The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1867-11-22
Contracting the CurrencY.

One OF the causes of the present
''hard times" is the unwise policy pur-
sued 50 remorselessly by Secretary Nc
Culloch, of Withdrawing greenbacks
from circulation at the rate of four mil
lions month. He is driving ahead
with the impetuosity Of a mad bull to-
wards specie payment regardless of the
Interests of the people. Congress is ex-
pected to check him, and by a-timely
exercise of its authority give some re-
lief to the business community by pre-
venting any further sudden and whole
sale contraction of the currency. In the
eagerness of the advocates of specie
basis to reach that point they overlook
a matter that cannot be left out of the
count and that is just this-there is not
enough currency in circulation to meet
the demands of business. To reduce
the present amount is, therefore, ruin
US to every industrial enterprise, Grip
ping to business, and death to the
debtor class. These are the objections
to any further contraction of the cur
rency.
A large proportion of the people who
now owe money for farms,for houses and
lots, for machinery, or for starting them
selves in business, or for enlarging their
business, contracted their Indebtedness
when the currency was abundant and
gold at a premium of from $50 to 100
and higher. With gold at about the
same rate, and with currency abundant,
thew could clear themselves of debt in
from one to three years without iucon-
venience; but with gold down to lSS
and sinking, and four millions of cur
rency per month being withdrawn per-
manendy from circulation, their indebt-
ness is increased, while they are Grip
pied and hindered in their ability to
pay. The policy Of speedy resump-
tion of specie payments, if pursued, will
plunge the whole debtor class into bank
ruptcy.
But if there were no debtors, this cir
culation of the currency would check
public and private enterprise and block
the wheels of industry, for the simple
reason that there would not be money
enough in circulation to meet the de-
mands of business. 1t would find its
way into the hands OF brokers and spec
ulators, and be lent to business men in
their necessities only at the highest rates
of interest .aa a
The precise amount OF money requir-
ed 10 transact the business of the coun-
try, cannot be ascertsined, Of course;
but it can be approximated. For in
stance, it is palpable to every one that
sncre money is required with which to
carry on the business of the country in
1867 than was required in 1857, be-
cause of our growth in population, area,
7nuroyements, &c. The disastrous
policy Of contraction is made plain when
the fact is stated-as fact it is-that the
amount of currency actually in circula-
ton now, is not SO large as it Sas in
1851. Then we had, in coin and bank
notes, about five hundred millions; now
We have in National Bank notes and
creenbscks in actual circulation really
not over four hundred millions. We
have authoritative figures for this state
ment, but do not choose to cucumber
this article with them. Now, in view
of this fact, on what sensible grounds
can the contraction of the currency be
adyocatedg We have less currency
now than we had in 1857. There was
not enough then to transact the busi-
ness of the country. We have ten
yearS' growth and increase; is it sensible
to say that we can transact this increas-
ed business with less money than we
needed to transact smaller business
ten years ago!
We believe it would be beneficial 70
business if Congress authorized re-
issue of ali the greenbacks withdrawn
from circulstien by McCulloch; yet, to
avoid any further psetence OF disturbing
the present financial stCf's. we would
not insist on that But the country
demands that contraction shall stop
where it is.