Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1868-07-03
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t'Prudence and intelligeno6 i'm such
? crisis avail nothing. Traders have bee
f not inaptly compared to ni1e-pins, I
which those who are not themselve
struck are yet brought down by thei
neighbOrs in their fai1, and by the fail
ure Of one the most remote may be Bi
fected through many ipte1nediat
steps," -. -.s r.r --.,.-'-.
This speech Of the Secretary was th
J first intimatiOn Of approaching danger
The contraction of tlaeccurFBncy1r rEglaicl
followed staggered and almost pFOstna
/ ted the business of the nation not 81
much for the reason that that 'contrac
tlOn made a deficiency Of the cireuIa
ting medium, but because 1t ooeasioneS
\ among the people an impression tha
there would be deficiency, 1T was, Il
I use the language OF Mr.. Mills ia refer
ence to the comm erGial d tress IN Ems
land, in 1S47, ga case in which eraii
Il and confidence having been first ,sha,
ken, ruin was brought 70 many Dy az
4 apprehended scarcity Of that circula.
\ ting medium, which they then had n
excess, but that their slaTm prevented
! them from making Il aVailable.Y 2
/ Allay all apprehension by RESTORING
4 to the country the money which has
4 been Withdrawn, and by &nnOuu0imG
I adjusted itself TO this volume OF cufFeia-
1 cy, Il shall remain chat you propose to
/ lea gold and silver grow up 60 the cur
! tencyy Wnd not 20 drag the CURRENCY
/ Down to it, Allo ~ gold and silver TO
continue com modify to be bought and
sold like other metals, URtil BY the nat
| Iral increase OF the population and
/ wealth Of the country, and blythe de-
welopement ofour almost tne1halstible
mines of the precious metals, che coin
and the greenbaeE shall at length cor u
respond ia value Then the GEOFen4
fnent caH resume specie payments, but
need not necessarily Withdraw the
greenbacks from circulation. It can re-
deem them in gold on demand and can.
give them out agaiur to these who
choose 20 take them instead Of coin
The resumption of specie payment
might be slow, but IL would be gFadiJial,
certain, and without check or damage.
to the country. qes ii. tass-.re~e I'D
Our business men-all men in fact
who borrow, loan, or use money, would
have a definite and permanent basis
upon which to make their Caleula 6fons.
Here are four hundred millions to be
continued, without addition or dimin-
ution, and TO be received by the Gov
ernment in all cases, and disburs5d in
every instance, except where the law
has specifically provided for payment
in coin, and to continue q legal-tender
in the payment of all debts. In the
meantime Government recognizing no
other money, and regarding gold sim
ply as an article of trade, so long as it
is held above the green backs in value,
to be bought whenever required in She
open market Of the lowest bidder, 1tis
impossible for me to think that gold
WOnld advance or the Rreenbaclks de-
preciate under this arrangement. In
my Judgment If Congress should an
nounce this as the fixed, o stable and ir-
reversible policy Of the Government,
every industrial interest would thrill
with new vigOr, the farmer, mechanic,
and laborer5 would be
qulclzened into new life, and the Re-3
public move onward in a career Of pros I
perity without check or hindrance.
ONE NODE OF RRsU1rPTIoE OONsIDERED,
A proposition has been made by my
colleague Mr.. Garfield TO resume |
specie payment at a certain period in /
the future. The time fixed upon for /
complete resumption is June 1, 1871
This plan, if adopted, would amount /
TO resumption. The effect
would be discounted a general break
loWn of all prices to the gold level
would follow, as was the case in Eng
and in the very instance cited by my
proposition. 'sIa May 4Sle, 1
he law was passed fixing the time and |
node of resumption" j" and Specie pay
nents were fully resumed on the Ist OF
Nav. 1921, two wears before the time |
liked By laW." This sudden transition 1
rom an iucOnyertRble to a convertible |
paper currency was doubtless pronta-
ole arrangement for the few men IN I
England who owned. the revenues Of
he nation, and whose rents,, annuties,
md salaries were thus greatly enhaEc-
a in Yalues but it bore with crushing
weight upon the laboFing poor as we'll /
IS upon the men of moderate means
he mechanics, tradesmen, farmers who
In a -
their implements O1husbandry.
These found the value of the articles nee
ssarv for the poseCution Oftheir ERrioUs
as well as the products of
heir labor, suddenly stricken down in
ralue, while their expenditures, their
lebts, the bond of the creditor, remain
d undiminished. admit that gold is
he solid basis upon which to build,
,ut / would not rush thither upon the
,rostrate forms OF the debtors of the
OuutFy. If my colleague 8, plan should
,e Adopted, the debts of the debtor
rould remained undiminished, while
lis resources, his ability to pay, would
e leEsened from fifty TO one hundred
er cent, and every creditor, bondholdert
older of grsenbac<E, would have add
d to the value of prOmissory notes,
Ouds. and greenbacRs from fifty 70 one !
mdred peF cent. Il would place one
alf Of our people at the feet of the
ther half, where they must lie pros
rate or under the humiliation Of seek
ne relief in the courts Of bankruptcy. J
n considering this question Of resump- I
.ou we should not forget the private
ebts Of the people, or the debt OF the :
alton which is the public debt Of the
eOple, and that common justice re- q
uires that the measure used in cOntrac-
on of these debta should be the meas
re used In their liquidation.
We were forced to adopt this new {
ury to very many is undoubted, to use J
n illustration of my colleague Mr..
fairfield, ] s'the man who loaned 81 900
4 July, 1861, payable in three years.
yas compelled to accept Ct maturity Rs
full discharge Of the debt an amount
c currency equal in value 20 $3.50 OF
be money lOaneds" We are not 10 |
lame for the loss resulting to this cred-
or, the sacrifice was necessary to save
hat to him was more valuable-the z
fe Of the nation. We cannot how
yer, now plead q like necessity for
ompellinR a man who has borrowed
$50 TO pay back 81 900. We were fore
i to permit the one. II We permit the :
ther we do it voluntarily. Nor IS tt t
so long as peace continues 4
rat either debtor or creditor snoulu E,
1ffar, the only injury which can come (,
fie creditor now must proceed from In y
ation-to the debtor from contratton. = =
he financial distress Of our own and Of y y
her countries In the past olu noti 4 0p !,
rehend arise so much from their resort ]
paper money as for not stupp ing when. y
,ey had issued enough, Their troubles !. y
rev mainly out OF the over issue y
hey were delnded by the impractica- 4
Ie Schemes ofsuch men as John Law =.
nd AFTER rushing to the farthest limits y
I imitation became frightened and a
ushed back to the other extreme, beg 3.
aring one class OF men in going. out, :. y
ld crushing another class in their re- r,
i'm. ....-...t.. III
In conclusion, permit me to refer y y
ore fully to my colleagues Mr.. Gar ~
ald] English precedent. 81 have not y
sen,n ne remarked, t'ambitious to add 4,
lother to the many financial plans =
opposed to this Congress, much less
ave aouRht to Introduce new and
ntried scheme. On the contrary, re- =,
srd it q strong commendation OF this y
easure that it is substantially the Z,
me as that by which Great Britain q,
sumed specie payments after sus- =
snsion OF nearly quarter Of a centu- 4,
Z. The situation Of England at that y
rae, !" he continues, twas strikingiy =
miiar to our present situation-paper 3
= A..