Terre Haute Weekly Gazette, Volume 7, Number 46, Terre Haute, Vigo County, 8 June 1876 — Page 3

MONEY.

An Open Letter From David A Wells to Colonel Enoch Ensley of Memphis.

In Which Some Remarkably Plain Words are Uttered on the Finance Question.

An Article Which Every Greenbacker Ought to Reao Over Before Going to Bed at

Night.

N O W I

tended

CoN'N'., May i(, 1S76.

To Colonel Enoch Knsley, Memphis. Tenni*i:c DKAR SIR—IN the Niwhville Daily

Vme'riean oi" March 10, 1876, you present, in the form of a letter adressed to me, what purports to he a Southern view of the currency question, in which the policy of the withdrawal an.l destruction of the jjrcen-hacks [le^al-tender, irredeemable"paper] is condemned, as certain to prove injurious to the industrial interests of the whole country, and more particularly of the South and the adoption of an exactly opposite policy—namely, an increase "of the supply of irredeemablepaper—is advocated, as certain to be at­

with exactly opposite results, or

industrial prosperity. 1 have not hitherto answered this letter, because it seems to mc that sufficient has already been offered in the way of fact and argument to satisfy any man, who was unable to come to' the'trnth naturally, that permanent prosperity cannot be attained on the part of either a nation or individual which uses false standards of value, or tails to serupously observe its pledges or P™1^" ises butfas you demand of mo, publicly and privately, that I shall reply. I will, without further apology, proceed to do

SO. WHAT IT IS ri.MMEl) THE SOt'TII AXI)

WEST NE1IUS.

You state that the people in the South arc in debt that they are unable to pay their debts and, therefore, you claim that it is expedient, on humanitarian, as well as on economic grounds, that such a National .policy shall be adopted in respect to the issue of currency as will enable debtors to be relieved in all, or part, from the obligations they are under of jiaying these debts. Hie exact method of this relief you propose shall be "by the insurance of more legal-tender notes, in order to impair confidence in thetn to such an extent as to cause the owners of them to desire to exchange them for other kinds of property for man's wants." This being done you arc further of the opinion "that immediately the dark and gloomy clouds of distress that have been hovering over the land for so long a time will commence to rapidly clear away, and soon the sunshine of hapiness and content will pervade the whole country." All of which translated into plain English is that vou desire that greenbacks may be issued by the Government in such quantity as to render them (as happened under like circumstances with the Continental currency) nearly or quite valueless, and that then by virtue of the legal-tender quality made inherent in them by the fiat of the Government, debtors may discharge their debts by tendering to the creditors that which has cost the debtors little or no effort to obtain, and

which,

except for the force of arbitra­

ry law, would not be accepted by the creditors as a fair consideration for the property previously parted with. I ha\e no doubt th.it tom my credit rs the "dark and gloomy cloud oi distress would under such "circumstances rapidly clear away, for there is nothing more disagreeable to a certain class of minds than to take and use your neighbor's property, and then not be able to return it. .But how would it be with the poor creditors? Would they not be able to fully appreciate this little story efedite 1 to Mr. Lincoln! "Tom' do give your little brother your wagon, anil see if you can keep^ hrm quiet," said a I'aiher* whose equanimity was disturbed In the persistant bawling of one the iu:: or members of his lamily. "AH right, father," said Tom: but if I do, what are you going to give me to keep me quiet?

ECONOMY IN WICKEDNESS. But, jesting aside, I would, in respect to your proposition, say, first, that if it is only a relief from debt by the arbitrary action of the Government that the South and West require, it is desireable to proceed

to its

accomplishment in the most

direct and effective method. Ihe tinjes require economy! Let us therefore, strfve to be economical when we propose to practice wickedness (repudiation), as in all other things. Let us instead of wantin more good ink and paper and labor 111 printing and issuinjj more legal-tender notes, adopt the cheaper and more effective method of Government decree or fiat, authorizing the repudiation of all pri\ ate debts, or the scaling them down to the degree that may be deemed expedient. For it must always be borne in mind, it we are to reason inteJHgcntly, that it is not the little engraved pieces of paper that constitute the legal tender, but the fiat or arbitrary decree of the Governmcnt that inheres in thcni* and compels the creditor, against his will, to receive or an he THE TRIE A\L) ELY IT.\ISLE FUNCTION

OF I.EGAL TENDER.

