Year: 1878

The speech of Senator Gordon on the
repeal Of the resumption act is certainly the
most eloquent if not the most forcible pre-
sentation of that side of the question which
has been made of late. But 1t is merely a
fresh presentation Of arguments the fallacies
of which have been demonstrated again and
again. The speech and the columns of green
back papers but offer anew the propositions
which were advanced by large and power
full party in England in the first years of this
century and so triumphantly overthrown by
the famous "Bullion Report" The battle of
paper money has been fought and lost many
times. The falsity of the theories held by
its advocates has been repeatedly exposed.
The political economist when called upon to
discuss the old question which has so often
been settled by the general acquiescence of
mankind feels much like the astronomer who
is called upon to defend the truth of the Co.
pernican system against the assaults of the
Rev. John Jaspar, the Richmond clergyman
who says that the sun moves round the earth.
He knows it because he has seen it, as our
greenbackers know that paper will discharge
all the functions of money because they have
seen it. The resolution passed by the Rich
mond congregation does not seem more
ridiculous to the political economist than the
famous resolution offered in the British par
Lament that Bank of England notes, then az
twenty per cent. discount, were equal in value
to gold, or the claim made by the National
lists that our Treasury notes, irredeemable
and superabundant, are as good as coined
money.


This gross error of paper money is contin-
ally making its temperance, like some 9TH
er fallacies that have been repeatedly dis
proved. The mechanical fallacy of perpet-
ual motion has been exposed time after time,
but every few years it is again brought for
ward. Men of intelligence can be found to.
day who have invested their money in the
Keely motor. Men can be found who like
the Virginia clergyman, believe that the earth
stands still. The history of these is the
same. They are thoroughly discussed, and
people come to one mind upon them. For
years there is no thought of dispute. Then,
the reasons which led to general acquiesence
having been forgotten, some man starts up
and reopens the question, and 1t has to be
argued over again.


Such is the history of irredeemabIe paper
money. That experiment has been tried by
various nations at various times under favor
able circumstances, and it has always failed.
The weakness of the scheme has been DEM
onstrated by argument. Argument failing to
prevail over sophistry the scheme has been
subjected 10 the test of experience, and has
IN every case resulted disastrously. History
is full of the suffering and ruin wrought by
an irredeemable paper currency. The a rgu-
ment of the Nationals" has one fatal weak
ness. 1t is based upon the assumption that
men will readily exchange their goods for
stamped bits Of paper that pass from hand to
hand and are made by law receivable for
debts. The fact is, demonstrated by hun.
dred trials, that men will not do this for
long. The scheme is like many other schemes
based on what men might do but never have
done and never will do. The experiment
has been undertaken again and again and
has always resulted in disastrous failure. It
has brought distress upon every country
where it has been tested. With the expert.
ence of the whole world against us we are
asked to make the trial once more. Let us
be guided by the teachings of history, and
avoid scheme which has always wrought
ruin and disaster to the peoples who have
adopted it.