The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1889-01-19
BY ). W. Herring, a. NJ, NJ. D.

BY J. W. HERRING, A NJ, NJ. D.
To afford the people safe and convent
ent currency is one Of the high functions OF
government.
Whether in our country the power to ac-
complish this resides in the Federal or State
government, or both, is question upon
which men differ. and which, except in an
incidental way, it is not the purpose OF
this paper to discuss.
And. admitting the right of either, or
both, to authorize the issue of currency,
the expediency of its exercise, in the one
case or the other, is question upon which
there is even greater difference Of opinion
than exists in the former case.
The power to create banks of issue has
never been denied the States, and under 1t
State banks. in times past, have arisen ali
over the country. Until the latter part of
1864 the people of this country were totally
uuaequainted with other currency of re-
sponsible character, except that which was
issued BY the various State banks, of which
there we're about 400 at that time And,
indeed, such a profound impression had
been made upon the country by the ephem-
cral and abortive attempt TO establish a
United States bank, and so much disfavor
and odium, in the public estimation, were
attached to the enterprise, that the idea o.
any other source of currency, except that
which belongs to the respective States,
was thought BY our people to be antl-ke-
publican and un-American. As TO the
character Of the circulation which was
issued BIZ the State banks, it ranged all
the way from the very best to the worst.
From that which was as responsible as the
bullion which stood behind it, TO that
which was as irresponsible and worthless
as the fimsy paper upon which 1t was
printed
Taking it as a whole, however, the State
bank circulation was respectable and re-
sponsible currency, and that which any
one could feel safe in holding; necessarily
best suited for local purposes, and rarely
making its way into localities distant from
its place Of issue, and only then to be re-
turned for speedy redemption.
But he course Of events IN this country
brought us to face facts, in this respect,
70 which we were unaccustomed-
Revolutions, it is said, are born in day,
and surely no revolution was ever more
rapid and complete than that which 0c-
Cured IN the currency Of this country
during the period Of our civil war. And,
as IS frequently the case under such CIR
cnmstanccs. what seemed 20 be but the
necessity Of the moment, and for the mo
ment, becomes settled policy.
The Federal government, at the begin
ming of the war, found itself totally unpre-
pared fer the large expenditures which
were Of necessity laid upon il Armies Of
immense magnitude had to be raised,
equipped and paid. All the multiplied
forms Of expenditure incident to war were
present. Every avenue 70 the Federal
treasury was crowded with applications for
money. In shis state of the case the gov
eminent, in the very beginning, was com
PEELED to become borrower.
This was PROFESSIONALLY a most critical
period ia Federal affairs. A serious
blunder at this juncture could not easily
have been repaired. To have inaugurated
a financial policy which would have been
impracticablc in its operation, or, if not i'm
practicable. at least feeble and inefficient,
would have been an unreasonable disaster
to the Federal cause, and from which, in
an probability, there could have been no
relief. But instead Of financial impracti-
cabllitv. feebIeness and ineihciency, there
were practicability, strength and efficiency.
1t strikes me that nothing in all the opera
tons Of the government during the war.
from whatever point you may view them,
shows so much intelligence, foresight and
substantial brainwork, as that which gov
erned the Treasury Department during the
early period Of the great conflict. It's
policy was not only intelligent and fore
casting. but was brave and courageous as
well. What it aimed to do, it did-did it
promptly-inspiring confidence IN the eoun-
try, thereby obtaining all necessary supplies,
and rendering the timid, shrinking and
cautious capital of the country available for
the uses Of the government. The greatest
general Of the war was unquestionably the
genera who commanded the Treasury De-
partment.
At this period the State bank circulation
was still in existence.
The first financial step of the Federal
government was the issue of United States
notes. or what are commonly denominated
greenbacks, and making them "a legal ten
der for the payment of all debts, public
and private. except duties on imports and
interest on the public debt This was,
without doubt, high war measure, and
the legal tender character of the issue.
supposed at the time to be only justified by
the exigencies of the times, and so stated |
BY the author, as Chief Justice of the Su-
preme Court, in subsequently constituting the |
act itself. Bat whether the act is to be |
regarded as an act of mere arbitrary war
power, or as a constitutional prerogatiye of /
the government. the currency which was /
issued by virtue Of it, served all the purposes
for which it was designed, and was the
means Of bringing all that was needful,
for the time, in the way of war material.
The ultimate decision Of the Supreme
Court of the United States, affirming the
of the legal tender act,
was fraught with consequences of the
gravest importance to many of our citizens,
and worked disastrous results to numerous
individuals. The adjudication having been
made, however, by the highest tribunal of
the country, stood as it stands now, the law
Of the land, aud the United States notes
which circulate so freely to-day. not only
have the responsible value of the United
States stamp upon them, but are also in-
vested with legal tender qualities. OF
course the legal tender character of this
ssue is matter of no moment to us at
his time, because the credit of the govern
nent is such as to make these notes readily
with gold.
The next financial step of the govern
nent was the issue of Understanding
ponds. As the war progressed, and the
immense expenditures to be incurred be-
anne more apparent, it was equally clear
hat loans upon a more extensive scale
han could be made by the mere issue of
circulating notes of non-interest bear
ne character would have to be placed, and
Is result We have the coupon and reg
stored United States bonds. These we're