The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1875-06-19
CURRENCY CONTRACTION.
Hon. VIM D. Kelley on our Finances.
Fatal RaIlAeIes kXpssed-Hard.PAa The.
vived-Rlght kss.. 20 ResunptIsa- Grcea.
baeAS. the PeepIe's hesey -EmaHeIpA--
ti"n eT Labor Aad EnGerprise-Address
Before the Association OF Currency Ke-
Tornaern



When the working man sold his week $
labor he got his money on Saturday night,
and he got II III that which every Anerl-
can was glad to accept as money, and
which the law, with even handed Justice,
compelled every American to accept IN
payment If debt or obligation. Ii 50 hap
pened that We then HAD tor Secretary Of
the Treasury a banker, man who had
heen called to the contrOllership Of the
Treasury from the presidency Of a bank IN
indianapolis, Indiana. He is now the
head Of the famous English banking house
Of Hugh McCulloch Il Co. He was a
capitalist and a creditor, and he knew how
to increase the value of his money and de-
crease the value OF the property If his
debtor. He proceeded to the work with
promptltude and vIgOr by contracting the
currency and converting the debt On v hIch
our people, were content with interest III
currency into gold-bearlng bonds. Ameri-
cans had shown their Willingness to loan
the government at three per cent, so long
as the government would promise 10 return
the money whenever they wanted 1t. The
three per cent. certificates We're cunverti-
bic bonds. The government took Sl20,
UOO, 900 on the terms that, anv time after
ten days, the deposltor, or his transferee,
could call for the money deposited with
accrued interest. These convertible three
per cent. certificates or bonds We're never
voluntarily presented for redemption, and,
finally, under McCullouchs process Of
contraction and the cry for specie pay
meIts, Congress forced the Secretary Of
the Treasury to call in and redeem that
three per cent. currency loan, though he
had to sell tive per cent. gold bonds to get
the money with which to do it. Laugh
ter. That is So. So, too, gold bonds
were issued to get the money with which
to redeem the 1905, coupon interest
notes and other forms Of currency lndebt-
sdness The American people were, as
have said, willing to loan the government
for paper interest and at low rates. There
are S64 900, 900 of bonds now out, which
always command the highest price, or
stand next to the highest IN the list uf
sales. Yet they are payable, principal and
interest, III currency. They are long
bonds. They had fifty years TO run when
issued, and every fool in the country knew
that specie would enter into our currency
before fifty years would pass, and these
currency bonds stand at the head of the
market. That they stand there is absolute
proof that the American people were, So
long as they were permitted to be pros
perous, ready to hold the national debt,
and 10 hold 1t with paper interest. Why
were they not permitted to hold it : There
was no room for speculation under that
system. No sending syndicate agents to
Europe Applause. No commissions t.
be made by dealing with foreign banks ol
by Indiana men who might go to London
to establish banking houses. Applause.
These outrages were not perpetrsted with,
out protest. On the Sd Of January, 1867
made an elaborate speech in review o.
Secretary McCulloch's report, from which
| submit an extract, i'll order that you may
Judge whether his theories or mine wer,
right. He had already begun the work d
contraction, with what effect you will per
ceive as / proceed. After, considering hi
report, said
1.-The question presented to the mind o
practical statesmen Is not what would b,
the best currency, II We were founding
new community, or how far we might
with advantage, add paper to a purel,
metallic currency, but is, what, under ex
isting conditions, does the true interest
of the country require ! And on thi
4 question | again take issue with the Secre
tary Of the Treasury, and deny that tn
country will find in a rapid or material CON
/ traction Of its currency, or in extraordi
nary taxation, a remedy for any Of tn
evils that affilct it. If, as some Of hi
friends have done, the Secretary shoul,
point me to some of the hig gh prices whic
many articles command, or the immens
deposits which, unpruductlve to their own
ers, are enhancing the present profits an
future liabilities of the banks, | will repl
to him, as have to them, that these ar
no proofs Of the redundancy Of the cul
rency, but Of his mistaken policy and ir
veterate mismanagement.
Though the use Of these immense de
posits is lost to their cautious proprietor
the money does not lie idle in the vaul,
of the banks. 1t is lent on call in larg
sums to adventurers. who, by its use, q
hance the price of such commodities 4
they can monopolize OF control Tho.
who could make their own capital produ'
tive are afraid to use it. and reckless gaml
lers riot In its use. Yes sir, the Seer
tarys policy is calculated to diminls
production and stimulate speculation
which symptoms have been the twin pr
cursors Of all our Commercial crises al
eras of bankruptcy. Under this fat
policy
the native hue Of resolution
Ii sicklied Ger with tho pale cast Of though
And enterprises Of great pith and mOmeu
! With this regard their current turn ava,
| And lose the name vi action
, The sagAcious bat pru lent owners
. these deposits grevs that the money wi