Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1876-06-29
An Address on the Currency Question.

Mr.. Elliot c. Cowdin, of New York,
&C 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
Lincoln's Administration. He closed by
prescribing remedies for the financial en-
barrassments of the period.
1t requires, said he, no logic to prove
that the colossal financial transactions of
our late war have left a 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-
ton remains much the same as when the
war closed We feel the pressure as
YEARLY at this hour as at any previous
period. And the question now arises,
what is to be done for our relief? NV
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
facilitating drain of the war, the wealth
of the Nation is constantly increasing
Never were its developed resources so
great as now, while those undeveloped are
of incalculable value. It 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 for flu
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 I'M
certain earnings of the future to meet the
improvident OUTLAWS of the present. By
VIZ ~ n Ian
revive business, and powerfully aid in a
speedy return to a sound currency
IL 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 &C
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.
i
scarcely five years since the close of the
| terribly destructive Franco German war,
yet we find that, besides paying off her
5000, 900, 900 francs of indemnity, she has
reduced the amount of her paper money
| $50, 100000 francs. And although 1873 is
the tine fixed upon for legal resumption,
paper money in France is now actually at
par. How striking the contrast between
the financial policy Of France thus eXem-
plified even in the hour of defeat and
humiliation, with that Of America in the
fullness of victory and eXultatiOn.
| The lesson taught by the facts | have
cited is that a renewal Of confidence and
revival of business lead to resumption
naturally, and that resumption does not
operate so much as a cause of prosperity
| as an effect that follows it, It also shows
that when paper money was at par no.
body wanted coin except III special cases,
preterrlng paper, as more convenient, for
|. the purposes of a circulating medium;
but, as Franklin expressed it, it is g paper
money we'll founded that has these adj
vantages. With prudence and confidence
we may reasonably hope to reach resump-
ton on the day named in the act of Con-
gress. To prepare for this we must, in
the meantime, submit to a careful but
currency. Prior to the outbreak of the
rebellion the maximum Of paper money
ever in circulation in the country was
$215, 900, 900. The outstanding paper
currency at the present time is about
$3.50, 100000; it is evident therefore, that
the first step toward a return to specie
payments should be, in some form, a con-
traction Of this war legacy of an inflated
currency This done, the whole country
will then recognize the wisdom of
repeating the legaI-tender act, and the
gradual redemption of the legal-tender
notes. The United states now owe some
| $3.50, 100000 of these notes, or one-sixth
of the entire Indebtedness, long since past
due. Now, gentlemen, I ask you this
plain question: What would be thought
of business house owing large amount
Of borrowed money, or bills past due, in
addition to notes on time, if it were to ap-
ply all its available receipts to buying up
its unmatured long notes, leaving the de-
mand claims unsettled, and ignoring the
interest on them?
The payment of unmatured notes and
debts while no effort was made TO nav