State Convention—Interconvertible Notes. 213 
ourselves in and other nations out, but so long as we desire to main¬ 
tain our place and rank in the federation of the world, they are in¬ 
superable objections. 
3. As “a store of value’’ it is a nullity, and it is believed this 
will be admitted without discussion, notwithstanding the fact that 
the resolutions recently put forth speak of the “intrinsic worth” 
of paper money. As for the proposed new issue, it is to be like 
the old, save in one thing, and that not an attribute of money. It 
will have no added security, for that is not needed; nor is there to 
be any better provision made for its payment; it will differ in this 
alone, that it is to carry with it, to the holder, the option of putting 
it into a 3.65 government bond if he desires it. Let us examine 
the probabilities of this option giving to the currency the high 
character that is claimed for it. 
What is a circulating note? It is simply an evidence of debt. 
The aggregate of them, present or prospective, is a fraction—and 
not a very large fraction—of the promissory payments that are 
afloat in the country. All notes, bills of exchange, bank-checks, 
bank-bills, greenbacks, etc., are so many memoranda of claims, 
nothing more, nor will any particular formula which the greenback 
party decide to use upon the printed evidences of government in¬ 
debtedness place them ouside this definition. Now, what is it that 
gives currency to this whole mass of paper credits? 
1. The amount and nature of the security which lies behind it. 
2. Its volume, as compared with the demand. 
3. The degree of probability there is of its being paid at maturi¬ 
ty, whether that be on demand or at a fixed future day. 
As to security, w r e are constantly referred to the basis of the na¬ 
tion’s wealth and faith and credit upon which the issues are to rest, 
and not unfrequently imputations are put upon the patriotism and 
common sense of an} 7 man who ventures to doubt the efficacy of 
this alone to make the money all that the most exacting could ask. 
The fact is, no sane man in the least questions the absolute sol¬ 
vency of the government, or its ability to pay every dollar it agrees 
to. But the assumption that all that is needed to make an obliga¬ 
tion a durable one, is that its issuer shall have ample property to 
represent it, is unwarranted. If the conditions are such that not a 
dollar of that property can be claimed, except in the event of the 
final winding up of the affairs of the debtor—a contingency no one 
