The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1896-01-17
"GREENBACKS"
HAVE SERVED THEIR PURPOSE
AND MUST "GO."

AND MUST "GO"
An Interestings and Impartial Hts
tory of Our Treasury Notes by
the Chicago Tines-Herald-Sec-
rotary Chase's Aversion to Fiat
Money.
The following editorial from the
Chicago Times-Herald of November
20, not only gives very interesting in
formation about our greenbacks, but
contains timely suggestions as to the
necessity of redeeming and canceling
our Government notes. These
notes are not, as many suppose,
a cheap currency. They never we're.
The Times-Herald, which is an indie
pendent paper, with strong Republi-
can affiliations, does not. however,
discuss their past responsiveness, but
only their present dangers. 1t says:
It is not likely that the coming
Congress will take definite action con-
corning retirement of the greenback.
But the probability that Secretary
Carlisle and President Cleveland will
urge this next month as the only
means of melting the endless chain by
which the gold reserve is periodically
impaired indicates the day cannot be
far off when the people of the United
States must determine whether or not
the life of this form of American cur
rency shall be extended or terminated.
Must the greenback ego?
There is no chapter in the history
of any country, ancient or modern,
more dramatic than that of the green
back. Though it took its name from
printers ink, a drop of Nations
blood coursed in its delicate but
potent veins, and with the almost fatal
tragedy of Nations crisis its immor-
tality is identified. Its history pre-
sents probably the only instance IN
which Government paper money, I'M
secured except by faith in Nations
destiny and in the honesty OF its peo'
pie, proved to be superior to the &C.
cepted principles of finance.
Long as is the history of the green
back, it's story is short one. When
the Civil War began the Government
OF the United States owed less than its
debt under the Administration OF
Washington after the Revolution. At
the beginning of the year 1851, when
the Government was confronted with
civil war, the Treasury was empty.
Various devices were suggested as
means of raising money. One OF these
was the unconditional pledging OF the
public lands for the ultimate redemp-
ton of all Treasury notes that it might
become necessary 10 issue. Mr.. Val
landigham, of Ohio, discussing the
general question of revenue, said,
"Your expenditures are $500, 600, 900,
your income $50, 900, 0O0."
Customs and direct taxation proved
inadequate. Lincoln asked for $780,
900, 900 in money and 100000 men.
Loans were authorized. Prior to 1861
no notes not bearing interest had been
issued by the United States. July II,
1861, Congress authorized the issue
of $50, 900, 900 of demand notes IN de-
nominations less than $50 IN exchange
for coin or in payment of debts due
the Government, the notes to bear nc
interest, but to be receivable for GUS
toms and all public dues and to be re-
issued. They were to be redeemable
at the Treasures in New York,
Philadelphia or Boston. February II,
1852. the issue OF an additional Slo,-
100000 was authorized. February
Is, 1862, Congress directed the issue
of $3.50, 900, 900 of notes, making them
legal tender for all debts, public
and private, excepting customs duties
and interest on the public debt. Jun.
II, 1862. Congress increased the issue
to $500, 0O0,0 and March 3, 1868, te
$3.50, 100000. The highest amount Of
these notes outstanding at any time
was $40, 1913, 9O2---January 3. 1854.
The great debate connected with
these notes was upon making them
legal tender. The bill was reported
January %, 1852, by E. G. Spauld'
ing, banker of Buffalo. In report
ing the bill Mr.. Spaulding character
lied it as ''a war measure, "a meas
ure of necessity, not of choice" Mr..
Spsulding said: "Our army and navy
must have what is far more valuable
to them than gold or silver. They
must have food, clothing and the ma.
terial of war. Treasury notes, issued
by the Government on the faith OF
whole people, will purchase these In
dispensable articles
Chase, then Secretary of the Treas
ury, has been too generally accredited
with the paternity Of the greenbacS.
In fact, its opponents asserted that he
was opposed to making the notes legal
tender, and it was not until he wrote
letter saying that he did not wish to
conceal his great aversion to making
anything but coin legal tender, but
that he believed it impossible to pro-
cure sufficient coin, that he was reck'
oned supporter of the measure. a
personal note from Secretary Chase
to Mr.. Spaulding said that he "came
with reluctance to the conclusion that
the legal tender clause is neces'
slty," but that ''he came to it decld'
eddy and supported it earnestly" The
London Times hailed the legal tender
proposal as the ''dswn of American
bankruptcy, the downfall of American
credit"
The average gold value of these
notes went down to Ga cents in 1865
| In 1866 the value rose to II cents ano
| continued to rise until in 1878 II
reached 9S cents, and in that year the
price OF gold was maximum Sl.O2s
and minimum 81, or par. Jan. l.
1879, the Treasury had in its vaults
STA, 900, GOO of gold in excess OF out
standing gold certificates, and the