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

any contraction, there was no commercial
crash or money panic until 1878, when an act
was passed for Z resumption Of specie pay
ments or q return to q redeemable currency in
ls2S, In anticipation OF which act and TO pre-
pare for q return TO the old system the hanks
began 70 curtail discounts, In order to contract
their currency, producing riots in 1919, and
when the great money panic TOOK place in that
country, in consequence Of q fearful contrac-
ton OF the circulating medium. Thomas
tistical History Of England, said that '.prices
declined one-half in six months" In 1873.
CONTRACTION CAUSED THIS PANIC,
and an expansion of { he circulating medium
instantly relieved 1t. Thrice since the re-
sumption act of 1919 the Bank of England
would have been compelled 70 suspend specie
payments, under a specie basis system, bnt
for a suspension of the law, which enabled
the bank to expand the currency and relieve
limited In amount, q currency being based on
IL for redemption must be limited In volume
by the basis IL being insufficient In volume,
on the country. Periodically the credit sys-
tenn becomes blown no to the bursting point.
sue, to the ruin OF business men and the ad-
vantage of credit-mongers or note shavers, and
those who have a money capital. In ls22
land; to-day there are less than $1,000. Such
are the ruinous effects in England of bark
currency based on specie for REDEEM ption.
ton not redeemabl6 In coin, and therefore
limited emily by the necessities OF the federal
government and the wants OF trade. During
that time the country nearly dOub ed its
wealth, business was carried on with cash
payments; business men in 1856 were Tout OF
but few notes - to shave, money-ienders were
Of the country 10 be carried on
under the credit system. To accomplish this
purpose an act as passed on April Il, 1896. to
fund United States treasury notes, which was
carried on until over 81, 100000 OF United
edness and deposit had been funded up TO
1873. wheG the commercial crash and money
psn1G mis- 81 san5 year toon PsGe IN @
liam Pitt, in reference 20 Alexander Hamil-
toms funding system In 1883 TO aid as basis
Americans adopt their funding system and go
into their banking institutions, and their
boosted Independence win be mere phan-
tage OF legal tender money over
bank currency requiring redemption pitt
also sbo% g the OF tine cash ss
OF business over the credit system, which lat
ter makes business men the slaves of credit
generally. Having shown the desperate char
acter of the contest now going on between
| two systems of government, and that the bank
enter into this contest, and hence the desper-
ate efforts on the part OF those aiming to es-
] tablish q moneyed aristocracy In this country
credit system of business to aid them In the
accomplishment of their purpose, will now
refer to the history of United States treasury
| notes from 1872 to this time.
THE ISSUE OF UNITED STATES TREASURY
NOTES.
On July IL, 1912, February Is, 1913, March 4
and December Is, 1914, congress authorised
United States treasury notes TO be issued
which were legal tenders to the federal gov
eminent and convertible into the stocks Oh
bonds of the government. This was done un-
der the administration OF Mr.. Madison, and by
the advice OF Jefferson. The constitutionality
of these legal tender convertible notes was
| tested in the Supreme Court of the United
States in the case of Ihorndike VS.. The United
States. The following opinion of the court
WAS deyered by Judge SYs story BY the stat
which the treasury notes have been
issued, it is enacted that such note shall be re-
duties, taxes and sales OF public lands TO the
full amount of the principal and interest &C.
cruing due on such notes. 1t follows of course
| that they are legal tender In payment OF
debts of this nature due the United States, and
by the very terms OF the acts public Officers
the case OF McCuiloch va. Maryland. Chief Jus.
| tice Marshall said: When the law Is not pro-
hibited, and is really calculated to effect any
undertake here to inquire into the degree OF
| its necessity would be to pass the line which
circumscribes the judicial department
In 1916 congress again authorized an issue OF
$4,000 coo of legal tender convertible treasury
notes. General Jackson, in his FIRST message
| to congress, IN December, 1873, in reference 70
| the "national" bank, said: Under these cir.
| cumstances, IL such an institution is deemed
essential TO the fiscal operations ofthe govern
ment, submit TO the wisdom of the legisla
| ture whether a national one, founded upon
the credit OF the government and its reve,
nues, might not be devised, which would avoid
all constitutional difficulties, and at the same
time secure all advantages to the government
and country that were expected to result from
vetoed q recharter OF the national bank, and
was triumphantly sustained by the anti-bank.
currency democrats and wings. Then, as now
many persons who assumed TO be leaders in
the democratic ranks supported bank currency
| and denounced Jackson and the veto. Jack
them into the ranks OF the bank curTeDcs reno,
party. Gen. jackson, in his farewell address
said: But experience has now proved the
and OF o
Iermine whether the proper remedy shall o.
applied. The corporations which create
keep the circulating medium uniform In
amount. Recent events have proved
that the money system (banks of tssue) of thii
mine your free institutions; and that those
who desire to engross all power In the hands
of the few, and to govern by fraud or force, ar,
aware OF It's power, and prepared to employ 1T
Your banks now furnish your emily circulating
medium, and money is plenty or scarce &C
cording to the quantity Of notes issued By
OF the United States was obtained from con
gress IL perfected the scheme Of the paper sys
| tenn, and gave to its advocates the position
they have struggled TO obtain from the com
mencement Of the federal government dow
to the present hour. The distress and
sUFFEBINes INFLICTED ON THE PEOPLE By
THE BANK
are some OF the fruits Of that system OF polio,
| which is continually striving to enlarge tn
authority of the federal government beyon,
the limits fixed for IL by the constitution. Tn,
powers enumerated in that instrument do no
confer on congress the right to establish
such corporation as the bank OF the Unitet
States. 1t behooves you, therefore, to be watch
ful In your states as well as in the federal gov
eminent. The power which the moneyed In
terest can exercise when concentrated
under q single head, and with on
present system of currency, was sufficiently
demonstrated in the struggle made by tn
Un4t