The Southern Mercury. (Dallas, Tex.), Vol. 14, No. 8, Ed. 1 Thursday, February 21, 1895 Page: 1 of 16
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THE SOUTHERN MERCURY CHAMPIONS THE OMAHA PLATFORM FROM START TO FINISH,
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VOL. XIV, NO. 8.
DALLAS, TEXAS, THURSDAY, FEBRUARY 21, 1895. WHOLE NO, 684.
HISTORY OF PAPER MONEY.
HOW IT PRODUCED PROSPER-
ITY IN THE COLONIES IN
EARLY TIMES.
The Prohibition of the Issue and
Use of Paper Money by the
American Colonies by Eng-
land Kindled the Fires
of the Revolution.
CHAP. II.
By an act of the continental con-
gress, passed June 2-5, 1775—one year
before the declaration of independence
—the issue of $2,000,000 in continental
bills was authorized. These bills read
as follows: 'This bill entitles the
bearer to receive Spanish mill
dollars, or the value thereof in gold or
silver, according to the resolution of
congress of th3 10 th of May, 1775."
It Is needless to say that this was
not money, nor a promise to pay money,
emlnatlng from any person, state, or
nation. This note authorized the per-
son holding it to receive therefor
Spanish mill dollars—Spanish sliver
coin—or its eqvivalent in gold or sil-
ver; but it did not obligate any person,
state, or nation, to pay said dollars or
coin, nor did it compel any person to
receive them in payment for any kind
of debt, public or private.
[t is eeen, therefore, that when the
continental congress authorized the is-
suance of these bills, it was merely an
advisory body; the United States did
not exist, and the members had been
delegated by the colonies to solicit and
demand their rights under the crown.
In conformity with these instructions,
the colonial congress, in all its com-
munications, styled themselves and
their constituents as t(your majesty's
most faithful subjects," and as Eng-
land had «positively forbidden the
issue of any paper money by the colo-
nies, and foreseeing the rejection of all
their prayers and supplications by the
English governmet, they ordered the
issue of these bills, as a preparation
for war, and at the same time aiming
to evade the prohibitory acts of Eng-
land. The continental congress had
no debts due it. It could levy no taxes
of any kind, henea was utterly power-
lees tp redeem one dollar of these bills.
The people knew this, hence they were
p. very poor makeshift. Again, they
were so poorly executed that they
could be, and were, so successfully
counterfeited that no one could tell the
genuine from the counterfeit. Six
millions of these bills were issued bo-
fore the independence of the United
States was deolared. It was then too
late to change the bungling system.
Yet the loyal people, as they always
did before, and always have since, re-
ceived and circulated thes3 bills as
money.
The colonies were contending with
the most powerful nation on earth,
whose armies had been victorious In
all parts of the globa, her navy swapt
every sea, she successfully blockaded
the ports of all her enemies. The c >1-
onlsts were few in number, considera-
bly divided, poor, with no army, no
fortifications, no navy, and no
money or credit. Consequently
their cause was considered doubt-
ful by their friends and desperate
by the tories. Under such circum-
stances it would have been next to im-
possible to maintain a state or national
paper currency at par, even if the
congress had been authorized to issue
legal tender paper money. But with
the means adopted, it is astonishing
that any success attended their efforts
to keep these bills at par even for a
week.
As soon as independence was declared,
the English statesmen recognized these
bills as the backbone of the rebelfton,
and to break it they put printing press-
es to work and ground out tens of mill-
ions of counterfeit (,continental bills"
and flooded the colonies with them,
through the active co-cperation of the
tories. Yet the patriots faltered not,
but pressed right on, till victory, free-
dom and independence crowned their
efforts. This can be explained on no
other theory than it is impossible to
enslave those who are determined and
are worthy to be free. They know if
their cause failed all was lost, and like
patriots in all ages engaged in a war
for independence, they made "freedom,
independence and justice*' the issue
and the monetary system the incident.
Notwithstanding all these difficulties
there can be no doubt of the fact that
this continental money was the Arehi-
midan lever that lifted the colonists
out of the merciless grasp of Eagland,
and hoisted them upon the solid rock
of the greatest republic the sun ever
shone upon. That great financier, Al-
bert Gallatin, said "the continental
money [cart led the united colonies thro'
the most arduous and perilous stages of
the war, and it cannot be denied that
it saved the country,"
Thomas Jefferson said of it: "In the
revolutionary war the old congress and
the United States issued bills without
interest and without tax. They occu-
pied the channels of trade very freely;
untiljthese channels were overflowed by
an excess beyond the calls of circula-
tion. * * After the revolution con-
tinental money expired without a single
groan. Not a murmer was heard
among the people; on the oontrary,
universal congratulations took place on
Continued on page 8.
