The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1875-08-18

able time. ana that the true remedy
and relief from the panic was that
which had been successfully employed
in England for more than q hundred
years when financial panics came
that is, q moderate increase of the
currency; and I advised the President
to put into circulation the forty four
millions reserve OF greenbacks then
in the Treasury. The increase in the
currency which / sought BY iesisla-
ton was by the extension of the na-
tional banking system, and not by a
further issue oil greenbacke.
18th of January, 1874, l said:
the greenbacks beyond the four hun
dred millions of reserve. but ] am
speaking Of increasing the national
bank circulation forty-four or fifty
millions, so as to make the States
equal. and requiring it to be redeem
ed In greenbacks. That would not
cheaper the greenbacks; it would not
affect the value of our currency at all.
The national bank notes would still
have to be redeemed in greenbacks.
and the number of greenbacks would
not be increased. l submit, there
fore, that increasing the national
bank currency to the amount l speak
of, which is little enough, would not
cheaper the value of greenbacks, and
would not increase the premium on
gold, would not interfere with the
gradual return to specie payment, that
I hope for"
That the period has gone by when
any increase of the currency would do
good in checking the panic, | am free
to say, and believe it must run its
course until the times are relieved by
economy industry, aud the operation
of general causes.
NEITHER CONTRACTION NOR ExPAN-
SION.
The theory of the bill in another
respect was that there should be nei-
Their contraction nor expansion OF the
currency, that the volume should
be maintained as nearly as possible at
what it then was. Banking was made
free, that is, the restriction as to the
amount of bank notes that might be
issued in the aggregate, or In any OF
the States, was repealed, and the peo-
pie lett free to organize new banks in
any of the States or Territories upon
compliance with the terms and con-
ditions Of the law. To prevent the
expansion of the currency from this
source, it was provided that fer every
100000 bank notes issued the Sec
rotary of the Treasury should retire
$50, 900 in greenbacks, which, added
to the greenback reserve the new
banks would be required to keep in
their vaults, would maintain the vol
ume Of currency In circulation about
the same.
/ had something to do with the
preparation of this bill, voted for it in
good faith, and intend to stand by it
until experience has demonstrated
that it Is impracticable or needs
amendment Its main feature, fixing
a day for resumption and providing
for it, [ had proposed to the Senate
six years before, and whether the
time fixed is proper one or not, and
[ should have preferred it a year or
two later, it is the method by which |
believe specie payments can and will
be reached. 1t establishes the policy
of free banking. the slow, gradual,
but certain return to specie payments,
and no contraction nor expansion of
the currency until that time.
DEMOChAllC pLA1FOhM.
The Columbus Democratic platform
demands immediate abolition of the
national banking system, and the SUBJ
stitution for national bank notes OF a
rev issue of greenbacks. A change
so great and vital would be attended
by the most disastrous consequences,
the extent of which no man can now
foresee. 1t would require the banks
at once to withdraw from the people
$3.50. COO, 900 in loans now outstanding,
which would undoubtedly result in
the greatest distress and the almost
total suspension of business. The
greenback circulation would be sud.
denly increased from 1875 ,O00, 600 to
$73O,000,O00, and would inevitably
greatly depreciate. The value of
greenbacks now is maintained by the
ability of the government to pay them,
and by the prospect OF such payment
at no remote time. and If the amount
was so increased that the government
could not pay them, and the prospect
of payment passed entirely away, they
would at once lose the principal part
of their value IF. when there are but
S375, 0O0, 900 in circulation. and we are
within three years and half of the
time fixed for redemption, they are
worth but eighty eight cents on the
dollar, what would be their value il
the amount was increased to $780,
100000 or $1,000, 100000, with nc
hope, prospect, or pretcnse that they
would ever be redeemed? Let any
man of common sense answer. But II
is said that the legal tender quality,
the fact that the debtor can compel
the creditor to take them in payment
of debts, will preserve their value
even if they are never to be redeemed
or paid. The simple answer to this
is that when the volume of greenbacks
is largely increased, and all prospect
or pretense Of payment is abandoned
people will refuse to sell their prop
erty or labor upon a credit, knowing
that they can be compelled to receive
in payment deprecated paper never
to be redeemed.
AN UNAVAILABLE SECURITY.
But we are told that any amount o
this paper will feat, because the faith
resources, and credit OF the countr,
are pledged for it. If there be no wa.
to convert the resources or credit o
the government to the payment of tn
notes, what Goes TIE security amour
to? IF all the real estate in the Uniol
were mortgaged for the payment o
these notes, but there is no way t
foreclose, to collect, to convert, wha
does the mortgage amount to? Strip
ped of all DISCUSSES and pretenses, tn
substitution of greenbacks for Nation
al Bank notes will be understood b
the country as a declaration that thes
notes will never be redeemed.
| THE DEMOCRATIC PARTY THE ENEM,
OF GREENBACKS.
But / here unmask this whole fraut
and imposture. The advocates Q