The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-08-13
mf1ationists Rushing on to a Nj
agara of Ruin.
SPEECH OF GENERAL MORGAN.
Rag Money "a Good Enough Morgan
Until After the Election"
BLOATED BONDHOLDERS, BEWARE
COLONEL GRosvENoR's SPEECH.

Vehlng MT W. VI. GrosVenor delivered a very clear
exhaustive practical and eloquent speech favor Of the
republican financial policy. In the course of bis re-
marks nc spoke follows
II is simple question. We have two kinds Of money,
coin and paper The paper deprecated and huctatcs
IN purchasing power a large class OF persons have
To the Onion 1882 the States $50 900 GOO
the counties $3.50 600 600 10 the cities and other muni
Cpacs 50 go 900 900 20 railroads and Sl2o 600 geo
Ca canal and s34 600 900 20 bridge. telegraph and
mining companies known in the New York market The
named amount to So Alb, 600, 600 Governor
Allen says that the bonded debt $4,000 600 900 1t
la Tdly exceed by 800 600 600 the figures above
given, and he is mistaken by more than 81 600 600 900
But We owe quite enough 10 bohdbodeTs TO nearly all
al them our bonds require that in payments shall
use coin The rest of the people nearly
all receive paper Thus the money OF the laborer
h poorer than the money of the lender
the money OF the ploughhoder inferior that of the
bondholder Great Injustice and disaster 10 industry
result The people justly demand one currency for
both classes That can he had in only two ways Re
fuse the bondholdcr his sound currency that rcpuda
ton GIVE the people currency equally sound, that is
restoration of the specie basis
PUNCTUATION CURRENCY.
The present situation not only should not but cannot
continue No man Of either party will deny that pro
ducers impoverished and labor parly zcd by the uc
tuaton OF tho currency But atorers out of work are
consuming their earnings Those earnings from the
nations capital, by which alone industry he
vved. Producers when stripped OF their earnings,
cannot add to that capital ana become every year
less able, II not less willing, to pay debts Mere
waiting does not stop that nuctuaton which is fatal
Let not deceive ourselves 1t is vital 10 understand
that this luctuatiOn in the purchasing power cur
Tcncy destroys the power OF production and the very
endurance Of the nation as a raging fever con
the vitality Of its victim Your young
men conscious that industry the mercy of specu-
la,ors and tempted by the great prizes gained traffic
both driven and drawn rom the and work.
shops TO swell the ranks OF the dealers, already
many for the producers. Tho commercial firms
ported by Dun X Co. $50 900 in 1870 and ESQ 600 in
1875 increase of fftythrcc per in five wears
while the population has increased twenty per cent
Capital also drawn by the chances OF the or dis
Outraged because industry has no solid footing di-
verted from production. The number Of private banks
only 2 OG2 in 1859 with $50 Ola 200 of capital in
with $500, 600 600 Of capital Debts
of cities towns and other municipalities IN
Creasc-thcy have than doubled within
five years They were $@2S. - $40 according TO
the census Of 1870 and 500 900 600 Con
slant changes price crush out the weaker dealers and
the concentration of enormous wealth and power goes
every day In 1872 there 4 060 failures 3 1873
In 1873 $3.50 in 1874, and 8 377 in only six months
Of this year For four years the number Will exceed
2aO00 and the liabilities 500 600 600 When business
is gambling, many Of the more honorable will retire
while tie strong aud interruptions gather wealth.
OF vast Deus IL " not me money lender who
needs specie restoration. At tho last meeting of
the National Board OF Trade shrcwd banker said
to me:-'let US not waste time on this question Of
currency. Capital bring about specie payments
whenever II plcases 10y making all loans and
on u gold basis lie did not sec bow much he had
fessed Capital docs not please. For when money has
no fixed purchasing power the rich have golden oppor
tunities and the poor at their mercy Labor has 10
pay the enormous cost OF constant iuctuaton The
lender protect hi msclf by charging high rates OF in
The dealer protect himself bv high prices
He takes risk in buying every stock 70 save himself
from loss through change the purchasing power Of
currency, he must charge more than natural profit
To cover that risk alone II charged
an enormous sum must be paid by consumers In ten
years since the there have been but four months
one IN thirty-in which the price of currency has
not varied one per cent only one out Of forty periods OF
days in which II has varied than two Nor
cent and only four such periods in which it has not
varied three per cent The longer stocks must
be held the greater the risk II one per cent would
1t in most wholesale trade three per cent would
not cover II IN much retail business Now AZ 1867
dealers paid taxes on sales OF $l 600 600 600 yearly
That actual sales were much greater then and have
since been vastly increased transactions IN Ic,dng
cities show Bnt II only per cent has been charged
for risk and sales of only 900 coo consumers
have paid since the g. 200 900 600 more than the
national debt, part OF the q nuctuanr cur
rcncy. The whole cost has been even larger
CURRENCY AND WAGES
Many fancy that much currency means high woscs
They forget that inflated prices hurt than inflated
wages help them. In times of uct uaon 'vaces Of an
things 60 up last and least and fall lrst and lowest
Money can combine to resist increase Of wages Labor
never combine % resist increase OF prices Eabo.
