Knoxville Whig and chronicle. [volume] (Knoxville, Tenn.) 1875-1882, 1875-09-08
KNOCKING DOWN a MAN OF
STRAW.

The fact that the editor of the
Press and Hesdld does not fairly state
the position of the CHRONICLE on the
currency question is not from his in.
ability to comprehend it, but rather
from a disposition to misinform the
public upon question as to which
that paper has changed front in the
last year. We have admitted that
there has been a contraction of the
currency since 1865, if the com.
pound interest notes, three per cent
certificates and seven.thirty bonds
are to be called and treated as en-.
reHcy. We further admitted that
there had been a contraction of the
currency proper to the extent Of S44,.
100000, under the act of April 18th,
1866, but we claimed that such con
traction was consummated under the
administration of q Democratic Pres
ident and Secretary of the Treasury,
and was finally ended by an act of
Congress under control of the Re-
publicans. Thus far we odmHted that
there had been contraction, and it
was not necessary to quote from off
cial documents to prove it. The quo
tations made yesterday by the Press
and Herdld, with such flourish, from
the resolution of Congress, Comp.
troller's report, and the President 5
message, all referred to the contrac-
ton Of legal tenders under the act of
1866, made by Secretary Mccullough,
or to the withdrawal Of the compound
interest notes, seven-thirty bonds,
etc, referred to above. Contraction
to that extent, and in the particular
respects named, we have all along
admitted. and there is therefore moth
ing proved against us. The only
question is: Are the seven-thirtv
bonds and compound interest notes
fairly classed as currency? We in
sist not. They were not so used by
the country. But if they we're, their
withdrawal was made long years be-
fore the panic, and the depression of
our business interests can not be
traced to that contraction. In 1870,
1871, 1872 and 1873, down to Sep
TENDER, we prospered as few coun-
tries ever did. If the retirement of
these bonds and certificates injured
the business of the country, why did
it take five years to discover it?
That is pertinent question, which
our contemporary has never re-
ferred to.
But as to the contraction Of the
S44,000,O9O under Andrew Johnson
Administration that has been more
than returned to the volume Of cur
rency by the reissue Of $26,0O0OOO
under Secretary Richardson, after the
panic Of 1873, and by the reduction
in the reserves held by the National
Banks, and the provisions for more
National Banks under the Free Bank.
ing Law Of the last Congress. In this
way the volume of the currency prop
er has been increased beyond what it
was when Secretary Mccullough re-
duced it by his contraction. We con-
tend, therefore, that of the currency
proper there has been no contraction
since 1865, and in support of that
claim, we have frequently published
the tables from the Comptroller's re-
port. Secretary Mccullough, acho is
a coatractioniSt, who has been and is
very familiar with the currency sta.
tistics and legislation of this country,
said in his last letter from London,
from which we have heretofore quoted,
that there has been contraction of the
currency. Senator Sherman, Chair
man of the Senate Finance Commit.
tee, says we have had no contraction
OF the currency, and so says the New
York World and other sound Demo
cratic authority. 1t will not do fol
the Press and Herald to prove contrac
ton by quoting from official docu
ments, relative to a special contrac
ton, which we admit, and first brought
to its editors attention, and which We
never denied. The contraction made
as referred TO, has been cured by adj
ditions to the currency, which over
balance it, and which make our vol
ume Of paper money to-day greater