The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1875-08-14

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proved by the President, and was in { Tec
Endorsed by the Republicans of Ohi--
State Convention.
Here, then, is the issue. Shall that Law
be carried out or repealed Let the peo
pie Of Ohio and the Republic consider tn,
effect OF its provisions and answer
FokTY-FOUR MILLIONS FRACTIONAL CUR
RENCY TO BE DEsTRoYRD-MORE CON
TRACTION-MORE TAXES.
On the 8th Of this month the Secretary
Of the Treasury announced that, by au.
thOrity and command of the law, he had
sold i've per cent. bonds, and with the
proceeds purchased over ten millions OF
silver coin to redeem and destroy frac-
tional currency. He has thus added tive
hundred thousand dollars to the annual
taxes of the people. He declares his pur.
pose, and is bound by the law, to go on
and increase the bonded debt in purchase
Of silver to redeem and destroy the re-
mainder of the fractional currency, which
will make an aggregate increase of the an
nual taxes Of over two millions and half
of dollars
What good is to be attained by this large
increase Of the debt when the people are
struggling under an almost uDsupportable
load Of disaster and taxation And when
owing to the paralysis Of business the
revenues of the General Government fall
short OF Its expenses, and bonds are being
sold to meet the deficiency Will it furn-
lsh the people silver fractional currency :
If it would, can we afford to pay two mil
lions and a half Of dollars annually for
the difference between one fractional cur
rency and the other-One having as much
purchasing power and convenience as the
other-the only difference being that one
chinkS IN the pocket and the other doesn't 4
But it will not furnish the people a sill
yer fractional currency. II will destroy
what they have and leave them none. The
banks and brokers will buy up the silver
for the premium. Two or three Der cent.
would be ample inducement for the pur-
chase and, as silver commands eight Der
cent. premium it is folly to expect it to re-
main in circulation.
What do you say then, fellow w-citizeLs,
to this provision Of the act-this addition
of two and half millions to our yearly
taXes-this holocaust Of our indispensable
fractional money-this contraction of the
currency, forty eight millions Of dollars
and the further shrinkage Of values and
destruction of business which must fol-
low.
BANK CURRENCY BEING CONTRACTED $2l3,-
600 A DAY.
But this is only the first step to specie
payment. Let us see what the next has
and will cost. This act provides for any
increase Of National Bank circulation
may be desired-and the withdrawal from
circulation Of greenbacks to the amount of
eighty per cent. Of such increase until the
volume Of greenbacks be reduced To three
hundred millions. This was the tub
Western or Southern Republicans as de-
nanded an increase Of the currency They
were either fooled by the provision, Or be-
trayed their convictions. Its effect In con
nection Sith other provisions Of Law has
been to largely contract the currency.
Under its operation MP T. April lst, three
and half millions Of new National Bank
notes were issued and nearly three millions
of greenbacks destroyed. But up 10 the
same date over seventeen millions Of hank
currency were surrendered and de stroyed
the net result being contraction of the
currency over sixteen millions Of dollars
in seventy-tive days after the passage of
the act-two hundred and thirteen thous-
and dollars day
ALL THE GREENBACKs TO BE DESTROYED
CoNTRACTION-MoRE TAXEs
The act next makes it the duty of the
Secretary Of the Treasury to provide gold
to redeem all the greenbacks outstanding
on the LIST Of July, 1879, and issue five
per cent bonds, If necessary, to buy the
gold. How much gold will be required
| answer, at least an amount equal to the
sum of greenbacks which shall remain out
standing on the day Of resumption. As
there is no probability Of much new issue
of National Bank notes in the face of the
provisions for specie payment, the Secre-
tary will have to provide from three hun
dred and fifty to three hundred and seven
ty-hve millions Of gold by January lst,
1879. How will he get it Not from
revenues, for they are already less than ex-
penses. The last Congress levied thirty
five millions Of dollars year Of additional
taxes, and it is believed that in the pres
ent ana prospective prOstration of indus
tries the revenues will still fall short. How
then will he get that vast sum Of gold :
Only by selling bonds for gold, from month
to month, as he has announced his purpose
to do. That is, the debt Is to be increased
By from three hundred and fifty to three
hundred and seventy five millions, and
abOR twenty millions Of dollars Of addi-
tional taxes levied each year to pay inter
est on the new bonds.
FIFTY MILLIONS OF SMALL BANK NOTES TO
BE DEsTRoYED-MORE CONTRACTION.
Another feature IN the scheme for specie
payment is embodied in the National Bank
Act Revised Statutes, section 5175), which
provides that after specie payment shall be
resumed, no notes Of less than five dollars
shall be issued by the Oanks-thus cutting
off fifty millions Of our present National
Bank circulation on the redemption Of
specie payment, and leave the people
neither greenbacks, fractional currency nor
small bank notes.
These are the steps to specie payment
Their cost in increased taxes will be over
twenty-five millions of dollars a year. But
that Is the smallest of the injuries the
movement is infiicting and will lntiict on
the business Of the country. Let us ex-
anime the other pernlciOus effects of the
law.
THE AGGREGATE CONTRACTION REQUIRED BY
THE LAW.
We had on the 30th OF April last four
hundred and twenty-five millions of legal
tenders and fractional currency, costing US
nothing, and about three hundred and
thirty millions of bank currency, costing
us about eighteen millions Of dollars a
year. The free money is to be absolutely
withdrawn and also the fifty millions Oi
bank notes under FIVE dollars, thus reduc-
ing the whole currency to two hundred
and eighty millions Of bank money.
We will be told that the greenba.k ks will
not be presented for redemption becaus,
when resumption occurs they will be worth
par in gold. But with the large demand
for gold throughout the world and the &C