The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1871-08-26

The speech of Gen. Thomas Ewing. ~ the
Ohio Democratic State Convention On the 11th
inst, is attracting considerable attsntion, not
only On account of its mastery arra,gnmsnt Of
the financial policy of the republican party, but
Of its endorsement of the currency views Of the
nAtional Labor Union party We give some ex-
TRACTS, showing the general "dr,ft" of this 70
narkable speech.
After showing how, during the war, we had
currency amounting to $1,5OO,OOO,0 600, confined
10 the northern states. and how since the close
OF the war this currency, now expanded over all
the states, has been contracted to 800, OOOOOO,
or full one half. Gen. Ewing proceeded to show
the
GENERAL EFFECT OF CONTRACTION ON VALUES
It is demonstrated that, other conditions be-
ing equal reduction of the volume of currency
OF country reduces the value of labor and all
its products, as compared with money and all SO.
curities, or property. producing liked interest
or rent in money. The experience aud ob.erva-
ton of every one for the six years past, have
shown this The creditor class, who are gene.
rally non.producers, and own bonds, notes and
other fixed money incomes, therefore, have prof
tied enormously by the contraction Of the cur.
rency because of the increased value of the dol
lar as compared with labor and it's 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 $4,000
and has to pay him out of the produce of his
farm which yields 900 bushels of wheat year.
At the price then, say 80 per bushel, it takes
one years product to pay the debt In 1870 the
debt comes due, and wheat has fallen by con-
traction Of the currency to, say 81 per bushsl. |
bob S,,ok en- In dol
The effect on is precisely the same Ms though
the currency had been let alone and the debt
bad been doubled. Injuries like in kind but
differing in degree have been inflicted on nearly
all who have been in debt in the past five years
especially in the past two years, for though the
greatest reduction of the currency was before
1865, yet the consequent reduction of prices and
cramp of business have been slowly felt, and the
eeverest effects are probably yet to come. STILL
thus far, result Of contraction nearly every.
thing has fallen very greatly in value but money
and securities calling for rent interest princi
pal in money-all debts have bsen largely in.
creased-and all business, whether of produc.
ton or e4hauge, has suffered because done ON
fallen market.
AGGREGATE OF LOSSES TO INDUSTRIAL CLASS.
Es BY 1T.
The aggregate of losses thus needlessly occa.
stoned is enormous. can give you an approx.
mate estimate of it. The average amount of in.
dividual debts constantly outstanding since 1865
has been, at least, three billions-nes counting
sums payable on demand The average depre.
citation OF labor, products, and property gene.
rally, by reason of contraction, is at least one.
quarter Therefore, it takes 0nc-t|1i,d more of
property, products, or labor, to pay that three |
billions OF aggregate debt than il the currency
had not been contracted. Hence the loss to the |
debtor class by the increase Of the principal of
hpiP ah no !
billion of dollars. a
But this is not all the hardsLips the debtor
GLASS has suffered by contraction. The interest
ON debts has also beel Increased in equal ratio |
Thus the average of interest now paid is prob. !
ably nine per cent, which is equal on the three
billions of debt to $27O0OO00O, annually. In
1865 it was about the same. But nine per cent.
Is as twelve per cent. would have been before |
currency reduction, because everything with |
which interest can be paid has fallen on an Az
arage one.quarter. Hence, the industry of the |
country now bears an increased annual burden |
OF one-third of $270,OO0,O0O, equal to 100000.
OVO, by reason OF currency contraction, in add. |
zion to the increase of the principal OF their |
debts, one billion Of dollars.
These are the weights that have pulled indus.
try down since 1SGG-combining with extraya.
gance of public expenditures, and subsidies to
banks bondholderS and manufacturers specially |
favored by the tariff to arrest enterprises, de- |
press the energies of producers, and throw out |
OF work, or on half work, hundreds of thousands !
OF toilers who rely each weeks labor for that
weeks living.
RELIEF WILL. COME, BUT NOT FROM THE RE- |
PUBLICAN PARTY.
From the evils these measures are inAictiug
the people must have rellef-and by political &C.
tion-relief from $17,S0O,OOO annually squsn.
dsred as subsidy to the national banks-relief
from the greater part of one hundred and forty.
Eve millions Of interest and exemptions annual
ly borne on the $50 bonGs-relief from q meagre
and ill regulated currency, which steals for the
idlers all the tolers earn, and paralyses the in.
dustry it is created to serve. To what party
will you look for this relief?
Not to the republican party This financial
system is theirs, and they are proud of it Mr..
Sherman boosted in his Columbus speech that
''the financial condition of the country is the
work of the republican party" The stockhold.
ers of 100 national banks the bondholders;
the men whose money and secur ties have
doubled through the currency contraction; the
stockholders of giant corporations, enriched and
msgnified by tariff bounties and land grants
these are. generally, leaders Of the party, and.
like Jay Cooke, regard these measures, debt and
all, as Irrational blessings" This ia natural.
Why should they be disconnected and seek
change of finance measuresP They arc now
holding high festival. doth the wild ASS
pray when he hath grass: Or loweth the OK
ever his fodder ?"
BAT how few are these men com pared with the
great body OF patriotic citizens who support the
republican party Nnety.nine hundredths of
the people are interested exactly alike on all
THESE questions-almost all the men in actual
3usiness-aimost every man except those who