The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1871-08-19

0OhSAS uOh9ac 20 Sef~' -
1 reduction Of the currency Of the whole
country, thirty per cent, and Of itself would
have caused serious check to business,
then most fourishing. But the cry was
raised ty capitalists that business was sun
healthy" and that the credit Of the gov
eminent and the real interest Of the people
required prompt return by contraction to
specie payment. Nobody Of standing in the
Republican party interested with, or for, the
masses seemed to know or care much about
the subject-nObody else was listened to
the immense contraction which had just o.
Cured as an effect of peace was wholly
ignored-and our currency was therefore
in obedience to the demand OF cap
italists, from one thousand millions to seven
hundred millions, where it now stands
Thus we have now eli so per capita OF
circulation against $40 per capita 3 years
ago-a reduction Of more than 56 dollars
on every hundred. And the contraction is
still going on. The Republican party re-
fuses to permit an increase Of the currency,
which, therefore, is now being in effect re-
duced q per cent, or seventeen and half
millions Of dollars, annually, by the growth
Of population.
GENERAL EFFECT OF CONTRACTION ON
VALUES.
1t is demonstrable that, other condi
tons being equal, reduction Of the volume
Of currency Of a country reduces the value
ot labor and all its products, as compared
with money and sil securities, or property,
producing fixed interest or rent in money,
rhe experience and obser vation Of every
one for SIX years past, have shown this.
The creditor class, who are generally non
producers, and own bonds, notes and other
fixed money incomes, therefore. have prof
tied enormously by The contraction Of the
currency, because Of the increased value of
the dollar as compared with labor and its
products generally and all which that class
has gained, and far more, the debtor class,
the producers and the masses generally have
lost.
For example: A borrowed Of B in 1865
81 900 and has to pay him out Of the pro-
duce Of bis farm which yields l 900 bushels
Of wheat year. At the price then, say
80 per bushel, it takes one years product
to paw the debt. In 1870 the debt comes
due, and wheat has fallen by contraction Of
the currency to, say 81 per bushel. 1t now
takes two years product to pay the debt.
The effect on A is precisely the same as
though the currency had been let alone and
The debt had been doubled. Injuries ike
10 kind but differing in degree have been
Inflicted on nearly all who have been in
debt in the past five years-especialy in the
the past two years, for though the greatest
reduction Of the currency was before 1868,
yet the consequent reduction Of prices and
cramp Of business have been slowly felt, and
the severest effects are probably yet to come.
Still, thus far, as a result Of contraction,
nearly everything has fallen very greatly
in value but money and securities calling
for rent, interest or principal in money
all debts have been largely increased-and
all business, whether of production or ex-
change, has suffered because done on fallen
market.
AGGREGATE OF LOSSES TO INDUSTRIAL
CLASSES BY 1T.
The aggregate of losses thus need
lessly occasioned already is enormous.
l can give you an approximate estimate
of it. The average amount of individ-
"sl debts constantly outstanding since
7, : IS nae been, ~ irsst, tIfee 5iihJls--
.sot cocYsing -utns psT45ie o. iensand-
fne sTeraEa ierreeia,.tI Of IaDlr, re
ducts, anu property generally, " reason
of contraction, is at least one quarter.
Therefore, it takes one-third more of
property, products, or labor, to pay that
three billions of aggregate debt, than
if the currency had not been contract
ed. Hence the loss to the debtor class
by increase of the principal Of their
debts, through currency contraction, is
one billion of dollars.
But this is not all the hardships the
debtor class has suffered by contraction.
The interest on the debts has also been
increased in equal ratio. Thus the sv-
erage of interest now paid is probably
nine per cent. which is equal on the
three billions Of debt to 100000, OOO
annually. In 1865 it was about the
same. But nine per cent. is az twelve
per cent. would have been before cur
rency reduction, because everything
with which interest can be paid has fall
en- on an average One-quarter. Hence,
the industry of the country now bears
an increased annual burden of one third
of $27O, 100000, equal to $50, 900 900,
by reason of currency contraction, in
addition to the increase of the principal
of their debts, one billion Of dollars
These are the weights that have
pulled industry down since l866-com-
blning with extravaganza of public ex
pendItures, and subsidies to banks,
bOndholders and manufacturers speci-
ally favored by the tariff, to arrest en-
terprlse, depress the energies of pro-
ducers, and throw out Of work, or on
half work, hundreds of thousands of
tollers who rely on each weeks labor
for that weeks living.
HOW 1T RoBs PRODUCERS OF THEIR EARN
INGs.
Lei ne still further illustrate the Unjust
ice of this immense rate of interest to labor
and to other property. All the property
in the nation, including gold and silver. in
1869, as stated by Commissioner Wells,
10 bis report for that year page 1O) at less
than twenty-four billions Add evidences
Of Indebtedness bearing interest, including
all kinds Of notes and bonds, public and
private, individual Or corporate, say seven
billions. Total, thirty-one billions Now
all the net increase of wealth comes from
labor operating with some part Of this thirty
one billions of capital and credit; and
whatever the 1aborers Of the country get to
better their condition is out of this net in
crease. Commissioner Wells states the
aggregate net increase Of wealth for 1850