The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1874-06-24
Rcsister Allison Explains the Finan'
c3af Situation,

WAsylEGFoN H. c.. June ia
short tina since, Judge john Allison
Register 81 the Treasury, received q
letter from e prominent gentleman
in Bcayef, Pa, asking sonie ques
ton Respecting the probable eject 81
fixing a day for specie resumption
This correspondence led to a4eloseI
Investigation Of the sub5ecb from
the Official records Of the Registers
Office. From this source, Judge ALI
son derived some very remarkably
facts and, in addition to its commu-
nication in a brief form in a. letter to
his friend, he has also prepared an
informal statcment far the, infosma-
ton of the President, to whom it had
been previously eommaaieatedialAs
form of 4 conversation.
Judge Allison, IN bfef, says that
inconsidering the propriety Of fixing
a time for the resumption Of specie
payments by the government and
banks, it is weH 10 remember some
important facts The wastes occa-
stoned by the latswsr and the. con-
slant and enormous drains upon the
wealth and resources Of the people,
have been too severeta strain, and
the real cause ofthe depression now
existing is not so much from the dc
rangement of Industries, as from the
actual pecuiary exhaustion of the
people. Ia 1886, themaximum of our
nationals debt was reached at twenty
seven hundred millions. To date,
eight years, the Government has paid
five hundred and forty millions OF
that principal and an annual interest
of about n hundred and twenty
FIVE millions, in addition to the cur
rent expenses of the government
The Register says, when we add TO
this, the yearly interest paid by the
country at large upon State, county,
city and railroad bonds, we can form
some idea of the appalling demands
made upon the industry and earnings
of the people No nation in history,
Immediately after an exhausting war,
had been SO buoyed up in its bust
ness, so simulated in its enterprises
as this, since the close ofthe war up
to the collapse Of last fall. These
results, the Register SAYS, may be-
attributed to the issuing of national
bonds and greenbaek currency and
the adoption Of our national banking
system, which, together with the ex-l
tensive railroad enterprises carried
on by the foreign capftal,infated our
dnancialsystem and produced fcti-
tious values Of all kinds. This inIa-
ted condition can only be continued
additional loans from abroad.
The issue Of bonds, greenbacks, and
.lational bank currency is upward Of
,hree thousand millions. This stu.
oendous structure of credit has boi-
us up Since the war BY inHating
so that many sensible persons
nave been defuded INTO The belief
bat the country was actually enrich
d by the war. A comparison of the
lational debts ofthe war of 1912 and
.S6l-65, PRESENTS a remarkable; con
rast. In the last eight Years we
ave paidinine times as much as was
aid By the Government from 1851,
1885, when that war debt was
inally paid Off. F" The Register con-
by saying, that It is evident
hat the ability ofsthe country hast
zen taxed beyond what the people
an endure Under This state Of az
airs, it becomes A serious question, I.
whether speedy resumption OF specie I.
ayments would not cause wide.1
ruin. The designation of a
in the near future would cause
harm and stop enterprises lessen the I
demand for labor, compefthe eanret
alton Of debts by process of law,
TO forced sales vast aquantities
If real estate, and thus cause a great
'hrinkage OF values and mucH distress
among the people. Bonds for gfeen
packs and greenBacks for, bonds,
night become a~1popular2 cry with
many who now deem such a scheme
! species of repudiation. He says I'LL
seems TO him that all this may be
by permitting the Businessa
the country To- adjust itself With
,ut either further imitation or eompuE9
'ory resumption. .dPime is'the essen
jail element iii neffecting d reeppers-al
ion from che present ffiafcial eylf
iausTion.a E996 Sgiyad i9anad9 Wo.Gt
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