Again, if humanitarian considerations are to be determinative, why confine the fiat of the Government to the liquidation of debts in an arbitrary manner Why not equally compel the owners of tangible, visible property, to part with it to people who are poor and need it or sell it for legal-tender notes at the prices which would be accepted if gold were offered in exchange, or part with their property without receiving anything in return and consider that they are compensated bv the decree of the Government. But* the exercise of arbitrary power is always dangerous, and when once entered upon is liable to be earned to dangerously Jlogical consequence, lie who would repudiate a debt can not be relied upon to make any romantic dis tinctions between debts or the titles to property which they represent and the property itself.

If it is proposed to appropriate debte— titles to property—due me, or any portion of them, without compensation, what more natural and fair that I in turn, who have been renderedpoorer by such ap­

propriation, should wish to appropriate your plantation, saw-mill included, without compensation, or on the basis of partial compensation? Why not? Is my credit title any less sacred than your fee-sim-ple titles? What arbitrary or capricious rule do vou propose to set up for discriminating as to the kind of title that may be invaded?

But right here allow mc to call attention to a circumstance often overlooked: That if legal-tender, irredeemable paper, tnav be used to scale debts, it cannot be used to scale property, unless its issue and

use are

coupled with an arbitrary de

crec fixing the price at which property shall be sold. The seller, if not restricted by law, will always make his price to correspond with the depreciation of the '*ilat'' currency. Legal-ten-der irredeemable paper ironcv, therefore, has no force exccpt as a means of repudiating debts, unless it if by law made available for the purchase of property at legally enacted prices. In l- ranee, during the period of the assignats,^ the Government was consistent in this respect for the assignats were not only made legal tender for the payment of all debts, hut also for the purchase of all kinds of property at officially established maximum prices or in other words, the assignats were made to scale or repudiate credit titles and fee-simple titles alike. Those who refused to sell at legal prices, or refused to bring their produce to market, were declared public enemies, and as such rnffered punishment. This was a uniform and logical application of a flat currency.

NATIONAL DISHONESTY INCONSISTENT WITH NATIONAL PROSPERITY.

Sealing of debts will relieve but a very small part of the distress which is alleged as existing at the south. The mass of the people who have no property, can only acquire property and credits by labor and economy or by robbing other people of their property and credit directly, or by taking advantage of an arbit rary decree of the Government (legal ten dcr), in which latter case it is the Government that primarily plays the part of the highwayman. But gains accruing by violations of the rights of property, or violations of the rights of creditors, are fleeting and transient. As well curse a country with famine and pestilence, as with a policy which renders either credits or property insecure. And the cause of our present financial and industrial depression is due, in no small decree, to the uncertainty in the future re specting the right of property and of creditors.

Where do you expect to find people who will lend capital, if arbitrary power can intervene to diminish or discharge the obligations thereby created by an. increase of legal'tender, as advocated by you, for the purpose of depreciating the value of debts or what is the same thing, allowing those who have borrowed to return something different from what they have contracted to return Who will accumulate tho. products of his labor, if this subject is to be taken by purchasers at prices established by the caprice of a govern ment Furthermore, of this you may be sure, that merchants and manufacturers who have in the past held, or have produced, large stocks of goods at high legaltender prices, and have suffered severe losses by the decline or fluetations of such prices, are not going to reinvest and holds stocks of any kind of commodities more than sufficient to meet the most pressing demand of the hour, exccpt at extremely low old gold prices. And thus the industry of the country is actually being paralyzed by the lear of the fluctuating prices, which inevitably have resulted (and always will result) from the maintenance and use of an irredeemable paper money. TIIE LAW OF LIMITATION AND USE OF

IRREDEEMABLE PAPER.

