Year: 1874

4 SING ULAR SPECTACLE.


There is now presented before the coun,


try the singular spectacle of a dead lock


between the two branches Of the National


Legislsture-having each two thirds ma


jority belonging to the dominant party


a deadlock upon a question to which that


party is fully committed by resolutions in


their two Houses and in their National Con


Ventions. Their differences most singularly


are not created by the manner in which


they shall fulfill the obligations imposed by


their political and party pledges, but rather


by the degree in which they shall depart


from or ignore them. When we consider
that the members of both Houses We're cho-
sen before the financial ditieufties arose,


which it is pretended giSe occasion for this
departure from tTPolcY, and that there
has been no orgaRfzed expression of public
opinion warming such action, the conduct
of fQrcn2R6ced Republican members seems
&explicable. Is it caused by a desire to
shirk the true issue before the peopleH Or
is it the design Of the expansionists to make
up new issue upon which to appeal to the
people for re-electionH


Both parties stand pledged to their con-
stituents to travel as rapidly as practicable
In the direction of specie payments. Each
of the bills upon which the deadlock oc-
ours undenisbly proceeds the other way
toward more paper currency of an ire
deemable character. The issues of the na-
tional banks being redeemable in green
backs only, and the latter not being re
deemable in coin, or it's equivalent and
neither the House nor Senate bills now in
committee of conference proposing to bring
about that kind Of redemption, while both
provide for an addition to the volume of
paper money, we hold that the people are
fully justified in charging those Represent
atives and Senators favoring these bills
with being recreant to their solemn party
pledges.


Ifthe question we're one of an intricate
character, or difficult of solution, there
might be found some excuse for such at
tempts at legislation. But unfortunately,
such is not the fact. The proposition is one
of the simplest character. 1t is illustrated
each day in the business walks of life.
When man puts out more Of his promises
their value in the market depreciates. He
is then obliged to contract his issues if he
would appreciate his credit If he does not
pursue this course, if he persists in en-
larging his issues of due-bills without pro-
viding for their redemption, they soon be-
come worthless, and he goes into bank
ruptcy. Ifhe redeems them by giving his
pfomissory notes for them, bearing interest,
and meets the latter promptly at maturity,
that helps some, but each addition to the
volume of this interest bearing indebted
ness lessons its value in the market. His is
a case of an attempt to do large business
upon a small capital. That is just now the
case with the United States Government
and its currency.


With its funded debt at q premium in
coin, its due bills are at twelve per cent
discount because it does not redeem them.
AS it is impossible for the thing to be re-
deemed to be ofs greater value IN the market
than its redeemer commands, the national,
bank note. which is secured by deposit of
securities fully equal to its redemption in
coin, is cheapenedto par with the green
back. Consequently, all that is required to
elevate the bank note to par in coin is the
appreciation of the greenback to that level.
This is exactly the point which Congress
insanely persists in avoiding. 1t will not
even consent to the funding of the green
backs and making the bank note redeem
able in lawful money This course, gradu-
ally pursued in company with the repeal
of the limit to the issues of national bank
notes, would soon appreciate the value of
our paper money without dangerous com
mercial revulsions.


ButCOngress seems unwilling to agree to
any act that looks to decrease of paper
money, however remote. 1t affects to be-
leve, and we ought not and certainly will
not question the sincerity of the opinion,
that there is not now a suficiency of the
circulating medium in the country for
transaction of the legitimate business. 1t
will not admit that the depreciation Of our
paper arises from its redundancy. This is
most strange in face of the fact of its rapid
appreciation under the gradual retirscy of
the forty-four millions and its depreciation
again upon the reissue of portion of it.
These same men do not hesitate to acknowl-
edge the effect Of the unfailing principles of
supply and demand, of distillation and adul-
terstiOn in everything else except currency.
They know very well that they cannot
buy anything on credit ss cheaply as
they can for cash. They know that
paper money not redeemable in coin is
just as much credit-money as their due-bills
given for goods would be bills of credit.
They know that when there is a redun-
dancy OF any article in market it Is una
vailable for the same price that it win COM
mand when there is just enough TO supply
the wants of the community. They know
that merchant with drawer full of una
vailable due-bills and no money or credit
must shut up shop. Now, if these things
are so with individuals why, are they not so
with collections of individuals They are
30 with large corporations, why are they not
the same with States and nationsf Why
not try the experiment of calling in and
funding the greenbacks at the nate OF ten
millions per month after the 1st Of July
next and issuing the same quantity of ma!
qonsl bank notes, making the latter re-
deemable in lawful money. In three years
we. shall by this process have arrived at
specie payments. True, our bonds would
sink under the increased Understanding
Indebtedness Hnless they were made the
security for national bank notes and taken
up for that purpose. The increase of ma
tional bank issues under this plan would
soon determine whether the volume of cur.
rency is too great .


But If Congress persists in the passage of