The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-05-02
GREENBACKS AT PAR.
Can Paper Money Be Made as Good
ns GOld:-The Nations Experience
in the Civil War.

BENSON, Mimi, April 20, 1s94-Hon. Ig-
natfus Donnelly, ST. Paul, Mnn.-Dear Sir:
1 had pretty hot discussion the other day
with a lawyer of this place, by the name Of
I. F. Young about the old demand notes.
or greenbacks / insisted that the first s6O
OOO,0O0 OF demand notes Of greenbacks is
sued in 1861 and 1862 never fell below par
with gold, but that the greenbacks issued
later fell compared with gold on account
of the fatal exception clause inserted on
the backs of these.
Mr.. Young insisted that they were all
alike in every respect, and that one fell as
much as the other,
VIII you kindly refer me to some book or
other reference which must be regarded as
authentic on this matter, by which I can
prove my assertion? Of you have any such
book that you could dispose of 1 should
be pleased to receive it, and if you mark
price of it, l shall remit same to you on
receipt of book, provided it's price does not
exceed 50c) Also, Goes the United States
at present coin any standard silver dollars?
We should be pleased 70 hear from you
on this matter, either through The Repre-
sentative or otherwise.
The Populists are increasing in numbers
every day in this section, and all indica-
tions point to the fact that we will carry
swift county with a great majority next
fall. Yours respectfully,
H. NJ. GILBERTSON.
COMMENTS
In answer to the inquiries contained in the
foregoing letter, would say that Mr.. T. F.
Young is greatly in error in the position
he has taken. In proof of this, I would re-
fer him to the speech delivered in the
United States senate by John Sherman on
July 4, 1862, in which, speaking of the first
$6O,O0O,000 Of demand notes he said:
'The notes are now held and boarded.
E,.-% opnn
issued with their right of being converted
into per cent 20-year bonds, and with the
privilegeof being paid for duties in customs.
THEY ARE NOW FAR ABOVE PAR
AND HOARDED.
I would also refer him to Schucker's Life
of Salmon P. Chase" page 225, where the
following appears:
about the time Of the suspension of cash
payments. a wealthy New Yorker came into
the possession of large sum, approxi-
mating to $1,OOO,0OO in demand notes. He
offered them for deposit in a leading bank
Of New York, the officers of which refused
to receive them, however, in the ordinary
course Of business, or in any other way
than as a special deposit. Having no al
tentative, the gentleman reluctantly con-
sented. The demand notes being receivable
for customs the same as coin, kept mace
with the advance in the price Of coin; and
when the depositor withdrew his deposit
demand notes were worth nearly or quite
ONE HUNDRED AND FIFTY PER CENT
PREMIUM, MEASURED IN LEGAL
TENDER
If Mr.. Gilbertson desires to Investigate
this subject still further, we would refer
him to the excellent little book of Casca
st. John, entitled "Why Are We Poor%'
published by The Nation Library, Room sc.
1913 Nicollet avenue, Minneapolis, Minn.
The price is 25 cents. He will find this a
very complete compendium of information
on all the points that are apt to arise in
discussion.
Mr.. Young is also in error when he saws
that there was no difference between the
first issue of greenbacks and the subse-
Quent issues. The difference was this: The
first $60, 600 were receivable for all debts,
public and private. Of every kind. The