Year: 1878

country, ike MS llluStflOu5 pr6do-
cessor, Hamilton, declared that he
considered the question OF seeking re-
lief by the use of government notes u
plan too dangerous to be risked. And
in 1886, upon the expiration of the
second charter of the United States
Bank, and after the bill for its renewal
had been vetoed by President Jackson,
In an attempt to settle upon some cur
rency policy, there Was found in all the
Congress of the United States but one
greenbacker. Mr.. Webster made to
him and his suggestions the following
vigorous reply:


'By this scheme" said he, government is
not to pay money, but to issue paper. If
there is to be found anywhere a more plain
and obvious project of paper money in all its
deformity, don't know where to look for it.
Fortunately scheme so wild, and which
would be so mischevous, rests upon an as
sumption for which there is not the least
foundation, either in reason or experience. 1t
takes for granted that which the history of
every commercial State refutes, and our own
especially, on almost every page. 1t suppOses
that irredeemable government paper can cir
culate in the business of society, and be kept
at par. This is impossible. The honorable
gentleman rejects convertible bank notes, and
adopts in their stead government paper with
no promise to pay, but d promise only to re-
ceive for debt and taxes. He cherishes the
Imagination so often and so long refuted, that
this paper will be kept in circulation, and
will be able to perform the great business of
currency. If it be necessary at this day to re-
fute ideas like this, it must be because the
history OF all Countries, our own included, is
dead letter to u.s."


And although the discussion went
on between the friends of the national
banks and various other projects for
down to 1862. the policy of the govern
by the government OF the United States
of an irredeemabe paper currency.


And in 1862 when, the necessities of
the country had driven Congress to
supply currency 10 some way, there
was no claim by any one favoring the
policy OF issuing paper money not re-
deenable on demand, who did not put
1t upon the ground of public necessity.
10 the discussion of this bill Mr..
Spaulding, who was the author and
who introduced the original bill, said
"The bill before US is d war measure, a
measure of necessity and not of choice.
And Mr.. Hooper, after the legal tend
er act, the tax bill and the National
Bank law had been considered, said
that the bank and tax bills were to be
made permanent, and that upon the
expected results Of these the legal ten
der act was in some degree based.


,...,.r THADEUs STEVENS,


who was Chairman of the Ways and
Means Committee, said "This bill is a
measure of necessity, not of choice.
No one would willingly issue
paper currency not redeemable on de-
mand, and make 1t a legal tender. It
is never desirable to depart from the
circulating medium which by common
consent of civilized nations forms the
standard of value"


Mr.. Fessenden, Mr.. Sumner, Mr..
Alley, of Massachusetts,, and others, in
discussing and advocating the meas
ures, without q single exception, ad-
mitted the experiment to be q dan
gerOus one, and one that would be ru>
inous as permanent policy, and they
declared that it was not, and should
not become a permanent policy.


The Democratic members, such as
Vallandigham, insisted that the legal
tender clause was unconstitutional, that
it Was forced loan, that 1t would be
unjust and disastrous, that they Oppos-
ed the measure. tff 1rifs


President Lincoln, after the passage
Of the act, spoke of the issue OF United
States notes for currency as a measure
Congress WAS compelled to resort to on
q mt ff Il of
Treasury. He said: ....-tr i-'


"a return to specie payments at the earliest
period compatible with due regard to all in
terests concerned, should ever be kept in view.
Fluctuations in the value of currency are al
ways injurious and to reduce these fuctua-
tions 10 the lowest possible point will always
be leading purpose in wise legislation.
Convertibility. prompt and certain converti-
bIlity into coin, is acknowledged to be the
best and surest safeguard against them


When the legal tender act came be-
fore the Supreme Court of the United
States, the majority of the Court argu-
ed the circumstances and necessities OF
the government as justifiaDler grounds
for the issue Of the currency, and in
their decision, reported In 7th Wallace,
the Court says:


SIT is clear that these notes are obligations
of the United States. Their name imports
obligation, and every one of them bears on its
face promise to pay certain sum. The
dollar note is promise to pay dollar, and the
dollar intended is the coin dollar of the United
States; certain weight and ineness of gold
or silver. These notes are obliga-
tions. They bind the national faith. They
are, therefore, strictly securities"


And again:


"The Legal Tender Acts do not attempt to
make paper standard of value. We do not
rest their validity or the assertion that their
emission is coinage or any regulation of the
value of money. Nor do we assert that Con
gress may make anything s0lich has no CGInt
money" .-.0


Clearly, then, in the opinion of those
who voted for the measure, as well as
those who opposed 1t on its passage,
this act was measure of necessity. 1t
was recognized hs clear departure
from the fixed aud safe policy of the
Government In relation to money.
And the true policy and that followed
In the main by the Republican party
since the close of the war, Is to bring
about such state of things as will
make this heretofore irredeemable pa
per currency convertible into coin.
And it is upon this proposition that
the Republican party of Ohio and the
country go to the people. AS 1t was
clearly put by Secretary Sherman In
his Toledo speech, the Republican par
ty are in favor OF such an amount of
legal tender currency as can be made
and kept convertible upon demand in
to gold or silver coin; that much and
no more. Whilst the Democratic par
ty, on the other hand, are in favor Of
an amount of legal tender currency
such as may meet the wishes and the
demands, or rather the exigencies OF
what they are pleased to call the busi-
ness of the country, without any regard
whatever to its cOnvertibility into coin.


II it was hardly justifiable In the Con-
gress Of 1862, when we were plunged
into the midst of u fearful war, deinan-
ding millions Of money daily to carry
it on, to issue this irredeemable paper
CURRENCY. what Dllssiblo justification