The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-05-08

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I desire TO show how the how Of geld
from the United States has effected the cur.
rsncy.
In 1855, there we're s90, 900, 900 Of gold in
the Bank Of England, and the rate Of inter
eat FELL to 4 rer ssut. BY the close o. 1858,
the amount Of gold in said bank had fallen
TO less than $50, 900 900, aud the rate Of in
terest rose to per cent. Immediately, gold
began to AOw towards England. In 1857,
the amount Of gold In the Bank Of England
fell to $S5 ,0O0, 900, and interest rose to 10
per senk--ths highest point ever reached.
Within very short time. over CSC, 0O0, 900
Of gold left New York. This thirty millions
Of gold had been the basis Of, at least, one
hU1dred and twenty millions Of State Bank
paper, besides many millions Of commercial
credits.
This sudden departure Of gold unsettled
ali financial gements-credits and
values were alike Neutrality-suspicious. was
Destroyed panic seized the people, and o
run on the banks commenced. "The regu-
tar discount Of bills by the banks had most
ly suspended, and the street rates for
money, even on unquestioned securities, rose
to three, -four, and even FIVE per cent month.
On ordinary securities Of merchants such
as promissory notes and bills Of exchange
money was rot to be had at any rate" The
Commercial Agency Of New York reported
the debts Of the country merchants to be t,co
ho4sdnd, ttro hundred and siohty-taco mil
lions Of dollars, and the debts of the whole
country TO be over tteclre thousand millions
Of dollars, a sum four times greater than
our present national debt. This vast sys-
tenn of credita, and utter financial rotten
ness, was the result Of a vicious system OF
paper money-"wild -cat"-based upon gold,
and its offspring, high rate Of interest.
With such load OF accumulated debt piled
upon the back Of productive industry, it
only resuiI ed the first brick TO fall to knock
down the whole row.
have said that the sudden departure Of
$s0,O00,O00 Of gold took away the basis
at least, Of tl2O, 100000 of bank paper. The
holders Of these notes we're sWindied. The
notes purported to be the representatives Of
money, when, in fact, they represented no
thing. They rested upon gold-the gold was
taken away, and the whole structure fell 10
the ground, involving the whole industry Of
the country in disaster and ruin. The same
thing was repeated in 1861, when the
amount of gold in the Bank of England fell
70 less than 500, 900, 900, and the rate Of in
terest rose to 8 per cent. 1t was not until
the adoption Of the greenback law, in 1862,
that relief ca ne. Immediately on the pass
age Of that Law, confidence was restored,
new life and energy were infused into every
department Of industry, and, although in
volved in gigantic war, the people started
upon period Of prosperity without par
allel in the history Of the nation. This high
degree Of prosperity was tho result of par
tial divorce Of the government from gold
money.
The governments necessities compelled
Congress to adopt the green' ack Law. Our
armies we're 10 the field, bat there vas no
money to feed and clotbe them; Congress
asked for mouey, and instantly the vault
doors Of the banks were closed the patri-
otto and Christian bankers hid away their
gold, and left our soldiers to SILVER and
starye and the industries Of the country
we're almost entirely suspended. Not only
had inactivity parslyzed the nation, bat q
feeling Of alarm, bordering on despair, was
rapidly taking hold Of the people; and the
more urgent became the necessity, the
tighter di9 hese patriotic and Christian
bankers dIAT the strings of iheir money
bags. 10 save the life Of the nation, Con
gress was compelled TO make a new money.
fro BIZ coSrISuKDl