The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1875-10-13
Democracy and Contraction.

We learn that there are those who
imagine that the Democratic platform.
as adopted at Erie, means wild inha
tion. Undoubtedly the speech of Mr.
Hughes, and the general intent of his
committee, was to create the impress
sion that the Ohio platform was sub.
stantially re.enacted, and that, there
fore, full imitation is the doctrine
Taught That it was their intent to
create this impression, we fully be-
lieve; but aside from the contradicto-
ry features of the Platform. it really
is strongly contraction. in :he only
part that is really positive. The de-
mand is made, after accusing, falsely,
the Republican party with having con-
tracted the currency, under the force
resumption act, that the national bank
ing system be abolished, and State
banks substituted. TO accomplish
this, the national banks must close up
their affairs, go into liquidation, and
the national banking laws be repealed.
The national banks of the country have
loaned an aggregate of about 81 400.
100000, all of which must be called
in, if they go into liquidation. To
meet this vast demand would require
the payment, by debtors of all classes,
Of the full amount loaned.
Really, notes, checks, drafts aud
other FIRMS of business paper, cons,i-
titute very large part of active cir
'oulating medium of the cOuntry
Yhese, for the time being. would be
blotted out under the arrangement
proposed. Until the States legislate,
and banks are organized under them,
the notes and other paper that are
now used in the National Banks must
be ont of use. Hence there would be
a practical contraction to the amount
of 81 400, 100000 effected, merely to
change our banking system. We have
no hestancy in declaring that this
measure wou entirely p'ostrate the
country, aud destroy business and par
alyze labor. 1t could nave no other
possible effect. There is no imagina-
BILE way in which to reach the change
proposed than that mentioned. Hence
it amounts to a deliberate proposition
to PROSTATE the industries of the coun.
try, by at least contracting the indebt-
edness of the people, to the extent
named. And this is the only PROPOSE
tion sufficiently in accord with the old
time views Of the Democratic party to be
regarded AS sincere and earnestly held.
1t has been their policy. through all
tbe history of the party, and particu-
larlg from the DAYS of jackson on. to
favor the management of all fiduciary
questions, through State laws, and
banks established under them. Hence
this proposition is probably sincere.
The direct contraction of National
bank circulation, under the plan pro-
posed, will be S357, ,00e, 900. 1t is
proposed, however, to meet this by Gu
larging to this extent, the volume o.
legal tenders. Vet this could not be
so promptly accomplished as to at
once put the new cHrreacy iRtG the
regular channels of trade. Legal
tenders are not given away, and unless
the Government were to pay them out
for its own current expenses, or they
0NAp pbNBhb ooAS Vi bOAthS ~
to the Government, there is no meth,
cd of getting them into circulation
That there would be delay, and that
they would only gradually find their
way into circulation, cannot be douO Ot
ed. We therefore may accept it as
true, that the only effect of giving
their resolution validity, will be ths
utter and absolute PTostration of in
dustry aud business, at least for a
time. Were the policy foreshadowed
its effect would be entirely like tha
which we think attends the announce
ment Of resumption in 1879. Th'
threat Of resumption. at given time
is all the harm contained m that act
and the threat TO contract, at a whole
sale rate. as proposed in the Demo
cratic platform, will exert the sam,
influence, in a mGeh greater degree.
Thus white insult and opprobriun
j. hurled at the Republican party, OF