The Roanoke daily times. (Roanoke, Va.) 1895-1897, 1896-03-24
aREENBAcKs AND SHERMAN NOTES.


Why the Government Pays Gold Only For
Its Notes.
The Times has received the follow
ing letter:
ITO the Editor of The Times:
"Sir:-The United States has out
about five hundred millions OF dollars of
Its promissory notes-greenbacks and
Sherman notes. Are those notes not
payable on demand in coin-gold and
silver? II they are payable in either
coin, why doth the Secretary of she
Treasury pay them exclusively in gold?
1.-THE above questions are frequently
propounded to me by some of the free
coiners. II you can furnish the desired
information, you will greatly oblige ono
OF your subscribers. 1T. WERNER.
"Buckner's, Va, March &c. 1896"
We have many times stated the facts
of this matter. but 1t takes a long time
for them to come to be understood by all
the people. 80 that we take pleasure in
repeating them as often as information
is asked for.
The Government has out aboutS35O,-
100000 OF its notes that are called
greenbacks. These are the notes that
1t issued during the war and forced upon
the people. They are not payable on
their face in anything in particular,
nor do the acts OF Congress that proyide
for their issue direct that they shall be
made payable in anything in particular.
The acts OF Congress providing for
their issue simply direct the Secretary
OF the Treasury to issue the Govern
ments notes, which shall be legal tender
for all debts. according to q form 10 be
prescribed by him, and the form pre-
scribed by him was a simple promise OF
the Government 30 pay dollars. but
nothing was said OF the kind of dollars.
At that time the silver dollar was trifie
more valuable than the gold dollar. We
resumed specie payment January l, 1879.
and up to that time there had never
been coined but SIS. 900, 600 OF silver dol
lars, and all Of them had left the coun-
try, because their bullion vslue was
greater than their fac value.
There were no silver dollars, there
fore, in which to pay these notes when
re-resumed specie payments, and we
were compelled to adopt the policy Of
paying them in gold dollars. By the
time we had coined enough silver dol
lars to be able to pay these notes in sill
yer, the silver in dollar had fallen 80
mu IN in value that the holders of the
notes were unwilling 60 recsive pay
ment of them in silver, and the Gov
eminent saw no reason to abandon its
fixed policy of paying them in gold, be-
cause 1t would have seriously affected
its credit to do 30 TIA. Is the case
with the greenbacks.
We have out some $50, 900 900 OF the
Sherman notes. These were issued un-
der what is known as the Sherman act,
passed in 1890, which directed the Gov
ernmens to buy 100000 ounces of
silver each month, and pay for it by an
issue OF the Governments notes The
notes were payable on demand, and the
act provided that they might be paid in
either gold or silver dollars, IS the
Government preferred. But the act
also declared TINT 1t was the settled
policy OF the Government to keep it's
silver dollars and its gold dollars circu-
lsting upon terms Of equality.
When these notes were brought to the
Treasury, therefore and gold dollars
were demanded for them. tho Govern
ment said IL it refused to pay gold dol
lars and offered silver dollars only, that
would be discrimination between the
two unfsvorable to silver. It would be
the same thing "a for 1t to say 1t thought
the gold dollars more valuable than the
silver dollars; 1t would set this as an ex-
ample. and would, therefore. be viola.
zion OF the provisions of the act, which
declared that 1t was the intention Of the
Governments to keep each of its dollars
on par with the other. The
policy Of paying these notes in gold dol.
lars, therefore. II gold dollars were de-
msnded. was adopted, and 1t seems i'm
possible to doubt the force Of the Gov
ernments position in resolving upon
that policy.-Richmond Times.