Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1876-02-24

- - ~1~S - = sNsne, -
capital idea Nuck Of the history of
MARYLAND, - veil = other States, The
Sss riehtfully says. lies dormant. but
can be effectively revived BY such re-
search as will he inspired by local cele-
srationa With the view, therefore,
that steps may be taken to carry out
the Senator'S Recommendation to which
you have heretofore referred and en-.
dorsed. | suggest that meeting Of the
citizens Ut this county be held some
time during the next term of Court,
say on the 2lst Of March next. .
Yours respectfully,
G..
SPEECH OF Mn. CHrrESDEx.-Mr
s. B. Chittenden. of New York. deliv-
cred on satusda5ae brief but very able
speech in favor q The resumption Of
specie Payments. We Commend a. his
torically accurate the following epitome
Of history, which instruets more than
all the theoretical arguments ever prin.
ted: '-
And now. Mr.. Speaker, call your
attention To facts Of history which de.
monstrate and show conclusively, il ex.
peri-nce proves anything, that we shall
never find basis for confidence and
fresh enterprise until we have largely
contracted our currency. In the crisis
of 1887 the banks of the State of New
York suspended specie payments on the
10th of May. To save their charters
they were compelled to resume on or
before the 10th of May. 1888. They
did 80 resume, and in doing it they con-
tracted their issues from s25. SOC. 900
on the lst Of January, 1887, to 3d..
Oo0, 900 in round figures on the LIST Of
January. 1888. Herr, sir. is a case
where the leading State If the Union,
thirty seven years ago, compelled its
banks to keep faith with the holders Of
their paper, the doing Of which forced
them 10 contract nearly Fifty per cent.
in a single year; and the point to be
observed and remembered is that there
was no complaint. The dead were bu-
ried; the living were supported, and
confidence aud hope revived.
l have no doubt, sir, hut the gentle
man from Pennsylva disapproved
when be read the proposition of the
Secretary of the Treasury to fund the
le.al-tender debt ut the rate of $1,000
900 a mouth, or S24,O00,000 a wear.
But think Of it New York in 1887,
with less than S26, zoo. 900 out, withdrew
twelve and half millions in a year,
and was ready ut the close Of it to re-
deem the rest on demand. The grand
Republic in 1876, the centennial year,
with S372, DOC, 900 Of debt under pro-
test, with the people every where CRYING
out for relief, proposes. through its
Minister of Finance, To pay at the rate
of two millions month, aud man eau
be found in Congress to oppose it
Well, sir. know the gentleman is
sincere. His own State i'll 1887 enjoy
ed the sunset glories of the old United
States Bank. That concern was ruin
at the time. and could not pay its debts,
and his State did not resume with New
York. A year ar two later ON, this ia.
,orcd Government Taper machine, III
its death struggles, sold its rags, to the
extent of ten millions or more, to New
York, aud nearly broke us again. If
the gentleman is consistent be will say,
and maintain as best ne can, that New
York made frightful blunder in con-
tracing in 1887, and brought unneces-
sary ruin npon her people. But he will
convince no one Of that.
The tanks Of the whole country sus-
pended gain in 1857, aud resumed,
generally, in the following year; and i,
is important for our purpose to CON-
Pare the contraction and it's immediate
consequences in that crisis with the in
fiation which followed the panic Uf 1873
aud its cons.q uences.
Til. PAPER circulation of the whole
country in 1857 WAS S2l5, 100000. In
1858 il had Contracted To Sl56. O00, 900.
The bank loans in 1857 were $685.. OO0,-
900; iu 1858, S5S3,O00.OO0. Here is
contraction of S5?,OO0,00O in circula-
ton, and l02, 100000 in bank loans: an
aggr-gat. If Sl6l. o00,000 in one wear
N"te the consequences Of this sharp
contraction. 1t was II fierce but short
struggle, in which rotten banks and
spectators Of every maine and bank
rupt merchants and manufactures were
denied accommo dations aud forced 10
break aud adjust their affairs Or the
ether hand. the solvent and honest,
with rare exceptions, found all the help
they required, with such sacrifices "a
they eherrfully accepted, to maintain
their credit. In the exceptional cases,
those who were really solvent prompt.
ly recovered from temporary enbarrass-
ments.
The result was as natural as the
growth Of grass in spring.time, and
may be rs easily understood. Capital,
ALWAYS timid and watchful, saw tina,
the wrecks Of wild speculative epoch
were cleared away, and thus confidence
was rapidly re-established, so that the
two Years from July, 1858, until the
war clouds appeared, are properly spok-
en- of rs among the most prosperous in
our history.
We come now to the panic Of 1873,
and popose to contrast the issues Of
that with the history I have just eeci-