The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1869-08-24
Extract from Gen. Carey7s Speech
ut Cincinnati August Ii, 1869.
ID EIEsT AND AXE s.
Redeem The5-20 Eondsla Green
backs,

Wien money IS aDunuaDt ana cheap all
productive industries are prospered
Dear money and cheap labor is ccntraliz-
alton, while cheap money and well-paid
labor is diffusion the former is the auto
cratic principle, the latter the Democrat
ic.
Again, our debt has been contracted
on paper-moncy basis, and If ever
paid, it must be in the same manner
With gold as the representative and
standard of our values, it would be i'm
possible for the people to pay their taxes
Let us loolat facts. The taxes upon the
people of the United States for all pur
poses, National, State and local in the
year 1868, were eight hundred millions of
dollars
The National taxes were collected
through the agency Of tariff and inter
nal revenue laws BY means of the tariff
-alone, one, hundred and eighty millions
Of dollars were collected on four hundred
millions of goods. On every pound of
tea and coffee and every bushel of salt
imported the consumer pays his proper
ton.
The taxes of great Britain amounted
to three hundred and forty millions, and
Of France three hundred millions of dol
lars, while ours reached eight hundred
millions, or reduced to gold standard,
an amount equal to both England and
France. The wealth of England and
France is four times as great as ours,
while their population is twice as
large.
England pays interest on larger
debt than ours, and France maintains
a standing army Of q million of men :;
both Of these Governments have their
corrupt courts and royal dependents,
yet with one-f fourth of their wealth and
one-half their population we pay larger
lcvies in the form Of taxation than both
combined!
The money circulation Of France is
about one thousand millions, consisting of
about seven hundred and fifty millions,
in coin, and two hundred and fifty mil
lions in paper The circulation Of Eng
land is not far from eight hundred mil
lions, including coin and paper. The
volume Of legal tender money available
for circulation, and National bank notes,
in this country, do not exceed six hun
dred millions. Gold and silver should
not be considered, as they are only arti-
cles ofmerchandise, and perform none Of
the functions of money among our peo.
pie. No intelligent man can doubt, that
with our widely extended territory, our
vast projected and uncompleted enter
prises, our infinitely diversified industries
and employmerts our varied productions
our multiplied exchanges, we require
more money than both England and
France. These countries, compared
with ours, are insignificant i'll extent
their resources are we'll developed, their
railroads, workshops and dwellings are
constructed, their exchanges easily eff
fected. What picture this presents Of
our financial condition! Is it surprising
that paralysis prevails in every branch
of legitimate business and enterprise.
Is it a marvel that money kings and
bondholders are rioting in wealth and
and luxury, while farmers, mechanics,
artisans, manufacturers, merchants and
laborers, can, with great difficulty,
pay taxes and keep soul and body to
gether.
| What remedy is proposed for these
evils, and will it be effective when appli-
ed? The remedy is simple, and its eff
cheney will not be doubted except by
bondholders, National bankers, uscrers,
and that class ofpoliticians who yield to
capital as the omnipotent power in State
affairs.
1t is proposed that the SIC millions OF
five-twenty bonds now redeemable at the
pleasure fthe Government be paid of
in legal tender money, and that stimuli
taneously the National bank notes be
called in and cancelled. This measure
would at once relieve the people of tax
alton to the extent of thirty millions an
nually in gold, and would in small de-
gree furnish a currency for the want of
which every branch of productive indus
try is languishing. We say in a small
degree, for when this has been done we
shall have 200 millions less money than
I'VE had when the process. Of contraction
was inaugurated in the interest of bond
holders, and the whole South, and the
vast region between us and the Pacific
Ocean have been added to our area of
circulation: While we have been
reducing the volume of legal-tender, we
have been extending our area three-fold,
and multiplying enterprises requir-
ing means of exchange and pay
ment.
The payment Of the first installment of
bonds and the substitution of greenbacks
for National Bank notes will only afford
partial relief There will still be a de-
ficiency in the volume of currency, and
money will still command higher rates of
interest than legitimate business can af-
ford to pay. When other bonds are re-
deemable from year to year, pay them in
like manner The Government being in
debt, and a borrower, should take all
surplus money at three per cent, giving
it's bonds therefor redeemable at any time
on demand BY this system Congress
would perform an imperative constitu-
tional duty hitherto neglected-"regulate
the vazue Of money" A plethora of
money, depreciation of currency will be
impossible when it is legal-tender for
the payment of all debts, public and pri-
vate, and when the Government would
borrow all surplus at three per cent in
terest.
We fix this rate Of interest at three per
cent. because that is the annual rate of
increase of National wealth by product
ion, and has been for more than seventy
years. Whenever. money. commands a
greater interest than productive industry
earns, labor is robbed of its reward, and
inequalities in wealth are increased.
The only possible way to secure fair
and just distribution Of the joint earn
ings of capital and labor is to keep the
rate Of interest on money at par with the
earnings oflabor. This is the only safe
criterion by which to determine the sufli
cheney or insu1liciercy in the volume of
money. Congress can regulate its val
ue' only by increasing or decreasing its