Morris tribune., 1898-06-15
Senator Nelson on dreenbacks.

HuOoClOA VI CAo issuing VI SAOOANoOn1
and coming the seigniorage arose
, through the efforts of silver men. Sen
ator Nelson's words at that time were
so to the point thot part of the
speech will be of interest to all who
follow national questions. He sale
in part:
"The greenback issues of the wal
were noninterest-be bearing forced loans
not payable on demand. The govern
ment in effect said, We can not re-
deem those notes till the war is ovel
and we have recuperated from its eff,
fects, but in the meantime we will &C.
cept them as payment for all Govern
ment dues except customs.
''This loan arose from and was JUST
fed by the necessities of the war. but
there is no doubt that the burden OF
it, prior to the resumption of specie
payment, resulting from its deprecia-
ton in value, was far greater than the
interest saved by its circulation. Of
all our war loans, from first to last,
it was no doubt the most expensive,
It's justification was that for the time
being it filled a gap that could not
have been easily supplied by time
loan.
"But this war issue furnishes us no
precedent for the issue proposed
by the majority of the committee.
The war greenback was an indefinite
time loan, and it did not at that time
and juncture involve the maintenance
of the parity of our money, for at that
time we were on pure paper basis.
No reasonable man now wants such a
greenback. We all want a greenback
payable on demand in our standard
money. Our past custom and exper-
fence show that an additional issue of
$15O,OOO,OOO of Treasury notes would
involve and require an additional per
manent gold redemption fund Of $43,-
100000, 50 that the net amount OF Cir
culation derived from this issue of
notes would not be over $1O7, OOO,O 900
at any time.
This amount, however, is more ap
parent than real. In good times, with
a favorable balance of trade like the
fiscal year now drawing near its close,
this amount would about measure the
but in such times as from
1892 to 1897 the circulation would be
much less, for there would be a con-
slant redemption and reissue going
on, with constant shifting and fuc-
tuation in circulation, and the expense
of mainta n ng the goldre erve would
be far greater than any possible gain
of interest from such circulation. At
all events, the slight gain of interest
will be no compensation for the great
risk and burden of maintaining the
gold redemption fund and for the
doubt and uncertainty it will tend to
throw around our paper currency
among our own people and through
out the world.
THE issue of these notes is not |
called for through any lack of cur
rency or deficiency of money. On the
LIST day OF May last the per capita
in this country was $24 80.
A year ago it was $23O1. Our percapita
is now higher than at any
lime since 1867, except in 1892, when
t was $1444-only IL cents more
han at this time. There is an abund- |
.nce of money that can be borrowed |
It lower rate Of interest than ever be-
ore. Surely no candid man will con-
end that the issue of these notes is
allied for by reason of dearth of
''Neither is the contention we'll
rounded that an issue of these notes
will obviate the issue of bonds. On
he contrary, if such times should
ONE upon us again as in 1884
hese notes would be the Instruments
nat would be used by heartless brok-
RS and money changers to withdraw
old from the Treasury and force us
} replenish the loss by an issue of
onds to obtain gold. And such an
,sue of bonds is only measured by
ne greed and power of the money
indicates. The misfortune is that
70 are never through redeeming such
otes, for under the law they have to
g reissued as soon as redeemed. .
"More greenbacks simply furnishes
Vail street with greater means to alb
rlct gold and to force the issue of