The herald., 1897-05-19
llLE O. The @EElBAx


The greenback. 80 much derided by
bankers today. is the basis Of the greater
part of our past and present bonded
debt. At no time In our history have our
bonds represented any large amount Of
gold. borrowed at home or abroad. But
little. II any. of the paper currency Of
war times has been redeemed In gold.
Under the policy of the government, the
major part was funded into bonds, thus
relieving the country of redundant
currency and laying the foundation for
the national bank system.
The most accurate statistics give US
$S46, 900 of greenbacks still outstand-
ing. These greenbacks have been In
the channels of trade for thirty-one
years, without costing the people one
dollar in the way of interest. II there
was necessity in 1865 for $346, 1000, 900 OF
greenbacks and they had not been is
sued, then we would have had to borrow
this amount on bonds bearing per cent
interest and up to this year the interest
on those bonds would be $646 $4,000.
The use of $346,000,000. had 1t been
bonded debt. would have cost
US $646 $50, 900 as interest alone.
or 500, 760, 600 each year. without reducing
the original amount of the bonded debt.
Then suppose at this time the entire
outstanding greenbacks were burned.
and thus lost to our currency we would
have saved in our interest account in the
thirty-one years s646, 100000 as COM
pensation for the use of $346. 900 for
that time. On the theory that the en-
tire amount of greenbacks had been de-
c<r fn tho thirty.
one years would have been $11, 900,
which is $9.600,000 lese than our annual
interest on the bonds.
Then the United States has gained
50, 100000 annually by the issuance Of
greenbacks, after reserving an annual
sinking fund of s11, 100000 to liquidate
the original 1916, 100000 of greenbackS.
But. as fact. these greenbacks have
neither been lost nor destroyed. They
have been a factor in every trade made
since 1865 throughout the union, have
built fourishing cities, threaded the con-
tinent with railroads, made the deserts
west of the Missouri the home of happy
millions, and have stood like so many
angels, with flaming swords, at the gates
of our political paradise. warning the
banker and broker against invading the
inherent sovereignty of the government,
in their efforte to control the nation by
controlling the issue of its circulating
medium 1t is one of the highest rights
of sovereignty to supply a currency for
the people. based on the aggrega
wealth of the nation and sufficient in
volume and fieXibility to meet the wants
of the vast inland trade of the states.
So jealous were the founders of the re-
public, of the sovereignty, involved in
the making and issuing any kind Of
money that they positively forbade the
states issuing money of any sort, and
reserved to the general government the
right to "con money, fix the value there
of, and of foreign coins" The old faith
ere utterly repudiated any kind Of money
except gold and silver, and the green
back does not rely on the lex scripta
of the constitution for its authority, but
on the higher law of NECESSITY"
wrought out by an edict Of the supreme
court of the United States. The long ac-
ceptance of and acquiescence In this de-
cis'ion has invested the greenback, with
the potentiality of gold and silver as
legal tender for all debts, private and
public. But when we say that our green
back currency has saved to the United
States $4,000, 900 annually, besides the
sinking fund necessary to pay Off the
original issue, we have not told all the
tale OF the. greenback.
OF course the place the greenback has
filled in our commercial life would have
been supplied by an equal amount of
sold borrowed on 6 per cent bonds and
that debt, if falling due at this date.
would give us gold debt of 1892, $50 900.
while the debt assumed by the issuance
OF greenbacks has drawn no interest
and has grown annually less, by the ac-
cidents incident to all paper money.
These greenbacks have gone on in their
mission, fulfilling all the functions of
trade and by the very law of their being.
only redeemable in similar lawful
money 1t has been said of the green
back that it had Abraham for it's father
but like the Hebrew of old it knew not
it's redeemer. This is true in the sense
that it was never contemplated that it
should be redeemed in gold. When the
Supreme Court pronounced 1t a legal
| tender it took its place beside gold and
silver, not as fiat money, not as money
| to be redeemed but like gold and silver.
the money of final redemption. The
greenback was born when our nation
was in the death-throes of revolution.
Gold had sought a safe retreat beyond
the sea or in the secret hiding places of
the miser. while two millions of brave
men at the front cried for bread and
clothing, for horses and munitions Of
war, when forthwith there sprang
from the womb of the nations necessity
this sinew OF war, called the greenback,
and for four years it led the hosts of
those who fought under the stars and
stripes, giving food and raiment to the
soldier and a means of subsistence to his
family at home.
JOHN SHIRLEY WARD.
CALIFORNIA OPINION