The extent to which an irredeemable paper money can be kept in active circulation is dependent upon the extent of the high prices. When people fail to have confidence in high prices, or in prices higher than normal gold prices, the volume of currency in active circulation in the country will diminish down to the normal volume of coin circulations, or of a currency redeemable on demand in coin. This is the natural law and you, Mr. Ensley, and Mr. William Allen, and those who are with you, have got to submit to it, whether you will or no. Look about you and see what is going on at present, in spite of protests against contraction, the demands of political conventions for the repeal of the Rekumpt-' ion Act. Public opinion, in establishing low prices for commodities, or for property gcnerajly, is making at the same time a demand for a comparatively sniall volume of currency and any excess above this demand has to remain idle at the money centers. Thus, for example, th amount of lawful money reservp (in addition to the excess of National bank notes) held by the National banks alone (May) was $201,200,00 or more than one hundred millions in excess of the reserve required by law. If it is asked why this excess is not used—especially when it can be borrowed on good collateral for a lower rate of interest than w'as almost ever known in this country, —the only answer is, that public crcduli ty does not any longer accept or tolerate the high prices which it is necessary should prevail in order to absorb it. The great mass of our people at present have traditional ideas of gold prices, and consider it hazardous (as it really is) to purchase or hold any property at higher rates. The prices resulting from irredeemable legal-tender paper are fluctuating and hocus-pocus prices, because this currency is fluctuating and does not represent in any sense a product of labor. No person of sound mind can have confidence in the stability of such prices for if the Simon, which our present currency typifies, can say up at one time, he can say down at another, or wig-wag, as at present.

It is, therefore, not more legal-tender notes that you seem to want, but more public credulity. Irredeemable legaltender paper can attain to no circulation in a community where public opinion rejects it, and can only be brought into circulation when unnaturally high prices,— i. e., prices above gold prices—are created to use and absorb it. In Texas, California, Colorado, New Mexico, Arizona, Nevada, Oregan and Washington Territory irredeemable legal-tender paper fails to obtain circulation for want of public credulity to maintain it and the prices which such paper generates are unknown there. And that is true of all the other sections of the Union. Say what you will, people do not believe in such prices. Human nature asserts itself in the most rampant inflationists. His credulity has been dissipated, and he believes only in gold prices. Do ydu know

S PTIO N 1)1 S LO A LIT Y.

But

THE TERRE HAUTE WEEKLY GAZETTE.

any one, I would ask, in Tennessee or Ohio, so in love with a large volume of irredeemable paper that he will try to maintain the conditions of its active employment by offering to pay old prices for what he at present desires to purchase! So far from this, popular credulity in the reign of high prices is daily diminishing, and, from this want of creduilty it is not improbable that prices mav decline by the effect of natural laws following financial revulsions, even while the legal tender is unredeemed by the Government to a point below the specie line, and the people—especially the debtor classes—will yet clamor for specie resumption as a means of raising prices. At all events, nothing less than the gold prices contingent on contraction and resumption will ever restore confidence and again put the wheels of industry in full motion. The donkey which, supplied with green goggles, was fed upon shavings, is dead, and the surviving donkeys, having been apprised of the fate of their comrade, have gone back on the shavings, and demand the genuine grass. No debtor will continue to be an advocate of irredeemable papcr money when it ceases to be an instrument for defrauding his creditors—that is. when he can use it to no greater advantage in paying his debts than gold. SPECIE RESUMPTION I.OYALITY TO THE (it) ICR MENT, OPPOSITION TO RE-

there are other questions of more importnuce than the amount of currency that ought or can be kept in circulation involved in the consideration of this subject. Fidelity to National Honor, loyaltvto the Government, and the plighted, faith of debtors to creditors, all require that the legal-tender notes should be paid and not repudiated. Delay of payment is, for the time being, always repudiation. Repudiation, or failure to pay, is a negative crime—a sin of omission.

The legal-tender note is a promise to pav. It"was issued on the credit of the Government. Every legaltender note has 011 its face. "The United States will pay and the United State Supreme Court [Bank vs. Supervisors, 7, Wallace page 36] has decided that "United States notes (legal-tender notes) and engagements to pay dollars and "the dollars intended are coined dollars of the United States."

