Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1889-11-20
In Vol. Ill of Hamilton's works from
page 356 to 40 and in his correspondence

81 u
page 356 to 40 and in his correspondence
with William Short minister to Holland
and financial agent appointed by Wash
iugton throughout Vol. " you viii lfind
how $14, ,000, 900 was borrowed.
When bank bills are presented tor re
demption they are destroyed, and an
equal amount of new ones issued. In
the same way when the government Dor
rowed greenbacks or bonds, or received
them for taxes. it destroyed the old issue
and paid out fresh bills. Drawing IN old
greenbacks either way left room for new
issue without increase of depreciation.
You seem to be unaware that the GOV
ernment taxed all il could as we'll as bor-
rowed all 1t could, to avoid depreciatlng
ereenbacks by over issue. Blaine says,
(vol. 1, page 433. in regard to internal
revenue. Congress now" (July. 1862,
determined to use this great source OF
revenueito the fullest practicable extent. .
And lower on the page. 1T was one of
the most searching. thorough, compre.
benslve systems of taxation ever devised
by anv government" And on the next
page. I'VE were levylng taxes upon every
article which enters into the mouth or
| covers the back, or is placed under the
| foot; taxes on everything which II Is
pItdSdHt W sec, Hcat, iCCi, Stioii Va '..0'~'
| taxes on everything that comes from
abroad or Is grown at home.
| We taxed at a rate of $12.50 for
every man. woman and child, besides the
enormous taxation of states, counties
and towns. We nearly or quite reached
the limit of taxation. l quote from the
same (page 42S) to show the dangers We
narrowly stunned: Had it been prac'
ticable to adhere rigidly to the specie
standard the national expenditure might
have been materially reduced, but the ex
actions of the war would have been al
the time grating on the nerves OF tht
people and depressing them with re-
morseless taxation. Added to the dis
couragcment caused by our military re
verses, a heavy financial burden nigh
have proved disastrous. The administra
ton narrowly escaped a damaging defea
in 1862
have never seen the increase of wa
expenditure from buying supplies with I
deprecated medium estimated at less thai
81 ,OO0 OO0, 600: The greatest amount o
greenbacks in circulation was $447, 900
OOC on Jan. /, 1865. Gold was then 2333344
Every dollar of greenbacks issued woult
) purchase 43 cents worth of supplies. Th
loss to some individuals and gain t
| OtuC1S 11Oil VIC SAodSO Al tAS HoANS "
) our currency from 100 to 43 and bacl
again, was tar greater than the sthousan,
millions loss by the government. (N. B
It was not men with bare hands VIII
made the gain.) believe the loss to tn
country from depreciation far create
: than the sum total of interest we hav
paid OF shall pay. If we had issue
greenbacks for the entire expenditure e1
cept taxation, loss from depreciatio
would have been greater still. belieV
there would have been debt of NOR
than $8, 00O, 00O, 900. instead of Sc. 700,
: O0O, ,0OO, if the war had not closed prem.
turely from inability to buy supple
longer with our money. If greater tax,
T ton had been possibility. without ou
T break, it is not wise to sell tools to pay
2 debt and get living without, when 20
e can pay 8 or per cent interest, get
good living and lay up something wit
the tools. Property in the hands of tt
! people is equivalent to their tools fl
S earning money and making living.