Year: 1867

Editors OF Memphis Appeal


4 would like TO submit few thoughts
on question now engaging the atten-
ton Of the country to some extent. Will
they increase, orwiIl they dimiaish the
eirculstion, is question directly affect
ing the interests OF each -ipdividual Of all
classes pariies, colors and sections, and
is rapidly Becoming an ineSorable iasue
of bresd To miHionsl The whole enter
prise OF the conntrg is Suspended wait
ing the issue and the suspense is working
wide spresd disaster which will soon be
irretrievabIe. The dGesdonis generally
considered an iszues simply betwsen
bondholders and tax. payers and the
arguments FOR expansion are generally
based on the equity OF depreciating the
bonds This reasoning Is erroneous and
Irrelevant. Men OF excellent Judgement
on individual affairs seem to loose their
discernmeEt when considering those OF
the government. ToillustTate, suppose =
firm to owe three Thousand millions dol
lars and lind they need two hundred
millions more to put their affairs in an
active DrOductive condition. Tneir bor-
rowing that ssm will not depreciate but
rather enhance the value of their pre-
vious obligations especially if they apply
it as proposed. On the other hand If
they use it on impractical schemes to
the neglect aud detriment Of their prop
erty it would injure their credit. This y
10 some extent illustrative OF the cOndl-
tion of the government, the difference
is that expansion does not increase the
amount Of the public debt but only
changes its shape from Interest bearing
certificates to non interest bearing ciroulA-
tion, thereby lubriesting the wheels Of
enterprise and Diminishing its burlhens.
The Bank of England has frequently
been permitted to issue currency beyond
it's charter limits and thus averted ruin
to her people and changed panic to
prosperity. Could the business Of
country be always the same, q fixed
amount of circulation would answer, but
it is not, and judicious amount must
fluctuste In sympathy with the condition
Of the country This is the experience
for centuries Ofthe most sagaciOus finan-
eial people on the giobe Credit is not
based on the amount Of debt but the
ability 10 pay. Ten dollars is not good
on worthless man nor Is ten thousand
worthless on good one. Credit is based
on Wisdom Integrity, Justuess,
Economy, Enterprise and Pros
psrity. Combine these elements in
the administration Of the govern
ment and hundreds of millions
Of circulation would not depreciate the
value of our bonds, especially when it
does not increase the debt but lessons
the amount of that debt held as an in
vestment. Contraction has prostrated
the business, paraiyZed the industry,
deprecated the property and is bringing
beggary and crime on the country, and
prOpOrtionabiy reduced the revenues and
ability to pay of the government. A
moderate and Iudicious iufiatiOn would
reverse the picture. The wind must be
tempered to the shorn lamb, the country
must recover from the disaster of war,
regain strength and vigOr before she
anticipate her liabilities. Continue
ntraction-sccelerate the ruin prevail
ing--the revenue necessary for current
expenses and interest now Onernus will
become impossible, and bankruptcy and
Reputation will inevitably ensue. The
policy OF the government affects the value
Of bonds, and what Congress may now
do we cannot tell, but one thing Is certain,
in 1865 the bond holder and tax payers
win vote together the ticket that COM
bines the most Wisdom, integrity, Just
ness, Economy, Enterprise, and Pros
perity There Is no conflict between
them their interests are identified. ID.