The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1870-06-22
boliti'nl.
CURRENCY BILL,
SPEECH OF
HON. GEO. w. MORGAN.
IN THE
HOUSE OF REPRESENTATIVES,
JUNE I, 1870.
on THE
4onHeol.
Rill TO Increase Banking Facilities
and for other Purposes.

Ma. MoRGAN. Mr., Speaker, in looking over this
seats, from the time that the discussion began Ilp
on tins important subject to the present moment
the conclusion has been forced upon my mind that
IN the Judgment of this House the bill reported
by my colleague, Mr. Garfield, the learned Chair
man oi the Committee on banking and currency
, - uead,,gorn: Dd not know the sincerity of my
honorable friend, the Chairman Of the Commit
tee, should have supposed that the bill had been
defeat; for had that been the study of the honor
the desired end
The united opposition of the Eastern States has
Deeh secured by taking away from their monOpo-
lists llllons ON millions Of circulation to which
they not entitled; and the almost united oppc-
sition Of the West and South are insured by CON
racing the currency TO the extent of S9,OOOOOO,
although the committee was instructed by reso-
luton OF this House to report bill xpanding the
currency S5OOOO,OOO- do not intend to devote
many words to the consideration of this BILL from
the fact that believe it to be practically dead and
that there Will be but few mourners at its tomb,
Notwithstanding the learned and ingenious argu-
ment of my colleague [AIr. Garfield to which
listened with great interest.
THE CURRENCY At THIS TINE
Before proceeding, however to consider the
question under debate wish TO call the attention
Of the House TO the condition of the currency of
the country at this time, and its distribution
among the States. The six New England States
with population about equal to that of Pennsyl-
yanla, have SlO4, 4,509,SS9 of currency while Penn
fyiHahi1 ytI mas only S5sPOOOO10' put pays larger
internal revenue tax than all New England tOgeth-
er. The twelve Western States, West Virginia.
Ohio, Indiana, Illinois, Michigan, Wisconsin, Iowa.
Tennessee, have only SGO,G63,057 Thus the New
England States have an excess Of bank circulation
over those States Of nearly tortyiour million dol
lars. The eleven States of Louisiana, Mississippi
Florida, Geargia, North Carolina, South Carolina
Alabama, Texas, Virginia, and Massachusetts
have S63 OH, ,264, of which amount Massachusetts
has over S57,OOOOOO.
Thus, while Ohio has million and a half more
inhabitants than Massachusetts, Massachusetts
has nearly thirty nine million dollars more of bank
currency than Ohio. Yet Ohio pays nearly seven
Massachusetts,. Illinois has within small frac-
tiOn two millions more Inhabitants than Connect-
lieut.; but Connecticut has 81, 100000 more bank
currency than Illinois, yet Illinois pays SlO7OOOOO
more internal revenue tax than Connecticut
Missouri has about six times the population of
Rhode island but Rhode Island has about three
times more bank currency than Missouri yet
Rhode Island. Indiana has one million and
quarter more population than Connecticut but
Connecticut has nearly six million and a half
times more bank currency than Indiana; yet In
diana pays SI,5OOOOO more internal revenue tax
than Connecticut. Massachusetts has thirty-eight
dollars, Connecticut thirty-two dollars, and Rhode
island htty-eight dollars for each person in the
State, while Louisiana has one dollar, Georgia one
dollar, Alabama twenty-four cents and Misslssip-
pl hVe cents per headl And vet il is cotton which
Is to restore the balance of trade in our favor.
why Is 1t, Mr.. Speaker, that so large number
of the seats in this House have been empty dur
ing this entire debate? There is general paraly-
sis OF trade throughout the Western and Southern
States, and cry for relief comes to US from every
quarter of the country. But regardless of the
prOstration Of business. serene in the knowledge
that banker and bOndhoder are fattening the
nistortunes Of the people, the Representatives of
the monopOlists withdraw from their seats and re-
fuse to aid, even by their presence, in giving that
relief which the people so earnestly demand.
Sir, what is the cause of this distress which per-
yades the land? Why this paralysis of trade?-
Why is it tpetitiOns for relief have poured in
upon us by hundreds? 1t is sir because the Leg
lslatlon OF Congress, for years past and Is now
holder.
