Staunton spectator and vindicator. [volume] (Staunton, Va.) 1896-1916, 1907-12-20
THE GREENBACK QUESTION.

THE GREENBACK QUESTION.
In common with Mr.. Jefferson, Mr..
Madison, Mr.. Calhoun, and Andrew
Jackson. believe that the govern
ment should have the exclusive crea
tiOn of national currency. The nation.
al banks should not be allowed to issue
notes to circulate as money, nor
should any other class of individual be
allowed to have that vast power which
belongs of right to the sovereign.
The creation OF money is one Of the
inherited prerogatives of the sover.
eign and no class Of subjects were ever
allowed to issue their own coin Of notes
as money until in the days of the dis.
solute Charles II, of England, that
concession was cOaxed out Of him by
his mistress, the notorious Barbara
Villers. who was acting as the agent Of
London bankers.
In his messages of 1915 and 1915
President Madison took the same
position that I now take. In Gen.
Jackson's famous fight on the national
bank he took the Same position which
now take. When President Lincoln
issued greenbacks during the war he
also took the position that the govern
ment had the right to create national
currency out of any material that it
saw fit to select. The Supreme Court
of the United States, in the celebrated
case of Jullard against Greenman, dis.
tinctly decided that the Constitution
gave to Congress the right to create
money out of any material that it saw
fit to select.
This decision, known as the illegal
Tender Decision" was made in 1884,
but prior to that time the same prin-
ciple had been decided by the great
New England Judge Story, who de-
livered the opinion of the majority of
the Supreme Court. The case is re.
ported in Second Mason, pages 1 to
g." The facts, briefly. were these: In
1918 a Boston merchant rendered
Treasury notes in payment Of import
duties. The collector of the port re-
fused to receive these notes, upon the
ground that they were not lawful
money. The government brought suit
against the merch ant for the import
duties and he pleaded a tender of pay
ment. This made the issue fairly and
squarely. The case was heard in the
Supreme Court Of the United States
in 1919. The decision was in favor OF
the merchant. The court declared
that the Treasury notes were legal ten.
der for everything for which the law
said they should be receivable.
The acts of 1882 and 1853 which au-
thorized an lssue Of $450. .000, 900 of
greenbacks have never been repealed.
1t is true that in 1868 Congress provid-
ed that these greenback notes might
be retired to the extent of $4,000. 900
PCi uiO1sd koA DIA LnOutpb nuu GV6u ~
the rate of 81 ,0OO. 900 per month.
In the exercise of the discretion thus
given the Secretary began to destroy
the grsenbacks. Before he was stop
ped by act of Congress he had burned
S44. 900, 900 of these notes. But there
was SO much indignation on the part
of the people against this destruction
of their money that in February. 1868.
Congress suspended the act which
gave the Secretary the discretion to
destroy the greenbacks.
When the panic of 1883 came on
there was clamor for more money.
just as there is now. In response to
that popular demand the government
reissued $26, 900, 900 of the notes which
had been Cancelled under the discre-
Jionary act of 1865. In 1875 Congress
provided again that the greenback
notes mi ght be reduced to. the sum of
$500. 900, 600. Again the Secretary of
the Treasury began to destroy the
greenbacks. Once more, however,
the people cried out against this con-
traction Of the currency, and in 1878
Gen. Grant used his great influence to
put a stop to it. By the act of May
81, 1873. the Secretary of the Treasury
was required to reissue the greenbacks
as fast as they were redeemed and can
celed. In other words. the process OF
contraction was checked.
At the time this was done the out
standing amount of the greenbacks
was $346. .68l, 900 in round numbers.
At this sum they have stood ever
since. My contention is that the
government should now do precisely
what the government did under sim.
liar circumstances in 1878. If it was
expedient and lawful to issue SEQ, ,0O0,-
600 in greenbacks in 1873, it would be
expedient and lawful for the govern.
ment at this time to issue twenty six
millions, or any other number OF mil.
lions not exceeding the amount which
would bring the entire volume OF
Treasury notes up to the limit author
lied by the acts of 1862 and 1858. This
limit being $3.50 .0OO, 900, the President
would have the same authority to is
sue 500, 900 900 of greenbacks notes
that the President. had to issue
$26. 900 900 in 1873.