The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-06-06
AN INTERESTING DISCUSSION.
A History of the First Greenbacl<s In
Detail-Read and he Ready to An
swer the Old Party Chatterers.


BENSON, Mimi, May 2S.-Ed. Representa-
tive: 1 received a.letter from Capt A. H.
Nelson, of Minneapolis, commenting upon
the article in the Representative Of May
2, in regard to the demand notes authorized
in 1851 and 1862.
think he gives some very valuable points
relative to these demand notes." and the
subsequent issues of greenbacks, and shall
therefore ask space for it in the columns Of
your valuable paper
1 do not favor wild cat money is an
expression frequently uttered by Republic
ans and Democrats when referring to the
greenbacks of the civil war. 1t seems ridic-
ulous that an intelligent person should con-
found the first with the latter. Neverthe-
less, l have heard gentlemen make this
statement, who, with great regularity read
two or three of our old party dailies.
What a grand scheme would it not be
for these individuals to spend less time with
the dailies and devote share of their time
to the studying of the financial history of
our country. Yours respectfully,
H. NJ. GILBERTSON.
The following is the letter referred to:
MINNEAPOLIS, Mimi, May 1O.-H. M.
GilbertSOn, ESQ.,, Benson, Mimi: Respect
ed Sir-I strolled into The Representative
office last Tuesday, and was handed copy
of that paper of the I'd inst, and saw
rote In it by you. asking Mr.. Donnelly if
tie treasury notes of 1861 and 1862 ever fell
below par with gold.
The first issue of treasury notes by the
government was authorized Aug. 5, 1861,
st. r. page 913. This act did not make
them legal tender, but were receivable for
public dues and redeemable in coin de-
nand; hence they were known as demand
rotes" The act also repealed the act of
1916, known as the Sub-treaSury act, that
made treasury notes receivable for all pub
lie dues. A question arose as to what dues
the notes of 1861 were receivable for. Banks
refused them, collectors of ports did not
dare to receive them, and at once they
went to a discount-some authorities say as
low as 20 per cent. But the secretary of
the treasury ordered collectors of ports to
receive them at par for import duties. That
stopped their depreciation Then congress,
at it's regular session, March II, 1862,
passed act making the demand notes
| legal tender for all dues, public and pri-
vate, st. II, page 80 From that date they
were always at par with gold, as long as
any of the notes were in circulation. When
it took $2.85 in greenbacks, with the Eek
| cept duties on imports and interest on pub
| lie debt stamped on their back to buy
| 81 in gold as it did in July, 1864, it took
| just many to buy 81 of the demand
notes This, you see, was not because
| they were redeemable in coin on demand.
| fer, as you see, Notwithstanding this, they
did go to depreciation. but came back to
par and remained so as soon as they were
made full legal tender. Besides the stat
utes referred to above I cite Judge War
| wick Martin in the Money of Nations,
| pages 254 and 255, also Burkey on "The
| Money Question" page 1854; Dunbar on
Currency and Finance and banking
| laws of the United States page 1852.
| 1 write this to you in the interest of
| financial reform. The argument is invul-
nerable when the truth and whole truth is
known. 1t proves conclusively that had
| our greenbacks been made full legal tender
they would never have gone below gold in
their purchasing power. 1t was not re-
| sumption of specie payments that made
| them par, but when they were received for
duties on imports then they could perform
| all the uses coin could do or perform, and
| no one wants coin. Paper is more con-
| venient. 1 have in this city many
| times men who would present checks and
| drafts at the banks for payment. and when
| the cashier would give them gold they
would beg him to give them paper. This
proves again that the idea of having treas
ury notes, based on or redeemable in coin,
| is only a Jew scheme to keep control of the
money of the nation and rob the people
| You can make such use of this letter as
you please. Very respectfully,
A H. NELSON,
| 251S Taylor Street Northeast Minneapolis