The herald., 1893-08-06

away Dy frightened depOeltor6, as 1H now
the case, in periods of financial depres-
sion, when currency is most needed.
Exciting banks could be brought under
the new system without stock. Internal
AID other revenues collected by the gov
ernment could be deposited, until paid
out, in banks situate in the community
where 30 collected, thereby preventing,
in a measure, withdrawal Of large bodies
of money from circulation and also its
accumulation in one section OF the
country.
The present administration has the
complete confidence OF the country, and
can doubtless secure by Its recommen-
dstion during the coming winter the
adopti,n OF the constitutional change
herein suggested. If the Democratic
party can establish sound system OF
finance in this country and relieve
against the present partial and oppres-
si,e systsm, it will be an imperlshable
monument to its statesmanship and ss-
cure for it long lease of power.
popular belief prevails tnat congress
has power to create fat paper money:
This is erroneous. Under the Ieoeral
constitution paper cannot be maoe
money. The government, in the exer-
else OF it's power to borrow money, may
Issue its promises to pay resting upon
valid consideration. These promises TO
pay may be made more attractive to the
public and more valuable, and hence OF
greater benefit to the government, by
making them legal tender for private
debts during the life of the promises; I;
they must, however, all ultimately be
paid in coin.
This was settled in the case of Knox
vs.. Lee and Parker vs.. Davis, in 18th
Wall, where the court says: 1.-The
legal tender acts do not attempt to make
paper standard of value. We do not
rest their validity upon the assertion
that their emission is coinage, or any
regulation OF the value of money; nor
do we assert that congress may make
anything which has no value, money.
What we do assert is that congress has
power to enact that the gov ernment's
promises to pay money shall be for the
time being equivalent in value to the
representative of value determined by
the coinage acts or to multiples thereof.
1t is hardly correct to speak OF q stand
ard of value. The constitution
does not speak OF it. 1t con-
templates a standard for that which
has gravity or extension; but valne is
an ideal thing. The coinage acts fix its
unit as a dollar; but the gold or silver
thing we call dollar is in no sense a
standard of dollar. 1t is a represent
ative of it. There might never have
been piece of money of the denomina-
tion of dollar. There never was a
pound sterling coined until 1916, If we
except few coins struck in the reign
OF Henry VIII, almost Immediately de-
based, yet it has been the unit OF Brit.
ish currency for many generations. 1t
lie, then, mistake to regard the legal
tender acts as either fixing standard
of value or regulating money values, or
making that value which has no intrin-
sic value."
gs" No one supposes that these govern
ment certificates are never to be paid
that the day OF specie payments is
never to return. And it matters not in
what form they are issued. The prin-
ciple is still the same. Instead of GER
tifcates they may be treasury notes or
paper OF any other form. And their
payment may not be made directly in
coin, but they may be first convertible
into government bonds, or other govern
ment securities. Through whatever
changes they pass. their ultimate des-
tiny is to be paid"