Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1892-10-01

of paper money he believed in;
second, that they were issued in
sufficient volume to supply the
currency needs Of the country and
did supply for some length of time
full supply; and third, that they
did circulate through the channels
of business without discredit or
doubt. Unfortunately for the re-
formers argument he must fail in
all these particulars. The demand
notes issued on July II, 1861. were
by their provisions convertible on
demand into the coins of the coun-
try. Neither the United States nor
any other civilized nation undertook
the hopeless task of maintaining in
use an absolute paper money.
These notes were receivable for all
public debts and were convertible
on demand until December II, 1851,
when, on account Of The suspension
of specie payments, they ceased to
circulate as money and remained in
the speculative markets, bought and
sold like gold, until their currency
qualities were restored in February,
1862. They were not legal tender
when issued, but that quality was
given to them by the act of
February, 1862, consequently their
vitality and vigor could not have
been due to their legal tender quail
ties. This is fact generally ignor-
ed with great care, and sometimes
boldly falsified by the reformers.
Mrs. Emory, for example, on page
20 Of The Seven Financial Con-
spiracies, says: Following this
declaration came the enactments of
July II, 1851, and February IL,
1862, authorizing the issue Of
$60,0O0,OO0 of treasury notes not
bearing interest and payable for all
debt public and private. Here is a
confusion of two issues, and that
and that with intent to deceive, one
creating the demand notes, which
were not a legal tender, and the
other authorizing the issue of legal
tenders and giving that quality to
the demand notes that had then
been in circulation more than seven
These notes meyer ex-
ceeded S53, 100000 in volume and of
course formed a very small part of
the general circulation. It certain
ly is the duty of the reformer to
prove if he can that an entire circu-
lation of such a currency should
have ..been maintained. No nation
eyer did succeed in sustaining in
circulation at par on inconvertible
paper, but many states now have
ANONYMOUSLY failed in the trial. It
has been claimed ana contradiction
challenged that these notes always
without question. In
fact they were everywhere received
with distrust by the business COM
Railroads refused them in
of fares, hotel keepers &C
accepted with reluctance, merchants
were afraid Of them and the banks
would receive them in large guam
titles only as special deposits. But
their circulation was maintained
just as long as they were what they
purported to be-payable On demand,
but on December 81 came the sus-
pension Of specie payments by the
and from that date un-
til made legal tender by the act
Of February, '62 then ceased to be a
part Of the circulating money of the
country although their value was
maintained becau. even though the
could not keep its
promise by paying. them in gold on
demand it could and did receive
them for duties on imports-an in
direct but effective manner Of
maintaining their convertibility.
Not day during their existence
could demand note be called fiat !
money. The parallel fails utterly.
A careful study Of the history and
nature of the demand notes of 81,
leads to the conclusion that so far
from bolstering up the argument
FOR fiat money. they show clearly
and distinctly the inherent weak
ness of such currency.
w. c. LANsDoN, inCapital.