In 1866, within one year after the close of the
war, at the very moment there was demand for
currency for the ten States of the South once
more restored to commercial relations with US
at that very moment Congress and the Admins
tratlon began 70 reduce the volume of currency.
and all this sir has been done in the interest OF
hank and bondholder, and to tho-iItJaiEys of the
people. Whyg Because scarcity Of currency
makes high interest and high rents, with low wa
ges for the warkman and low prices for the far
mcr. Nor does the evil stop there. The merchant
depends ON the custom of the farmer and the me-
chane and II the price OF the products OF the one
and the labor of the other are reduced their pur-
chaSes must be reduced also; the family does with
less the goods OF the merchant lie upon the
shelves unsOught; notes become due without
money to meet them, and distress follows.
The table hold in my hand illustrates the eff
feet of this contraction. addressed note to the
Commissioner of Agriculture for certain nforma-
uOn. In reply he furnished this table, showing
the average price per bushel of wheat in the State
of New York, Ohio, Illinois and the United States
generally during the year 1866, 1867, lsGs and 1863
/ find that in the State of New York in 1866 wheat
worth g 81 per bushel in 1867 81 "a in 1865,
3 Os and in 1863 81 81. In Ohio in lsG6 buGshe
of wheat was worth 8 IS; in 1867 81 SO; in lsGs
81 Go and in 1862 81 Or. In Illinois bushel of
wheat in 1866 worth 81 SO: in 1867, 81 81; in
1865, 81 2O and in 1869, seventysiX cents So that
one bushel of wheat iii New York in 1866 paid 81
81 while in 1869 it only paid 81 AZ of taxes That
in Ohio, in lSCG, one bushe of wheat paid g 81 of
taxes, and in 1869 only 81 O3 of taxes. That in Ill
inois, in 1885, bushel of wheat paid 81 62, and
in lsG9 only seyenty-six cents of taxes. Hence,
that in consequence of the contraction which has
gone during the last four years the farmers of
New York have lost on their wheat 81 30 bushel,
the formers of Ohio 81 A. bushel the farmers of
Illinois 81 II a bushel And, AS the farmer pays
ms taxes "lth ms MAe''t ana olheT pfoducts OF the
soil through the agency of his labor, and as it re-
quired more than twice the amount of wheat to
pay his taxes in 1863 that was required in 1856 it
follows that in the interval OF time between those
years taxes upon the farmers have been practical
Now. sir, there is a fact connected with this
question Of the currency which appears to be en-
trely overlooked, ltFs as to the relation between
the volume of taxes and the volume OF currency.
And to the investigation of this subject l have
| given labor and study.
TAXES CURRENCY.
In lsGO the total taxes paid by the people of the
United States for Feder,State and local purposes,
amounted to Sl5O2OOOOO; the total currency of the
| cyuntry at that time was S457, 10000: and the
proportion of taxes to currency was thirty-three
per cent, while in 1863 the proportion of taxes to
| currency was one hundred per cent In that year
the aggregate taxes amounted to SG9u,9OOOOO,while
| the currency was only SGs9,OOOOOO; that if all
| the taNes-Local, State and Federal-had been
paid upon one day there would not have been cur
| rency enough in the country To have paid them;
| and 1t may be safely calculated that at all times
there is at least 500 OOOOOO withdrawn from circu-
latiOn and locked up in the hands of the tax
| gatherer: The taxes OF the country IN 1863 eX-
| ceeded the currency of the country by Sl,9OOOOO
| while in 1860 the amount of currency exceeded
| the amount of taxes by $500. .SOO,OOO
maintain sir, that the only true limit to the
| volume of currency is the demand, the necessity
/ for its use.
| In 1860 One-third of the currency Of the country
| paid all the taxes of the country; while to-day
the entire currency of the country is not sufi-
cient to pay the taxes of the country if they
all collected on one day. l hold that if l stood
without any other argument than this it is eoncu-
| sive ar to the necessity of greater volume of
| currency for the business wants of the people
| You Eastern gentlemen, who represent the great
| cities of New York and Boston and Philadelphia,
| do not seem to understand how, when there is a
glut of money in your cities, it can be that in
Ohio, Indiana, Illinois, or any other Western or
Southern State, there is scarcity of money, and
the people are paying from fifteen to twenty per
cent. per annum for its use.
/ met but day or two since u citizen of Indiana,
who believe Is known to the entire delegation of
that State this floor, and he told that one OF
the banks of that State paid him ten per cent
his deposits. Now if bank can pay ten per cent.
on its deposits, how much do yOu suppose il char