The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1892-08-18
American Finance.

drawn into discussion the financial
policy of the United States, the
Trainer of the bill finding therein
ample justification of his vagaries
and the Bulletin scenting rich op-
portunities for it's usual sneers
against anything American. Like
preachers evolving opposing doc
trines from similar texts, these
wise opponents draw different de,
auctions from the same facts-ol
rather their own assumption of
facts. Thus Mr.. Horner shows
and truthfully, that the first issue
of greenbacks always had a gold
value and were never liable to the
fluctuations of ensuing issues,
while the Bulletin cites all issues
of greenbacks Unfortunately as
makeshifts, and sagely measures
their value by the ups and downs
of the Civil War. 49,,
There is nothing in the history
of American finance to Justify
either the absurd claim of Mr..
Homer for his pet money scheme,
nor to vindicate the sweeping con-
formations of the Bulletin. First
let it be said that United States
money has had all the value inc
parted to it by law. Mr.. Horner is
right in his assumption that the
first issue of currency was always
at a par with gold, and the Bulle-
tin is wrong in assuming that fuc-
tuation in greenback values was
entirely owing to the vicissitudes
of war. The first issue was en-
dowed with all the functions of
money. 1t was legal tender for all
purposes. Having the uses of
money, backed by the national
credit, received for duties, availa-
bic for payment, it was money at
any and all times and side by side
with gold had a purchasing power
of 285 per cent. of the subsequent
issues. The latter issues were
shorn of some of the functions of
money. They were not legal ten
der for payment of interest on the
public debt and were not received
in payment of duties. Further
legislation making an obligation of
the United States payable princi-
pal and interest in gold, COM
pleted the degradation of this cur
rency. Congress threw discredit
on its own creation and boldly
wrote across the face of each bill,
'This is money, sometimes-and
sometime it isn't" People using
this money could not impart to it
a greater value than established by
law; hence it became a medium
for speculation rather than ex-
change. In proportion as real
money gravitated to and was cor
nered by wealthy centers, this
nicknamed money deprecated.
There is no doubt that the Uni
ted States failed to avail itself
properly of its great credit. The
masses were educated to the be-
lief the questions of financial ex-
pediency were beyond the average
ken, and should be delegated for
solution to those shining financiers
whom the Bulletin so much ad-
mires as embodying monetary
common sense" Legislation was
accordingly shaped to their selfish
advantage. The first issue of
greenbacks, supplemented by a
meagre coinage of gold, proving in
adequate for commercial recessi-
ties enabled an INSCRIPTIONS CLIQUE
to profit by the contraction. AS
the Government had not endowed
its greenbacks with a full money
value, their valuation became sub
Ject to degrees of absorption of real
money.
Yet although the Government
had virtually put a premium on
this unholy speculation, it should
not be forgotten that dollar
OF greenbacks always had a pur-
chasing power of dollar in Gov
eminent bonds, whose principal
and interest were afterwards paid |
IN gold, or its equivalent. The ma
ton was passing through crisis. |
1t was an era when one class of |
men were pouring out their hearts |
blood for the perpetuity of Ameri-
can institutions. The Govern
ment, unaware of its real strength,
deemed it prudent to compromise
with another class which stayed at
home. Yet never was the national
credit at lower ebb. The utmost
reliance was accorded to the ma
tlonal promises. Not much was
promised in the latter issues of
currency, but what was promised
was fulfilled.
When the nation began to re-
cover from the effects, when a
policy stimulated industry and