The Cambria freeman. [volume] (Ebensburg, Pa.) 1867-1938, 1876-02-11
The Currency Question.


ENCE OF FRANCE, GERMAsY and ENGLAND OK
THE CURRENCY QUesTIoN-IUDGE kKLLEYs
| PLAN AND THE PRESIDENTS S TACTICS, ETC.
lFoURTH PAPEs.l
! DEAR FREEaAN-I presume you have, ere
this. concluded that your correspondent mas
forgotten his design-for which you would
doubtless not be sorry-but you not so
fSrtnnase t & Temporary M indisRosition and want
In my last paper Tsp SPOKE briefly , Of the , com.
rency. In this 7 will continue the subject a
little farther. 1t is obvious TO all reasonable
paper "a; Currency IS prererabie to coin But il
/ business depended entirely on the currency of
tenth part of the business would be transacted.
| In proof of this assertion 1t is only necessary
city alone frequently transact business to the
amount OF SlU0,0c0,eo0 per day. and not for on e
! gether, and this principally by what are known
as clearing house checks. Checks, drafts and
than paper currency and are consequently
more used. But they will not do in all business
transactions. The artisan, the agrculttirist,
| the merchant the manu- acturer ana the iaborer
must have money for their wants, and the
| branches and avenues of trade. Two things are
evident: there is not enough money in the
| country for the requirements OF trade, and
| what there is la cks elasticity.
WHAT THE BoNDHOLDERs SAY.
But" say the hard money men, the green
| back party wants to demonetzc gold; to infiatc
! the currency; to break the faith of the govern
/ mcnt- etc. Say they, ITO restore confidence
YOU must return to specie payments; you must
| contract the currency, and make it elastic by
| giving it Il gold basis,
WHAT THE GREENBACK PARTY PROPOSES TO DO.
The greenbaclz men do not propose to demone-
| tie gold, nor TO initiate the currency, in the
| proper sense of the word, nor yet to violate
| national faith. We would still coin gold, but
we would make the greenback a full legal
| tender, equal to gold. We would have the
ness OF the country would require; but this we
would, for the most part. ace eomplsh by with
| dra wng the circulation ot the national banks
! and substituting tho currency of the govern
ment in its stead, thereby saving the interest
paid on the bonds deposited as security with
! the Treasurer, and increasing the circulation
| by putting in the bands of the people the
amount OF money which the national banks are
! required by law to keep as rceerUe
| But this talk about imitation and consequent
| up by the bondboidels 20 Scare silly people. /
| do not mean TO say that a superfuity of cur
! of an unlimited amount would not depreciate
! it, but do insist that the government could
| And believe that had the government in the
FIRST place issued sl0CO,ooOooo in green backs and
banks we would not be afflicted by hard times.
THE EXPERIENCE OF FRANCE.
Five years ago France was defeated I'm the
most gigantic war of modern times. To add
ner calamities she was rent by internecine
strife. She burdened by huge war debt.
The iron heel of her naughty conqueror was
her throat as she lay humbled in the dust, and
he insolently demanded, besides the territory
he mad wreached from her indemnify the
largest ever exacted by proud victor. France
paid this indemnity. ana she paid it two years
in advance ot the stipulated time, but it took,
you may say, ali her gold. What did France
then do? In addition TO her bonds, which, un-
like ours are in the hands of her own people.
s5I2, 100000. Mark the result! To-day France
is the most prosperous nation on tne lace OF
the globe. Her people are emplh! ed, and, un-
der her republican form of gov eruIncnt, happy.
Her exports for iS14-'75 exceeded those OF
any other year OF her existence rr of any other
nation, the value of exports FOR the year mem
toned being about q. 1O00oO,00o. Her treasury
now'contains over s30O,001,0oJ in g3id, and her
paper currency isat par with gold. She is now
terror to her arch mcuaciug him with
Al volunteer force of GU0,0o0 men. Her com
merce is the first in the world. And all this has
been accomplished by her irredeenable paper
money, which bears ON It's face a sinpte p,orntse
TO pdy- Germany, on the other hand, with her
specie basis aud her vast indemnity, is act ualiy
in straits for the want of money. Ana Eng
land, that paradise of hard money, is witnessing
business failures of the most extensive proper
tions and OF startling frequency. y widespread
panic prevails, SO much so that her business
men are discussing the propricty of petitioning
Parliament for suspension of specie pay
mcnts This specie payment twaddle is
"DELUsION AND SNARE"
Specie payments, forzooth " hen we can hardly
T & soa re pay 9 6 5nT on 2 39r
ports, and what we pay to foreign shipping for
Why can VIC not follow the example of
France? Can we not learn wisdom from the
wise? Is not this country far richer than
France Era @ IN resources @t evsry k,nd 10 the ex
we not safely issue as much national currcncy
But the great question is not more one of tho
volume than of
THE ELAsTICITY OF OUR CURRENCY.
One great cause of the uneasticity OF the
currency is the absence of a common safe place
OF deposit. Before the panic, persons who had
money hich they did not then need deposited
IL with the banks, which in turn loaned IL
New York banks. where it cornered and
loaned 10 wild specuiators To remedy this
evil, Judge Kelly proposes that the Treasurer
of the United States be empowered to issue
bonds in denominations as low as go at 300 loo
per cent Interest TO persons who wish TO loan
money to the government. This would cfectu-
ally prevent the corne:.ng OF money, and give
the poorer Glasses a safe place oi deposit. The
lender could recall his money when needed, or
convert his bond to he same use, and the gov
ernment could use the money ln paying It's ex-
penscs. This measure would expand the cur
rency without Initiating il, and would bring the
peop ie into closer relation with the government,
which would then be the great saN Nings-bank of !
her citizens.
A TRANSPARENT TRICK.
President Grant in his last annual message
recommended to Congress plan which, at 1rst
sight. appears to be that OF Judge Kelly, but
posed to issue 3.65-I0O bones in small denom- !
nations for greenbacks, which he would then
and the bondhodeis set up the cry that the
President had captured the pet idea of Judge
zionist in the country" and turned it to the
purpose of contracting the currency. No two
KclIey's plan the government would derive
benefit as well as the people i'll :hc saving OF in
tcrest, which would be the result of not having
to fail back on the revenues of the country, |
which could thcn be applied to paying the in
tcrest on the public debt; while the Presidents
plan would increase the bonded debt of the
country. decrease the currency and thereby
deprive the government of the use of the
money by which the bonds were purchased. !
In other words, it would be calling i'll of a
currency which bears no interest and giving out
an interest-bearing currency, and not a loan
THINGS TO BE DONE TO REMEDY TIL ESE EXISTING |
In the first place must cut of corruption !
in all the branches OF government Secondly |
W must repeal ail vicious legislation on the |
ST. hiect of finance, Thirdly, must make our !
currency uniforn. that is our paper money !
must be on a par with gold. lf this cannot be |
done cOnstitutionoly, with the present paper !
currency we can substitute 1t by f,tU legal !
tender currency Fourthly, we must make our |
productions and exports exceed that which we |
consume of our. own products and imports from !
abroad. Filthy, we must lower the Iega rate |
interest. (rhe reason for this Is that the rate
of interest is higher than the per centum of |
gain of all the industries OF the country TIC ac-
tuaI gain per cent. to the capital invested, |
according the census of 1870. was only Il |
fraction over per cent? Sixthiy, we must |
practice political and individual economy
Finally. we must encourage nome manufactures !
and home industries, dscountenance all manner !
of extravaganza In pubic ana private I,e' ana