The Cambria freeman. [volume] (Ebensburg, Pa.) 1867-1938, 1875-12-10
The Currency Question.


HARD TISEs-How THEY HAVE BEEN CAUSED
AND HOW THRY ARE CoNTINUED-THE BLUM
EERs OF TIE GOVERNMENT IN NOT MAKING
THE GRENNsACK a FULL LEGAL TENDER. IN
ERs, IN THE PRIVILEGES BESTOWED ON THE
NATIONAL BANKS, AND THE EX POST FACTo
ACT OF 1869 PROMISING To PAY THE PRIr CT
PALOFTHE BONDS IN GOLD, THE PRIME CAUs-
ES OF THE PANIC-THE ACT OF JANUARY. 1915,
PAYMENTS THE CLIMAX OF TIE UBIQUITOUS
LEGISLATION OF CoNGREsS on THE FINANCES
OF THE COUNTRY.
tFIRST PAPER.l
DEAR FREEMAN--Of all topics which at pres
ent claim the attention OF the public mind
there is not-one qaestion of more vital impor-
lance 10 the welfare OF the people, which
is calling forth more animated discussion than
the one set forth in the above caption. This is
the problem which will form the principal
issue of the Presidential contest of 1875 no
matter how much the bondholding Shy locks
bringing in side 1nsue i'm the revival of tho.
o,d kmow, Nothing bug6ear about Papal ag
lie schools, as they did in the recent election i'm
Ohio IN This eing The case, propose to give my
readers, hoping that they Will overlook my
many short cominss, and consider only the will
In the first place, let us inquire the cause
of this unprccedentediy overwhelming panic,
which is destroying ali the great industries of
the nation: which has caused this terrible stag
nation in business, and is deprivipg labor of It's
just rev ard aud causing actual want in a coun-
try of boundless mineral wealth, and embrac-
ing within its vast area hundreds of millions of
blessed with nearly all the products of the
North Temperate Zone, and possessing greater
and more diversified resources than any coun-
try on he face OF the globe.
The first great cause of this anomalous state
of monetary affairs is directly traceabe to the
bundering vicious legislation of Congress in
providing the pecuniary means for the prose-
cutlOn of the war of the late rebellion.
When the South set up the standard of revolt
ano seeded from he Union, the United States
greatest that had yet been known to the history
o: the comfy in time Of peace. Tine Treasury
the war with any reasonable hope Of success
required large amount of money. TO meet
! the issue of the so-caled Legal Tender Notes,
and the borrowing of money on bonds of the
back contained on its face these words This
note is a Legal Tender in payment of all debts,
and interest ON the punIio debt. Here, then, is
/ the proviso which in great measure demone-
the Government by refusing to accept its own
| paper in payment OF duties on imports vitiate ed
greenback to pay the interest on the public
DEBT in specie IT made a material distinction be-
tween its creditors and the soldiers who risked
their lives In defence of the Union.
We ali know what an amount of litigation the
dSced Men WHO had ioaned gold 't to Gs, BANKERS 9
aud speculators. prior to the passage of this
| fered grecnback. instead, and they invariably
/ had TO take them, Notwithstanding that in
the tes DO bad s &c S m
! gold and the bondholdsr received his interest
/ sc .l:1-iDn IN UOt0. we'll the importer, lf.he
had not the gold to pay the duty on his goods,
had to go to some money changer of Wall
| than $50 per cent. premium in greenback TO get
the necessary specie to pay the revenue coliec.
tor; Then theWalstreet broker lent his green
| backs to the government and got in return his
! gold bearing bonds. This demand for gold to
pay duties and to pay interest on the rapidly
accommodating nationa. debt, and the uncertain
| ty OF the war, appreciated green backs and made
! a rich harvest for the speculator in money,
But this is not the worst phase of the case. A
! large portion of The bonds were taken by for
! egn capitalists and to-day about two-thirds Of
! them are held by foreigners Now the interest
| on the bonds amounts to about SOS, 1000, fully
*65,oOO,0O0 of which goes to Europe. Now the
| entire annual products of the gold mines of the
country do not amount to more than SO, ,0O0, 600.
/ The entire products of the mines of California
! and the territories since 1S49, according to
Judge Kelley, amounted in round numbers to
| s1.5oO,Oo0Ooe. As the amount of gold owned by
residents of this country outside of the pro-
ducts of the mines for twcnty-six years, is not
very great item consider how much we have
! left of his commodity after having paid about I
/ sixty-five million dollars a year. gold interest
, to foreigners since the close of the war, and
you viii thcn have some idea of the amount of
The next great, premeditated biunder Of Con-
J National Banks. / will. in brief, explain this
business Five men have sU 600 each. They
return. they receive from the government t9O,-
J 600 in notes, for the redemption of which the
| government is responsible Bnt this is not ail
for in addtien they receive bonds to the amonn;
OF floO,ru with seni-annual gold bearing cou-
p0ns on az ba per cent Nell Nell m they ~ loan l., their M
per cent. interest, and this sum added to their
per cent gold interest at the premium which
gold now commands will make an exorbtant
/ interest. Then, when he bond is due, they re-
, turn their notes TO The treasury aud get their
| cording to the act of 1869, they to get il in
I space. Will dispose OF this act in future pa
per- and also the sherman biH of January Last,
as weil as a few other facts which wish TO
bring TO the notice of the readers Of your valul-
aoie paper, Yours, truly, j, NJ.