Knoxville Whig and chronicle. [volume] (Knoxville, Tenn.) 1875-1882, 1875-09-01

tributable mainly, if not exclusively, to a
redundant currency, we find thousands of
honest-mindcd people, and the intelligent
leaders of great party, in one State at
lesst denouncing contraction, gChen there
has been no contraction, rs the cause Of
these troubles, and clamoring for more cur
rency, rs a cure of a disease which an ex>
cess of currency has produced. Whatever
may be the operations of such practice upon
the human system, it is certain that finan-
cial disorders are not durable by doses
alopathic or homsopathic-of the poison
from the effect Of which collapse has re-
suited
Thus we quote very high and good
acknowledgements at that-to
sustain what our contemporary styles
4 remarkable statement. Another
proof that the policy of the
Republican party has not been
contraction, at the expense of the
business of the country, is the pass
age of the Free Banking Bill by the
last Congress, in which is a provision
reducing the preserve" circulation
held by the National Banks to secure
note-holders. BY this change in the
law, there has been added to the
available and floating currency $780,
35O,748.
But in proof that we have now no such
contraction of the currency US Dem
ocratic editors would have their read
ers believe we need only make COM
parison o@ the circulation in 1875
and in 1860.
In 1860 we had. in round numbers,
S100,000,000 of true Constitutional
legal tender, exclusive of the specie
in bank vaults, and S2OO,OOO,OOO of
bank notes, payable in specie on de-
mand. This was money enough for
thirty million people. Our popula-
ton may now perhaps be forty-iive
millions, but our so.called legal ten
ders, bank notes, and fractional
currency are more than $750,000,000.
Thus, while our population in 10
years has increased 80 per cent, our
money has increased $50 per cent, or
three times faster than our popula-
ton.
The whole trouble on this question
is, that many people are misled
as TO our present laws on this ques-
ton. We have now q free banking
law, under which we can have as
many National Banks and as much
bank note circulation as we need.
Men who want more money can have
it. Suppose the Government sets its
presses to work printing more money,
how could we get it unless we have
of value to give in return
for it If we have surplus products
we can get money now. Without |
giving value for it, we can not expect
to get any money that is worth having.
The Government can not Issue it |
out like rations to an army, and |
if we have anything of value it will
bring all it is worth in money that is
now within fraction as good as gold.
The war inflated everything. 1t in
iiated manufacturing; it bred specu-
lation and all kinds of unnecessary
enterprises. For years, we were all
inflated. We have now passed through |
a few years Of hard times, which al
ways follow Over-production of any
kind, but we are near the end, and if
we only have the good sense to I'M
derstand the causes and profit by the
past, we will soon be down to good !
old Democratic hard money times"
and will all prosper and be happy, |
because we have been honest.
TIE Press d1d Herald, unable to
make out a case of contraction Of the
currency since 1865, persists in
counting the seyen-thirty bonds, five
per cent. legal tender notes, com
pound interest notes, etc. We might, |