The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-10-24

credit. ana DIS OF credit are supposed 10
be in form of money to be circulated as
money. IL forbids also that they should
make anything but gold and silver n legal
tender In payment OF debts. Those who
formed that provision believed they had
cut out this whole system of local paper
money by the roots. They declared THAT no
State could emit bills of credit or paper
money. for that was the meaning OF il. But
1t was said that the States ight authorize
corporations to do it. Why. ordinary logic
lawyers at all, would con vince any one that
If State could not do it it could not
authorize the people of the State to do 1t.
Therefore. 1t was believed that there could
be no State bank paper money.
The Constitution OF the United States
provides that Congress may regulate the
value of money. may coin money and regu-
late its value; that Congress may borrow
money, and. as incident to that. may Issue
bills of credit. and finally. 1t may make
them a legal tender for the payment of
debts. Now, my countrymen. on account
of the neglect of Congress to perform this
same duty. we had. in the twenty States
that existed before the war. various forms
those who lived at that time, can conceive
of the condition of our paper money then:
There was not a bank west of the city of
New York but whose notes were at o dis
count in that metropolis Every man had
to convert his money before he cent III
away for the purchase of goods. l remem-
Der the time when the war commenced.
After Abraham Linooln-God bless him
prolonged cheers and aDplausel had
called 5000 troops into the ield-
and they came to the support of the
government by thousands and hundreds of
thousands more and more, as he called
them again aud again-when these brave
men came there to Washington there was
not q dollar In the treasury to pay them
The administration of James Buchanan,
the last of the Democrats, who had Just
gone out, left q treasury bankrupt. and
Congress was compelled to issue treas
nry notes in order to pay the soldiers
When this war commenced we had neither
money, nor gold, nor silver, nor any other
kinds. There was this paper money OF the
States. But the last act, the last Wise act
of the Democratic party was to establish
what they call the Independent treasury
law, by which it was forbidden-the good
sense of Van Buren, had for hidden that 1t
should be received By any officer of the
government-any kind of State bank paper
money. That was the wisest act the DEM
ocrats ever performed, and about the only
act. because after that act was done the
Democratic party really did what it ought
TO have done long before 10 ceased to exist.
Now, my friends when we met this diff
ficulty at the beginning OF the war, as
said, we had no money. the first thing we
did was to issue SEQ. 900, 600 of demand notes.
They were notes payable on demand. We
issued them ana they were received and
paid out to our credit and enabled us to
carry on the war for six months. but they
were soon exhausted, and we knew
If we continued to Issue this form
of paper money that our government
would break down and the rebellion
would succeed. We knew that we could
not pay this money on demand. and the re-
suit would be they would 60 down more
and more, precisely like the revolutionary
scrip aud other forms of paper money.
Therefore. it was decided, after careful con-
sideration. that there be Issued what is
now called the greenbacks. We issued the
dollars some time. may be after
this war Is over and the
Union is saved. Great applause Now.
that was a departure from the best princ-
of that character. unless they were MAIN
tanned by gold or silver. except under the
exigencies of war. But we provided when
we issued them that they could be convert
ment of bonds and in this way we estab.
lished a national currency which enabled
US to buy from our own people and carry on
the TO tho complcte preservation of the
union and of our government. Applause.
Now, sirs, we could not have circulated
these greenbacks if we had allowed the
old State bank circulation to have been in
existence. 1t would have filled the chan
nels of trade. BY law of finance. as strong
as the law of the ten commandments. the
currency and the Door currency fills the
channels OF circulation although the treas
ury law forbid their use By the government
or their receipt for any purpose whatever
for taxes OF anything else. We declared
they should pay tax of
of that sort of circulation. We knew
the result would drive those notes out Of
existence. and We intended to cut their
throats. But We did not make TINS pro-
vision until We had found a better system,
and that is authorizing the national banks.
where any person who would deposit 800
of the United States bonds might have the
privilege of issuing 500 IN circulation. We
held those bonds as security for the notes.
So admirable and successful had been that
plan that no man lives who ever lost
single dollar by national bank notes. Now
they tell us that they want more money.
Suppose the government of tho United
States should issue one hundred million
dollars of notes-who would they pay those
notes tot How can any of you get any of
that money unless you do something or sell
something to the government. unless you
do some work or perform some iaborf The
poor man who wants money would not GET
his share, but the people who hold the
bonds of the government, the contractors
who sold it supplies or rendered
the increase value of the money. In former
times the greatest circulation of bank
notes at one time was about two or three
hundred million dollars. And Yet to-day
the last treasury starement gives the
amount at one billion, one hundred and
thlrty-twO million dollars OF paper
money in active circulation. Why
one would think that was enough.
1t Is moro than ever existed
before in the history of our country. And
when we remember that e5 per cerpr.-and
In the city of Chicago " per cent.-Ot all
the payments are made in checks, certit-
Gates. drafts and commercial paper il
shows that that money Is only used in 0rdl-
nary way by people for marketing and
for the smaller transactions of life.
Every dollar of this money is Sc
cured by the governments of the
United States. either by gold and silver
coin or bullion, or by the deposit of the
United States bonds. Let bank break;
who cares! The money il good because the
security Is in the hands of the government
So with silver certificates. There is some-
times q question about II. but it Is backed
not only by the silver contained In the sill
yer dollar, bnt is backed also by the silver
and gold behind each one.
NOW, my cOuntrymen here is this ma IS
of money, the very life blood of our sys
tem-that upon W ich the business of Chi
c8g0 depends, that upon which every
artisan and mechanic depends-aIl this is
now founded upon the solid rock
of gold and silver coin and balloon;
every dollar is safe. and now
this Democratic party. which for years
has done nothing but oppose the action of
| the Republican party. comes in and de-
mands restoration of bad money. That is
| the condition before And will Won, my
countrymen, agree to 1T Cries OF No,
| no.
Mr.. Springer. of Illinois. says the reason