The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1876-03-08

over 81, 4OO,O0oGc0 Of $40 bonds. redeemable in
green backs, which increased the obligations
OF the people as taxpayers $40 ,c0e goo for the
my own state, In the Senate, in relation to the
act of Marcn II, 1859, said: What ts the pnr-
pose OF II, and what will be the effect OF II?
ket and to put money into the hands of the
spectators. Sir, II Is une erstood, believe,
that the passage OF Dill OF THIS Kind
financial questions are not well understood,
TO Increase the price ofour bonds and increase
great gre operators to sell the bonds they have on
a brokers' operation. 1t Is Hbuil' move
ment, intended 10 put up the price OF bonds
for the interest OF parifss dealing In them.
And yet congress Presumed 70 pledge the faith
ward the constituents and in disregard of their
rights and interests. These acts have been
condemned by the people, and most ofthe au-
this House TO the shades OF private life; and
Ii does not become those who participated In
those acts yet lingering in this House to lee
in bad faith and in gross violation
OF the rights OF the people to promote
Congress in 1855 admitted that the necessity
for and direct object Of contraction was to re-
sumo specie payments, to perpetuate the ma
pie the legal tender greenback. 1t is apparent
mat the act of 1869 and the refunding acts
were designed to perpetuate the bonds, max
ing them perpetual burden on the people, to
be met by heavy taxation: creating a neces-
sity for an excessively high tariff 10 enrich
and to give 10 the bondholder a perpetual and
steady source OF income, payable semi-an-
nually in gold coin bearing premium, with
exemption from state and local taxation,
that their cnildren may be educated out
OF the taxes of the toiling millions: and
finally to establish and maintain In psrpetuity
a mnnQVQd QTiRfncrQPV- Mr. Chairman the
people propose to pay off or buy in this
bonded Indebtedness with par money. and by
so doing to put In circulation the money nec-
essary 10 revive, make active and prosperous
the wealth producing industries Of The coun-
try, and have sent us here 10 carry out tbs
policy. Shall we do our duty to our constitu-
ents, or shall we sit idly in this hall in dread
of the gods OF MamInon? Let us have action.
thirty dve millions was considered dangerous
to the morals and liberties of our country by
General Jackson in 1885,, how much more an
gerous is over two thousand such tyrannical
and corrupting Institutions. Let us act
promptly and with determination.
THE SOLE CAUSE OF PANIcs.
The advocates OF contraction end OF bank
currency deny that any contraction of the cir
culating medium has taken place and also that
col traction caused the crash and panic OF 1873.
1 will prove that contraction uniformly pro-
duces such results and that the circulating
medium, principally composed OF treasury
notes Clearing fnterest) and greenbacks, has
been contracted since April r. 1856, over 81, 200
00c, 90. A contraction of bank currency of only
s23, 600 900 from 1916 to 1920 caused the crash,
panic and distress at that time A contra ction
of $50 000,O 900 from 1887 10 1913 caused the crash
and panic Of that period A contrac-
1854 to 1857 caused the crash
and panic that took place in 1857. A contrac-
tion OF twenty-three millions from 1850 to 1862
produced the money panic and suspension of
specie payments in December 1861. The vol
ume of state bank currency in 1853 was two
hnndrQ1 and nnlllinnG Uhieh fhau Wa
unable to redeem in specie. The following
was the volume of money, currency and cir
culating medium exclusive OF coin) on Sep
TENDER I, 1866:
United States notes, (greenbscks)... s4S3, 1863
Fractional 26,SA,742
notes 2l7,O2,l6O
tenders, Is per cent. interest). ...... S2,5sss9l
United States treasury notes lover
due) and not bonded, legal
tenders............. ................... l,5OSOO
United states treasury notes, legal
tenders, three years interest at 4
$4,000 COO
Total amount of treasury notes. - 40, 500 4S2
Certificates of loan, 90 d. IO7, 1878
Certificates OF indebtedness........... S5,O9S,oOO
Total amount of treasury notes
and certificates Of the treas
ury l,7s2, SlI, 1895
National bank currency ................ lS5OOOOO0
State bank 1881, $40
Total amount circulating me-
- dunn September I, 1855. l,see.67S,77O
The amount of circulating me-
dunn, exclusive of coin, Decem-
Der j, 1873:
United States notes, (greenbacks) $4,000, eS5
Fractional urrency-.,.......-..-...... 4SOO0,O0O
ing interest) ......,,. ..... ~~. $4,000
National bank currency.............. 35o,c0O,tC0
Total circulating medium De-
cember I, 1873. .................. 765, 679,6 s5
Showing a contraction of 81 ,2lO, 99s. OS5 from
1865 TO 1873, which was stealthily carried on
under the act OF April IL, 1866. In the face OF
these facts no man can deny that the crash
and money panic of 1873 were caused by this
enormous contraction of over 81, 200,0O0gO0 of
circulating medium. Previous to 1853 a con-
traction Of from twenty-five 10 eighty mill
ions of dollars would produce commercial
crash and money panic; but In 1873 il re-
quired contraction Of hundreds of millions
OF dollars 10 produce such q result, for the OBJ
vious reason that from 1870 to 1852 the business
OF the country was carried on under the credit
system, forced on 1t by bank currency
The basis being limited and insufficient for
the wants of trade, commodities had 10 be
sold and bought on credit; consequently bus
traction would produces a crash and a panic;
whereas in 1866 there was an abundance OF
circulating medium, enabling commodities to
be bought and sold for cash. Business men
were mainly out OF debt, and therefore IL re-
quired large contraction of the circulating
medium TO force The credit system on the
country: and as contraction was carried on.
credit was substituted for the cash withdrawn
from circulation, resulting in 1873 in such an
expansion of credit as enabled crash and
money panic to be produced; once more
placing the labor and wealth-producing in
dustries OF the country at the mercy OF
NOTE sHAvERs AND DEALERs IN CREDIT
CURRENCY"