The Colfax chronicle. [volume] (Colfax, Grant Parish, La.) 1877-1981, 1895-01-19

IOr customs Qu6S, anu demanding
that these be paid in gold. Thus
there were in the country two sorts
of money-gold, which was worth
100 cents to the dollar, and paper,
which required, according to the
fluctuations of the markets, from
140 to $50 cents to equal a dollar.
This ought to dispelthe false notion
that the stamp on money is what
gives it value-that IS, the value
called for by the satmp.
The Government stamp is worth
just what the ability of the Govern
ment makes it. The Government
may issue promises to pay as much
as it pleases; but if the people have
no confidence in the ability of the
Government to make good its prom
Uses, those promises will not be ac-
cepted at par.
To-day the government of this
great republic is about to be seri-
ously embarrassed financially. It
must keep a gold reserve in the
treasury with which to redeem its
promises when presented for re-
demption. Twice within q year
this gold reserve was so much re-
duced that there was danger of the
government being subjected to the
straits of being possibly not able to
make good its guarantees, and 80 it
became necessary to secure more
gold. There was no other resource
but to borrow, and the government
was forced to issue bonds for $780,
OCO, 900, increasing by SO much the
public debt, upon which, in addi-
ton, interest must be paid.
IF then, a government stamp on
paper or other inferior material be
all that is necessary to give that
material the value stamped on it,
why was the government forced to
go into the market to borrow gold?
Its ability to stamp paper money is
practically unlimited. Ifthat stamp
is all that is necessary, why is It
that there is any need for gold in
the treasury, and why is the supply
of that necessary material constant
ly growing smaller?
The reason is simple enough
when it is understood that the
United States is largely in debt to
foreign creditors. A great part of
the money used in building the
vast railroad mileage of the United
States was secured abroad. Much
foreign capital is invested in bust
ness enterprises and real estate in
this country. There are govern
ment, State and city bonds also
held abroad In this city of New
Orleans there is a large amount of
real estate owned by people who
live in Paris, and this city gives
only one example of the property
interests held by aliens.
All the interest, incomes, rents and
other proceeds of these investments own
ed by foreigners have got to be sent out
of the country, and they must be paid in
money which will be accepted abroad.
Those foreign creditors will accept only
gold, not because it has the government
stamp on it, for the stamp counts for
nothing outside Of the United States.
The gold is taken at its assay value on
ly, and it is demanded because it is the
most esteemed sort of money in all Euro
pean countries. 1t is this paying Of for
eign creditors that Is constantly drawing
gold out OF the treasury. All that is
necessary, when few millions of gold
are to be shipped, is to go to the treasury
with the governments stamped paper
notes and demand the gold, aad out it
comes, and ont OF the country b goes. SIM
ply because foreign creditors will not ac-
cept stamped paper or AZ cent stamped
silver dollars in the place of gold. The
power Of the United States exercises no
control over people in foreign countries,
and thus our legal tender laws have no
effect there.
But il it were possible to build Chi
nese wall around the United States, keep
out foreig lers and foreign goods, and
compel the people TO live on their own
products, it might be also possible to
force the inhabitants 10 confne them
selves to any sort OF money tho govern
ment stamps; but since such conditions
are impossible, it becomes necessary for
the United States to make provision for
money which will meet all demands.
Every dollar put out by the govern
ment should be worth 100 cents. There
should he no deprecated dollars for the
working people who are forced to live on
their daily wages, and another sort Of
gold dollars for the men who collect in
terest and dividends on capital. The gov
eminent stamp on its money must mean
that it IL good for al its guarantees, aud
that it guarantees all that its figures call
for. That Is the only sort Of money the
people want.
See the World's Fair for Fiftesu cents.