The Louisiana populist., 1897-04-09
FINANCIAL HISTORY.
A GLIMPSE AT CONGRESSIONAL
LEGISLATION SINCE 1850.
An Open Letter to Lyman j. Gage,
McKinley's Secretary of the Treasury
"A Cool Statement Of Facts That Are
Written In the Laws Of Our Country.
To Lyman ]. Gage:

Written In the Laws of Our Country.
To Lyman ]. Gage:
Let 1t be remembered, and never
be forgotten, that when the war OF the
last rebellion broke out in 1861, the
treasury was left empty. The bank
ers of that day came forward and Of
fered to furnish the government all
the money it wanted, !. e., Of its state
bank notes, and take government
bonds at 80 cents on the dollar IN ex-
change for these notes.
Salmon p. Chase, the secretary of
the treasury, thought the government
of all the people would be better than
any bankers bank notes, who had
not one dollar in coin back of every
ten, and in many cases twenty paper
promises to pay, which they put out,
so congress passed an act, Aug. S, 1861,
to issue $5O,OOO,OOO demand notes,
which were paid to soldiers, officers,
etc.
The bankers, however, would take
them for only 80 cents on the dollar,
as they lacked the legal tender quality
Of money.
Congress, act of Feb. II, 1862, issued
another $lO,OOO,OO0. and likewise $780,
100000 to take up the $50,O00,O00 al
ready issued without the legal tender
quality of money, and called in the
first issue of demand notes. This six
ty million never deprecated one cent
after being made a full legal tender
by act of March II, 1862, but soon dis.
appeared from circulation just as did
all the metal money. This money
lasted but few days. Congress was
about to issue another batch of $780,
00O, 900, and that greatly alarmed the
bankers, for they saw that their craft
was in danger. They dispatched their
mos. polished lobbyists to Washing
ton to advise the members Of congress
what was best to do In case OF issuing
paper money, as they called it.
Then the house OF representatives
passed an act to issue sl5O,0O0,OOO OF
the same kind Of legal tender paper
money, making 1t legal tender for all
debts public and private; while Mr.
Belmont and others were laboring with
the senate, saying that they would
have to issue bonds and that Mr.. Bel
mont had been authorized to say that
Baron Rothschild would take three
or four hundred millions of our bonds
if they would make the interest payable
in coin.
Salmon P. Chase remarked: How
could we pay the interest in coin, the
treasury is eupty of coin, and likely
to be-
THAT is very easy matter" re.
marked Belmont; make your import
duties payable in coin, then you will
have the COIN come in the treasury
with which to pay the interest. You
cannot expect Rothschild Of England tc
take your paper money for the interest
when it is only another promise tt
pay"
The house bill provided for the issue
Of 50.000,000 Of pure, absolute, consti
tutional money, with the fiat OF gov
ernment upon paper-which Is just a.
good as upon metal IL the people hav'
confidence in the stability Of thei
government and have the taxing all
thority to tax the morSy back into tn
treasury which issued it.
1t should be impressed upon ever,
intelligent mind that the material upol
which the fiat stamp OF the governmen
; is impressed, does not change the rep
resentatiye value of the dollar.
is the number of dollars in circulation
that gives it a high or low purchasin
power. Take away half the money i
circulation and all products Of labo
would sell for only half as much a
when there was double the amour
with which to do business.
When this bill passed the lowe
t house and was sent to the senate fc
: it's approval and ratification. the bi
3 was amended by the senate and mad
to read "Tnis is legal tender for a
f. debts public and private except dutie
I upon imports and interest upon publ
I debt"
e Belmont's tampering with the senat
e had had it's desired effect, to the gre;
e approval of the money power and tt
Q oligarchy Of the country.
}, The bill was sent back to the hou;
: in that crippled condition, and tn;
s grand old commoner, Thaddeus Stevel
Of Pennsylvania, made speech ol
i iecting to the senate amendments. al
= explained to the house of represent
+ tives the effect that would follow
|, the amendment crippling the leg
e tender quality OF the money was q
d allowed to attach to the bill.
y The news came to Washington OF Il
70 Bull Run disaster, indicating poss
bility that the confederates mig
march to Washington, and money "
needed and there was no time to parl
over the exception clause. so the a
If vas passed as It came from the sena
IN providing for the issue of the money
~ once and in that crippled conditic