The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1880-02-12
LETTER FROM Hon. J. R. CHALMERS,
What Is Democracy and Who Are
Democrats ?

edited by gentleman who has, or imagine
he has, cause Of grievance against mi
growing out of our disagreements during tn
war, and never fails to abuse me in his pape
when he has decent excuse. He recently as
sailed me for my position on the silver dolla
question, and this lead to o reply from
Democratic friend of mine, headed "What /
Democracy, and Who are the Democrats? ?"
This is a most pertinent inquiry now, no
only in regard to the silver question, but ais
upon the question Of paper money to be use'
in the transaction of financial and commercia
affairs.
By paper money do not mean forced
legal-tender, but Treasury notes, which shal
be receivable for all public dues, and which in
dividuals can take or not, as they see proper
for their individual debts.
The greatquestions which are now troubling
the minds of men, and upon which parties
will soon be compelled to divide, are
l. Shall we have silver or gold standard
of valued
2. Shall the paper money Of the country be
furnished the United States Government OF
by National Banks2
Upon the first question do not care to say
more than have. l do not think any sane
man will say the old Democratic fathers did
not favor the silver dollar Of 412L grains.
But men in high places have asserted that
in order to return to the old Democratic faith
we must advocate coinage by the govern
ment of mstalic money alone, and we must
look to bank corporations for paper money
necessary for the business of the country. The
best way to settle this question is to turn to
the record and see what the Democratic IA
theirs have said and practised.
Mr.. Gallatin was Secretary of the Treasury
from 1901 to 1918. He declared that Treasury
notes were as good as coin, and appealed to
Congress for power to issue them in small
denominations. (See his reports, vol. /. p.
469-89 and 503.) Mr.. Campbell succeeded Mr..
Gallatin in the Treasury, and in accordance
with recommendations from him and Mr.. JEFF
ferson, $2500000O in Treasury notes were
issued in 1913.
Dir. Jefferson was clear and emphatic in his
declarations as to tbs power and duty of the
government to issue Treasury notes, and
equally emphatic against what he called "the
useless usurious and demoralizing practices
of bank directors and their accomplices," and
we call especial attention to this declaration
of his. "Bank paper must be suppressed and
the circulating medium must be restored to
the government whore it belongs. 1t is the
only fund on which they can rely for loans;
it is the only recourse which can never fail
them and it isan abundant one for every
purpose" But l give bis opinions at length
on this subject:
OPINIONS OF THOMAS JEFFERSON IN 1913. HIS
LETTERS TO JOHN W. EBPs-LETTER JUNE "a
8l3-(JEFFERsoN's WORKS, VOL. VI, PIP.
40, 41.)
~And so the nation may continue to issue its
bills as far as its wants require, and the limits
Of the circulation will admit. Those limits are
understood to extend with US at present to two
hundred millions of dollars, greater sum than
would be necessary for any war But this,
the only resource which the government could
command with certainty, the States have un-
fortunately fooled away, nay, cofEuptiy alien
ated to swindlers and shavers, under the Gov
er of private banks. Say, too, as an addition
al evil, that the disposal funds of individuals
to this great amount, have thus been Withdrawn
from Improvement and useful enterprise; and
employed in the useless, usurious and demor-
alizing practices of bank directors and their
accomplices In the war OF 100, our state
awaited itself of this fund by issuing paper
money. bottomed on specific tax for its re-
denption, and to insure its credit, bearing an
interest of per cent Within very short
time. not a bill of this emission was to be
found in circulation. 1t was locked up in the |
chests of executors, guardians, widows, farm |
ers &c. We then issued bills, bottomed on a
redeeming tax, but bearing no interest. These
were readily received and never deprecated
a single farthing. In the Revolutionary war,
tho old Congress and the States issued bills
without interest and withoutta They occu-
MED the channels of circulation very freely, |
hi those channels were overfowed by an eK- |
cess beyond all the calls of circulation. But al
though we have 90 improvidently suffered the
field of circulating medium to be flched from
ms by private individuals, yet l think we may
recover it in part, and even in the whole, If
the States will cooperate with US.
"If Treasury bills are emitted on tax APP |
,,ronriated for their redemption in fifteen |
years. and Ito insure preference in the 1rst
moments of competition) bearing an interest
Of & ner cent, there is no one who would not
take them in preference to the bank paper now
afoat, on principle of patriotism as well as
interest; anu they would Re Withdrawn IRON
circulation into private boards to consider
able amount. Their credit once established,
others might be omitted, bottomed also on
tax, but not bearing interest ana II ever
their credit faltered, open pubic loans on
which these bills alone should De teseiFeu ss
specfe, These, operating as sinking 1apa,
would reduce the quantity in CIRCULATION, 50
as to maintain that in an equilibrium with
specie. It is not easy to estimate the opsta-
cles which, in the beginning, we should en-
countar in oustinz the banks from their pos
session of the circulation; but steady and
iudieious alteration Of emissions and loans,
would reduce them in time. But Ehile this Is
going on. another measure should be pressed
n recover ultimately our right to the circuls-
.lation.. The States should be applied TO. 10
transfer the right of issuing circulating paper
20 Congress exclusively, in perpetuam, II pos
sible. but during the war at least, with q saw
Ing Of charter rights. l believe that every
Stete west and south Of Connecticut FlYer,
exeept Delaware, would Immediately do it,
and The others would follow in time. Congress
would. Of course, begin by obliging unehar-
/, cred banks to wind up their affairs within
~ art time. and the others as their charters
s1n, red fsrbidding the subsequent circulation
AZ the ir paper This they would supply WITH
tba;- -. n. bottomed. every emission, on an
adsouste tar, and bearing or not bearing IN
sereat as the state Of the public pulse may IN
s;cs1s Even> in the nOn-complying states,
fbese hiiis STopld make their way, and sup
Mani ~. nnfoup, ted paper Of their banks BY
ihsir soi;Sitv bv The universally Of their
currency c,1 and BY their receivability for Gus
toms M aaxes. It wo5ld be IN their power.
: - n the amount oil Il