The Labor enquirer., 1884-10-18

vhsnevsr nssded 70 ~ fts oblieatscnA ID
ethsr peoples and did not ksep Il locked and
/ guarded and drawing no Interest tor fear ths
people would cheat themselves, on the plan
OF tho specie basis for currency. The sredits
owned by ipdividuAls against the whole
people acting together in their government,
4 w THAR solemn agreement put In the form
OF Law, were made their only medium Of exr
change among themBelves
II it be possible to make public debt .
4 blessing, the venetians made it so. They
certainly prevented it from being burden
through the drain OF interest. They also
4 turned It TO q great convenience, by using it
as q medium of exchange. We emphasize
the facts that it avoided the enormous ex-
pense of the purchase OF coin for home cur
\ rency, and its waste by wear. It saved all
Interest ON the public debt: 1t was medium
of exchange without cost. 1t was an eminent
success for centuries. 1t resulted In unparal-
leled prosperity for those centuries. 1t
brought no evils, but only good to the people.
Facts are stubborn things. VIII the advo-
Gates of the bank monopoly meet these plain
facts?
This wise system of Venice can easily be
adapted to our condition. The small area of
the Venetian republic made it convenient to
4 effect all home exchanges by transfers on the
books of the bank. With us that would be
/ impossible. The credits of individuals
against the government must be exchanged
| in the form of notes convenient for circula-
tion, as are the greenbacks. This is the main
difference, made necessary by the immense
area of our country.
THIS PLAN TESTED AND FOUND SUCCESS
Full IN DUB OWN HISTORY.
As far as we have used treasury notes,
receivable for taxes, as currency, in the Con-
federation, states and nation, they have
proved to be the best
Mr.. Calhoun says: aUndcr the COnfedera.
tion North Carolina issued $500,0Oo of state
/ notes, which were made legal tender and
were received for all debts due the state, and
they were always equal to cOin.p
Benjamin Franklin says: From ITO till
1850 Pennsylvania had issued her own legal
tender paper money, not one dollar of which
was ever at a discount for cOin." IL was re-
ceiyed for taxes. 1t was a currency without
cost.
/ Thomas jefferson says: aIn 1755 Virginia
issued treasury notes bearing interest. They
/ were received for all debts due the state, and
were never at a discount for COIN" They
afterward issued non-interest bearing notes,
which were equally successful as currency.
In 1S4l when the Bank of the United
States OF Pennsylvania failed, that state
i issued large amount of what was called
''relief money! not based upon or payable in
coin, but upon the credit of the state and
receivable for all debts due the state. For
years 1t was the entire money on which the
business of the state was transacted, and it
was ultimately redeemed in the payment of
taxes
i When the civil war burst upon the nation
| it made the question of finance the most diff
/ cult problem for the government. AS it
always does when tested, specie failed as a
basis of currency. Borrowing money was
1 resorted to. The banks of New York and
Boston loaned to the government sec, ,0OO, ,000
| They did so to make excuse for SuSpending
specie payments, and in the hope of COM
lpelling the government to exchange its bonds
| for their suspended notes at 80 cents on the
dollar; but the government refused to accept
/ the loans on those conditions, and issued $780,
000, 900 of demand notes. These notes,
| the banks then suspended, labored to dis
credit, and would have done so, had not the
secretary of the treasury ordered the notes
to be received for dues on imports, and
afterward had them made legal tender by
law. Until made legal tender, the.bankers
refused to receive them on deposit, or in any
payments due them. After this they had no
power to depreciate them, though for years
there was no specie back of them. At the
time S2,S5 in greenbacks were needed to buy
81 in gold, friend of mine sold $50, 600 of
gold. - :.
i affirm that no full legal tender treasury
notes issued by a responsible government
ever were deprecated. -.-r.-
In 1862 the issue of greenbacks was COM
'Ihan6nnG AStQnhanS Of
the Ways and Means committee had charge
OF the bill which proposed to make them full
legal tender. There were hurried councils
OF bankers in New York, the result of which
was body of 100 were sent to the capital to
prevent the passage of this measure.
Ihey tried their arts of persuasion ON Mr.
stephens, but were foiled by the staunch
parrot. They said if this bill passed an d
the government continues to issue legal
tender notes for circulation, every bank of
issue will be closed. Mr.. Stephens reply
was, "Take care of your banks Of issue,
am looking after the interest of the people,
graphing with rebellion" His bill went to
the senate uncrippled. There this body was
successful. The noted exceptions to the
legal tender power of the notes, was secured.
In the discussion over the amendment, Henry
Wilson said, "There Is contest between Jew
brokers and Wall street Shylocks on one
hand, and the people in a desperate encounter
the lobby secure this infamous measure, as
\ soon as these notes are issued you will find
these men on every curb-stone in the land
laboring to depreciate them" On its return
to the house its author opposed the amend
ment with all his great power, but the money
of the lobby was too much to be overcome by
4 integrity and patriotism. The bill passed
which made. the notes legal tender for the
soldiers, but not for the bankers or the gov
ernment; and the men who secured this
nameless injustice entered at once upon the
4 work of depreciating them. They had the
control of specie. They had made it neces-
Isary for every man who had custom dues to
Itpay to buy specie of them at corner prices.
4 It was wholly in their hands. BY depreci
ating the notes they shadowed the credit of
the nation and added to the sacrifices Of its
redemption. *
/ dare not trust myself to extended clarac-
terization of this conduct. 1t exhibited total
depravity.- 1t was manifestation of sordid
greed, never paralleled in the annals of sin.
When compared with it the acts of ghouls,
who followed the army to reb the wounded
while bleeding their life away on the field of
battle, were sanity. These robbed those who
periled their lives to save the government, of
a few dollars; the bankers robbed them and
i their families of hundreds of millions. The