Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1876-02-10
How the Currency Was Contracted i.

How the Currency Was Contracted.
A FEW singular persons met Blooming
ton this week and resolved very modestly
that they represented the farmers of Illinois.
They next proceeded to instruct Congress
in the mystery of currency, finance, interest.
discounts, banking, bonds, taxes and other
cognate subjects. A gentleman now residing
in Virginia, formerly well known in this city
and in Wisconsin, who happened to be pres
ent, was called on for speech. The report
saws in regard to his remarks:
Mr.. Daniels of Virginia, addressed the Conven-
ton, showing conclusively that the business de-
preston in this country commenced with tbs
adoption of the system of contraction of the cur
rency of the country. The speaker demanded that
if the Government loan money to banks upon the
security OF the $50 bonds. it should make loans 10
private citizens whenever they present the same
security as the National Treasury thus placing all
on equal terms Mr. Daniels is & convincing
speaker.
Whether these remarks were intended as
ironical or facetious is not clear. They can
hardly have been offered seriously. Col.
Daniels knows very well that when the flnan-
cial panic burst upon the country in the au-
tumn of 1878 the currency of the United
States was inflated beyond precedent. We
NoAi"'s '"o Aoiho"lns inquiries from oHiel"i
so"iees, SHOWING 'ne amount OF currency IN
'ui"'i0n az 'nI0 Pe'ioos' VIZ. SIX iiolths
.A'oh 'n0 ooit"peo Vi INC Ieoelilou' Just os
'l,e PAM ala e, - Tue ,iose % 100 VIZ
800 SiA ii'on'"s Ai'ei ZIG
'lose VI ING war; VIC paper elre0i"tioh WAS
II soio
rJs+;onot po,,- ooo 90"
Stat. Rank notes ssnoo ooo
Total circulation ...........s7 o4. .Oss
In September, 1878, before the panic, the
circulation, according to Senator Sherman,
was;
united states notes. .............. $3.50, 100000
Fractonal currency. -....'........ 45,ooo,Goo
NS'ionai oalA ho'e' ''.''''''.'..''''. 05soVo'ooo
oo7-7--
"A, .. a. ,,o s'10'000'00'
issnad NV Secretary RichorSsor os ooo ooo
Total circulation s766 600 ooo
In December. 1875. the circulation as Off
cialIy reported. stood TINS:
United States notes .Ss75 ri $50
Fractional currency. H145 500
National Bank notes 51s69,OOs
1otaI clrcuiatlon. SOS, 7S5,sS1
Inc summer aIter the war ended the coun-
Try was hooded with currency which amount
ca IN the aggregate TO 1racton over seven
nundred millions; and gold ranged between
40 ana l49 from the time OF the downfall of
the Confederacy until the END of that year,
ana It's gold value or purchasing power was
90 TO 6S per cent. of specie.
In the summer before the panic the cur
rency had been inflated thirty-six millions
over the volume OF 1860, and it was quoted
at ia to llS, which gave it purchasing
power OF elghty-hVe to eighty eight cents in
coin. 1t was thus doubly expanded-frst,
by S56,oOo,OOO in quantity, and second,
twenty cents in gold value of every dollar.
After the panic the Secretary of the Treas
ury, Richardson, issued *26,000,O00 of the
retlred greenbacks In the vain hope of restor-
ing public confidence and arresting the col
lapse. In the fall of 1873, and throughout
1874, the currency stood at an average of
sIo0, ooo,ooo' and its value al lightweight to
nlnety-three per cent. which added largely to
us purchasing power. a couple Of months
ago the currency amounted to nearly s77o,-
ooo,ooo, ana us Value is now eighty-elght to
sightyhlne per cent on the dollar.
III we" ol 'hese STUBBORN 1acts, what war
rant haa tol. Dahlels' Oh virginia, Tor as
serVing 'ha' inc business depression OF tho
country commenced Win the adoption of the
system Oh eohtractlon: Inc TACT is, no
steadily inflated mill the nres,1re IF no.
blew the head out of the boiler, and Inhaled
credits, inflated prices and inflated specula-
ton exploded together in one tremendous