The act of March iS, 1869, also provides that "the faith of the United States is solemnly pledged to make provision at the earliest practicable period for the redemption of the United States notes in coin. The law of the 14th of January, 1S7S. also provides that specie payment shall be resumed January 1, 1879. It is also a well settled principal oflaw that all obligations not made payable at a designated time, are payable on demand. Now, all the laws in existence, when a contract is made, enter into and form a part of it, and these laws, to which refer ence has been made, and the pledges which they contain, have entered into and" have formed a part of everv contract that has been since made, with as much force as though thev were actually written in such contract. Every debtor, therefore har promised to pay by continuity or circuity of obligation in coin for he has promised to pay in lawful money, and his Government has promised to pay the lawful money in coin. Do you now, Mr. Enoch Ensley, Mr. William Allen, Mr. Sam. Cary, and all others in Ohio and Illinois—Democrats and Republicans—who are asking for more paper and the repeal of the resumption act, pro pose to repudiate and nullify these con tracts Do you maintain that any re lief thereby likely to accrue to present debtors, will, in" any degree, compensate or the violation of all those principles of law and equity which constitute the basis on \yl\ich alone man can deal with his fellow men with Confidence and security? This is the question that becomes you to fairly meet and answer.

Again, debtors have borrowed money, knowing these provisions of law. They have used the money thus borrowed from time to time in business transactions and whether these transactions have been profitable or unprofitable, the obligittion to pay remains the same. The debtor has had the chances of profit, and on the highest ground of equity, he is subject to the chances of loss. It would be a peculiar rule of morality and equity for the borrower to take all the profits, and be subject to none of the chances of loss. Would any borrower, who had made great profits out of legal-tender money borrowed, be willing to return to the lender all or any part of his profits and above the stipulated interest

The magnitude of the question in volved can not well be over-rated, for it involves not only the delay, or for the time being, repudiation of National obligations but also the partial repudiation of private debts. National repudiation is a National crime, and individual repudiation is individual crime. There is no medium ground in this discussion. Resumption of specie payments is loyalty to the Government, strength to the Union, fidelity to the National honor and fidelity to private obligations. Failure or indisposition to resume is disloyalty to the Government and repudiation of National and private obligations. There is no way in which a Government or an individual can discharge debts except by paying or diminishing them, and paying and diminishing is contraction. lie who is not in favor of contracting the currency is not in favor of paying it according to the stipulation entered into when it was issued and he who is not in favor of paying it, is a repudiator and disloyal to the National honor and to the Government itself more especially when there isanacknowled and manifest ability to pay for a Government or Nation whose credit -is impaired or destroyed is incapable of withstanding ar*y serious strain tending to effect its continuance. All are agreed that it is of the highest importance, at the present time, to suppress corruption in public office but the field of crime in this particular is comparatively limited, and at the utmost embraces-only some eighty thousand office-holders.

Repudiation, on the other hand, of National obligations, involves the moral turpitude of a whole people, and in itself constitutes evidence pf National gangrene, decay and decomposition.

But, while op£n repudiation is one of the meanest of acts of which a citizen of a free country can be guilty, there are some who seem anxious to descend to a still lower depth of meanness namely, those who propose tj resume specie payments without contracting a recognized redundant currency. Such a proposition involves an impossibility and an absurdity, and those who advocate it take upon themselves the double character of a chalitan and a repudiator. ........ -...fr.-aryt

One word more, Mr. Ensley. There is undoubtedly a feeling of" distrust throughout the Northern portion of the United States toward the South, even on the part of the men well and kindly disposed. They fear that the hostility to the honor, credit and obligations of the restored Union will manifest itself again in the form of hostility to the resumption of specic pavments. By all such, any serious opposition on the part- of the South to the withdrawal, cancellation and payment of the legal-tenders will be considered as a hostile act. and will infallibly increase the distrust between the two sections. If this hostility 011 the part of Southern men should become general, the result will be a union of all patriotic citizens of the North, irrespective of party, that will be determinative of all elections, postpone the day of full fraternal reconciliation between the formerlv warring sections, and binder the return of that material prosperity to the South which is so eminently desirable.

The path of honor, of good faith and of strict integrity, bard though it may temporarily be to pursue, is the path of loyalty, safety and ultimate prosperity. 1 am yours most respectfully.

David A. Wells.

