The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1876-08-23

"
deny that The panic OF 1873 was c.used
by this enormous contraction of over sl,lUO-
90 sO0J OF circulating medium, This contrac-
ton ma produced the present sagnatiOn in
bns ness. The history OF the world will show
no such contraction. and the people of no
other government could nave stood such con-
trac ion. The decline in values is o wing to the
ntraetion OF the currency, which Is the
measure OF all va ues. The reason these fac s
| traction Is desired by the money power OF the
country. Were they to ADMIT the enormous
contraction OF the currency, which has pro-
duced she great reduction In values,
BANKRUPrBD so MANY THOUSANDS,
and is destined to bankrupt many more, even
If the contraction stops, the people would
not permit a further contraction of the
currency, such, for instance, IS Is contempla-
ted by the resumption act of 1875. While all
commodities have depreci 4ted in price and
real estate at the present time is lot worth
more than 90 per cent of VIII tit was when
this contraction b-gar, government bonds
steadily increase in value. This is just what
bond valuable and the Interest on the same
appreciate and depreciate the price of all
com modtties, and everything aving value
SO that The buy1ng capacity of The interest,
of the bonds would b. great. IL is always the
case where there is larLe volume OF cur
rency, that currency is cheap. ano commodi-
ties OF every kind are high. II is just the
verse when the vo.ume of currency
is greatly reduced. lis office being
e&chanse Of nd1 9ss and 5slsate .h
Value OF all lands products and commodities
If every kind must be reduced in value, In O =
der That Its Vaiue can be measu ed by The
small amount of money that VII be left To
measure 10. know that the grest anxiety OF
The people is TO know when times vii be bet
.er when The expectation OF the value o.
their pr perty will cease, and values be more
permanent. Thas can only De known TO one
who knows when contraction will stop. and
TO what extent IL is yet 10 be carried. The &C
of 1873 providing for the resumption of specie
Gay tnents IN 10 y. also provided or the retire
amounts TO more than one half of our present
circulating medium-I mean our paper c rou-
lation. Ga every business principls, II tni
law Is 10 be carried out as provided, the reduc-
ton of values OF all kinds will continue
aid that reduction will be in proportion to the
volume of currency retired. You may therefore
expect that the value of all commodities, a.
wei as OF reai estate, will be reduced at leasi
one-halt below wneIe il is to-day, If this Law
Is carried into exc utio = This act was MOI
passed 10 KEEP the public faith. The people,
Tor whose use tn legal tenders, as money were
issue1, never asked their REDEEM ption They
nsve had all the redemption tnat they ever
desired, except that the federal government
Shou honor her own notes. by receiving
them for debts due her. No man makes an
Investment IN money, but desires money 10
Invest IN some commodity. II parties having
commodities to sell are Hing 20 take The
legal tender notes in exchange for them. which
they are always az XiOus TO do, that is the only
REDEEM ption they desire. 1t is not desira BILE for
any man To have money that he has TO ex-
ehange Tor other money. in order to pay for
and its enforcement is insisted on, o. by tie
people, bat oy large holders of money securi
lies.
THE PURPOSE WAS, AND IA,
fist, to secure through the national banks the
control and regulation of the whole paper cur
rency ofthe country; second, to obtain $780,
100000 more of government bonds; and. third,
to conhscate the property of debtors and
ucuble the purchasing power of boarded cur
and currency
enormous contraction. To attain tn Sc ends
we were TO have been subjected TO a REQ ucuon
Il the currency in the next three years from
rs ,O0o,f 90 to 81 600, OJ0 or az OHUCO. Consid-
erlng our small supply OF go d, which, under
deI-a suI ply constantly diminishing under
the condi ion of our foreign trade ard indebt
edne S, VIII CHI cannot be changed for years
the accumulation or retention OF large
amount OF gold in the country is impos
sib'e. No intelligent man can believe
that the banks can keep sfioat a currency re-
deems be in gold, much, IL any, in excess of
the amount we had before the war, which was
from S2l5,0 o. 90 to s22 l,0WFOO. II we call it
500 90 i,0U, we shall then have q contraction OF
currenc' in three years, of about of sos per
cent. This is figuring ON a retirement of ma
tional bank currency which has been rapidly
going on: and Will continue, in view of the
great difficulty in doing business, when bank
e's are comp lied 10 redeem their paper in
gold alone This Republican policy has had its
desired eftec', to-wit: TO Increase The price of
government bones, until now the 20 bond is
a. premium of per cent here is q great
Inducement Tor national banks now to retire
their currency, and bank upon the green
back or legal tender notes Suppose a national
bank gets only 80 per cent. of the face value
If their bonds deposited to circulate as money,
when is ali they get when the amount OF
their capital is half a million or more-if they
sell their bonds TOR per cent. they have As
per cent more To loan han they have under
their present national anK system, for which
they can get much higher ate Of iniere [
than the Interest upon bonds, they having TO
deposit per cent with The secretary o. the
dor
which makes a difference In the loa cable
! funds of forty five dollars in favor OF tne
,, green Backs This, 10 some extent, explains
why IL Is that national banks are retiring
their currency. The bankers are dreading the
OF business men, and know the fficulties
they will have TO endure when that
dav arrives. L have no doubt that there
Ss"kers in opposition to tais resumpti I
policy, were IL not that they fear that they
YOU d De regarded rs weak financially.
put act. They are prep aring tor 1t by retiring
their currency. IL Is not the province OF a
banker To furnish currency on which the
profitable for him to do so. 1t is
his business TO make money, and
whenever he thinks that there is more money
to be mad, by retiring his currency, than TO
ep 10 in circulation, he re Tres it. He can
not be complained o. because of that. 1t is
THE BUSINESS OF CONGRESS
and not individuals of corporations to furni h
a currency Our long experience with banks,
our reliance upon them to furnish us cur
| rency to do business With, think ought
| to convince every observing man that
we can not have steady volume
| of currency when we rely upon corporations
/ 10 rurnIsn IL 10 us. The only way that the
| people can have a steady volume of currency
| is TO have IL furnished by the government, and
| that currency made a full legal tender, so that
no man Will have to exchange the dollar that
Il he has for the dollar thai some other man has
i in order to pay any debt or obligation. Such q
currency has always been par and al ways will
be. Our sreenbeck currency would have b. en-
/ made par long since by leg Station, making IL
/ receivable for all debts due he government
i mad IL not been for the war that has been made
on IL, in order to discredit 1t and ret IL out Of
the way OF national bank circulation. This
Il ha v q