Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1876-06-23
An Address on the Currency Question.

An Address on the currency VueStlOns
Mr.. Elliot @. Cowdin, of New York,
at the invitation of citizens of both politi-
cal parties, delivered at Cincinnati, few
evenings ago, an address on the Histo-
ry of Currency and Finance in the United
States" Beginning with the wampum
and barter currency of Colonial times, he
described the depreciation of the first pa;
per money issued by the Colonies and
subsequently of the continental currency,
outlined the expedients of Robert Morris
and the financial policy of Alexander
Hamilton under the Constitution, and re
counted the organization of the United
States Bank, the suspension of specie
payments in 1914, the establishment of
the second united States Bank, President
Jackson's fight with the United States
Bank, the panics of 1919, 1887 and 1857,
and the financial measures of President
Lincolns Administration. He closed by
prescribing remedies for the financial en-
barrassments of the period.
it requires, said he, no logic TO prove
that the colossal financial transactions OF
our late war have left tremendous bur
den upon business of every kind. so far
as the Government and its liabilities are
involved, and so far as the actual weight
upon the people is concerned, the situa-
tion remains much the same as when the
war closed. We feel the pressure as
wCarily at this hour as at any previous
period. And the question now arises,
what is to be done for our relief? My
answer shall be brief The people must
RELY mainly on themselves, adhere strict.
ly to their legitimate avocations, live
within their means, cease croaking, and
be of good cheer. Notwithstanding the
debii,ttt.ng drain of the war, the wealth
of the Nation is constantly increasing.
Never were its developed resources so
great ms now, while those undeveloped are
of incalculable value. 1t is to these and
to the inherent energies of the American
people to bring them forth and utilize
them that we should look for deliverance
from present embarrassments and Tor fu-
ture prosperity At the same time our
National, State, and city governments
must curtail their disbursements. We
must be prudent in our credits. We must
stop investigating in speculative schemes.
| We must cease operating in lands for the
mere purpose of laying out paper cities.
| We must stop constructing railroads
through regions where there are no pas.
sengers and no freights. We must not
run into debt, and thus mortgage the un-
| CtTlllu earnings vi GliC lululO W llCCb tliC
| improvident outlays Of the present. BY
such processes we can restore confidence,
revive business, and powerfully aid in q
| speedy return to a sound currency.
1t is now fourteen years since the sus-
| pension of specie payments. This is by
far the longest period of suspension the
| Nation has ever experienced. The fact
that Great Britain remained under suspen'
sion from 1897 to 1921 affords no excuse
for us. Although struggling for exist
| ence against armed Europe, after the ac-
| tual close of the long war to put down
| Napoleon, England continued in suspen
sion only six years, while it is now eleven
years since our great war terminated. The
| Bank of England voluntarily resumed
specie payments in 1921, instead of wait
ing until 1923, the time fixed upon by
law, and resumption had no serious eff
feet upon the market beyond temporarily
| checking speculation.
Look at France In our own day. It il
scarcely five years since the close of the
terribly destructive FrancO-German war
yet we find that, besides paying off hel
| 5000, 600, 600 francs of indemnity, she has
reduced the amount of her paper money
$50, 100000 francs. And although 1878 is
the time fixed upon for legal resumption
paper money in France is now actually al
par. How striking the contrast between
the financial policy of France thus eXem
plifed even in the hour of defeat anC
humiliation, with that Of America in the
fullness of victory and eXultation.
The lesson taught by the facts havt
cited is that renewal of confidence and 6
revival of business lead to resumption
naturally, and that resumption does no
operate so much as cause of prosperity
as an effect that follows it. 1t also show
that when paper money was at par no
body wanted coin except in special cases
preferring paper, as more convenient, TO
the purposes of a circulating medium
but, as Franklin expressed it, it is pape
money we'll founded" that has these ad
vantages. With prudence and confidenc
we may reasonably hope to reach resump
tion on the day named in the act of Con
gress. To prepare for this we must, il
the meantime, submit to a careful bu
gradual reduction of the volume of tn
currency. Prior to the outbreak Of tn
rebellion the maximum of paper none
ever in circulation in the country wa
$215, 100000. The outstanding pape
currency at the present time is abOU
$3.50, 900, 900; it is evident, therefore, tina
the first step toward return to speci
| payments bHOulu Dei III SOllC lOILl, u con
traction of this war legacy of an initiate
currency. This done, the whole countr
will then recognize the wisdom q
repeating the legal-tender act, and tn
gradual redemption of the legal-tende
notes. The United states now owe som
$3.50, 900, 900 of these notes, or One-sixt
of the entire Indebtedness, long since pas
due. Now, gentlemen, ] ask you thi
plain question: What would be though
of business house owing large amour
of borrowed money, or bills past due, /
} addition to notes on time, II 1t were TO al
ply all its available receipts to buying u
! its unmatured long notes. leaving the de
mand claims unsettled, and ignoring tn
interest on themP
The payment Of unmatured notes an
debts, while no effort was made TO pa
borrowed money and past due debt
, would be fragrant act of injustice whic
no court in a civilized country would TO
/ crate between individuals, and under OF
laws would subject firm to be adjudge
fraudulent bankrupts. Yet for more tina
ten years such has been our Nations
, policy, TO the serious detriment of our II
dustrial interests, and TO the debasemcl
of public morals,
. THE French have not as yet reached Il
high commercial plane of selling eggs
| weight, as they undoubtedly should
} sold but they are considerably in adyanC
. of the Americans in graduating the pri'
[ according TO the size. A set Of measuriT
: rings Is a necessary part OF French eg