New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-09-11

manufacturers anu U"dlcfs IN tnt
ersl state of the country is healthy. Land was
never 81 high or salabc Us now the traffic upon
English railroads never so large, and notwith-
standing a reduction Of taxes the revenues Il
the Government are steadily increasing; municipal
indebtedness is comparatively known; there is no
general complaint of taxation I'D the spirit of the
people is strong and buoyant There have beon
heavy failures none or very few, however. as far as
can learn IT firms that have not engaged IN opera
tons outside of their regular business and fearful
losses have been sustained 10y reason Of rudicious
Investments; bur the nation is as q whole IN a sat-
isfaotory financial state. Now need not ask if the
reverse of this is not tue Of the United States. The
question. then, TO be considered Is to what i'll add-
ton e. production is the prostraiion of a coun
try abundant in resources, with population so
intelligent ard vigorous ours. attThu;ahleS Is il
not first. 10 our civil war; Secondly, to our re-
dundant and vicious currency Thirdly, 10 injud-
cous taxation' Let Us dwell for moment upon
the first two-leayng The third for consideration at
some future day.
First: Tie Udy.-EvOrybOdy knows tina wars are
terribly destructive of property as well a. life and
that civil wars are especially So The war between
the Government and the Southern States was one Of
the most exhausting that has ever been waged. All
other CIVIL wars have boon childs play in compar-
son with it, Nothing Ike it, IN fact, has oc-
Cured. During It's existence We failed tor COmpTe-
bend its greatness its desruciyeneSs. For nearly
fOIr years some TWO millions of men. of the same
nation. were cngae d in the ferccst and most eX-
pensive struggle that the world has ever witnessed
"A struggls that was only ended With the utter
prostraton Of the vanquished section. During the
continuance of this war; everything necessary for
its prosecution was in demand The manufacture
OF war implements. the building of war and trans
portation ships the production of food for the sup
port of the armies. necessarily involved advance
in prices and C3y0 q stimulus to industry which
seemed to the cnrs ry observer like national pros
perity. Never We're wages 80 high never were for
tunes so suddenly made never was there such pro-
ducton Of materials that perish in the using"
never were a people intoxicated by deceptive ap
peaTances. That tn prosperity was dcluSyo IL now
apparent. bus II did not become apparent until after
the crisis of 1873. for during the tie Govern
mcnt to meet It's enormous expenditures, not only ls-
sued vast amount If its ntercstbeaTng Obligations
but il made forced loans in the form Of promissory
notes. and declared these notes to be lawful money.
TIE loss BY BID CUEEE>CY.
Secondly: 4 Redmddat md Iictoas Cmvcpcy.-Re-
dundant. because when the war terminated there
was no legitimate demand for so large circulating
medium: vicious, because It substituted legal Int
artificial measure Of value for TIE irle measure,
and silver the standarl-a law which has never yet
been violated without commercial disturbance. nor.
ii the violation long continued. without national
disaster
That the LEGAL tender notes and the notes Of the
National banks made the circulating medium re-
dundAnt prov d by the artificial prices they created
ami sustained iy their great depreciation and by the
uses that have been made of them Their yiciouSness
Is made manifest by the facts that they and arc
irredeeInsbe; that they have famhar2ed the people
with dishouCrcd obligations which they have been
and compelled 10 treat money; that they We're
and continue to be cons anty 1uctuatiug III value,
making business gambling. and business men gam
Llers. That an irsedeemable currency is tax upon
industry aud fr4itful source of decentralization
requires no argument to establish If the truth
could be arrived at it would he discovered that do
precated paper money has been heavier burden
upon the industrial and producing classes Of TIE
United States than all the taxes direct and iidl-
rect to which they have been subj and that 1t
has done moro II dsblse ald corrupt the public
sentiment than all other causes combined. The
substitu ion of nconyertbe nOt- for coin IL All old
game of distress II m0naTches. IL Is no new expert
ment. Ii has been frequently resorted TO by bank
rant nations, and always with the same disastrous
results. II was resortcd 10 by the United States,
under tbs pressure OF what seemed - DO great
emergency. That it should be adhered Il so long
after the supposed emergency had ceased aud still
have intelligent and honest advocates is difficult Of
explanation in view Of the fact that Over-iSsucs of
paIer money have been the of every financial
crisis every dcep-rooted financial disorder. that HIS
occurred the United States. Let rs glance at our
previous experiences.
IMITATION IN THE PAST.
The bank note circulation in the United States
was increased from SOL coo 900 ia rouyd NUN e-si
in 1880 10 Slf9. 100000 in 1871; bank deposits
from S55.0O000O to $4,000. 900; loans from
$500. 900, 900 to $50OOOO,O0O. Then came tho
crash which any of us still remember. AID by
which the country was Frustrated for years.
Again, the bank note circulation. which in 1S43
was SOS 900, 900 was ruA up to 12l4 900 900 in
1857, hank deposits within the same period from
$4,000 900 70 $3.50. 600, 600 loans from $3.50
900 OOc to SG5O,OOO,0 900. Then the second great
crisis occurred which although sharper and for the
tine It lasted destructive was of much shorter
duration than tie former one. Ia 1850 the bank
note circulation was S207 600, 0C0-at the present
tune the circulation Of legal tender and banA
notes is and for some years has been upward OF
500 900. 900, while the deposits aud loans OF the
banks have been increased in still greater rail"
1t ia asserted. know. that bank deposits and bank
loans and not paper money have been the CHIEF
cause of oar financial crises. but examination OF
the bank returns will show that bank deposits aud
bank loans have only about kept pace az they natu
rally would. with the paper circulation. And now
with over 100000, 900 OF paper money outstaud
ing more than half Of which consists of lcga
tenders there are til lusands Of people complaining
of scarcity Of currency; some OF the leaders OF d
great party are adyoo sting larger supply Of H. In
the early days of the West caiomel Was considered
by set of self-stycd doctors specific for al com
plaints and when they had brought their patients
some of them naturally strong and vigorous men
oF III ,rav.. lay liberal rrpscrInfions OF