Ashtabula weekly telegraph. [volume] (Ashtabula, Ohio) 1853-1873, 1866-04-07

sand million. need only refer 10 the horn
books Of financial science to show that tb
only sure test Of the redundancy Of pape
money is its coDvertibiIity into coin at th
viii Of the bolder, and that its redundanc,
will increase prices. 90 the latte
proposition / will read q sentence from th
highest living authority 10 political econ
omy, John Stuart Mill, Political Econ omy
volume two, page ls:
That an increase Of the quantity OF none
raises prices and o diminution lowers them
the most elementary proposition 10 the theor
Of Currency, and without il we should have n
key to any of the others.
Mr.. PRICE. I want to ask the gentle
man from Ohio whether there is any NOR,
currency in circulation now than 81,
months ago. 10 short, / want to know
whether there is not more currency in cir
culation every day of the week and every
week Of the month for the last six months
And has it been increasing? i want to
know whether IL is not equally true that
gold has been coming down steadily,
certainly, gradually, surely; and NOT only
that, bat that the commodities of trade and
SOhhViSO hoNV SOnO uOWu tUO Sdmt
ratio. Yet the currency has been increas.
ing, strange as it may seem And the
gentleman need not go back to the horn.
books to fud out these facts. They stare
us in the face every day. 1t cannot be
denied that while the currency has been in
creasiug gold has been going down.
Mr.. GARFIELD. A paragraph from the
Merchants Magazine for January last
will perfectly answer the geutemadi's s
question. 1t is to this effcl the President 5
message raised Government securities at
home and abroad and depressed gold.-
The report Of the Secretary Of the Treasury
accomp lishsd still more. The very
announcement Of the policy Of resumption
has checked gold and stock gambling aud
brought down prices. That historical TACT
is complete answer to the geutlemln's 3
question. s. .ff t.l.-s .--s'
Mr.. PRICE. Does the gentleman deny
the statement | make in reference to the
increase OF the volume of our currency and
the decrease in the premium on gold2
Mr.. GARFIELD do not deny it. !
have admitted that gold is falling. ad.
NIT that our currency has been slightly
Increased. But, Sit, it must be remem.
bered that 5000, 900. 900 of rebel currency
collapsed and disappeared on the day the
SO called southern confederaey collapsed,
aud thus left vacuum into which our
currency has since been flowing
Mr. PRICE. Do you deny in the face of
the facts in the case that our currency rs
been increasing while gold has been de-
cressingi
Mr.. GARFIELD. l have answered the
gentleman.
Mr.. PRICE. l am sorry / cannot see
the answer. r'.l l-.
Mr.. GARFIELD. / have stated tho facts
in answer 10 the gentleman. / am not
responsible for his Inability 10 understand
them.
1 call attention, because the geutlemaufr om
Peunsylvania Mr.. Stevens] has referred
TO it, to the remarkable example in British
financial history. have never seen a more
perfect illustration OF the truth that history
repeats itself than this debate as compared
with the debate in the British Parliament
during their great struggle for return to
specie payments, after the war against
Napoleon. From 1877 to 1919 the British
people had only paper circulation, and,
as is always the case. the poorer currency
drove ont the better. AS respectable
people leave that portion of city in which
disreputable people settle; so gold re.ires
before an irredeemable paper currency
If our customs aud the interest on our
public debt had not been made payable
in coin, gold would have disappeared from
the country. 10 England, when they had
no gold in circulation, when prices had
risen, when rents had risen, after stocks
had fallen. EDglishmen did what We are
now attempting to do.
In 1910, q committee OF the most able
fnanciers and statesmen were orderd to re-
port the cause Of high prices and the pre-.
mium upon cold. aud after laborious in-
vesligation, during which the most distin
guisbed men were called in as witnesses,
that most able pspe", the Bullion Report,
was submitted TO Pa, lament. In that re-
port the principle was enunciated that the
only true test of the redundancy of currency
was its comparison in value with godi
that whenever Q paper dollar is not ex.
changeable for gold dollar, il is proof
that there are too many paper dollarsi
aud there can DO no surer test. 10 the
report of that committee it was laid down
as fundamental proposition that nothing
bat the supreme test of gold applied to
paper will certainly determine the question
of the redundancy. That report was de-
bated for many weeks. aud every leading
banker, broker, importer, and jobber OF
England opposed the bullion committee
and their proposed return to cash payment
The measure was defeated. Gold and
prices Immediately rose. From 1911 till
1919 there was steady rise in prices and
stocks, and in the year 1919 another com
mit,ee of the Hose Of Commons was ap-
pointed to examine aud report on the
nancial situation of the kingdom. Three
Of the members of the bullion committee OF
1910 were also on the committee of 1919.
After q most searching investigation, they
reported 10 favor Of resumption, and in-
dorsed the doctr inc Of the Bullion Report.
Then il was that Robert PEEL dis,
tipguished himself as the great statesman
and fnsueisr Of England by declaring in
the House of Commons his conversion to
the doetriues OF the Bullions Report which
he had so strenuously opposed eight years
I hayn hafnra Fna he racxrho ~ 4 ha