The Portland daily press., 1875-10-08


should turn out to be the real reformatory spirit of
the Democracy, then prudent and patriotic men
must feel in duty bound to turn around and look for
reformation somewhere else. But surely. even were
1 lifelong Democrat, that kind of reformatory
spirit should friend of the party as well as of
my country, feel bound to aid in putting down, to
prevent it from doing fatal mischief to BOTH for this
kind of reformatory spirit might at last reform Con-
gress into an insane asylum, the public service and
the machinery of the government into the elements
OF penitentiary, and the party into terror to all
honest and civilized men. But there is another ex-
cuse which at first sight appears more respectable
1t is said times hard business is languishng,
industries are depressed thousands of laborers are
without work, the poor are growing poorer the
country is in distress, something must be done to
afford relief The question is what that something
should be- As wise men we must first ascertain the
nature of the disease before determining upon
the method of cure. The Democratic platform of
Ohio affrms that the business depression was
caused by the contraction of the currency wrought
by the Republican party. Time and time again it
has been shown that this statement false on it's
very face, but the inationsts driven to the neces
sity OF throwing dust in the eyes of the people,
hbit such an able-bodied perseverance in mis-
statement that shall once more take the trouble to
give the figures OF authentic statement before
From that statement it appears that in 1873, when
the business crash occurred there were in the aggre
gate legal tenders and bank notes out than
before. Including the fractional currency, there
were 100000 than in 1872 over $29 900 900
more than in 1871, over $52,oOO,OOO more than in
1870, over 1000 more than in 1862 over $780,
900 900 than in 1885, $46 GOO more than
in 1867, and even if we count the compound interest
notes into the volume of circulating currency, we
find that we had in 1S73-the year of the crash-a
general aggregate of 900 more than in 1872 over
$2900O0O0 more than in 1871 over $57 900 900 more
than in 1870 over $5600O060 than in 1862 over
$2,0O00O0 more than in 1868, and yet just the year
last mentioned has generally been called the year of
unexampled prosperity; and when, during all these
years. the currency had reached its greatest volume
that collapse came which the nfationists will have
us believe was caused by contraction. There is the
record. There was expansion and no contraction,
and if there was no contraction, then contraction
cannot have caused the collapse in business That is
so simple demonstration that think Gov Allen
should understand it. And yet shall not be sur
prsed tomorrow to see inationst come before me
who, in the face of these facts and figures will affirm
that 1t was the contraction of the currency which did
all the mischief. What was, then, the cause of the
crisis OF 1873 the consequences of which are still upon
us? wonder why political economists Of the int1a-
tion school will never remember that similar disturb
ances occurred in Austria, and succession of fail
ures in England and similar things in all European
countries, France being notable exception. 1t SO
happens that in countries thus afflicted, especially
Germany, not only no contraction of currency had
taken place, but rather increase of its volume,
partly by influx of coin through the war indemni-
ties, partly by an increase of bank currency while
In France business appears prosperous although not
only heavy drafts were made on the national re-
sources tor the payment of the German war indem-
nity but steady contraction of paper currency has
been going on all the time for the last three years for
the purpose OF returning to specie payments, which
had been suspended during the German war, and
when you study the condition of things preceding
coiiapses in European countries, and in ours, you
Will lind that the agencies of kindred nature were at
work there and here No contraction CT the cur
rency whatever, rather an expansion of it, but in
dustral enterprise overlapping itself an extensive
production of things for which there is no immedi-
ate demand the sinking of capital in great UNDER
takings, which could yield no immediate return;
WINDY schemes stock gambling, wild speculation in
all possible directions and the creation OF imaginary
values, wasteful extravaganza in private expendi-
lures and high living morbid desire to get rich
without labor an excessive sraining Of the credit
system, until finally the bubble burst and the people
iound trat they were by no means rich they had
believed themselves. So it was there and so it was
here. France, on the other hand, had gone through
a disastrous and destructive war. She bad to pay
heavy sums Of money S. 900 600 900 as war indem-
nifty, and largely increased her debt She was ap-
parently prostrated What was to be done? Issue
more currency to restore prosperity our inflaton-
lists would have said; but no, financial policy de-
termined otherwise. Not believing that the coun-
try could recuperate by deceving tsetf they issued
no more irredeemable paper money. They reduced
the volume OF that which was in circulation. They
worked sturdily and steadily toward resumption, so
That franc not only pretends to be but is franc
and he who has one knows what he has. The people
set to work again, in frugal and laborous way
their industries, producing things for which there
was demand in the market. No capital as sunk
in useless enterprises wild speculation, no self
deception by creating fictitious values and thus you
find France to-day, in spite of her disasters econom-
icaly in more satisfactory condition than the coun-
tries around her. There is striking lesson before
u.s. No wise man will study ii without profit.
WILL IMITATION FURNISH Relief.
Now, it being concusively shown that the depres-
sion OF business was not brought by the contrac
tion OF the currency, but by causes which always
produce such results the question whether
imitation of currency will furnish the relief we need.
You say that though the banks in business centres are
full of money lying idle for want of employment, we
want more currency. I tell you business can have
as much as it likes without any further act of the
Government. According to law every one of you, or
any association you may form having the necessary
capital, can start bank of issue. general license
to that effect, through the Free Banking act, was
given by Congress last winter We heard so much
Of the West and South wanting more local circula-
ton and starving for greater bank facilities. Now
you can make yourselves comfortable. All legal
impediments removed. You can issue any
amount of currency, but behold the currency will not
initiate one cents worth; and you, worthy patriots,
who camor for more currency do not lift finger to
create more. Why? Here is a reason given by the
Cincinnati Enquirer: 'There is not currency enough
in circulation to buy the bonds to deposit with the
National Government and obtain national currency
in exchange This is genius; it ranks with the most
brilliant financial utterances Of Gov. Allen himself
But appeal to you-business men, laborers, farm
ers-who honestly desire to do right and look up to
your party leaders for instruction. If you want an
instance OF impudent insulting assurance with which
these men depend on your being too ignorant and
stupid to tell an obvious fact from obvious false
hood look at this. Here is the great representative
organ of initiation Democracy-the tabernacle of its
brains, the feeding-pipe of its wisdom. And now,
while everybody knows that millions and millions of
money are lying unemployed in the business centres
OF the country East and West looking for investment
sufficiently safe, while every body knows that in
every large city in the land there are dozens of cap
italists with abundant means which they might de-
vote to the creation of bank paper issue if it were
profitable; while everybody knows that there is
scarcely town of respectable size without men of
means fully able to form combination for that pur-
sose that organ, fighting the truth as its personal
enemy, cooy asks you to believe that there is not
currency enough in the country to permit the pur-
chase of bonds basis for further national bank
ISSUES. When read such things do not know
what to admire most the audacity of the inventors
or the pitable weakness of the invention. But the
absurdity Of that statement appears in its full glory
when we look at all the circumstances of the case
Not only did the business of the country not show
that it needed more when it refused to issue more in
spite of its opportunities but il proved that it had
more than 1t needed by surrendering large portion
of the bank currency in circulation On the 1st of
July Of this year new currency had been issued to
new aud old banks amounting to $7,7sOOOO, but
according to letter addressed to by the Controll-
er Of the Currency, 2357934 legal tender notes.
have been deposited with the Treasurer for the pur-
pose Of retiring national bank notes, under the act
lima xuh; ;Ia