The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-09-26
Their Character Explained by Capt.
Nelson.

Nelson.
To the Editor:
l see that the UnioifN OF Sept. Is dropped
into the error that the first issue of treas
ury notes by the government during the
late war, known as demand notes, never
deprecated, and We're always at par with
coin. This statement is not true, and
should be corrected in the interest of fair
ness and of our reform movement, when
and wherever it is found to have been
made, for it strengthens our argument in
favor of government issuing paper money
fully a legal tender, not based re-
deemabe in coin, and makes it much
stronger. Those demand notes We're under
the law authorizing their. issue made re-
deemabe in coin on demand, hence their
name demand notes. Our government
during the whole war period paid COIN 1t
never suspended coin payments 1t legal
lied the suspension of banks, but always
paid demand during the late war.
Notwithstanding the above cited facts the
demand notes between the date of the act
of Aug. 5, 1861, authorizing their ISSUE to
March II, 1862, the date of the act making
them a legal tender tor all debts, public
and private, it went to depreciation of 20
per cent as will more fully appear in a
clipping of your valuable paper of June 6,
1871, written ny me at JndC udte IOF your
paper, which l respectfully ask you to
print for the benefit of the Union and all
others concerned.
A. H. NELSON
'The first issue of treasury notes by the
government was authorized Aug s. 1861
ST. Il, page 313 This act did not make them
legal tender, but were receivable for public
dues and redeemable in coin on demand
hence they We're known as demand notes
The act also repealed the act of 1916, known
as the sub-treasury act, that made treasury
notes receivable for all public 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 deprecia ton. Then congress, at it's
regular session, March II, 1862, passed an
act making the demand notes legal tender
for all dues, pubic and private. St. y,
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
S2.So in greenbacks, with the except duties
on imports and interest on public debt
stamped on their back. to buy 81 in gold,
as it did in July, 1864, it took just as many
to buy 81 Of the demand notes. This as YOU
see was not because they We're redeema BILE
in coin on demand, for notwithstanding this
they d1d not go to depreciation, but came
back to par and remained SO as soon as
they We're made full legal tender Besides
the statutes referred to above, I cite Judge
Warwick Martin in the Money of Ma
TONS 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 1862.
Il write this to you in the interest of
financial reform. The argument is inyul-
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. I have seen in this city MANY
times men who would present checks and
drafts at the bank for payment and when
the cashier would give them gold thew
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 scheme to keep control of the
money of the nation and rob the people.
Very respectfully,
,o ~ A. H. NELSON.
2ois 1aylor Street Northeast, Minneapolis,
MINI. " '