The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-06-06

which our statesmen approached the issue
of paper money They regarded the expert
ment as perilods and only justified by the
severe necessities of the times and only to
be employed to meet them. Secretary Chase.
in his recommendation of the issue of treas
ury notes, forcibly expressed his opinion re-
specting the evils of fiat money. Said he
The greatest care will, however, be requi-
site to prevent the degradation of such is
sues into irredeemable paper currency, than
which no more certain fatal expedient for
impoveriShing the masses and discrediting
the government of any country can we'll be
devised"
Mr.. Fessenden, as chairman of the com
mittee on finance, supported the legal-tender
clause of the United States notes because
Il was temporary measure made necessary
by the eXigency of the hour, and was not
to become a settled policy. Said he:
All the gentlemen pretty much who have
written on the subject, except some wild
spectators in currency, have declared that
as a policy it would be ruinous to any peo-
pie; and it has been defended as / have
stated, simply and solely upon the ground
that it is to be a single measure standing
by itself. and not to be repeated;
1t is put upon the ground of absolute, over
whelmirg necessity.
the measure under the same imperious
necessity. "A remedy" said he. which at
any other moment you would reject is now
proposed. Whatever may be the national
resources, they are not now within reach
except by summary process. Reluctantly.
issue And yet | cannot give such a vote
without warning the government against
the dangers from such an experiment. The
medicine of the Constitution must not be-
come its daily bread"
/ might reproduce. if time permitted. the
opinions of many of the colleagues of Mr..
Fcssenden in the House and Mr.. Sumner in
the Senate-statesmen whose wisdom and
patriotism in the Nations supreme crisis
we admire and cherish. which were in entire
accord with their views as to the evils of
an irredeemable paper currency. They did
not regard the emission of paper money
an opportunity to be welcomed but neces-
Sity to he regretted.
Mr.. Lincoln, in his annual message to
Congress Dec. l, 1862. pointed out the evils
perative necessity of guarding against such
evils by providing for the Convertibility Of
paper currency into coin. Said he:
The suspension of specie payments by
the banks soon after the commencement Of
your last session made large issues OF
United States notes unavoidable. In no
other way could the payment of the troops
and the satisfaction of other just demands
be so economically and so well provided for.
The judciouS legislation of Congress Sc
curing the receivability of these notes for
loans and internal duties and making them
a legal tender for other debts, has made
them universal currency. and has salts
fed. partially at least. and for the time. the
long-felt want of a uniform circulating
medium saving thereby to the people i'm
mense sums in discounts and exchanges.
"A return to specie payments, however.
at the. earliest period compatible with due
ever be kept in view. Fluctuations in the
value of currency are always injurious, ana
to reduce these fluctuations to. the lowest
possible point will always be leading pur-
pose in wise legislation.
"Convertbility, prompt and certain con-
vertibility, into coin is generally acknowi,
edged to be the best and surest safeguard
against them, and it is extremely doubtful
whether a circulation of United states
notes. payable in coin, and sufficiently large
for the wants of the people. can be perma-
nenty, usefully and safely maintained
rs there, then any other mode, in which
the necessary provision for the public wants
can be made, and the great advantages of
asafe and uniform currency secured?
II know of none which promises so GER
tain results. and is at the same time so I'M
Objectionable the organization OF bank
ing associations under d general act OF
Congress well guarded in its PROVISIONS. ~, 10
furnish circulating notes on the security OF
United States bonds deposited in the treas
ury. These notes, prepared under the
supervision of proper officers. being uni
form in appearance and security. and con-
vertible always into coin. would at once
protect labor against the evils of a vicious
currency, and facilitate commerce by cheap
and safe exchanges.
DO NOT LEARN FROM LINCOLN.
The advocates of the proposed issue of
greenbacks do not seem to regard with Mr..
Lincoln's solicitude the necessity for main
tanning the convertibility of greenbacks or
other fiat obligations into coin; that Is to
say into that money which is regarded as
the standard of value among the leading
civilized nations of the world. The prog
ress of the war of the rebellion and the con-
tinued necessity of increasing the issue of
United States notes. but emphasized our
perils and the injury to labor and to those
least able 20 bear the burden Mr. Lincoln
regarded the increased issue OF Unitec
States notes as a calamitouS necessity. IN
his message to Congress OF Jan. IL, 1ooS' ne
said:
II think it my duty to express my SINCERE
regret that it has been found necessary TO
authorize so large an additional issue of
United States notes, when this circulation
and that Of the suspended banks together
increase prices beyond real values, thereby
augmentng the cost of living to the injury
of labor, and the cost of supplies, to the in
jury of the whole country 1t seems very
plain that continued issues of United States
notes, without any check to the issues OF
suspended banks, and without adequate pro-
vision for the raising of money by loans,
and for funding the issues. so as to keep
them within due limits. must soon produce
disastrous consequences.
Pending the consideration of the first le
gal-tender bill the chairman of the commit
tee on ways and means declared that II was
intended to issue only $3.50 600 United
| States notes, and that it was his belief that
this would be all that would be required.
But, contrary to his expressed opinion, sec
ond and third issues of a like amount soon
followed, and within the period of about a
year, from Feb. 25 1852, $3.50 100000 OF legal
tender notes were duIHOTlZ0u.. Tic III p
step taken, the others followed with little
resistance. The rapid and great deprecia-
ton in the volume of this currency, and the
general disturbance in the value OF prop
erty and commodities, is part of our we'll
known history. 1t would seem that the
evils of a disordered currency during the
civil war were so great and so recent as to
make impossible any attempt to return TO a
system which produced them. What seemed
wise and necessary under the stress OF the
civil war would seem to be unwise and UNI
necessary now.
The authors of the original greenback
issues felt the necessity of redeeming them,
and in the absence of the necessary coin
that they should be receivable for and con-
vertible into the coin bonds of the United
States The rapid deprecia ton of this cur
rency even with such safeguard, is a part
of our familiar history The necessity or
redeeming it and thereby strengthening the
public credit was early apparent, and the
work of redemption was begun soon after
the close of the war. The House OF Repre-
sentatives, as early as Dec. Is. 1865, declared
the necessity of the contraction of the cur
rency and the early resumption of specie
payments to be sound policy. The purpose
of redeeming the currency notes was carried
into various acts by Compression the pur-
pose of removing apprehension as to their
Eonredemption, and strengthening faith in
the public credit. These repeated express
sons of the purpose of the government 10
redeem it's pledges and its provision for their
redemption, resulted in bringing our paper
currency to an equivalency with gold
In the act of 1859 passed to strengthen
the ns' pubic 1 credit. the faith of the United
States was pledged to the payment of its
obligations in coin or it's equivalent, except
ing where other payment was provided FOR;
and to the redemption of United States notes
in coin Under this pledge and the resump
ton act of 1875 the credit of the United
States was strengthened and the way grade