rate reports Of the Massachusetts Labor Bureau sup
ply data which prove that the cost of living 1902
fully sxty-one per cent higher than in 1860 The
returns and the reports Of tho Bureau of Stats
tics closely sustain this estimate Not ali of
ms increase was c,nsnJ bv ~ 80 "a" =,
large part doubtless Now the aver
age OF wages paid in 1850 70 all hands
ployed in manufactures s2sS % in gold but
In 1870 only 1917 80 in currency The nominal increase
in wages was 80 per cent-only half the increase in
prices. The great body Of workmcn received wages
which would buy only as much as $2 at the prices Of
1860 when they received $3.50 each The average loss
then, was S"o each some were, indeed, more fortu-
tnhate one hitb OF them. being those employed in
nine important industries gained 81 per cent in wages
Their net loss was small But the remaining four niths
gained only ~ per cent while 81 per was lost We
have 600 600 workers fer wages in this country Ger
tainly less than half Of them gained as much in wages
from 1860 1870 as the mon cuuIoycd in rnanur,c
lures II their average loss by excess Of advance in
prices over advance wages s55 each tho loss n
The labor o this country was s44O 600 600 yearly W.,
this was when manufactures prospercd and wages were
high.
workmen Of the very classes then best paid have
scarcity but uncertainty OF currency brings great loss
TO lor To either quantity Of currency if Of steady
value wages ne well as the prices would finally adjust
themselves But senator Schurz mentioned merchants
IN New York who had changed prices OF their goods six
times week 10 cover changes IN the value of
TenCy. Did wages change often Tell me
when sudden speculation forces up the price Of
h'rir cloth or coal, do you not pay more for
what you buy but get higher wages When
the demon Of disaster dcprcsscs prices it also
closes shops and mills and frightened capital flies
from industry Are tho many who ret no wages able
90 buy food for nothing? Even for those who have
work do not wages at such times fall than prices
This IS true Of wholesale priccshOw much more Of
cnes does not the seller charge the same prcc long
as he can But when IL he not quick to mark
up ms goods No wonder that tho Embassy from
Japan WHICH came 70 TINS country hoping TO open
trade mutually profitable TO MS and to So 600 600 Of
people VINO need our products found that shilling
wOuld Duy Tess here than ia any other civilized land
THE RELIEF DEBr
Our people are IN debt and need relief" we are told
who are our people, Those dcpositors who are to be
"relieyed' Of half their earnings arc quito numerous
There arc 20o 9yo men women and children cng,god
In all gainlul occupations IN Now England and there are
1l104S4 dcposltors IN savings banks alone There are
I,40l, DIS persons thus engaged In Now York and
639 Az depostors IN savings banks alone How many
there are IN national banks the thousands OF private
banks or The loan and trust companies no ono
knows But Ohio, Illinois, Missouri and Nebraska
have deposits averaging about $50 for each
iDhabltantj Michigan ana Minnesota about 500
Indiana Wisconsin and Kansas about SlT
and Iowa ga Ia these ten States aud the Territories
the number Of savings and private banks is 57I or
ono 70 S,2O0 inhabitants while I'D The eleven Eastern
states u Is TO GOO inhabitants Is &c not safe to
say that in an the Northern States majority % an
those who money have savings deposits and
crcditOrs2 But moreover, whether they have deposits
or not 900 600 of people who wages IN tl.
try creditors by about sl20 600 600 tor about half Of
their monthly wages is at any time due About 1000 OO0
more own farms AZ class they creditors. Though
they have been deprived OF much Of their just earnings
they are frugal and live more closely within then
means than almost any other class Governor Allen
says 'Onr ip"'"' ~"~ e. -~" Ohio statistics show