The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1895-05-22


or sixty shillings. Trade was embarras-
sed and the utmost confusion prevailed
No safe estimate could be made as to the
future, and credit was almost at an end"
This is about the history Of paper money
at all times and in all countries
Prof. Sumner History of American
Currency p. 81 Gays, mo economist can
hesitate how to decide this question.
The losses occasioned by bad currency
far exceed the gains from imported COM
modities The history of the United
States from the landing of Winthrop to
to-day is reiterated proof of it,"
Notice paper money In X. 1.
Mr.. Potter, who wrote up r. l. money,
says, as reported by Walker, "The ennis
sions of paper money were generally OPP
posed by the merchants and business mt n
and the more intelligent part of the COM
munity. They were generally advocated
by the multitude, who were indebted
and distressed in pecuniary crcum-
stances as a measure Of relief. 1t was an
easy way of paying debts. The colony
under the complete domination of the
debtor party had continued its issues to
the almost total destruction of trade and
industry"
We find similar results in Massachu-
sets, Prof. Sumner History American
Currency p. So says, ain 1905 exchange
on London 1876 per cent, in 1910, 100
per cent" Later Massachusetts redeem
ed her paper at Ill, not however, until
trade was ruined and the greatest dis
tress was brought upon the people.
H A said that Pennsylvania money
was good. Money in Pennsylvania was
based on land.
Prof Sumner History American Cur
rency p. 49, says, "The basing of cur
rency upon land was not incompatible
with depreciation, represented by the
rise of exchange on London, first to l60
100 and later in l74S to $50 or 10000.
l could write up all the other colonies
to the same effect.
We see, then, that the history of
American paper money furnishes us any
thing but good money
Let us notice other forms.
Walker Money page $500 says Of the
continental money, "Many of the States
passed stringent laws to repress the pre-
MUM on silver and to restrain specu-
lators from forestalling and engrossing
the market, with view to secure the
anticipated rise of prices due to continu-
ed imitation.
Public meetings were held to denounce
spectators, and mob-law was not infre-
quently resorted to against the holders
OF goods, with the same popular applause
which had greeted the destruction OF the
stamp paper in 1906. All such measures,
however, were powerless to keep up the
credit of the continental paper. AS
prices rose the necessities OF the Govern
ment increased"
Let us now see briefly the assignats Of
France. These were based upon the
land.
Francis Walker, says Money p. 1917
"If any nation could issue paper money,
France was now that nation. She was
fully warned by severe experience;
she was now constitutional government,
controlled by an enlightened, patriotic
people, not as in the days of the former
issues of paper money, a monarchy con-
trolled by politicians; she was able to
secure every franc of her money by
mortgage on lands"
Walker says OF this money Up. 34l).
"In the spring of 1901 no one knew
whether piece ofpaper money represent
ing 100 francs, would, a month later,
have purchasing power of 100 francs, or
80 francs, or so, or 60. The result was
that capitalists declined to embark their
means in business. Enterprise received
a mortal blow. Demand for labor was
still further diminished The business
of France dwindled into mere living
from hand to mouth. This state of
things, too, while it bore heavily against
the interests of the moneyed classes, was
still more ruinous to those in more
moderate circumstances"
You may turn to the history OF this in
convertible paper money wherever 1t
may have been tried, and you will see
the scenes repeated as in France and
America. Nations have been trying such
money for hundreds Of years, and if it
worked successfully it would now be in
use every where.
Walker Money y. 360) says, "In Spain
the state Of things is so uncertain that
the relative value between paper money
and metallic money, can no longer be
fixed with any degree accuracy"
Walker says OF Argentine Republic,
"The paper money at the last quotation
/ have observed was 90 per cent. dis
count"
In Hayti, the same author says, "The
rate OF exchange was authoritatively
fixed at 800 paper dollars for one OF coin"
During the period of Greenbacks, the
greatest premium of gold was 1856 per
cent. or 2S5 cents IN paper money for
one dollar in coin.
Prof. Perry, the author from whom
II A quotes, says in his elements OF
Political Economy, There has never