Year: 1870

CurrenCy Expansion In Cenxress nsd war


Of the Supreme Court .. tho Legal


Tendcrs.


Just when the Supreme Court OF the United
States decides that debts contracted before the
Legal Tender act Of 1862 was passed must DO
paid In specie, and thus dealing blow at our
greenback money, Congress seems intent on
increasing the national bank currency. There
have been several resolutions submitted to
Congress to this end, and for various amounts
of currency to be issued. These resolutions
have taken the usual course Of reference to
committees, without any action or report up to
this time. It appears that the members Of the
House have become impatient. They want
more national bank notes, and want them
Immediately. Yesterday Mr.. Loughridgc, Of
Iowa, brought up his resolution, offered on
the l4th Of this month, to increase the national
currency fifty millions, and instructing the
Committee on Banking and Currency to report
to the House at as early day as practicable
bill for that purpose. On motion to second
the previous question, and thus to bring the
resolution directly before the House, the vote
stood l0S to 73. The resolution was then
adopted-yeas no, nays 70. It is evident
from this vote that the national bank interest
is overwhelmingly powerful in the House, and
that the Western members especially are
favorable to an expansion Of the currency.
Many of the Southern representatives and
democrats voted also for the resolution.


All the talk about contraction in order to
bring about specie payments amounts to
nothing. In fact it is sheer buncombe, and Is
only used for the purpose Of getting the legal
tender greenbacks out Of the way so that the
national bank corporations may have the
whole of the national circulation and the enor-
nous profits thereon. This proposition OF the
House to increase the currency fifty millions,
like that which was pushed through the Senate
few weeks ago providing for an increase of
forty live millions of national bank circulation,


is part of this general plan. We should like


to know how many members of Congress are


interested directly or indirectly in the national


bank associations A knowledge of that


might give clue to the action Of the Congress
on this question. II the national bank mono
polists can get the greenbacks out OF the way,
as they appear determined to do, and have the


whole circulation of the country in their hands,
their annual profits on this will amount to
thirty or thirty-fve millions Of dollars in gold.
This enormous sum will come out Of the
pockets of the people, and could all be saved
|. h.1 laval toud ~ Oulv


No government in the world is stupid enough
to make gift of the profits on a national cir
culation to private corporations but ours. The
talk about specie payments is shallow pre-
text How and when is that likely to be
reached If we are to have another circulation
than the irredeemable notes Of the national
banks? These institutions would never want
it, for they can make much more ont of their
paper money system.


It has been said Of Mr.. Chase that he was
the father of the greenbacks; but he now con-
fesses that he never liked his offspring, and he
is doing all he can to repudate it. He is
proud, however, of that other offspring, the
national bank system. He is an ambitious
man, and the national banks are mighty
power in the country. His policy or object is
the same now that he is Chief Justice as when


he was Secretary of the Treasury. The deci-
sion he delivered in the Supreme Court on the
7th Of this month on the Legal Tender act was
political one. 1t agrees with the policy and
action of the administration and Congress.
Labored and careful as his argument was to
show that the Legal Tender act did not affect
contracts made before its passage, 1t was weak.
Had the bias of his mind inclined to sustaining
the greenback currency he would have made
much stronger argument on that side.


Mr.. Chase did not stop even in giving that
decision to consider the consequences. The
effect upon debtors must be very disastrous,


particularly if there is to be an imitation of the
irredeemable paper money Of the national
banks. There is no way within our reach
of calculating the amount Of money in
volvcd in mortgages and other debts, but in
mortgages especially, prior to the passage Of
the first Legal Tender act in 1862. Taking
the whole of the United States which comes
under the operation of this decision th 9
amount must be stupendous. Mortgage debts
generally remain long time unsettled, and
it would not be unreasonable to suppose that
half, or nearly half, Of all such debts were con-
tracted before the Legal Tender act of 1862
was passed. When we consider the vast
number Of mortgages standing over from that
time in every part Of the country the amount
Of money owed on them swells up probably to
thousands of millions. What numbers of
individuals, besides corporations and compa-
nies Of every description are affected by this
decision. How few would be able to pay in
gold if creditors should demand payment now.
On all such debts twenty per cent, or nearly
that, has been added by the decision Of the
Supreme Court--that is, reckoning the differ
ence between legal tenders and the market
price of gold. 1t must be seen at
tha