The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-10-10
GREENBACKS AT PAR,
Can Paper Money he Made ~ Good
a. GOlds-The Nations Experience
In the Civil War.


BENSON. Mimi, April TO- 1ss4-Hon. L.
natius Donnelly, st. Paul, Minn.-Dear Sir:
had pretty hot discussion the other day
with lawyer Of this place, by the name Of
T. y. Young, about the old demand notes.
or groSnbacks I insisted that the first $780,
100000 Of demand notes Of greenbacks is
sued In 1851 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
much as the other.
Will you kindly refer me to some book or
other reference which must be regarded as
authentic on this matter, by which 1 can
prove my assertion? OF you have any such
book that you could dispose of 1 should
be pleased to receive it, and if yeu mark
price OF 1t, I shall remit same to you on
receipt Of book, provided it's price does not
exceed 60c) Also, does the United States
at present coin any standard silver dollars?
We should be pleased to 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-
tons point to the fact that we will carry
Swift county with a great majority next
fall Yours respectfully,
H. M. 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, would
fer him to the speech delivered in the
United States senate by John Sherman on
July 4. 1852, in which, speaking Of the first
$50, 000, 900 Of demand notes he said
THE notes are now held and boarded
The first issue Of $50, 900 600 of notes were
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.
would also refer him to Schucker's Life
following appears:
About the time Of the suspension of cash
payments. a wealthy New Yorker came into
the possession of a large sum, approx
mating to $1,OOO,O0O, 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, OF in any other way
than as special deposit Having no al
tentative, the gentleman reluctantly con-
sented. The demand notes being receivable
for customs the same as coin, kept pace
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 &C.
1923 Nicollet avenue, Minneapolis, MINI.
The price is Is 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 SAYS
that there was no difference between the
drst issue Of grsenbacks and the subss-
quent issues. The difference was this: The
first $eo. 000, 900 were receivable for all debts.
public and DssvatA e every kinA The
other tissues were receivable for al debts,
public and private. except duties on i'm
ports and interest On the public debt 1t
was these latter that were so Disseminated
against that fell so tremendously in value
compared with gold. The change was made
At the demand of the bankers Of New
York.
Thaddeus Stevens, the great leader Of the
house during the war, and chairman Of
the committee on finance, resisted the
change to the utmost. In a speech deliv-
ha ali bo
Il have very few words to say. I ap-
proach this subject with more depression
OF spirit than ever before approached any
question. No personal motive or feeling
influences me- l have a melancholy fore
boding that we about to consummate
cunningly devised scheme, which will
carry great injury and great loss to all
classes Of people throughout this Union,
except one With my colleague, I believe
that no act Of legislation of this govern
ment was ever hailed with so much delight
throughout the whole length and breadth
OF this Union. by every class of people.
without any exception, as this bill which
we passed and sent to the senate
Congratulations from all classas-mer-
chants traders, manufacturers, mechanics
and laborers- upon us from all
quarters. The Boards Of Trades from Bos-
ton. New York, Cincinnati, Louisville, ST.
Louis. Chicago and Milwaukee approved its
provisions and urged its passage IS it was
nave a dispatch from the Chamber of
Commerce of Cincinnati, sent to the secre-
tary OF the treasury. and by him to me,
urging the speedy passage of the bill as it
passed the house. 1t is true there was a
ooieful sound came up from the caverns Of
bullion brokers and from the salons of
associated banks. Their cashiers and agents
were soon on the ground and persuaded
the senate with but little deliberation to
mangle and destroy what It had cost the
mouse months to digest, consider and pass.
Ihey Tell upon the bill in hot haste. and SO
disfgured and deformed it that its very
latner would not know 1t. Instead Of be-
Ing benefcent and invigoratins measure.
1t Is now positively mischievous. It has all
the bad qualities that its enemies charge
on the original bill and none Of its benefits.
II now creates money and by its very
terms declares 1t q appreciated currency.
IL makes two classes Of money-one for
the banks and brokers and another for the
people. 1t discriminates between 'Ae rights
o1 o1nerent classes Of creditors, allowing
the rioh capitalist to demand gold and
the ordinary lender of money
IN lnolvldual security to receive notes
"nlcn the government had purposely dis
Rut nou, covoar ~.