The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1866-04-20

~, msnsnty n. 4, mot simply the fact that the
snunlv h Increasing and the demand is falling
of, The great army OF consumers Is being added
10 The clsss Of producers, aud prices OF merchan
disc and food must always be primarily and chief
ly subject to the great law Of supply and demand.
II cin scarcely be doubted that prices would have
been still lower and that domestic manufacture
wo,h have supplied much Of the merchandise i'm.
ported from abroad had not the fear at Eight
money market" withheld AMI diverted millions
from the channels of productive Industry to swell
the bank deposits In the great financial centers of
the country, 10 be loaned ON call. aud kept within
reach against the day when contraction should
give u more power and value Men would not
convert their money into cloth and iron ans. ships
AMI railroads when oil these products OF labor
were to be cheapcne,l, while the money hal only
tOhe kept ON hand Ia realize an advance in price
Another Tact which goes Ia shaw that high pr
Cos have not been causrl mainly by the increase
otthe currency ~ that lanls have advanced ~"
more in the last i've years preces'lins, shaving
thai the advance ~ prices have chiefly affected
che products at labor
la connection with this matter or contraction
wish Ia press another point. an,l u ~ this that
whenever yuu rrlucr the currency urtirhten the
money market you first strike nj the price Oi Ia.
Dor. Labor il the first element in productive ia
dustry that Is ailcctelby it, IL money becomes
scarce AMI dear. the demands Ear the products at
industry falls on. The manufacturer not only
ceS the amount "fhis productions by putting his
employees upon half time. In this way the pro-
dnction ~ checked until the surplus IL exhausted
AMI the demand is again equal H. the supply. lu-
stead of being diiused all over the country, seek.
ing new channels Of employment, AMI aiding to
The Nig"r al the development Of the resources al
the country, our capital will remain locked up
IN the vaults at the commercial centers, sensitive
Z" the slightest influence, AMI in constant fear,
nni the uncertainty rs To tho polcy which nny
fr"n time Ia time be adopted by the head Of the
Treasury. l. IL not far safer aud much more le-
cltiinsie tn absorb the excess Cf production by
the Development oi new resources; L. absorb ais"
the excess of currency, IL there be any, ia new
channels Of employment; To give the currency
the treest scope Tor circulation by creating AMI IN
crclsing the demand For laborf Wealth creates
wealth. and IL il the strongest evidence ot Imam.
cial craftsmanship and business talent that II
wealth ~ applied as % aid IL the prosperity
OF the country. Our currency then finds its prop
cr use la developing our astresources; IN huiid
inc new railroads, canals. and factories; in replac
inc our lost shipping, and in opening up the
vast mineral wealth OF the nation; AMI In re
building and furnishing the sinews OF trade 10 the
whole southern country,
1 will refer To- but one more point on this
branch Of the subject. II IL assumed by many
that we must have financial reyulsiOn because
such has always been the case after an unusual
abundance Of currency. People who assume this
lose sight Of the fact that an abundant supply Of
paper money usually indicateSa large indebted-
ness ofthe people, end that the crash comes when
they are obliged to return their borrowedeapital,
Ths present abundance Of paper money results
frviu the Indebtedness Of the Government 10 the
people: the people being comparatively out OF
debt, there will be no crash. Comparisons Ut our
present condition with the financial reyulsions OF
1897 and 1857 fail entirely, because there Is mo-
similarity Of circumstances; the currency at those
periods was more Initiated than inflated; there was
NJ security for IL; the people were largely in debt
IN addition 10 the currency ahUat, which was
then che representative Indebtedness at the people.
there was also ailoat an enormous amo nut ofnntss
--drbt-whch The people owed to one another
and ,o the banks. The crash came when PEG
pie found that NO one had any money TO pay
with; the currency was not based upon the abili-
~ Of n united people represented by its Govern
ment To pay, but upon the ability Of individuals
10 redeem the promises they had made to each
other. Now, the Government, representing the
entire people, pledges the faith of that whole peO
pie TO pay this national indebtedness.
Every dollar OF paper money now in circulation,
except the insignificant amount represented 10y
State bank circulation. IL secured hy u mortgage
on the whole property Of the country. It's ase-
cured circulation, and really rests upon a specie
basis, although not immediately convertible into
specie except nj discount. IL the specie Is want
ed II can be hal AMI mo- man suffers, TOR no hold
or receiyedit as the equivalent ot specie, hut
M n larger discount than he now makes I'm con-
yerting IL into the required eoin The gentleman
from PENNSYLVANIA Mr.. Scoield, Who was trOu.
blel because he could not obtain specie for his
gree uhacks at the Treasury, would have found
no difficulty in doing ~ without applying 10 the
Treasury, IL he were content To accept the amount
which they cost him. The gresnbacks rest on n
specie basis, because they can be Converted into
bOLls, the principal and interest Of which are
pas able in cOn. Il
The terrible evils. present and prospective, OF
this Objectionable" inconycrtble paper cuIren- |
ey are purely imaginary. The people neither |
see. feel. nor believe In them; and they will new
ercnnscnt 10 an increase Of their taxes to the |
AN, unit Of S27 900 900 per annum for the pur
pose ~ allowing the bankers ut the country
monopoly fthe circulation. There Is another |
reason why am oppOsej to retiring any at thls |
crrIeney, which Is, that we want u hr supplying
the Southern States That matter was alluded |
g. by the gentleman from Ohio, mir. Garfield,
in answer To- the inquiry II the gentleman from
Iowa. Mr.. Price, whether currency hal not
been increasing while gold hal been decreasing
IL value. The gentleman from Ohio answered.
that 'sx hundred millions NJ confederate currcn'
cy had collapsed in day, and the vacuum had To-
h. filed; 81 that while cur currency had actually
increased IL had diminished relatively, that ~ IN
rrnrortion IL the business of the country" Now
unless the vacuum has been filed. which no one
would pretend, this simple statement oi the gentle
man pretty etcctusly dsposCs OF his argument IN
favor Of contraction. This whole southern eOun
try il 10 be rebuilt, aud with capital drawing
FROM the North, unless contraction OF our mo
ncy market drives her people Ia Europe to bor-
rev. The money will be loaned upon mortgages,
aul repaid by the annual crops Of thecountry and
by its developed wealth Whether this capital
shall be British gold ar United States greenbacks
dcIrends upon the state Of our money market, u
W. give them the paper money of the country,
We make every man who has dollar Of u In his |
pc, ket interested to that extent in the Govern.
mrut. anl in sustaining its credit. IL we drive
them H. Europe 10y our inability Ia supply them,
w. ALLEVIATE them from w, AMI allow them tn hlen /
tfy their interests with those Of our enemies.
Every day experience goes tn prove that our
true financial policy is a. go an and provide Tor
the maturing obligations Of the Government, with
Out contracting or disturbing the currency of the
country, which Is the blood OF its commerce
Let IL alone, and IL will aow where II is wanted,
anil 6nI ample 6eli for employment. Let Us con
fer no authority upon the Secretary To contract
this currency; its contraction should neither be
threatened by the Government nor apprehended
by the people.
~ Al meeting ot the Washington johnson