Year: 1878

Even ln meOlBVdl GinCs,II WdS OuIy SOmt Fuy- al desperado who dared to debase the coin of the realm. The greenback was originally an act of desperation. It is only as desperate war shift that it has been justified by our Su- preme Court "Fiat" money was perhaps a justifable resort in such extreme cases as our own Revolution of 1776, in the old French Revolution, and in the war of the Rebellion. As alcohol is sometimes necessary in sickness, but is never touched by the wiser portion of community while in health, so the use of an irredemable currency has always been avoided by every ruler worthy the name of statesman, in time of peace. There are the same symp- toms of feverish excitement and intoxication ]; of subsequent depression, and collapse; in the one case as in the other. The period of refor- nation is one of dire discomfort. Is the nation money curse, liable to relapse like that of the individual striving against the bondage of Rum7

 It requires little foresight to expect evil re- suits from currency of ductuating value but the gravity and extent of those evils come un- expectedly upon the wisest. Every one knew whenthe legal tender act was originally passed byCongress. that there would be arise in appar- ent values depending as to time and extent upon the emergencies of the government re- sorting to that desperate financial expedient The mortgagee could readily see that in case of any depreciation of the fiat money, the $100 in gold which he had loaned to the mortgagor might be repaid in paper not worth $50 in gold He hoped, however for speedy end of the war, and for return after a brief peri cd to the hard money basis. His hopes were long deferred, and his losses were very serious. Capital" found it's purchasing power lessen ing in proportion to the depreciation of fiat" money. The mortgagee who loaned $1,OOO in gold in 1861, found himself repaid in paper hardly worth $500 in gold or, at least, that his $6O of yearly interest," paid in paper was not worth more than $30 in gold. In those times the mortgagee got no relief He might, indeed, collect in the $500 in gold which was all the law would allow him for the $1, 600 in gold loaned in 1S61-and invest Tn government bonds, or in bank stock which were making handsome returns on the capital invested. But what security had he that those bonds or the stock based upon them, would net eventually become worthless? United States bonds and National bank stock have proved good investments What would they have been worth had the war proved unsuccessful had It taken even two years longer than it did to conquer the Rebellion? In short. the years Of war were years of great hardship and loss Tor the mortgagee. Then, for another period, the nation reveled in fit of intoxication brought about by the stimulus of war expen- ditures, by the stimulus of railroad building.

 and of innumerable kinds of business specu. iatlon At last came the inevitable crash values of every kind shrunk; the nation went to bed a Dives and woke up a Lazarus,

 New came the turn of the mOrtgagor to suf- fer. The dollar of '78 is in one sense worth twice the dollar of '72. The farmer bought his farm six years ago, paid half cash, the rest remaining on mortgage. He has paid his in- l tereSt regularly ever since though that has | grown to be double the burthen it once was. Now, his farm would not sell for enough to | pay the mortgage. There is no doubt that he | has suffered grievous injury, and that he has been guilty of no mismanagement or miscou. duct. Like every man in desperate pecuniary circumstances, he is ready to resort to the most desperate expedients to escape bankruptcy Of late he has taken to politics, and the strength Of the Greenback party to-day lies in the as- | sistance 1t offers to the mortgagor in his strug- gle to throw off at least some part of the debt | he now owes the mortgagee. It is this des l pcration of the debtor, ready at whatever cost Of the permanent prosperity of the country to | obtain present relief for himself, that threat | ems the nation with dishonor to-day. When | Secretary Sherman explains that no further | sacrifice is necessary to place the finances of | the country on a sound basis; that all that is needed for Resumption is to resume; the debtor turns away with the question, 'How will that help me No doubt the gold dollar of '61 is better than the paper dollar of '71, It is safe and stable measure of value, which the paper dollar never has been, and never can be. What want, however, is the kind fL,- gage. If it is only worth half the gold dollar, so much the better. No doubt the national honor is glorious thIng; but it is luxury we poor debtors cannot afford; and if can pay on my mortgagee in as good dollars as he loan ed me, six years ago. he has no right to con- plain" Yes, but when the boot was on the other leg in 1865, did the mortgagor pay off his mortgage in as good dollars as were loaned him six years before that time?

 Indeed it is the special curse of an irredeem. able currency that it provokes dishonesty bv the unavoidable uncertainty and injustice of Its workings. We may pity the unfortunate mortgagor in '7S, as every right-minded man pitied the mortgagee in '65; but the only way to escape the recurrence of similar or worse evils is to go back to the firm foundation of gold basis There will be fluctuations in val ues even then. A thousand gold dollars in '77 will buy vastly more land than thousand gold dollars would have bought in 1879 but the worst temptation to national dishonesty is removed when the fluctuations of a currency of varying value no longer aggravate the una voidable fluctuations of business values

 The question for the average American voter today is whether he will allow a re-infiation Of the currency and another desi,.um trenserss ef speculation and unsound business activity to be brought upon the country, merely to re. heve the mOrtgagor from a portion of his debt to the mortgagee whether the insolvent indi. vidual should be allowed to prostitute the hon. or and ruin the future prospects of the nation merely to help himself out of his present strait ? The laborer has no interest in common with him. for the laborer's wages will bethe last to rise, his expenses will be the first to in- crease, of any class in our community. That the mortgagor has been having marvellous po- htical success of late in his selfish political sclaez.aas Ia.