Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1880-10-28
Comments on Godfrey's Treasury
Note Article.

Mp, EDITOR MIR. Godfrey IN his
article on theory and history of
Treasury Notes, says the funda-
mental idea of the Greenback move
ment is to moneiize the claim of
the government upon the property
of its citizens.
l5 must be admitted that sound
financial base would be that rule of
action on the part of the govern
ment which Its laws insist upon in
the transaction of business between
one citizen and another. Therefore
the government has no right to owe
a debt without paying a proper per
centum for the use Of money to
liquidate that debt, and very rea.
sonable rate of interest should be
allowed on account of the immense
risk which the banks take of re.
pudiation. The property of no citi-
zen can be sold under execution to
pfy the debts of the government.
Consequently the banks are with.
out security except the plighted
faith of Congress, whose majority
may change Every two years, and
which is of very little account at
best in these corrupt times.
1t is not necessary as he imsgines
that we must reduce ourselves back
to barbarism and use nothing but
gold or silver. We are not doing
that, and still the people are salts
fed Except few greenbackers),
for business moves along regulated
as much as may be, on account of
stock gambling, by the laws of sup
ply and demand. The purpose of
the greenback party to increase val
ues beyond that of supply and de-
mand by the abundant issue of
cheap money, thereby weakening
the credit of the government at
home and abroad is corrupt and the
result would be just what he wishes
to avoid--a panic-such as we ex.
perienced in getting to our present
solid position, for we have hal no
panic to make a general commotion
since the resumption of specie pay
ments took place.
His argument against banks of
issue seems very untenable. All
admit that their notes are SIS safe as
greenbacks are. And who will say
that the government could supply
the convenience of the people with
a better or cheaper mode of hand
ling the enormous wealth of q coun.
try so far outstretched as that of
ours. Banks of some kind must be
established, and money will never
be invested where it does not pay
profit. Therefore, if the goyern>
ment pays a larger share of that
profit the rates of exchange can be
less. 1t has been said and very
truly, too, that the beauty of our
banking system Is that it is self
regulating upon the principle of
supply and demand. AS the amount
of capital deposited with the gem
eral government increases, SO the
rate OF interest can be reduced.
The colonial script of which he
speaks history tells sus was COM
parstively worthless except for
taxes, but government must be
granted such right of issue in emer-
gencies. We have many instances
On our calendar of State govern
ments issuing notes. They have
always been unsatisfactory and gen,
orally got rid of as soon as possible.
In our opinion there is no call for
the greenback party. 1t fell to the
ground on tho very day that re.
sumption took place. Resumption
is fact and success, and if any
change in our financial system is
profitable or necessary the Repub,
lican party can see it and make
such change. That party is not
party that dares to stand for its
own principles for by its numerous
fuslons with the Democracy it
stands for reputation.
O. EAuppJrrO