Year: 1875

No reader OF American history ls lonoItAs Vi
the experience of the Continental paper cur
rency-how from value something near gold 1t
declined to worthlessness before the close of tho
war. More recently, the paper money OF the
Confederate government ran career which
is familiar to everybody, and the story of the
Richmond housewife who took her money in her
basket, to bring home her beef in her pocket
book, illustrates its comparative value in ITS lat
ter days. So also, in other countries, something
very similar may be even now seen. General
Boynton of Washington describes the visit OF
the United States San Domingo Commission to
Hayti, where dealer in straw hats grayely
asked one thousand dollars for a straw hat but
who accepted as equal value four dollars in
American money. Apples on tho fruit-stands
were offered at sixteen and twenty dollars in
Hsyti currency, or eight to ten cents in silver.


These examples illustrate a paper currency
whose redemption in coin is not assured. In the
case OF the Continental money, there was pos
sbility that it would be redeemed in tho other
instances that prospect had grown very faint or
had entirely disappeared. No holder OF Confed-
crate notea hoped for their payment, when Lee
had surrendered, and with that military result
value went out Of them.


What we say therefore, s that there is no val
ne in paper currency except the prospect Of
its redemption in gold or silver. If this is deli
mite, and at all times practicable, the notes will
be sat par, as matter Of course, and while
they will not depreciate, they will not produce
the demoralizing effects Of an inflated and re-
dundant currency. But the moment their re-
demption becomes clouded by distrust or uncer-
tainty the moment there il hesitation or refu-
sal to pay them the moment i: il seriously pro-
posed not to provide day certain when they
shall be paid, that moment they fall in value,
one five, ten, twenty per cent, as compared with
gold. In Hayti the issue was so immense that
no one believed redemption possible, and there
was, besides, more currency than the transac-
ton of business required The depreciation was
therefore enormous.


But in our own case, tho simnltuda with ulyti
is oxact. We are not 30 badly OF but we are on
the same road. Our paper notes bear the Gov
ernment's promise to pay, but mono have set
been paid, and it has remained uucer.
tain when any would be. Before tho war
closed gold had reached u premium Of
$50, the prospect of the GJvernment's pay
ing Its notes looked so dark, but the capture of
Richmond brought it down, and the surrender
OF Leo still further reduced it, while, in the
year 1865, 50 much diiUe prosp.c! IF payment
improre, the decline in the gold premium, and the
corresponding appreciation of paper was over
S3 per cent. (By a typographical error, last
Saturday, we stated this at 49, And since 1865,
the quotation Of United States paper has varied
exactly as financial commercial, and political
influences made it likely or unlikely that its re-
demption would soon begin. Whenever repudi-
alton was suggested, as it was by President
johnson at one time, and BY numerous Western
Democrats at other times then the quotation Of
greenbacks fell, and people showed their die
trust by putting an advanced valuation on real
money. Only last week, the inllationist triumph
III the Erie Convention sent gold up two per cent.
Why Simply because it placed more doubt on
the prospect OF redeeming the groenbacka


Now, one point more If the time Of specie
redemption, now fixed 1T three years and a
quarter hereafter, shall be indefinitely post
poned, and the United States shall refuse Or fail
to name any other time and If, then, there
shall be a large increase in the volume of the
Governments noteA put in circulation, without
any assurance of their redemption how will the
situation differ from that Of Continental notcs
or Confederate scrip, Or Hayti shinplastersY Like
those currences, ours will be dighonored and
its payment doubtful. II will he true Of ii thai
the promised payment il not made nor any time
fixed when it will be. Pretending to Le "re
deemable,' it will be in fact az irredeemable as
the trash of Hayt Under such circumstance.
our paper notes will depreciatc, and the gold
premium will rise, and the point where this
movement will be checked no man can forete
for it will depend entirely OH the will of the peo
pie who mako the Government which issues tht
paper money. And If they are not ready to try
now, to get down to an honest and safe money
who dare predict when they will be?