Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1868-06-17

[ "AlOA nave not Oe6n IN active war are
struggling, but he shows that almost
every country in Europe Is suffering
from dearth of food and from stag
nation OF trade to far greater extent
than we are, rightly attributinr this
state OF things to the condition of
passive war involved in the mainte-
nance of standing armies of 3. 900 900
men at an annual cost Of 81, 900. OOO.-
900. He next proves that our civil
war and the return to peace produced
an industrial revolution in this country /;
first, the war gave an undue stimulus
to many branches, we may say to most
branches. of industry, resulting in an
over-investment of capital in many
of them, which can only be corrupted
ay our rapid increase Of population.
He rightly says: "Rising prices increas-
ed the profits of business, but this
property was caused by the great
demand for products, and not by the
abundance OF paper money. As a
means Of transactlng the vast business
OF the country, a great volume Of cur
rency was indispensable and its i'm
Portance cannot well be eover-estimsted.
But let US not be led into the fatal
error Of suppOsing that paper money
created the business or produced the
wealth. As.Wel might it be alleged
that our rivers and canals produce the
grain which they feat to market. Like
currency, the channels of commerce
stimulate production, but cannot null
lily the lnexorable law of demand and
supply"
We think he alleges too positively
that the rise in prices was not in part,
at least, the result of the issue of paper
money but he also admits too fully
the need of more currency than we
had, although he touches upon the
TACT elsewhere that an excessive issue
OF currency stimulated exchange and
speculation Of the gambling kind /;
hence, when the war ended. and the
whole ARMY of men returned to peace
ful pursuits, too large a proportion
were tempted into trade, and too small
a portion returned to the production
OF commodities, the exchange of which
constitutes trade. To this cause, we
think, may be attributed the peculiar
condition Of the past winter in the
cities there has doubtless been more
than the usual amount of destitution
and want, while in every part of the
country there has been q vehement cry
for more labor, both male and female,
and In almost every branch of occu-
patton pursued in the country districts,
whether mechanical or agricultural.
To quote the words Of another Of our
successful generals, now settled in the
Interior of Missouri, claw, physic, and
merchandise are full brains ot dis
couDt-muscls wanted"
General Garfield next gives compact
and clear statement of the function of
money, ending with these conclusions:
when the money of thS country
IS gold and silver. it adapts itself to
the tiuctuation Of business without
the aid Of legislation. If, at any time,
We have more than is needed, the sur
plus flows off to other countries through
the channels to international COM
merce. If less, the deficiency is
supplied through the same channels.
Thus the monetary equilibrium is
maintained.
~ -SNNCNCAs WIN al
ioie paper currency. Excepting the
specie used in the payment of custom
and the. interest on our public debt,
we are cut of from the money currents
OF the world. Our currency resembles
rather the waters of an artificial lake
which lie in stagnstion or rise to full
banks at the caprice of the gate keeper.
"Gold and silver abhor deprecated
paper money, and Will not keep COM
pany with it. If our currency be more
abundant than business demands, net |
a dollar of it can 60 abroad; if def
elent' not dollar of gold will come
IN to supply the lack There is no Isg-
lSlGtHTe on earth t7ise enough 10 adjust such /
currency 70 the s0aHts of The country.
We mark the paragraph in italics,
IS 1t presents truth which many Of
our legislators fail to perceive.
de next meets the insane or iniqui-
tous proposals for an increase of cur
rency by affirming that
No such change of values as would
be produced BY an increasel can occur
cost. Somebody must pay for
l. Who pays in this case? We have
'een that doubling the currency finally
'esults In reducing the purchasing
1ower Of each dollar one-half: hence
every man who held legaI-tender note
It the time of the increase. and con-
lnues to hold it till the full effect of
he increase, suffers q loss of fifty per
'ent' OF lis value, in other words. he
,ays tax to the amount of half Of
II the currency in his possession. No
more unequal or Unjust mode of tax.
tlon can possibly be devised. Some
ne may say; This depreciation would
al upon capitalists and rich men who :
re able to bear it, If this were true
would be no less unjust. But un- {
the capitalists would suffer {
sss than any other class. The new
sue would De paid in the first place
large amounts to the creditors Of the
it would pass from their o
snds before the depreciation had
aken tuu effect, and, passing down 0
,ep oy step through the ranks of mid Q
lemen, the dead weight would fall at 2
ISL upon the labOring classes in the Z
icreased price Of all the necessaries :
life. It IS well known that, IN q
sneral rise Of prices, wages aresmong a
ne last to rise" n
This truth has been by no one better "
ated, and there is ample evidence that 8
70 mass OF the people are becoming alive D
the fact that such is the truth; and oi
snee we find politicians of the Butler b.
amp attempting to explain away what Ii
ey have said. D,
We cannot help regretting that Gener- fe
Garfield should have presented in his to
eech specific plan for the resumption X
specie payment. 1t is open to criticism Sc
ID does not seem to US a good one. We d,
low that he attaches but little impor- n
nee to It himself, and we regret that at Il,
ntlon should by it be diverted from the a.
1neiplss so logically and ably presented -
the main body of the speech. ~
Ine question Of resuming specie pay ~
ant Is one Of tcilL- If bank officers and el =
perts IN finance do not JON heartily in ns
vislng the easiest and safest method an
d we fear that many of them are pss- va
ely opposed 10 any speedy method-we Oh
i assured that the iCiU of the people N
Il manifest itself and bring about the tn
ult at any cost and at any sacrifice of of
} interest Of the banks, or anv other Iifi
'eiai Interests which may stand IN the tn
y, and with much greater difficulty and an
aster than isabsolutely necessary in the vel
,cess. th,
IN fact, we believe with General Gar pot
d that the most difficult point has been ma
sed. Our enormous natural resources Iov
asserting their full power, and, not Va,
the alleged stsgnation and rec
'ression Of business, the fact that the toS
sipts of our railroads and canals are 80 -
ater than ever before, although the a-~ Ia