Year: 1875

y. Senator Bayard of Delaware has written a
letter to the Atlanta (Ga.) Herald, in which
he takes strong position for hard money and
resumption, telling the Southern people that
if 'money contains il itself no intrinsic val
ue it cannot be used as standard by which
to measure the value of other commodities y
that when this money of no intrinsic value IS
in use "no buyer can know how much he
will have to pay when his debts fall due, nor
can the seller know what value be is to re-
ceive, and thus all ordinary business transac-
tions become speculative and gambling trans
actions;" that "the infationists are the real
foes of those who wish to borrow money on
reasonable terms, in order to employ men
who labor for their daily bread'' because they
are constantly destroying the confidence of
capitalists; that "a restoration of confidence
will initiate in wholesome way, because it
will encourage timid capital 10 come out of
its hiding-places and embark in enterprises
which will give employment 10 labor and in
crease production;" and that confidence will
only return when all notes used as currency
are made convertible at the will of the hold
er into gold or silver coin.'' He acknowl-
edges that the South needs money, but tells
it that paper money, irredeemable in coin,
will not help it.


This doctrine is certainly sound Republican
doctrine, and all true Republicans will hearth
ly commend it. 1t is not to be expected that
the letter will meet with general and hearty
endorsement by Democrats, or that it will
improve the Senator's chances for a presi-
dental nomination. He will do very well for
them, though, il he can be induced to stand
upon soft-money platform. A hard.mcney
candidate upon soft-money platform would
be device dear to the Democratic heart, and
quite in accordance with the customs of that
party. 1t is hardly possible, however, that
Senator Bayard will stultify himself by ac-
ceptipg such position.


In another portion of the letter Mr.. Bay
ard takes extreme and untenable ground
against the national bank system, claiming
that under it "the banking business of the
entire country has been restricted to one
special kind of capital, that is, The bonds of
the United States Government; and the en-
ployment of all other descriptions of capital
as a basis for banking has been rigidly ex-
cluded from competition" This assumption
is certainly incorrect. There is no restric-
tion on the use of any description of capital
as basis for every branch of banking, ex-
cept the issue of notes. Millions of capital
are employed to-day in discount and de-
posit by bankers who perhaps do not own,
and certainly are not compelled to own or to
employ as basis for their business, single
government bond. So far as the issue of
notes is concerned that restriction is in force
solely for the security of the note.holder, and
it answers its purpose admirably well. In
deed it is the only system of issue ever in
practice in this country which has gwen abb
solute protection to the holder of bank-r otes.
The Senator tells one hard truth which
will prove anything but agreeable TO the
newly elected Democratic Congressman. He
says he can imagine no body of men so unfit
to determine and control the volume of cur
rency 'as the accidental majority OF Con-
gress." The coming session bids fair to REIN
force this truth.