Year: 1877




SIR: There seems to be, in Ohio and elsewhere in
tho West. something like a reaction by politicians of
the Republican party against the law which fixes
January l. 1879, as the day for the resumption of
specie payments from the Treasury of the United
States. infer that, in the opinion of those poiti-
clans the current of public opinion is setting or can
be turned in that direction.


Doubtless the chapter of Money and Currency is in
some respects one Of the most difficult in the science
Of Political Economy. Thcre is no need OF my say
ing that do not pretend to understand all the mys-
teries Of that subect but in all humility may say
that the average politician, whether conducting q
party newspaper. or arranging for party conYeh-
tion-perhaps even the average Member of Congress
is not more competent to pronounce an authorita-
tive Judgment Oh financial questions than we COM
mon folks are, who can only say what common hon
esty s aud what is common sense. IT is in the pres
ence of the people and at the level of the peoples
common sense, that these questions of resumption
and the silver dollar are to be discussed and decided.
As one of the people, may. without arrogance or
presumption contribute my part to the discussion
Admitting that in bank parlors and among capital
ists many thngs may be said things both true and
pcrtinent-0ut of the line OF my thinking, remem-
Der that 50 Jar these questions are POLITICAL and
are therefore questions for the people they ought 20
be decided by such considerations as the common
sense of the people can understand and such the
moral sense Of the people viii appreciate.


What. then, Is this question Of resumption! IL is
simply the question whether in conformity with
definite pledge given by Act of Congress in 1873,
the greenback promises Of the United States TO pay
dollars shall begin TO be redeemed in coin on Jan.
/. 1879.


The nation, in the distress of the war for its own
existence. wanted money more rapidly than money
10 hut fltp al Ia pF
IN addition to all the ordinary expenses of Govern
ment, there were The extraordinary expenses Of
war in which everything was at hazard Therefore
the Government did Just what an mpecunious cit-
zen docs in similar circumstances: it offered to is
creditors its confessions of indebtedness handsomely
inscribed on paper. Instead Of paying, il gave its
promises 10 pay. Onioe-holders Of all sorts and
grades contractors for the army navy soldiers
and sailors pensioners disabled by wounds dIS"q-"
in the defence Of their country, widows and orphans
Of those who had given their lives to save the ma
tons lfe received from the United States. instead
of money treasury-n0tes. Silver and gold have
we none" the Government compelled to say,
but we give yOu the best that we can, even those
promises. secured by the honesty and honor OF the
people whose authorized agents we are; and inasmuch
rs 10 will be impossible for You TO wait till it shall
he possible for your country to redeem its plightcd
Idlti. We nave oltintu INV tiltt THESE uoltc,
their face value, shall be a legal tender in payment
Of whatever debts You have contracted or may con-
tract hereafter The notes thus forced into circua-
tion (by sort of military necessity suDsti-
tute for money, and were called money-just as a
check on some good bank is called money, if the man
who signs it has an ample deposit there. In that
sense they are money and in that sense only. ain
not aware that anybody yet has been so silly or
audacious in the abuse Of language rs to call them
coin. Money properly called, whether gold or
silver, has value Of It's own just AZ yardstick has
length; and therefore ican be used 10 measure the
value Of other things in the market, just yard
stick is used TO measure the length Of piece Of
cloth. The gTecnback, like a bank-note or q check
has no value save asst stands for something valuable
i rcprescuts not the value Of the paper which was
consumed in printing it. but the value Of something
else. 1t represents the value of certain debt due
to the holder from the Treasury Of the United
Srates-a debt which has been due c0nfessedy, ever
since that ereenback note was issued The note
which represents debt Of $40 from the United
states to the holder-a debt due years and years
ago-s worth to-day 80 % and such is the present
value OF that debt. Experience through all these
yeals has shown that in proportion as the prospect
Of payment brightens and draws near, the price Of
the paper representing the debt becomes more and
more valuable. The prospect now is that the debt
VIII be paid las payable in less than eighteen
months In proportion Is that prospects shall b. OBJ
,cured by the demag0gues who are agitating for
postponement of the resumption, the value Of the
debt and of the paper which represents IT, will be
essscned.


Is the world, then, so badly constituted by its
Creator-is the world so unwisely managed by the
providence OF God, that we "a q nation must not
pas our debts lest we DO some great mischief by 30
simple an act Of honesty Shall We believe that tie
foundations viii be destroyed and all things viii be
out Of course, if sometime within the next eighteen
months the formally authenticated promise Of the
United States to pay $40 to tie bearer shall be
worth exactly go in gold instead Of passing, it
now does, at q discount of per cent!


Just this, and nothing else is proposed by the Act
of Congress which ignorant politicians ignorant Of
the peoples common sense and of the peoples moral
Sc ase) are promising to repeal. On The irst day Of
January, 1S70--unless the Act shall De- in the mean
time repealed over the veto of "HIs Honesty" the
President-the United States viii begin TO pay on
demand that portion of the National debt which is
represented by the greenback notes. and then. and
thonceforward, every such note viii be of equal
value with the gold which 1t promises. What is
there IN this TO be afraid Of What dreadful thing
will happen if these circulating evidences Of debt
eyery one representing value received cease to be
dshonorcd as they now are By passing at less than
their nominal yaluel


Processing once more my Incompetence to deter
mne whether there viii be a rapid contraction of
the currency l cannot refrain from asking what 1t
is that will cause the expected distress. The green
back notes will not have lost their legal-tender
quality; they viii only have become good as
gold. Nobody will rush to exchange them for gold;
because, for AL ordinary uses they conven-
lent than the gold for which they can be exchanged