•There is un Knslern story which illustrates1 this ]i'i |ori 11 ion I Kilter than any argument: "A iiiiiu uf tin- caiman of the pilgrims slept a lung time, ami then awoke and saw 110 traces of tile other pilgrims. So he arose ami walked on hut lie wandered from the way. anil hi proceeded until lie saw lent, ami an old woman at its iloor, ami he found by her a ifog asleep. lie approached the teni, saluted the old woman, and begged of her some food whereupon she sain liini, 'Go vou to the valley and catch as many serpents as will sullicu tfiee, tluit I way broil some of them for thee.' The man replied, 'I dare not eateh serpents, and I never ate them.' The old woman, therefore, said, *1 will go with thee and eateh some of ihem, and tear thein not.' Then she went with him, and the dog followed her, and she caught as many serpents as sufficed, and proceeded to broil some of them. The pilgrim could not refrain from eating, for he feared hunger. And after this, being thirsty, lie demanded of the old woman some water to drink, and she said to hiin, 'Uo to the spring and drink of it.' Accordingly lie went to the spring, but he found the water bitter yet he could not refrain from drinking of it, notwithstanding its exceeding bitterness, on account of the violence of his thirst. lie therefore drank, and then returned to the old woman and said to her, wonder at thee, old woman, and at thy residency in this place, and thy feeding thyself with such food, and thy drinking this water.' 'How, then.' said the old woman, 'is your countryV lie answered her:'Verily, iu our country are spacious aud ample houses, and delicious fruits, and abundant sweet waters, and excellent viands, aud numerous blieep, and everything good—the blessings of the like of which exist not save in the i'aradisc that God (whose name be exalted!) has described to His just servants.-' 'Ail this,' replied the old woman,'I have heard: but tell me, have you any Sultan who ruleth over you, and oppresseth in his rule, while ye are under his authority,, and who, if lie desires, taketh your wealth, and turneth you out of your housesV The man answered: 'That doth sometimes happen.' Then the old woman rejoined: 'If so, by Allah, that dainty food and elegant life, and those delight comforts, with fraud and oppression, are peuetrating poison and our food, with safety, is a salutary antidote.

Commissioner's Sale.

BY VIRTUE of a certified copy of a decree to me directed from the United States Court, for the District of Indiana, I will, on

WEDNESDAY, THE 28th DAY OF JUNE, 1876, between the hours of 10 ®'clock A. M., and 4 o'clock p. M., at the Court House door in Terre Haute, Vigo county, Indiana, offer for sale at public auction, the rents and profits for a term not exceeding seven years, of the following described real estate, to-wit: Three acres off the south side of lot twenty-one (21) Spencer's subdivision of the northwest quarter of section No. fifteen (15) township No. twelve (12) north of range No. nine (9) west, as the same appears upon the recorded plat thereof. Also, the east half (Jj)ofth southeast quarter of section No. twentv nine (29) township No. thirteen (IJ north of range No. eight (S) west. Als the west half of "the northeast qua tcr of section No. twenty-nine (29) town ship No. thirteen (13) north of range N eight (8) west, except five (5) acres the northwest corner heretofore conveve to Ozro Niece and John Howard. Also, the southeast quarter of section No. eigiit (8) township No. thirteen (13) north 01 range No. eight (S) west, and the north half of the southwest quarter of section No. nine (9) township No. thirteen (13) north of range eight (S) west, all in Vigo county, State of Indiana, and upon failu:e to realize a sum sufficient to satisfy the demand, I will at the same time and place, and in like manner oft'er for sale the fee simple for the same. Ordered to be sold as the property of the defendant, in the case of William S. Pierson vs. Wilson T. Moss, Sarah A. A, Moss, his wife, Carrie Crabb, James II. Crabb Ella Briggs, Herbert Briggs, Josephis Briggs, Edward Briggs and Ida Brigg Sale to be made without relief from va uation and appraisemcntlaws.

has

BEN. J. SPOONKR,

Ma^iS^iSTfj^SjiecialJ^omnnssio^

7746.—STATE OF INDIANA, COUNTY OF VIGO, IN THE VIGO CIRCUIT COURT, IN DI­

VORCE, LAURA GODSCIIALCK VS. JOSEPH W. GODSCIIALCK. Be it known, that on the 26th day of May 1876, it was ordered by the Court that the Clerk notify bv publication said JOSEPH W. GODSClI ALCK as nonresident of the pendency of this action against him. Said defendant is therefore hereby notified of the pendency of said action against him and that the same will stand for trial at the September Term of said Court in the vear 1876.

MARTIN HOLLINGER, Clerk.

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