The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-03-09
ERRORS OF POPULiSM.
Inc Defnand Notes and the Greea-
Why Did the Demand
sOtes Not Deprscfate.


iesa4 'en'ser for ell debts public and p-i-
Saee. Because OF this full legal tender
qas1l's. tEey We're. shfough all the yieissi-
'uaes OF the war, as good as gold After
~sra the greenbacks were issued. affuIl
iesaI <endss- Tor everything except duries
on imports and interest on the public dent
ana sscaisse Of this exception 10 their le-
gal te.iders quality. denounced by all Pop
niis;s In szso6 and regular standing as IN
FAMOUS, taey were not as good as gold
but appreciated greatly Emery saws:
Following this declaration came the en-
actmeats ef July II. lssa. and February u
NE. authorizing the issue OF ssa osl 90
treasury rsofes. not bearing interest. and
paya5fs fo- an debts. public and private.
I1e issuarlse OF this moaey at once brought
relief 90 tie country. Commerce, industry
and etslcasioa fiourishei as never before
Ia the nfsttsry Of the country" % Another
Popuiist a5thor says: LAS q result a bill
was passes 10 issue non-in.eres1 bearing
treasury rotes, in small denomiasti ons,
which wers to be money for all purposes.
with TO exception. Sixty million dollars
OF these nF5tes were issued. known as de-
mand notes" ~. John Davis, Populis,
congressman from Kansas. says: In the
North ssere two sorts OF paper money. The
nrSt So Dc 80 were rec eivable in the reve-
nssss OF the government the same as coin.
and legal Gender for all debts. Another
class Of paper money issued during the
war. known as greenhacks was not re-
celvahis for duties on imports nor for in
tereSt On the public debt II sometimes
went balow 50 cents on the dollar because
of Its kgal disabilities, and from no other
cause fs).
1t Is the object Of this article TO give
the history of the issuance of the demand
notes and greenbacks. and TO point out
some of the errors of Populist leaders with
reference to them.
By the act Of July H. 1861. supplemented
by the act OF August ). 1851. tD congress
authorised the issue OF SO. 600. 900 of treas
ury notes. payable on demand by the as
sistant sreasurers of the United States at
New York. Philadelphia, Boston. St, Louis
and by the United States depository at
Cincinnati. They bore no interest, were
not legal tender for any purpose what
ever exEept that they were receivable in
payment of public dues. They were first
issued in August. 1861. in payment of sala-
ries to public officers. and they were re-
ceived ~ all classes Of people with the
greatest reluctance. To aid their circu-
1ation. Gen. Scott issued a circular TO the
army. uSging his men to accept them. The
secretara of the treasury and other officers
signed 5 paper agreeing 10 take them in
payment OF salaries. Secretary Chase sent
a circular to the various assistant treas
sued, "Fedeemable In coin on demand"
Since the notes were authorized prior 10
the suspension of specie payments. and
were proclaimed as payable in coin by the
circular of the secretary. they were con-
sidered go payable (9. Thaddeus Stevens.
in speech before congress. speaking OF
this firss issue of treasury notes. said
When fhe FIRST $50 ooo, 900 were issued they
were paa3 out expressly to be redeemed at
the sub .reasuries when presented. and the
public 81 understood it, (6l. Secretary
Chase, IN his report of December 4, 1862,
says. with reference to the coin redemp-
ton of tHese notes up TO December 80. lS6l
Up to that date. every note presented
for payrsant had been promptly redeemed
in coin" 20. Where did the government
get the coin with which TO redeem the
notes? From the $4,000 900 coin loan Of
1861 and from customs receipts. After De-
cember 30 1861 when only So. $50 COO Of them
were outS tan ding. the government retired
them as rapidly as possible, since they were
receivabl.a for customs and embarrassed
the government in providing coin for inter-
est on tn, public debt. However. for tenn
porary Purposes. on February II. 1ss2, $40
or. 900 mare demand notes. similar to the
former osss We're authorized 09. It was a
part of she act providing for the issue
Of greenEacka February q. is62 that $50
900 900 Of Ihe greenbacks should be used in
taking M and retiring demand notes Pre-
vIously issued. More than 100000 OF the
demand r5otes had been retired by Jaly /,
1863. and the rest soon after. on March
IL 1862 Nhen the amount in circulation
had been greatly reduced by receipt ard
cancellation, congress passed an act pro-
vfdng that the demand notes. in addition
to being receivable for duties on imports,
should he: lawful money and legal ten
der in like manner, and for the same pur-
poses. ana TO the same extent as the
sreenbacl-s 90. Since the greenhacks were
not a legsl tender for interest on the pub
lie debt. the demand notes also lacked that
quality: IL other words. the demand notes
never we5A "a full legal tender for all
debts. pu-.lic and private" as Popdiist
leaders igaorantly assert. Statements that
tho acts authorizing them made them a
full legal tender for all debts. public ard
private. are positively untrue. Up to
March II. 1862. they were legal tender for
nothing except government dues. At the
best they 3lad but little more of legal ten
der qualit.. than the greenbacks had.
on December 80. 1861, Mr.. Spaulding. a
Buffalo baenker introduced into the house
a bill authorizing the issue of greenbacks,
a fun legSi tender for all debts Great
doubts were entertained as to the legal
tender cla1lse. on this account ThadieuS
Stevens a. first hesitated 10 support II,
but he soan changed his mind. and sup
ported IL IS "a measure Of necessity. not
Of choice. The bill passed the house by
n vote OF IS TO 81. The senate amended
the bill. making the notes q fun legal ten
der for ll-debts except for duties and IN
terest on the public debt 1T was felt
that IL ne provision was made for the
payment q the interest on the bon Is In
coin. they. would depreciate more ard
more. whise such payment would tend,
as IL did. ~ maintain them nearer TO the
specie standard. In order 10 obtain ccin
for the payment of the interest. provision
was made shat all duties should be paid in
coin. 1t Ms felt that the duty on import
81 goods should not he lessened by any
iepFxs,1atio5t OF our local currency Such
importatio,.s were based on coin values
and the tai levied on them WAS properly
required to- be paid in coin. This security
OF coin pa~ ment enabled the soV"fnWf NJ
To sell he ;tonds a; far higher rate man
they woul,. have commanded without IT,
and tended also TO limit the depreciation
Of the gree> backs" fhe bill thus amend
ed va ,sed a. senate by vote Of u 20 :,
and the house bv a vote Of - 10 - il y As
the first las ever passed making anything
but gold aI:I silver a general LEGAL tender
in The United States. II provided Tor the
issue of Sl5- ~. 20 OF greenbacks- fhndahle
at par into5s per cent 80 bonds IN terest
Ysyable seI-.i-ann'iaiiy in coin. l nder m"
acts Of sally II. lS1 and March
,. iss3. S"cuoo0o more Ere-an4c Ks
were issuezl President Lincoln re-
lnqrantIy gave his approval to the act az
fhhrizing TIE third issue Of ereen1 tcils.
saving. '''rh5. currency has ALREADY become
- redundant as 20 increase prices beyond
real values thereby auEmentinS the cost
Of living to- the injury of labor, and the
COS, 81 supi:lfts o the injury OF the whole
country" ga.
The derrsaad notes were always about on
q par with a,id the greenaaeks depTssci AZ