Mexico weekly ledger., 1897-10-14
Irredeemable Wont Do.

Irredeemable Wont Do.
The Monroe City Neses, a staunch
and true free silver Democratic paper,
editoriaIly says; There is large and
respectable body OF citizens who hon.
estIy believe that the government has
the power to create money. That the
mere fiat of the law making power
stamped on piece of paper can, by a
magic as wonderfulas Aiaddin's lamp,
transform a thing having value 80 In
significant as to be almost incalculble
into fabulous wealth. Thus the same
piece of paper many be changed in
value, by the mere change and combi-
nation of our numerical characters,
from any sum between the insignifi-
cant cent to that immense sum repre-
sented by the entire wealth of the
nation, public and private. That mon
ey, while it will procure for it's pos
SCISSOR every kind and quality Of real
value, is after all, in itself, q nothing.
We say there are many good and
patriotic citizens who honestly believe
that such an absurdity is possible.
Such views, while perfectly honest,
are the result of misformation, mis-
taken notions of the character Of
money and OF the power Of Congress
in the premises.
We shall not at this time enter upon
the discussion of the character of
money, but consider briefly some Of
the alleged facts of history upon which
fiatists base their peculiar faith.
Populist orators have been making
much capital out of the $60, 600 900
treasury notes issued by the govern
ment during the first year of the civil
war, under authority OF the Acts Of
July II and August 5, 1861. This issue
of government notes, we have heard
fat orators assert q hundred times,
were pure paper fats; that they were
irredeemabie, or as these orators
sometimes express 1t, "redeemable in
nothing" but that being legaltender
for all debts, public and private, they
maintained parity with gold and sill
yer at all times.
We suppose that Hon. David A. Ball
had heard the same statement made
and that he accepted the same as true
without investigation or doubt, for the
Paris Mercury reports him as saying in
his Tulip speech: "If that" (16 to
free and unlimited gold and silver
coinage) "does not furnish sufficient
circulating medium would issue
paper money and would have that
paper money like the old greenbacks,
redeemable in nothing, and good legal
tender for all debts, public and pri-
yate."
We had always believed the Popu-
lists orators were mistaken in the
facts of history in asserting the fiat
character of that first issue of "paper
money" but had not considered it
worth while to get the official evidence
to refute their alleged facts. But
when q Democrat, q candidate for the
highest office in the State, endorses
such falsehoods of history we consider
it time to establish by incontrovertible
official evidence the truth of the finan-
cial history of the country.
Hence, with no other desire than to
get at the facts of history, we, afew
weeks ago, addressed letter OF in
quiry to the comptroller of the cur
rency for the facts in regard to the
issues of paper "money" by the gov
ernment and especially this much-ex-
plotted issue of July II and August s,
1861. The comptroller being absent,
inquiry was referred to the Secretary
of the Treasury. Under date of Sept.
10, 1897, our questions were answered
and publications of the department
bearing on the subject were sent.
The Secretary of the Treasury states
in his letter OF reply that "the sixty
million dollars $3.50, ,O0O, ,0e0D Of notes oi
the Acts of July II and August 8, 1851,
issued during the first year of the wal
were in fact redeemable or
demand at the treasury Of the United
States or some specified sub.
treasury; and the government invari.
ably redeemed them in gold whenever
they were presented for redemption
When the demand notes were first is
sued they were not legal tender. Th'
idea of making paper money lega
tender by law had not then been en-
tertained by Congress, but after th'
passage of the legal tender act Of Feb
25, 1852, by which the United State
notes or greenbacks therein authorize,
were made legal tender, it was point
ed out that the demand notes ough
to be put on an equality with tn
greenbacks in that respect, and the.
were, therefore, made legal tender b.
the Act of March II, 1882"
These statements of the secretar.
are borne out by the Acts themselve
and by the terms of the notes.
d The title OF the Act of July II, 1851
? Is Gan Act to authorize q nations
, loan, and for other purposes, /" and th
: Act of August s, in Its title shows 1t
) amendatory of the other and follow
: the language of the title Of that Ac
, Sec. Of the Act Of July II, is In thi
, significant language: "The faith 9
. the United States is hereby solemn
D pledged for the payment Of interea
. and redemption Of the principal
: the loan authorized by this Act.
, Not until March II, 1852, as state
!, by the secretary In his letter, di
these notes become legal tender !
oil the payment of private debts. Be
Q ga Compilation of the Principal Law
q of the United States relating to Loar
D and the Currency" pages 4, 2 and Il
;, | issued from the Government Printin
d Office In 1895.
The terms of the issue printed o
the notes is in compliance with II
provisions OF the act and is In word
!. as follows, to-wit: Diverse sid
s aThe United States promise to pay
% the bearer Five Dollars on deman
uaahinofop Au0ust n 1851 Paw,