The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1875-09-18
Gen. Ewing on Our Ma
tiOnal Finances.
His Great Speech at IrOntOn.
What the Policy of Contraction Has
Already Brought About.
And Ia Yet to Be Expected
From 1t.
Continued from last tceek
HOW SHALL IT BE DETERMINED.

adapted to the wants of the trade Tha
is practical question not in issue III thi
canvass. If the people declare it shall b,
done, the ho,r can be left to their repre-
sentatives, or "a future popular discussion
| believe, and for five years past have pub
licly advocated, that the government
should issue a bond bearing an interes
little larger than the average net incress,
of wealth, into which legal tenders may al
any time be converted and which shall b,
itself convertible into legal tenders, at the
/ option of the holder. When currency be
becomes scarce these bonds would be con.
verted into money; and, when money
/ grows too plenty, the bonds absorb the
I surplus; the business Of the country would
thus determine and obtain for itself the
amount of currency necessary for Its use,
without arbitrary Interference, and II
would never be either glutted or starved
while the low rate Of interest on the inter
changeable bond would abate the usury
which Is the bane Of our social system.
| This is one proposed method Of adjusting
the quantity OF currency to the demands Of
business Ii has not the sanction Of either
Of the great parties but has been indorsed
by the late Treasurer of the United States,
and by many of the must eminent tnanciers,
statesmen, and business men Of the coun-
try, and is strongly recommended by our
experience with our interest bearing notes
about the close of the war, before our
home currency debt was made foreign
gold debt, and the policy was inaugurated
of giving to the banks control of the peo-
pie money.
LEGAL TENDERS CONSTITUTIONAL.
But ii is claimed that the proposed issue
OF legal tenders is unconstitutional. will
not consider the objection here further
than to say that the Supreme Court of the
United States Ill the legal tender cases at the
December term, 1870, decided the acts au-
thurizing their issue constitutional The
Court did not hold the issue valid because
1t was a means Of executing the grant Of
war powers, but because 1t vas an act not
prohibited by the Constitution, and cal
culated to effect one of the objects IN trust
ed to the Government. LII a new issue
of legal tenders To take the place of bank
notes, OF supply deficiency IN the cur
rency, be found an appropriate means Of
enabling the Government to carry and pay
its debt and expenses it would be fully
pronouncing that decision.
DEMOCRATIC TRADITIONS.
Some Democrats think our platform a
departure from the traditions of the party
The statesman who did more than all 9th
ers to fix Democratic principles in our
Constituuon-the father Of Democracy
Thomas Jefferson, has spoken on an issue
4 "a -. s.. L.
Of 1872 the people were heavily burdened
with two war debts; the Continental
money had been dishonored, and eight
hundred banks furnished the entire cur
rency Of the country. He then declared,
as proper measure of relief for the peo-
pie, that Bank paper should be sup
pressed, and the circulation restored to
the nation, to whom 1t belongs. He said,
Congress may now borrow IF the pubic,
without interest, all the money they want,
to the extent of a competent circulation,
and he further proposed that such national
currency should be legal tender for all
public dues, and convertible at the option
of the holder INTO Government bonds.
Later, when the Government was free
from debt, and the people had no burdens
to be alleviated by an issue Of Govern
ment notes s-such as they had in Jeffer
sons days and now have-Jackson and
Benton fought against the banks, and de
manded ''hard money" rather than the
rag money Democrats who now quote
them are, in effect, lighting TOR the banks,
with the same catch-words. The letter
killeth; but the spirit glveth the life I.
VICES OF PROPOSED BANK CURRENCY.
We can not have a currency composed
largely or exclusively Of gold-that Is ad-
mltted on all sides. We have only choice
between two systems of paper money;
bank money nominally redeemable in gold
after January 1st, 1879, and legal tenders
redeemable at the pleasure of the Govern
ment.
The chief considerations respecting the
bank money system are
/. II is device to supplement the ac-
knowledged deficiency Of coin with a credit
currency, at the risk and cost of the peo-
pie, and for the ACKNOWLEDGEMENT Of mon
opolies.
2. 1t is found on the false pretense
that one dollar in gold will redeem three
dollars in paper and five dollars i'll de-
posits. Whenever panic, accidental OF
contrived, occurs, the juggle falls, and
! brings confusion and loss to the business
! built on it, Mr.. Page, Of the Bank OF
England, characterizes this mixed cur
rency as "a grand system of insidious
| swlndlng."
3. 1t will reduce our currency to about
a quarter of its already reduced volume,
because OF the small and steadily dimin-
| ..I.. 4 ~
4. The struggle Of the banks to hoard gold
with successfully keep it out Of circulation
and leave us only such meager supply Of
currency as the banks dare keep ahoat.
D. The system is, by Constitution,
panicky. 1t is currency of three parts
paper, and five parts deposits, built on one
part gold. The gold foundation Is as un.
stable as water-as tickle and volatile a.
mercury. 1t is here this month, in Eng
land next, in France next, wherever the
winds of war, or craft, or traffic blow it
| Our banks could no more control its ex
port than they could control the crops, OF
finances or politics of Europe, which caus.
its export. The shipment of gold wouIc
/ come directly from the banks, for there il
would be stored, subject to demand of de
posltors and noteholders. Mr.. Patterson
in his Science Of Finance" says: "Wher
the stock of gold in the Bank Of England
, is at its ordinary level, the export Of ter
or ltteen millions sufices to produce
dearth Of money and serious Commercial
crisis. We exported this year to tn
10th of July ffty-hve millions of gold
Under this proposed bank system, ant