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

sentatives on D. cember Is, 1886, by q vote OF
| IA yeas to six nays, adopted the following:
the views of the secretary OF the treasury In
relation to the necessity OF q contraction Oh the
currency, with view TO as early resumPt on
OF specie payments as the business interests OF
the country will permit; and we hereby pledge
co-operative action to this and rs specify As
possible. Here we have IL clearly stated that
In order TO resume specie payments" con-
traction Is q necessity, and as nothing but
bank currency requires specie basis and
TO perpeIuats the national bank currency. To
carry out this pot has taken the bread out OF
the mouths OF our laboring and wealth. pro-
producing capitalists by special legislation.
The man that is in favor of specie basis" and
and supporter OF bank currency as opposed to
the peoples money or full legal tender
United States tire 'sury note. which costs the
government very little 10 make IL, put II costs
the creditor of the government q dollar 10 get
Ii, and when made full legal tender III Will
enable the holder oft TO obtain Its denomina-
tional value in return for it; whereas the ma
tional bank currency costs the Dondholder
only per cent. on the average amount OF cir
about 10 Der cent. per annum for taking 1t to
loan to the people at from 70 IL per cent per
annum, giving the bondholoer and banker
from Is TO y per cent. per annum on his thirty
i've or forty cents invested In each dollars
worth OF bonds. Even though a represent alive
OF las Of and bankers most
certainly 1t does not justify him in voting to
perpetuate a system SO ruinous 10 the indus
1866, congress, unfortunately for the country,
carried out their resolve OF December,
1855, by passing t an act a S;i aisarg
ton, to receive any treasury
notes or other obligations issued under any
act of congress, whether bearing interest or
not. in exchange for any description of bonds
authorized by the act (of March 3, 1861 to
which that is an Amendment; and also 20 ais
By said act, either in the United States or else
where, to such an amount, In such manner,
and at such rates as ne may tn1nk sovlsaple,
any treasury notes, certificates OF indebted
ness, or certificates of deposit, or other repre-
sentstives of value which have been or which
may be issued under either or any act
of congress; the proceeds thereof TO be
used only for retiring treasury
act of congress; but nothing therein contained
shall be consti ued to authorize any Increase
Of the public debt; provided that OF United
600 600 may be retired and cancelled within six
months from the passage of that act. and
thereafter not more than 81 0e,00O in any one
month. The secretary of the treasury, under
the remark able powers given him by the act
Of 1866, the designing work OF contraction, was
begun, which in q short time raised such
protests from the business men as to alarm
congressman, causing them to pass an act to
repeal SO much OF the act OIL Apriii ~ lso6, as
greenbackF, but did net stop the contraction
OF treasury notes bearing interest, and
certificates OF Indebtedness and OF de-
posit, amounting to over u ,20C, 100000. This
repeating act was passed In January, 1866; IL
was returned without the signature OF the
president, but IL was not returned within the
time prescribed by the constitution, and
therefore IL scame a law on February 4, 1858.
critically examined the designing act of April
II, 1866, were deceived by the repeating act of
1858, supposing that the contraction OF the cir
rapidly and stealthily carried on by the secre-
tary OF the treasury, producing the CONNER
clal crash and money panic OF 1913, causing
cuniary ruin of thousands upon thousands of
worthy business men who knew nothing of
the danger that threatened them. will now
show that the bondholders and bankers
IN WHOSE INTEREST CONTRACTION WAS
BEGUN
and carried on, knew perfectly well what
result il would produce, as is shown by the |
correspondence. From Buffalo, New
York on December T. 1885, Mr.. Spaulding wrote |
to Secretary McCulloch as follows: . You
OF the finances of the country, and L think
that you will, OF necessity, contract moder- |
ately so as to preserve atolerably easy money |
and tightness for money. =. but generally |
shall look for plenty Of money for at |
least a year 10 come To this McCulloch, on
z, 1866, replied as follows: My |
object has been to keep the market steady, |
and TO work back to specie payments |
IN the fdtnne as have In Ih the
past, with great caution, and attempt no Inn |
practicable thing. From Buffalo, New York. |
on January 22d, 1857, Mr., Spaulding wrote to |
Mr. Hubbard, comptroller OF the currency, as |
follows: The act of congress passed on the |
18th of April last, 1868. 1t seems to me Is |
the secretary of the treasury to sell $40 gold |
bonds, and with the proceeds to retire per /
tender green bacK currency and other indebted |
ness OF the government, but not to retire more |
than s4,OO0, 90 of greenbacks month, or s4s-
0 0000 in a ear, but without restriction as to |
the amount of compound skies land seven |
thirtesl that may be retired during any week
or month, Unto long bondsl This |
OF the treasury. Power is given him to con-
tract the currency, but he will no doubt use |
his discretionary power prudently and not re, |
seven -thirtiesl any faster tn an IL can be done
without materially disturbing the legitimate |
viii no doubt, by a moderate and and prudent |
course of contraction, endeavOr TO keep the /
business and industry of the nation In pros |
prices, and bring 9reenbacks and national
currency nearer the specie standard. [Green |
anS have Deen maae be eaus u u god
tender.l On this point the secretary, in his |
last annual report, makes the following judi |
States notes may be retired must depend upon
the effect which contraction may have upon
business and industry, and can be better de- |
policy of contracting the circulation of gov |
eminent notes should be definitely and un- |
established, and the process |
should go on, just as rapidly as possible, |
without prod ucing financial crisis, or seri- |
ously embarrassing those branches Of indus |
try and trade upon which our revenues are de- /
pendent. AS the volume of currency IL re. |
duced, it Will increase in value; and as soon |
rs the specie standard is reached, the national |
banks will be Obliged TO redeem their circula- |
ting notes in specie" No remarks are neces- |
sary on this correspondence, as il speaks for /
itself and proves conclusively that the know |
ing ones were perfectly aware of the result
that so thorouh contraction must produce. |
shall now refer to the designing act |
Of March rs, 1869, which reads as follows: |
Be II enacted. etc, That IL is |
hereby provided and declared that the faith |
Of the United States is solemnly pledged to |
the payment In coin or its equivalent Of all
obligations of the United States not bear /
ing interest, known as United States notes, |
(greenbacks,) and of all interest bearing obli- /
cations, except in cases where the law author |
izing the issue OF such obligations has ex- |
pressly provided that the same may be paid |