Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1895-12-19
RETIREMENT OF GREENBAcKS.
President cIeveIand's Sophistry Commented
Upon by the New York Press.

1t is most extraordinary that a
President of the United States should
be capable of such false assumption
and misstatements as form the frame
work and the fabric of Mr.. Cleve-
lands message to congress. He
alleges distinctly that the country's
lack of prosperity and the govern
ment's financial embarrassment are
both due to the law under which the
greenback currency of the United
States is kept i'm circulation. He
advocates the retirement of these
notes and asserts that prosperity
will return to the people when that
has been accomplished.
1t is not extravagant to say hat
any boy tsvalun vnar PC old aad CT aver
age intelligence can see that this is
absurdly wrong. The president
admits that it is wrong when he
publishes the figures relating to the
redemption of these notes. He con-
cedes that during the eleven years
from the enactment OF the law to
a date i'm July, 1890, only 5000, 900
of greenbacks were presented for re-
demption, while since July, 1880, the
amount presented has reached the
enormous figure of $375, 200. He
fixes the date in July, 1880, arbi-
tirarily 1t was the date of the
passage of the Sherman act. But
the sum of these notes that were
presented for redemption between
that date and the date of his election
in November. 1892, was trivial. 1t
was when he and his party came
into power that the real demand for
gold began.
Now why did it begin? What
brought it about? How it is that
the greenbacks are used to get gold
out of the treasury and then reused
for the same purpose again and
again? What becomes of the gold?
Why was il that these notes gave Us
no trouble until the Democratic
party obtained full power, and why
is il that we have had so much
trouble with them since, and what
would be the effect of their perma'
nent retirement in checking these
troubles? Let us look at the whole
question and try to understand it.
| The greenbacks were issued by the
United States Government as al
Acknowledgement of debt and to
serve the people as money. TIL,
government owed a sum-suppost
we call it $500, 0,000,000. 1t had n,
money So it printed a promissory
note, agreeing to redeem it i'm coin
which means gold, whenever it wai
presented at the treasury. The peo
pie took these notes, and for Al Ion.
period of years they never asked TIN
government to redeem any of them
The governments financial condi
ton during all this period wa
splendid. So was the peoples
Trade and industry fiourished. am
SO large We're the governments re
ceipts that il was enabled to pa,
twice as much bonded debt as tn
amount of this greenback debt.
The people had absolute faith il
their greenbacks. Moreover, the.
had no great Use for gold. The
generally sold to foreign cOuntrie
more than they bought from foreig
countries. and there was generall
balance of trade i'm favor of America
This balance was largely increase
by the sums which foreign capitalist
invested i'm American enterprise
The law under which the greenback
were issued said that when the
were presented for redemption the
should be redeemed, and then. no
Cancelled, but rcissucd. that is, ia
services and supplies to the govern
ment, reissued in the creation of jus
! SO much new debt, The object {
the law was, first, to enable I'll
government to tide over a period {
heavy obligation. and, second. t
provid for the people a safe and col
b venient currency. And the law wa
a great success. AS a form of publ
debt the greenbacks were the cheapes
in the world. No interest was pai
on them, which was saving