HITS TOENAIL ON THE HEAD
AN OPEN LETTER TO THE PRES-
IDENT OF THE MISSISSIPPI
COTTON GROWERS' ASS'N.
The Fallacy of Over Production Set
Forth In a Pointed and Forcible
Manner—Over Production a
Humbug.
Palo Alto, Miss., Jan. 25th, 1895.
Hon. W. W. Stone, President—Dear
Sir:—Yours of the 19th Inst appointing
me president of the (Clay county Cot-
ton Growers' Protective Association,"
received. While I am sensible of the
honor you would confer, I beg leave to
decline for the following reasons,viz:
1st. Your organization sets out on
the assumption that "over-production"
has brought about the low prices and
consequent distress upon the country,
and you propose to reduoe the produc-
tion of cotton to raise the price. I deny
your premises and take issue with your
theory.
2nd. I cannot therefore in conscience
try to deceive my neighbor and friend
by attempting to persuade him that he
is responsible for all the hardships en-
dured and calamities that have befallen
him and his country for the last few
years, owing to «the fact that he has
worked too hard and produced too
much, when I know and every well in-
formed man should know, such a posi-
tion is contradictory and absurd.
3rd. I cannot ask my fellow-farmers
to pay 2 cents per acre on their crops,
when they are barely able to pay the
oaerous taxes heaped upon tbem, that
thousands of dollars may be poured into
the pockets of the leaders of this move-
msnt, most of whom are not farmers,
but lawyers and politicians, only that
these gentlemen may have a fat thing
at the expense of the masses. To do so,
wou'd make me a party to what I be-
lieve a miserable deception,and stultify
my long life of nearly four score years,
which has been devoted in an humble
way to the doctrine of "the greatest
good to the greatest number." I be-
lieve the misfortunes of the country
have been brought about by improper
and vicious legislation, which was be-
yond the control of the farmers, so
long as they failed to unite for their
protection, and I certainly would not
be a party to a movement wblph in my
judgment only serves to further dis-
organize the producers.
The statistics of our country contra-
dict emphatically the theory of 'over-
production.' Go back to 1862. We
made 9,000,000 bales of cotton and sold
it for 9 cents. The next season we
mftfe 25 per cent, less and got Q
cents for our staple crop. Here was a
reduction of one-fourth in quantity and
a decline in price of one-third. You
say that was caused by 'overproduction.
I think It was caused by the repeal of
the Sherman silver purchase law,
which practically demonetized the
white metal.
Last year the South produced 9,500-
000 bales of cotton, and wo sold it for
44 cents. Now your Cotton Growers
Protective Association, adopting the
plan of the New Orleans Cotton Factors
Association, proposes to reduce the
crop to 7,OCO,GOO bales, tax the cotton
growers $0,000,000 for your advice, and
provide "a torch committee" to burn
up the surplus, which m'ght by acci-
dent or design be produced. Your as-
sociation professes to think this plan
will eliminate the overproduction busi-
ness and Increase the price of cotton.
Judging tho future by the very racent
past, I conclude, if tho democracy con-
tinue to issue bonds and monkey with
the currency on the lines laid down by
Cleveland, Carlisle and Sherman, that
our next crop, If only 7,000,000 bales,
will bring not over 3 cents per pound.
Your overproduction theory, advanc-
ed by Wall street and echoed and re-
echoed by the bankers, lawyers and
politicians all over the land, is the
most gigantic humbug of the age.
Imagine a people bankrupt, ruined and
suffering for tho common necessaries
of life, because they had produced too
much of the staple articles, wbich go
to feed and clothe the world. Think
of Edam's distress in the Girden of
Eden because of a super-abundance of
the good things surronnding him.
Overproduction of cotton and the world
half clad! Overproduction of wheat
and millions starving!
A good horse but a few years ago
would readily sell in my town for $150.
C0, now will bring scarcely $25,00.
Would you kill half the horses to make
the remainder bring a better price?
A few years ago all working men had
emp'oyment and enterprising men
could not get enough farm hands to
carry on their business. Now there
are millions starving while begging
for employment. Your theory would
kill half of the laborers that the other
half might find enough to do to keep
80ÚI and body together.
Our lands a few years ago command-
ed a good pric3. Now they will scarce-
ly sell at all. Are we suffering from
overproduction of land, and would you
sink one-ha'f our fertile acres to the
bottom of the ocean in order to raise
the price of that remaining above the
sea level?
I can suggest a little better theory.
A little "overproduction" of money
coined at the mint, or Issued by the
government without the intention of
banks, a full legal tender for all debts
Continued op page 8.
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Park, Milton. The Southern Mercury. (Dallas, Tex.), Vol. 14, No. 8, Ed. 1 Thursday, February 21, 1895, newspaper, February 21, 1895; (https://texashistory.unt.edu/ark:/67531/metapth185600/m1/1/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; .