Middlebury register. (Middlebury, Vt.) 1886-1937, 1895-11-08
to be deemed part of the loan of $780,
100000, before mentioned.

the issue of Sl5O,000. 900 greenbacl<s as
before stated, providing $4,000 600 OF
these should be in lieu of the demand
treasury notes authorized July II, 1861.
1t further enacts that the secretary Of
the treasury should issue coupon or reg
istered bonds to an amount not exceed.
| ing $1,000, 900, redeemable at the nleas-
ure of the United States after ! vears
payable 20 years from date and bearing
Interest at per cent, payable semi-annu-
ally. The law authorizes the secretary
of the treasury to dispose of such bonds
for the coin of the United States or for
any OF the treasury notes that have been
or may be reissued after that date. under
any former act of congress. or for United
States notes issued under the provision
of this act. As we have seen. tbe Same
law authorized the first issue of the
greenbacks and made them legal tender
i'll the United States for all debts public
and private except interest on the puh-
lie debts. customs ana duties so that anv
one negotiating the bonds authorized
by the same law was distinctly notified
that they were payable in these United
States notes.
The act of July II. 1862. authorized an
additional l5,000O,OO0 of United States
notes (greenbacks) with precisely similar
legal tender qualities to the first issue.
The total debt rose in 1862 to S5l4.OOO. =
600. At the beginning of 1862 gold was
at premium of per cent and at its
close of 81 per cent.
1t follows that more than three fourtbs
of the debt due when the act of March
Is, 1869, was passed, had been borrowed
in greenbacks and other lawful securities
of the United States, when they were
worth less as compared to coin than at
the time this act was passed requiring
their payment in coin. OF the remain.
der. nearly the whole was borrowed bv
the act Of Feb. p, 1862, that also created
the greenbacks and expressly stated in
the plalnest possible terms that they
should be receivable in payment of this
debt. Ii becomes perfectly evident that
there was no occasion in equity. strained
to its incest point to pay coin for any of
this debt except possibly that created by
the law of July II, 1861, or before,-a
very small proportion of the whole.
There might have been an excuse for
enactng law declaring that all future
obligations OF the government should be
paid in coin or its equivalent, AS this
might help refund the debt at low rates
of interest. But there was no excuse. and
could be no excuse, for passing law to
pay obligations already contracted in any
better money than THAT paid for them,
and than the contract called for.
Such course certainly could nor improve
public credit. No credit, public or pri-
vate, was ever improved by paying 81
where 81 was due. Here, as elsewhere.
the fine hand of the money power is most
transparent. Such work as this is never
accomplished except through the persis-
tent efforts and well laid plans of those
directly benefited
This law that made the oblga.
tions of the government payable in coin
also solemnly pledges the faith of the
United States to make provision at the
earliest possible period for the redemption
of the United States notes in coin. This
in itself did no harm. because it amounted
to nothing, no matter with how much
Solemnity it may have been enacted. but
it is noticeable as an index to the dispDsi-
tion of congress.
Paper money may be rs good "a any
other money To perform money functions.
This has been repeatedly proved in the
worlds history. If its volume is limited
to the credit of the power that issues it,
it is good money and may for an indpf-
mite time be very useful.
However fit" said franklin "a
particular thing may be for particular
purpose, whenever that thing is NOT to be
had. or not to be had IN sufficient quanti- /
ty. it becomes necessary to use something
else, the tittcst thing that can be got in |
lieu of it. Bank bills and bankers notes /
are in daily use here in London as a
medium of trade. yet they have no intrin- /
tllat Issued them, as paper bills in the col /
onles do ON the credit of the respective |
settlements there. Being paya- /
Bile in cash upon sight by the drawers is |
indeed circumstance that cannot attend |
the colony bills, their cash being drawn
from them by the British trade: but the
legal tender being instituted, is rather 4
greater ddcaRtdgc to the possesSOr, since
he need not be at the trouble of going to
a particular bank or banker to demand the
money. At this very time the silver money
in England is obliged to the legal tender
for part of its value-that part which is
the difference between its real weight and
lis denomination. Great part of the shill-
ngs and siXpences now current are. in
become five, ten, twenty. and
some of the siXpences even fifty per cent
90 light. For this difference between the
zeal and nominal YOU have no intrinsic val
lie; you have not so much As paper YOU
nave nothing. 10 is the icgal tendcr. ,cith
he kAowiedgc NEAT il can easily be repdSSed
or Me same cHlHe, that makes three penny
worth of silver pass for sir DpDce D."