Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1898-05-19


tender English currency was twice as
valuable as the per cent gold
bond of England. In proof of this 1
ask attention to the following state
ment of Mr.. Alison in his history Of
Europe (vol. VIII, page So, note.)
"The public creditors were frequent
ly, in the per cents, inscribed for
much more than 100 pounds in consid-
Grafton of 60 pounds advanced. In
particular in 1907 they received no less
than 14O pounds of stock for each 60
pounds paid"
That is to say, the British per cent
bonds were worth only 40 to so per
cent of their face value, while at the
same time British legal-tender cur
rency was circulating in the channels
of business at par with gold. On this
latter point Mr.. Alison Volume Nv,
pages 924, 295) says:
Notwithstanding all that the spirit
of party may have alleged, there does
not appear ever to have been any trace
of the latter effect (thc depreciation of
paper in this country, or that at any
period higher price was exacted for
articles when paid in bank notes than
in gold" I
These facts clearly prove that the
demand for payments, arising from tho
quality of legal tender, is far more
powerful in sustaining the value of
Government paper than in the expen-
sive adjunct oil interest of usury. The
same thing is plainly proven by the
fact that during our late war the gold
bearing American bonds were frequent
ly 20 to so per cent below par as COM
pared with coin, while that portion of
our country which was receivable in
the Government revenues was uniform
ly Mt par with coin.
The late Judge Martin, in his work
on the Money of Nations, cites numer-
GUS examples of the efficacy of receiva-
bility on the part of the government in
the maintenance of money at par. On
page 16s he says:
ANY paper money issued by the
United States and made receivable for
all debts due the government will al
ways be preferred to coin.
Every step of United States history
under the Constitution proves this:
81 The notes of the first bank Of the
United States, 1901 until 1911, we're
made by thu law creating the bank
full legal tender for all debts due the
United States, whether the bank paid
coin or not. These notes were always
preferred TO coin.
"2. The treasury notes issued, with
and without interest, in 1912, 1913,
1914 and 1918 were full legal tender
for all debts due the government and
Gallatin and Campbell, secretaries Of
the treasury, say were equal to coin,
though the banks opposed them as
they do legal-tender notes now. QssO.)
"3. The notes of the Bank of the
United States from 1915 until 1896 were
made by the law creating the bank
full legal tender for all debts due the
United States. They were for twenty
years, at home and abroad, better than
and preferred TO coin. From 1897 until
1s4S the treasury notes of the United
States, to the amount of nearly $780,
600, 900, with and without interest,
were not only par with but preferred
to coin, for the reason that the law
made them receivable for all debts due
the United States.
"a. In 1857 congress authorized the
issue of S9O,OO0,OOO treasury notes,
which the law made full legal tender
for all debts due the government
They were equal with and preferred to
coin.
SIN 1861 snd 1862, congress issued
$50, 900, 900 demand notes. They were
PAYABLE in CON- but at first they were
not made legal tender for debts due
the government. They were to a dis
count, though payable in coin. But
when, by the order of Secretary Chase,
they were made receivable for duties
GU imports, they were at once not only
equal with coin, but preferred thereto.
In 1862 they were made full legal ten.
der"
These examples prove that . legal
tender paper receivable in the revenues
of responsible government, is uni
formly more valuable than the interest
bearing bonds of that same govern
ment; and that such full legal tender
paper without interest, is the very best
money known, in times of peace or
war. The question now is, shall We
use such a paper system which leads
to victory, prosperity and glory, or,
shall we adopt the interest bearing
bond system which will crush our peo-
pie into serfdom at the feet Of bond
holding aristocracy? Shall we issue
and use dollars or debts?" That is
the question! JOHN DAVIS.