Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1877-11-29


gotten the old pledges; and now only
twelve years have passed (for as late
a. 1865 this House, with but six dissen'
senting votes, resolved again TO stand
by the old ways and bring itself Ia
ss,und money!, only twelve years have
passed and what do We find? We find
a group of school men and docirinaires.
We find some who advocate whst they
call "absOlute money" who declare
that piece of paper stamped "dOl-
lar" is dollar, that gold and silver are
u part Of the barbarism of the past,
which ought to be abandoned. We
hear them declaring that resumption
is u thing which ought never to take
place. We hear them declaring that
the eras OF prosperity are the paper
eras, and they point US to all times ol
Initiation as the periods of blessing to
the people and prosperity to business,
and they ask us to veX their ears no
more with any thought of resumption
Let the world of financial literature
that has sprung into life within the last
twelve years tell how widely and how
far We have drifted. We have lost our
old n0orings-have thrown overheard
our old compass We sail by alien
stars, looking not for the haven, but
af1Oat on shOreleSS sea.
NO LACK. OF CURRENCY.
Now, what are the obstacles to re-
sumption in accordance with the law
We have Iassed? The first great obsta.
Gle stated by gentlemen who have ar
gued that question is this: that we
have not enough currency in the coun.
try for its business, and that some
measure of contraction will be likely
to attend the further execution of the
provisions of the Resumption law.
Before l enter directly on that, de-
sire to put plain question to the gen.
tlemen who hear me. in that prospe-
rous era of 1860, when there was free
banking in most af the States, and the
banks were pushing all the currency
they could into circulation without
limit, there were just s207 900, 900 of pa
per currency, and that was the largest
volume that this country had ever
known. Now, nobody estimates that
the amount of coin in the country in
1860 was more than 500, 600 900, or
$3.50 ,000, 900 at the very outside; but as
suming it at 5000, ,000, 900. and add that
to $207, ,000, 900 of paper circulation, and
you have $407 900, 900 of currency, of
paper, ofsilver, and gold. How much
have we to-day? This day, or rather
the first day of this month, we had
$727 600. 900 greenbacks, banking notes,
fractional currency, and fractional sill.
yer; and IL you add the $4,000, 900 of
copper and nickel you have, 1t would
make $736. 200, 600 OF currency, count
ing no gold whatever, although the
Pacific cOast uses large amount OF
gold.
Now, put 1t to the judgment of this
House u, under free banking and no
restriction IN 1880. $407 ,OOO, 900 was the
limit Of possible currency that could be
kept out in circulation, how can gen.
tlemen say that almost twice that
amount is needed, and is hardly
enough, for the wants of 1877?
THE EXAMPLE OF FRANCE.
Now, in this connection with this
view we are met by the distinguished
gentleman from Pennsylvania Mr..
Kelley with two rhetorical references
on which he plumes himself as having
made a great hit in this debate. The
first is his reference to France, "Fol-
low France" says the honorable gen.
tlema7 from Pennsylvania, "Follow
France and see her pour out her vol
umes of paper money and live through
a great crisis, and come out successful
finally in her business affairs" 1
would to God the gentleman and those
who vote with him would follow
France. What are the facts in regard
to France? The first thing that he no.
tices is that France has always had
more currency than the United States
and England. Yes, 1 admit 1t, but
does the gentleman not know that tine
traditions and habits of France are as
unlike those of England and the Uni
ted States as those of any two nations
of the world can be in regard to the
use of money? say to the gentlemen,
that in France banking, as general
business. is almost unknown. There
are no Banks in France except the
Bank of Frinca its.'lf, and the Govern
ment has bsen trying for twenty years
to establish branches in all the eighty
nine departments of France, and has
been only able TO get them established
in fifty-six places in all the realm. The
habits of the people are not adapted to
the use of banks as we use them In the
United States. How is it with savings
banks? All the savings deposits of
France in savings banks are not equal
to the savings of the poor people and
the working people deposited in the
savings banks of New York City alone.
1t lis the frequent complaints Of people
who have any trade with France, that
you cannot pay merchant in Paris by
a draft on the Frince. They do not
take drafts and checks. The business
of their country is done hand to hand,
by the use of cash, and they need five
times the amount of actual currency to
transact business as the Anglo-Saxon
communities Of England and the Uni
ted States need. -s--
How is 1t In England? Statistics
which no one will ganisay will show
that ninty.five per cent, of all the great
mercantile transactions of England are
done by drafts, checks. and commercial
bills, and only five per cent. by the
actual use of cash. The great business
of commerce and trade is done by
drafts aud bills. Money is just now
only the small change Of commerce.
And how Is 1t in this country? We
have adopted the habits of England,
and not of France, In this regard. In
1871, when / was chsirman of the Com
mite on Banking and Currency,
made an experiment. I got the Con-
troller Of the Currency to issue an
order. naming fiftytwO banks which
were to make returns, We selected
+ ,ree groups. The first group were the
cifv hanka uOt ho,. auar tho oioo MI mr.
house banks, but the great city banks.
They were the first group. The second
were the banks OF cities the size OF
/ Toledo and Dayton. In the State oi
Ohio-cOunty banks. In the third
group, II I may coin word, selected
the "cOuntriest banks" the smallest
that could be found at points away
from railroad and telegraphic COM
. municatiOn. The order was that all
those hanks should analyze their re-
e. =. 4