Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1889-10-02
REPLY TO VALLETTE.


paid tool trying to deceive, is good argu-
ment IN Connecticut, it is less convincing
out west, than lucid statement Of his
mistakes, without preclnding him from
candid hearing by arousing preiu-
dice. don't think Mr.. Vallette seriously
understood my comparison of a nation
facing struggle for existence with man
losing buildings, horses and crops as an
assertion that 'one man has the same
power TO create money as the govern
ment. IN neither of my articles have I
spoken OF standard value" Is he OBJ
jecting tony distinction of the debt pay
ing. from the purchasing power of mon
ey? he In no way answers the fact that
the distinction appeared, not only in the
Mower county equivalents, of Numa's
wood and leather medals, but in the full
legal tender of the other examples,
King James used brass. The govern
ments Of medieval Europe used gold and
silver in reduced quantities. Those of
modern Europe and the colonies used pa.
per. The debt paying power was perfect
IN each kind Of money. The purchasing
power sunk to the intrinsic value, in the
case OF metals, and to- q low figure or
nothing. in the case of paper. Patrick
Henry knew no way of judging the future
but by the past. But concede that COM
mon sense sometimes deviates from past
experience with happy result, you need
to be sure that superabundance of COM
mon sense. Is what is the matter with
you, before thus deviating.
Ihave slpdied several works on politi.
cal economy and observed whether history
and current events confirmed the books
in this or that teaching. My common
sense says, create a legal tender for all
debts, and it will not haveeful1 purchas-
ing power. unless its interchaugeabllity
with something of intrinsic value is main
tained.. Fixing the price of all farm pro-
ducts, labor. merchandise, Etc, would
give it interchangeable with such values.
but they vary SO with supply and demand
and place, in so extensive a country, the
method IS lmpracticable. Better is the
law, sinee 1870, of keeping at least 100
millions in gold ready to exchange for
greenbaeas3with all comers; for gold va
ries little IN value.
Cieyeian9s secretary, Manning, on
March D. 1856. explained to the house
what You ask about the common silver
dollar, as follows: 81 have pressed it's
circulation at constant expense to the
treasury when other forms of money
could have been circulated without SUCH
cost. | kaye upheld its value by never
compelling its receipt by anv creditor of
the government and never failing to pro
vide by exchange or transfer whatever
currency might be preferred.a
He had thus got 81 milliousinto circula-
tion and had in the vaults 1863 millions.
The government was not bound TO main
tain such interchangeability for the trade
dollar coined with more silver for export
to China aud did not hence its deprecia-
ton. Ihe constitution says congress
shall have power to coin money, and reg
ulate the value thereof and of foreign
coin, asft in. another place mo state
shall coin money: emit bills of credit:
a. ""-s ~ payment of debts.' In the
gre,- siecision the supreme court
says, this prohibition IS not to the United
States, which may emit bills and make
them legal tender To support your rea
soning, the supreme court should have
added, what it did not. ''since not pro-
b bited, the power cannot be exercised
unwisely. Put out bills of credit at any
time, to any amount. Make no provis-
ion for exchanging them for anything
else. Make them legal tender for all debts
and duties and they Will be good as gold u
They did say near the middle of that de-
clsion, in commenting on the condition
of the country IN February. 1862, 1--WE
have said that the credit of the govern
ment had been tried to its utmost endu-
rance. It is an historical fact
that many persons and institutions refus-
ed to receive and pay those notes that had
been issued" i. e. the first 60 million.
Let US see how its credit had been tried,
Feb. 5. 1851, congress authorized the issue
of six per cent. bonds to amount of IS
millions. Secretary Dix negotiated elgh-
teen and half million of these bonds at
discount of II per cent. At the close of
the session March 4, 1851, q loan of ten
million in bonds was authorized and the
secretary empowered to issue treasury
notes for this or any part of previous
loans not nego tiated. Under this statute
Chase issued thirteen million Treasury
notes payable IN 60 days 22a million in
two years. April 3. Chase offered
ena e,Sa' s1d %'os e SIX % per cent; 81 ~ bonds
cent. rejecting lower bids and during the
month negotiated five million in six per
cent: treasury notes. In May, he raised
81. $40. 600 on bonds at rates from S. to
50 per cent. and $1,6s4,OO on treasury
notes at par. These treasury notes were
payable in from sixty days to two years
and went at better figures than the bonds
payable in not less than ten nor more
than twenty years,
The first great war loan measure be-
came law July II, 1861. and authorized
the secretary to1offer twenty year bonds
at seYen per cent. not exceeding $50 mil
lion or three year treasury notes at 7.3
per cent; 100 million of the loan could be
made payable in Europe; or fifty million
be in demand notes (enlarged to sixty
million Feb. II, 1862
l have before me Chase's December 1851
report government printer on the fourth
page of which he recapitulates that he had
paid to creditors or exchanged for coin at
par in July and August:
Six per cent. two year notes.. 8 14,019. .034. sc
Borrowed at par same months On
6per cent. 60 day notes....--. 1s.s77, 750 OO
borrowed at par Aug. 10, on
year 7.a per cent bonds...... 100000. o.
Borrowed Oct. upon like seeu-
rites. .................... $1,000. .ooO. Qo
Borrowed at par for per cent.
Nov. 16 on 20 year per cent.
bonds reduced to equivalents
of per cent. including int. BITS -48
Issued demand notes ......... A,55O, 32S go
Total. $197 ~, ,5ss. IA
Every European banker with Auguste
Belmont, agent for the Roschilds at their
hoo6 rofs, / Tho ho tzc