The Findlay Jeffersonian. [volume] (Findlay, Hancock County, Ohio) 1870-1881, 1875-10-22
THE FINANCIAL QUESTION.
DANVILLE, IND. Oct. /:

DANvILLE, IND, Oct. II,
IEls. Cincinnati Gazette:
Mr.. Schurz, in his speech at Cincin-
matt, lays it down as n proposition, not
TO be disputed, that an imitation of the
currency would depreciate its value in
the ratio of its increase. He also says,
and seems to be sustained by the figures,
that the volume of the currency is As
great now as il was in 1865, or has been
since that time. And get, if your cor
respondent is not wrong. the currency
has greatly appreciated since that time.
What has been the cause of past appre-
citation! Certainly not contraction.
Then why does Mr. Schurz Of he does,
or, generally, why do contractionists
prescribe contraction as the means
whereby the currency shall be made to
appreciate in value to that of goldl
Your correspondent is in favor of specie
payments. but in the multitude of coun-
sci as to how to reach the desired end,
and the causes which shall bring the
same about, he is badly nuddled.
Yours, inquiringly,
READER OF GAZETTE.
REMARKS BY THE GAZETTE.
Much light has been shed upon the fl
nanciaI question, of Which the currency
is part, by the discussion caused by the
canvass in Ohio. Evidently, however,
we have not reached the end of the con-
troversy.
MIR. Schurz was right in saying that
the volume of paper money is larger
now than il was in 1865. lt is also true
that the premium OH gold is lower now
than it was then. The decline in the
gold premium. however. was. brought
about by the successful termination of
the war and the belief that in due time
the government would redeem its prom
ises in gold Until the inidtionists and
repudiatiOnists got the control Of party
machinery, no one doubted that the pro
gress in the direction of specie payments
would be a. rapid as possible without
producing an unnecessary >.i'fCk 10 buSi-
ness. Now, however. II i proposed not
only to cease progir--. buI 80 good hard
money as "A barren i.i-aliry, ai'd declare
papsr the measure of valIi.. In IlIe UniCed
States. SIould this theory b,- adopted,
the premium on gold -wouid advance
even without actual imitation, and thus
reverse the course of the market from
1865 10 1873. The inf hion oI the cur
rency would no doubt enhance the val
"
of convertibility into the money % the
world.
sAs to contraction and resumption, we
have to say that resumption, in the pres
ent condition of tile country, would be
impossible even with moderate contrac-
ton; therefore it is not proposed to con
tract the currency at present, no more
than it il. proposed TO resume specie pay
,E. . # do
insure its continuance. When resump
tion does take place. however, it will
regulate the currency, and that will re
duce the volume of paper money. We
never can tell what the business of the
country requires in the way Of currency,
except by making that currency convert
ible iuto money. Then It will regulate
itself.
When the country il fairly and firmly
committed against imitation. and has IFS
face fixedly turned toward specie pay
ments, we shall move stendily in that
direction. and come TO II solid basis
when the value of tie paper ana coin
dollar shall, under the influence OF the
laws of trade. be euuaiiZed. Ii is hoped
that the intlationists will soon be killed
off, and when that shall be accomplished
paper money will gradually advance,
until. even without actual resumption,
the difference between the gold and pa
per dollar will be merely nominal. We
shall reach this result when our trade
relations will enable us TO keep i'll the
country the precious metals we produce.
Uutil this condition is realized, specie
payments are ont of the question. We
are now importing gold to some extent
If we can keep this up, or even prevent
the export of coin. we shall soon reach
the hard money basis.