The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1875-10-07


ing to over s40,UO0,00O, and also the greenbacks
amounting to over 1881, 100000. This, as you will
observe, constitutes red1G nt5n OF Ine err err
aggregate to more than $500 00O or, in other
words, the humiliation of the entire fractional
And this proposition Of republican legislation
followed after the action of the same congress.
at its previous session, which definitely fixed the
standard OF circulation OF legal tenders at 49,
100000 and the national bank currency at $780,
OOOO0O and frac ionaI currency at s4OOO6,OOO. And
ali this uncertain and vsscilIating tampering
with the finances was subsequent 10 the panic
Of 1873" a calamity superinduced and brought
OF the currency at the rate of 100000 per
month. The strain upon the business interests
ime mt Of reduction a was s such as
at once to threaten universal bank
ruptcy,- and In response to the public de-
mand for relief, the screws were Temporarily
loosened by the legislation of June, 1874, upon
the recommendation by PRESIDENT Grant, VINO,
In urging the measure, said mat at mat time
the volume of currency was " not equal to the
ordinary business demands of the country at
the dullest season Oft year." And yet to-day
the volume of currency has been so insidiously
reduced that 1t IL not equal to what 10 was when
President Grant pronounced IL wholly made
the country. The very last official report of
the treasury dep irtment acknowledges the vol
bank currency ana s7.SoS,Sss Of greenbacks
under the operation OF the specie resumption
act, SO that at TINS hour n9ur we are
when tn disastrous panic OF 1873 befelt as. Mil
lions of unemp Dyed men and women, yainly
seeking employment, attest the depressing and
ruinous results of taking the step backward to
insufficient volume of currency.
The bullionlStS in this connection
apt TO inquire what these people have
with which TO obtain money, even with
answer them that their labor is upon the
market awaiting compensatory employment
The labor and industry OF the country is its
wealth. For want of EN- ployment they cease to
be producers and become consumers, and to the
extent OF the evil impair the general prosperity
01 l, t9e country @ snereLoTe the true
foster, encourage and stimulate labor, and not to
depress 1t for want of money. The scope of your
resolution is just and wise in demanding that
this policy of contraction be abandoaeo, and
that the volume of currency shall be made and
kept equal to the wants OF trade, leaving the
restoration o! legal tenders to par with gold TO
be brought about by promoting the industries OF
the people
WHEN DID tbs PEOPLE COMPLAIN OF HAv-
ING TOO MUCH MONEY.
At what period in the history of our green
back currency has there been redundancy of
money hurtful to the public interests? At what
stage of our history a people have
we been more prosperous than dur
III the last decade, and since the termination
of the war, aud until the exactions and extor-
lions OF the bullionists have, in tampering with
our financial legislation, SUNK US from the tow
enng heights OF enterprise and prosperity 10
idleness and threatened bankruptcy? In this
period our manu- acturing, mining and agri-
cultural interests have increase and pros pered
to an extent hitherto wholly unequaled in the
history OF the county ,5 Msnafaelories nave ave
veloped, railways constructed, the resources OF
agriculture everywhere expanded, until In point
of fact our progress and advancement of a de-
cade successfully matches generations and eve en-
centuries of the nations of the old world. Why
prosperity at the bidding and in the sole inter
ests of coupon-clipping bullionists?
RESUME RESUMPTION.
But, returning to the consideration o
the specie resumption act, is it a
all clear that the law is practicable aside
from It's ruinous effects upon the material pros
perity of the country? Have these republican
thinkers of financial legislation adopted a theory
which will hold water? Now, is IL practicable
TO retire the fractional and gre snback currency
within this brief period of tim 4? The resump-
ton act provides that tn secretary of the treas
ury may sell gold bonds bearing five per cent
gold interest for the coin with which to redeem
the greenbacks. Being without available gold
or silver with which to even commence this
gone conclusion that gold bonds for THU
purpose must be sold 10 the amount Of 100000.
900. thereby converting a non-interest bearing
debt into debt bearing interest OF $40 600 OF
a sdrainn and 70 be exRor5ed In payment &c
pleading for the appreciation of the people In
support of this resumption policy, claim thai
the demand .l,i for gold win cease with the In
tlemen conveniently forget that In addition tC
the ordinary commercial demand for gold, as In
the equalization of balances of trade, is ID be
considered, also, the tart q dues and the increas
| ing interest upon our public debt. When 1t IL
recollected that under our revenue laws IL re-
ally for the tariff duties. some idea may be
| formed ofthe absurdity of the statement that In
such case no demand for I'D will exist. Under
| the national bank law the banks required
to redeem their circulat on either In greenback
| or gold. AS sagacious business men, the bankers
will hedge against the hour OF resumption by
puttin7 up green backs for the redemption Of
their own paper, thus Withdrawing gresnback:
from circulation and so adding 10 the increasing
stringency of the money market. Now, 90. ID In
| the hands OF bankers may be rather thi 1g o
with greenbacks, which are essentially things OF
circulation. When, therefore, gold Is boxed VI
In bank vaults the fact does not SC
i Attest business circles when the key ii
| turned upon greenbacks, and so much money
| Withdrawn from circulation.
| have alluded to the fact that tariff duties ar,
| payable exclusively in coin. The importer to
i day pays high premium for this gold. On tn,
| first day Of January, 1879, the federal govern
presented for redemption. How long, gentle
men, do you suppose the national banks will
| keep greenbacks piled up in their vaults? They
will then be at the demand of the holder of Tia,
national bank note. The importer will, o
course, avail himself of this means of securing
the gold for his tariff dues by forcing the re
demption Of the national bank currency IL
gree.backs, and with them procuring thu
redeemed at the federal treasury under the
resumption act are TO be destroyed and so fad
/ from circulation forever. When the legal ten
ders are all retired from circulation in the pro
cess OF resumption have indicated, and in &C
cordance with othe- demands for gold, you will
have nothing of paper circulation left remain
ing except S350OUO,0O0 of national bank notes
provided the voluntary retirement does not ex
coed the increased issue Of that sort OF money.
Now, with our vast public Indebtedness
chiefly held in Europe, the Interest payable il
gold, and the balance of trade hopelessl
against US, is it not clear that golt
can not be accumulated here ii
sums equal to Its realization as
! "sound specie basis?" Is IL not also C ear tina
} our national banks can not then successfully d
business under such adverse circumstances? Ii
view of this resumption act, how is an In
, creased issue OF national bank currency TO b
expected? With all the greenbacks and fra.
tto9al currency, amounting. as have said, {