Jasper Republican, Volume 1, Number 50, Rensselaer, Jasper County, 27 August 1875 — A Talk About Greenbacks. [ARTICLE]

A Talk About Greenbacks.

There are a few simple facts about the “ greenback” which cannot be denied, but which are often overlooked. We group here some of these facts—the A, B, C of the financial question: A “ greenback” contains the following promise: “The United States will pay the bearer dollars.” What does this promise of the National Government mean ? The only word in the sentence about which there can be any question is the last. What is a “dollar”? The answer is not difficult, for the “ dollar” existed before the greenback, and will exist long after this sort ot promise-to-pay has been retired. Whatever, therefore, constituted a dollar before the greenback law was passed is the quantity of value promised to be paid in redemption of the greenback. The laws of the United States define the word “dollar.” It means, according to them, 28% grains of gold made into coin and stamped at the mint of the United States, or an equivalent value of silver treated in the same way. This dollar is recognized the world over. It passes anywhere In Christendom at its face value. A bit of green paper, on the other hand, though stamped a thousand times over with the word “ dollar,” does not become the thing. It merely represents the thing, and does this st> imperfectly that it is worth, not a dollar, not 100 cents, hut a varying number of cents—6o, 70, 80 or 90—according to certain circumstances and the confidence felt in its redemption in actual dollars within a reasonable time. It is now worth about 86 to 87 cents. It has been worth only 38, and not long after it jumped to 80 cents and then tumbled down to 60, then up, next down, and so oh. If the inflation programme were to be fully carried out it would be worth 10 cents or 5 or 0 cents, like the French assignats, the rebel graybacks and other slunplaster scrip. It is not strange, perhaps, that the American people have forgotten what a “dollar” is, since there has not been a real dollar seen in general circulation east of the Rocky Mountains since 1861. Persons who wish to refresh their memory can do so by taking a trip to Nevada or California, where they will find real dollars circulating, and Federal scrip called “greenbacks” bought and sold like any other sort of dubious paper. Since “dollar” means a minted coin of 23% grains of gold, the promise printed on every greenback means that the United States will pay the bearer thereof as manygold dollars of 23% grains weight each as the paper calls for. The demonstration can be thrown into the form of a syllogism. Major premise: A dollar is 23% grains of gold, made into a coin and stamped at the mint of the United States; minor premise: A greenback is a promise to pay so many dollars; conclusion: Therefore, a greenback is a promise to pay so many minted coins containing 23% grains es gold each. The only question left an honest man or an honest nation to consider, under these circumstances, is, how shall this promise be kept? The best thing to do would be to redeem these green promises on demand at the Treasury and- the Sub-Treasuries. If this is impracticable, the next moet honest thing to do would be for the Government to offer to pay interest on them in the shape of a gold' bond, into which the peo- " pie should have the right to fund them. When they were first issued the holders had this right, and it should not have been taken away. Those who prefer to keep the greenbacks would have the privilege to do so, but those who preferred a bond for them should not be deprived of that option. It is not improbable that a bond payable in gold and bearing 3.65 gold interest would be satisfactory to the American people. It would be absurd to make the note payable, principal or interest, in another note of the maker. This would be like Micawber, who paid his note by giving another for it The obligation would still continue. Only the form ofiit would be changed. As long as the United States merely gives paper promise for paper promise it will always owe the original debt. To be out of it, it must give what it promised—gold dollars. It must hand over real dollars in exchange for its rag dollars. If not ready, then it should give a time-note, drawing interest, and payable when due in real dollars.— Chicago frityune. <