The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1875-08-26
THE EFFECT OF SPECIE RESCBIP
TION IN REAT BRITAIN,

i THE EFFECT OF SPECIE RESCMP.
/ TION IN GREAT BRITAIN,
! The advocates of specie resumption
in the United States at this time are
invited to peruse the following extract
from the fifth volume of. Alisen's
"History OF Europe" 1t relates to
the effects'experiencedin Great Britain
from the resumption of specie pay
ments there in 1920. Allison, on page
1928, says: <tt-Arsaes&gsE aoS
"But these iatterring prospects were
of short DURATION, and Great Britain
was soon doomed to experience, in ali
| its bitterness. the disastrous effects of
an ili-jadged and worse timed con-
! traction of the currency. s4At the mo-
ment when the aBnual supply Of the
precious metals forloth use of
| the globe had been reduced by
the South American Revelation to q
fourth of their former meHntl; when
the coin annually issued from the
English mint in consequence ssank to
seven million five. hundred thousand
dollars a year;swhen the drain Of geld
on the Bank to meet the gigantic loans
contracted for in this cenntry for the
Continental Powers and pay for the
immense inportations of the year had
reduced the reserve in the Bank Of
England from sixty millions Of dollars
to seIedtaeM nlilIionss and = half, and
when ttnelarge meicahfile tsalisactions
entered into in this country and the
gen elat pHspefity and activity which
pfBvalled ffnperatively required, fin-
steadlof eohtractioaiaFa a great iincrease
in the currency. Parliament, without
one dissenting voice, passed an act
requiring the Bank of England at no
distant peiioa, ,1o resu naes cash 4pay-
ments, thereby rendering the currency
Dependant on e5ke y retention a0f gold,
the gerry thing Dbich, in the ,circuns-
stances Of the country, could not be
retaincd."1 s<d9 .f .0T9 45Ii ST..
This is precisely our condition now,
With bonds held in Europe, National,
State and local. that cali for an annu-
al expectation there of one hundred
millions Of dollars to pay the interest;
when the whole product of the mines
Of California and Nevada are not half
that amount; with one thousand mil
lions OF. securities across the water,
liable at panic to be thrown upon
the market for gold to be taken out Of
the country it is under such circurn-
stances that a party here proposes to
resume specie payments, and make ev-
erything dependent upon, our ability
to retain our gold. We will continue
our quotations from Alison to show.
how charmingly the law worked. Ev-
cry word of it applies to our frightful
contraction since 1865 from two thou
sand one hundred millions of dollars
to seven hundred millions in currency.
He says: .9sii9I''f=r'' tsJr:ss1 as
. "The' effect of this extraordinary
piece of legislation soon became ap-
parent. The industry of the nation
was speedily CONCEALED, as summer
day is by the severity of an arctic win
ter. The alarm became universal and
wide spread, as confidence and activi-
ty had previously been. The country
bankers, who had advanced largely .on
the, stock of goods imported, refused
to continue their support to their GUS
toners, and they were therefore
forced to bring their stocks into mar
ket. Prices in consequence, rapidly
fell--that OF cotton in particular sunk
in the space of three months to half
its former level. The country bank
was contracted $35 100000.
the entire circulation of the Bank of
England fell from 1900, 900 in 1918,
to $200, ,O00,U00 in 1920, and ia the next
year it sunk to $4,000 600. Nothing
in this idisasbr contraction of the
currency at a time its expansion was
so loudly called for sustained the ma
tional industry Or arrested q general
but the fortunate circum-
stance that the obligation of the bank
to pay i'm specie, was, shy the act of
1919, only to commence on the first of
February 1920, and thus enabled the
iii the preceding autumn
when the escrash began, ot'cnly not to
its issue, but in slight de-
gree to increase it. The effect of this
sudden and prodigious contraction Of
the currency was, soon apparent, and
rendered the next three years period
of ceaseless disasters and suffering in
the British Isles. The accommodations
by bankers diminished SO
much in consequence of the obligation
laid upon them of paying in specie
" hen specie was not to be got, that
the paper under discount at the Bank
Of England. aohich, IN 1910 had been
one hnndred and ,hfteen millions Of
dollars and IN 1915 one hundred mil-
lions of dollars, sunk in 1920 to tsreaty
three millions, and an 1921, to thirteen
naillions Of dollars. The effect upon
trade was not less Immediate or ap-
They sunk IN general s0itAiaa
sac months to halt their former amount
and remained at that IOc level for the
aect, three gears"
Do the merchants, manufacturers,
farmers and laborers want to see a
repetition of this i'm the United States2
If they do, they will continue to urge
} forced resumption of specie pay
ments, aud to that end they will vote
he ticketsof the Money Power headed
BY General Hayes.-Eaq. -l@l--z= s.i4-'=-s
THAT person is a pronounced phi
who by pedal percussion
propels pomological peel
ngs from the precincts of the public
II oi ssaHIa 54..i 7za=sI %
A FARMER made his will and testa-
ment in words few but significant -
II have nothing, owe nothing, and
give the residue to the poor?" ''.
KANSAS TEACHER-"Where does all
IF our grain go to?" Bsy-"It goes
into tho hopDer' 0What hoDnerI'