The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1874-01-08
In The Rnpids.

the Olmlnlshlng distance between them
selves and the yawning chasm which they
are approaching We shall endeaYer to
show that, 80 far as an honorable return
to a sound currency is concerned, the |
United States are in the rapids, and that |
it Is, perhaps, already question whether
1t Is IN their power TO get safely out of |
them. - -
10 demonstrate the immense chanSe for |
the verse which has taken place IN public |
opinion with regard to this vital question
oflthe currency, we need not go back to
the days of Washington and Hamilton
we need not quote Jackson or Webster.
We need only refer to the action of Con-
gress IN authorizing eight years ago a con-
traction of the currency, and TO the sentI-
ments expressed by Secretaries Chase and
McCulloch IN their official reports. In |
his first report after greenbacks had been
authorized and issued, Secretary Chase,
after estimating the resources and eKpen-
ditures of the then current fiscal year
(1662-3), found remaining q balance of
disbursements Of $276, ,9l2,518 to be-pro-.
vihed fer BE asks the question, How
Is this dsfeiency to be met Men hike
Senator Morton, who consider the present
dificultios of the country as the result OF
an accident" will do well to note the re-
ply: ,s,
The easiest mode, doubtless, would be
an issue of the required amount in United
State notes but such an issue, especially
in the absence of proper restrictions on
corporate circulation. would, IN the judg-
ment os the Secretary, be as injurious as
il would be easy. The addition of SO vast
a volume to the existing circulation would
convert currency, Of which the benefits
have thus far greatly ontweighed the IN
convenlences, into a positive calamity.
Its consequences would be imitation of
prices, increase of expenditures augmen-
tation of debt, and, ultimately, disastrous
defeat of the very purposes sought TO be
attained by il. &. L--l@
The event supposed by the late Chief
Justice has taken place The paper cur
rency, State and National, instead OF be-
ing inflated to 1874, 100000, Ghe-amonnt
deprecated by Mr.. Chase, has been in
creased to $775, 100000, not counting the
gold certificates. Every evil consequences
predicted by him has been realized to the
letter. We have imitation of prices, in
crease of expenditures, augmentation OF
indebtedness, and q management OF the
National Treasury with which even such
Governments as those of Turkey, Egypt,
and Spain have no reason to fear conparl-
son. What Is worse yet, we have Gov
eminent and people almost stone blind
to their real condition, Statesmen who de-
spise the teachings of science and the
warnings of history, speculation rampant,
industry languishing, and public and Prl-
vate morals Visibly decaying Both Mr..
Chase and Mr.. McCulloch, and even Mr..
Boutwell, himself, were IN favor OF a
prompt withdrawal of the paper money
by using the surplus re venues of the Gov
eminent for that purpose Just as soon as
the restoration of peace should put 1t IN
the power Of the Treasury to enter on the
work Mr., Chase, in the very report
from which we have quoted, considers 3
permanent greenback currency as out OF
the question ---..--i---- - a-
Whenever, therefore, the country shall
be restored to healthy normal condition,
and receipts exceed expenditures, the sup
ply of United States notes will be arres-
ted and must progressively diminish
Whatever demand may be made Tor their
redemption in coin must hasten this dl7
minution and there can be no rsissueJ
for reissue under The condition, necessar-
ly implies disbursement, and the revenue,
upon the supposition, supplies more than
IS needed for that purpose, There Is,
then, no mode in which currency IN Uni;
ted States notes can be permanently main
tanned, except by loans of them when not
required for disbursement, on deposits OF
com, or pledge Of securities, or IN some
other way This would convert. the
Treasury into Government bank, With
all its hozards and mischiefs Ifthese rea-'
soninss be sound little room can remain
for doubt that the evils certain te arise
from such . scheme of currancy # adopted
as a permanent system, greatly oYerbal-
ancs- the temporary } though not lnconsl-
derable, adVantages offered By 1T. .,,so i !
g In this same report of Decembsr 4, 1862,
Mr. Chase calls gold and silver 1.-The only
permanent basis, standard and Measure ofl
values recognized by, the Qonsptutlon,l
Such was the opinion Of Webster ana OF
all the sound lawyers Of the country. .oz
j Secretary McCulloeh, in his report OF
Dec. 8, 1865, ia even more pronouncsd IN
the expression Of his views Of the lndis7
pensibie necessity of contraction than his
distinguished predecessor. We can give
but glance at his opinions, Observing
that "a financial policy which would pre-
vent the creation of debts and stimulate
the payment of those already existing, so
far from being INJURIOUS, would be IN the
highest degree beneficial y he thus an
swers the objection that a reduction OF
the Iegal-tender circulation would embar-
rass the National banks: -.-. '--- .'1
1t is better that the banks should be
embarrassed now than bankrupted here
after. Their business and their customers
are now under their control. What will
be their condition in these respects if the
expansion con tinues and sweIls a year, or
two longer it is not difficult to predict:
While there has been no unhealthy ex-
pansion of credits ia the United States for
which the banks have not been largely
responsible, there has been none by which
they have not been ultimately the losers.
The recent panic has demonstrated the
correctness Of Mr.. MeCulloch's views.
There is ground for the opinion. taking
the banks Of the country as whole, that
the business of those institutions is now
under the control of their debtors, and
| that the unpleasant condition of things
apprehended by this clear-headed fnsncier
eight years ago is realized. Hnot SO, how
can the. following figures -explafned7 2
They give the loans and discounts Of the
banks their capital sndsarplus, individual
deposits, and legal. tender reserve M Oc-
tober for the series Of years from 1865 to
1878: i- -. - ..--.- -
/ - Loans Capital . Individual Legal