often per-
suado themselves that they have some excuse,
and that the credit OF the State or city ought
not to suffer from thei. act. Yet the terrible
consequences OF reputation come upon them,
as surely as a child gets burned if it puts its
hand into fire. 1t does net help the ch'ld to
cay. Il thought it would not burn" SO it
makes 10 difference what pledge breaking
debtors think or say. Credit 10 the opinion OF
the creditor. If he thinks an act dishonorable.
redt eases to exist No other pledge ever
has or ever can be made with more solemnity
than the pledge gwen in repeated acts or Con
gress, that the volume OF United States notes
should not be increased. Violation of it would
sink the United States to the level OF the State
OF Jefferson Davis. which, for many years, has
found no man rash enough to lend it dollar.
Creditors would see naked reputation in she
act itself, as we'll as sure reputation in lis
eff ects, aud would make haste TO get their
money out OF L nited States securities, just as
men rush 10 bank for their money when 1t
has failed to pay it's notes. Bonds by the mil
lion would be thrown upon the market and
slaughtered. Compared with the financial hur-
ricane which would result, the widest panic
this country has ever seen would be mild and
harmless as an April shower
Everything was full OF life and hope, in that
peaceful and busy New England valley, before
the great dam gave way. When it broke. IN
single hour lofty factories aud humble dwell
ings. long bridges and mighty machinery, were
swept away into utter ruin and lives by The
score were lost. The Public Credit is the great
dam upon which all the prosperity of the coun-
try now depends. Break that, and all trade and
industry go down to ruin together The re-
serves of all banks aud financial institutions
are so largely invested in [ nted States bonds,
as well as the reserves of all capitalists who
stand behind great enterprises, that any seri
Gus fall in the price OF the bonds would sweep
them all away. The savings banks would 60
down, with the earnings which The millions
have stored up for the support of industry
hereafter. Loans OF vast amount made by all
these institutions to manufacturers and mer-
chants. would be suddenly called IN. Hundreds
Of the National banks, IL deprived of circula-
ton, would wind up business, calling in large
part of 30,000000 in loans wli- ,nese banks
stand in such q storm, with contraction by the
hundred millions taking away the very earth be-
meath his feet ? In that New England valley,
no worhpgman was mad enough to tear away,
with his own hands, the dam which gave work
to him, aud safety to his home AMI wife and
children. Yet there are workngmsn who pro-
pose, by their own votes, 10 tear away the pub
lie credit by new lssus Of grsenbacks IN place
OF bank notes.
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