The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1876-01-05

there Is no demand upon the banker IOf
redemption; whenever these bills are not pre-
sented for redemption In specie, upon business
principles, they will loan every dollar of their
issues that they have. Thus IL will be seen
| that this leads to imitation. whenever there is
lack of confidence in their ability to redeem
anc always will be; when IL Is known
that they have from three to four
when there IS a run made upon a bank for re-
demption, pom business principles, the banker
will contract his currency and draw in his
loans. Whenever he takes up a bill he will lay
II aside till the volume in circulation IL such
or silver he has on hand with which to
| redeem his issues. That being the case, you
have contraction: The history Of the country
icy has brought the people financial ruin aud
wild spread disaster. Now, the great point for
Keep stated vo :1me Of eurrency in circulation
and that currency at a fixed value. will not
take the extreme view OF this case, as nigh
do here. i will not argue this question as
l might by referring you to the state stock
said to have been on specie basis, and when
every business man in the country had 10 have
a bank detector TO learn the value of his
banking, and recollect when bank notes
We're quoted all the way from 20 to TO-
a fnanciaI policy, 1 can say to you, gentlemen,
that am not in favor OF this specis basis bank
policy. The base is too narrow. / think that
The necessities of the country during the war
have taught us better policy; and thattf we act
wisely we will embrace 1t. Now, want to show
THE INITIATION AND CONTRACTION THAT HAS
EXISTED
in this country for many years back. In
proof of my position, 1 say that this imitation
and cOnirac Llgn, when the volume of currency is
left to banks and banking corporations, whose
issues are redeemable in specie, is the natural
result of that policy. IN 1911 we hal SIS, 900, 90
In CIRCULATION. In 1916 that volume had
Increased to sssOo0oO0. In 1922 the volume OF
contfsction of s2SOOO,lOi. Weoniy Know by
hi story, or at least only know by it, anything
OF 9 panic % o." you % 1enI one LILLE
THAT the initiation of the currency u ever pro-
duced panic, but panic always TO lows con-
traction. History teaches us that the country
very prosperous until 1879, but in 1922
s1ere Ssrss sTsss ds 1snsisI cr MaD
were made bankrupt everywhere. And
1 want 10 say this upon that pc MT. IL is well
men fail. Those failures are brought about by
this uns eady volume of currency. The great
secret OF success in business is for man 10 be
able to bridge over the contractiOns that we
through "nG these c S5' and al aifc%is
m01sy is more penul and business meTe
profitable. The question in times of contraction
his credit aud not now to make money. Now,
in lSa the , volume Tn OF currency mad been In
but a small boy, but 1 well
EVERYBODY WAS PROSPEROUS
aud the products of the country were greatly
increased. In lS43 that volume of currency had
been decreased or contracted to sSS,OO0,OJO. Now,
gentlemen, many OF you recollect 43. re-
member well, that in 1912 and 4S 1t was
almost impossible to sell farm products
at any price. L recollect that corn was then
shipped to New Orleans and sold at Is cents a
bushei. Now this was the result of contraction
The business OF the country was deranged, and
all men who were financially weak all men
who had not a sufficient capital to bridge over
of the way and made bankrupt.
In 1854 the vo ume of currency had been in
rency had been contracted s49.oO0,OOO, eaving
Sl15HOoI00 IN in circui ation You reco' lect the
troub that we had in business in 1851 and Is g.
You all remember that. l want you to bear in
mind that your business was alwa S prosperous
when you had enty ofmeans TO carry IL on. l
want on TO recOl ect that there never was q
pan unless 1t was preceded by severe cODtrac-
lion. In l Gu the volume of currency had been
co Hmenced there was a general suspen-
sion of specie payments, and many banks,
failed throughout the country. We now APP
proach the great imitation of the currency from
ls62 TO 90. II was increased SO that there was
in circulation including governme ut issues of
From 1860 CO 1873, this volume OF
currency was contracted, until we only
NsNSf0~NtNN~
CONTRACTION OF 81 ,345, 100000.
a great many men have been at loss to know
why 1t was that we had the panic OF 70. VIII
not these figures account for 1t, gentlemen?
When more than one-half of your currency
was taken from you in that shor
space of time, making a contraction unknown
in the history of the world followed by panic,
from the effects of which we have not yet recOv-
cred The bullion advocates who travel over
the country and argue this question. insist thai
We had as much money in circulation in 1873 as
we had at any time previous, and therefore
Upon this point il would be well for me to show
you Just what we had IN circulation mat passed
notes s4S301OOcO. We had fractional
currency to the amount Of s26,c0OOOO. We had
cOmpou nd interest notes, S2l7,OOOUOO. We ha
temporary loan certificates, SlO7 0OO.l0O. We had
han treasSFy OO5 I'VE per cent aega
notes, iesal-tenders due and not presented
| Sl,O0,0e0. We had state bank notss. s7S.O0O.0O.
We had year treasury notes known SIS the
bond that both principal and interest was
payable In legal-tender currency, and be.
cause Of this T L hal S the same value as
ness circles. Everywhere IL was used cur
Tency. All business men will rec ELECT that that
mgse Is
or them. and deposited them in
as other money and used them in all business
Transaction elton And yet those bullion advocates
sni insist that the panic of 1873 was great mys-
/ 'ery, inasmuch as there had been no contrac-
| 4 n Of currency from its previous volume.
| They refer only to the greenback
currency and the national bank currency
aud in'that way prove their position, losing
sight of the
OTHER GOVERNMENT OBLIGATIONS
VIII Oh were used as currency as previously sta
ted. Now, our ground of complaint is this. This
contraction that was carried on before the gov
eminent took charge Of the issuing Of money
was a business transaction. 1t was forced
UPON the banks in order to protect their credit,
| but when the government taxes charge OF this
money quest O., when 1t is with 1t to issue or
contract, rs 1t not strange that 1t should pursue
q course that is to bankrupt the country, solely
/ in the interest OF the oOndholder and the money
| lender? You notice here that the republican
party has carried you for years on the