The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1875-09-02

treasury, and at least that much more
of these new notes, legal-tender notes,
and certificates of deposit:
The financial report, December l, 1866,
in the annual Cyclopedia states the out.
standing issues to he December |, 1866
United tates Notes"..". .,..,..,..sSS5,4 AL ,Si9
fractional 2o6202l9
National Banks OBSERVATION-DISCLOSURES, 29267l 7t3
State 465S3O6O
s753 266 81
An increase of more than $40 100000
in these four items over October Slst
1865.
Gold Certificates 1963s,5OO
Compound-interest Notes ..o"........., 47,3S759l
Being on these six items an in
crease Of slS6OOO,OOO over October |,
1866, and
Specie on Pacific 25O00 900
Specie on Atlantic tic...................." 1000 600
Specie on Nickel 3O0O000
s068,OO.OOO
The collator Of the report says;
/. Gold certificates were daily used by
millions for many purposes. Bills OF
exchange became currency, and an
enormous amount was atloat.
2. The compound interest notes were
largely used, and almost universally;
this, without authority, took the place Of
legal-tender in bank reserves.
3. In some instances the 7-90 notes
took the place of lawful money, and were
given and taken at current value. To
some extent coupon bonds were used as
currency, and RENTED to pay balances
due, especially values of trade Que
abroad
The law of 1866 forbade the contrac-
ton Of legal-tender notes (greenbacks)
more than ten millions in six months,
and after that period more tn four
millions in any one month. This policy
was kept up for two years.
1857 THE Secretary in his report
deprecates the redundancy of the cur
rency and to correct it had paid off notes
and short bills as well as redeemed Unit
ed States notes, as follows:
Temporary loans and certificates Of
Indebtedness Sl46 BOZ ,O96
Five per cent. Notes ...."."".......... l000OO0O
Compound interest NOtes"."......,...." l5149,l2O
Seven .thirties Notea.......""...""... SO0
| U. s. Notes and FractiOnal~.""".." 7l,6S8,S3i
sO,6,92S $50
All of which to some extent served the
purposes of currency, as he had stated,
in 1866 The Secretary said the United
States notes are being rapidly withdrawn
by authority of Congress. The policy Of
contracting the circulation of United
States notes adopted by Congi ess is be-
ing steadily pursued by the Secretary"
(186S. I'm 1868 the banks still held as
their reserves:
Compound interest Notes"".""""....". 8 4,6I3 100
Three per cent. nterest"""..""......"" 69,OSOOOO
s6S593, 100
General Grant, in his message Decem-
ber, 1873, says; In view of the actual
contraction of the currency which has
taken place, and the comparative con-
traction which is constantly going on, |
do not believe there's too much Of it now
for the dullest period Of the year. v
During the last four years the currency
has been contracted directly by the with
drawal of three per cent. certificates and
compound interest notes and 7-30 bonds
outstanding March 81, 1869, all of which
took the place of legal tenders in the
bank reserves, to the amount of sixty
three millions
The last report of the Bureau having
charge of the exchange and redemption
of bank-nOtes shows that since the adop-
ton of the act of 1S74snearly eighteen
millions had accumulated there for the
withdrawal of bank circulation, A COM
parison of the National Bank statements
of April and June shows a decrease oi
actual available circulation used as cur.
rency of more than five millions. This is
the inevitable result of the specie-re,
sumption act of last winter. Month by
month this process is gong on, and the
tortures of the screw, as they compressed
and mashed the quiyering flesh, were
not more cruel than those inflicted by
this persistent contraction on the bounC
and suffering and helpless industries ant
the energy and business of the country
And now, my friends, submit to vor
whether | have not made good my asser
ton that there has been constant, grind
ing contraction on the currency?
Just here u respectable looking, middl,
aged gentleman, who announced himsel
as MIR. Peck, of Ashtabula county, ros,
and said
"Mr. Pendleton. will you answer me
question:"
81 will l can" promptly responde,
Mr.. Pendeton.
Mr.. Peck" Is it not true that none,
has accumulated to an extraordinary
amount in New York, and can he haC
there on call at two per cent,W
Mr.. Pendleton-" can not state eithe
the exact amount which has aCcumula
ted, nor the exact rate OF interest which
is demanded for loans on call, but, TO
the sake of answer, | will admit the fact
supposed by your question to be true"
Who borrows on call? The merchant
The manufacturer The tradesman
The builder? The farmer? Not one 0
them. Never Not man who is en-
gagged in useful business. Not MAJ
whose occupation enriches society o.
benefits the community. They can not
They must know when their debts be
come due. They can not pay on notice
of \ day or an hour. The only people
who borrow on call are the stoCK-broK
ers aud stock gamblers, and they inves
in stocks which have always some mark
ct value, and put these stocks as collater
ais, and then they bull and bear anC
corner the market until faro and roulett,
and three-card monte become reputable
by comparison, Money too plenty Lee
the merchant take his note with a gOnt
mdorser at four months, and he will
either get no money or he will pay ter
per cent for il. Let the manufactures
take the notes given for his wares, anc
himself iudorse them, and he will set
how often he will he refused and how
Larul, he will he shaved. Let one ur