Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1877-09-19

est or one not drawing any interest
9th. Would not the capital invest
ed in National Banks be taxable by
the National, State and Municipal
Governments just about the same, no
matter how invested, and if so, then
how is it that the government gets
such large revenue from the Banks
which it could not get otherwise, and
if this capital was Withdrawn from
National Banks, where it is loaned
out to poor men at large rates Of in
terest, would it not be compelled to
seek new channels for investment and
build up enterprises which now sleep
for want Of capital?
If the above questions are answered
satisfactorily and truthfully, there
will be at least one republican better
satisfied with the party to which he
has always been proud to belong.
QUERY.
As the queries put, seem aimed at
the remarks of the Hon. James f.
Wilson. made in this city Sept. 9th,
1877, we should have referred them to
him, had he been at his home in Fair
field, but as he is in the city of New
York, this course was impracticable.
In answer to the first interrogatory,
we answer that the law limiting the
amount Of greenbacks to $4OO, 600, OOC
was passed June Goth, 1864. On this
point we will add few remarks
This act of 1864 was discussed and
passcd by Congress at a time when
vast expenditures had been made in
the war of the rebellion, and yet trea-
son was defiant and the issue in
doubt. Sherman had not then made,
as he did a few months thereafter, his
grand and triumphant march to the
sea, nor had Grant fought the stub.
bornly contested and bloody battles
which in the latter part of the same
season occurred in his advance upon
Richmond. Gold in those dark days
was steadily advancing. going up
from $l.55 in January, 1864, to $40
in July Of the same year. 1t was a
time when there was a fearful strain
upon the nations credit. AT this time
Of such gloom, which was only dis
PEELED few months later by General
Sherman and his gallant army break
ing VIGOROUSLY through the very
heart of the Confederacy, and Gran,
progressing slowly, but surely toward
the Confederate capital-this law
had origin of necessity-just such q
necessity as made greenbacks as a
legal tender possible of issue lawful
ly. 1t was then the nation promised
that this forced legal tender issue,
this non-interest bearing debt, as a
circulating medium, should never ex-
coed $400,000,0O0. This was pledge
of the nations faith to preserve its
credit, and its preserved honor, if it
shall be preserved, requires that this
pledge shall be kept, though made
with hard master. This pledge,
however, rests wholly upon the basis
that these greenbacks remain ir.
redecmable. Whenever the nation re-
deems her greenbacks, then the life of
the pledge becomes extinct and value
less. We will add few facts as to
the circulation. 1t was reduced
steadily, until 1868 the amount of le-
gal tenders in circulation, was 1885,
100000, at which point Congress
passed the act of Feb. 4, 1868, sus-
pending the further reduction Of the
currency. After the war, the Sccre-
tary Of the Treasury urged con-
traction of the currency, and in two
weeks the House of Representatives
responded and pledged cooperation
to this end, by resolution which was
passed by the decided vote of l44 to
6-but one democrat voting against
it. April u, 1866, Congress passed the
act authorizing the retirement Of ten
million dollars in six months, and
four millions in any month thereaf-
ter. Upon this bill there was but
one democratic vote in opposition in
the House, while in the Senate the
opposition vote was exclusively Re-
publican. 1t was under this act that
the greenbacks were reduced ~, OOO,-
600, and in February, 1868, Congress
suspended their further reduction.
Against this last act the democrats
arrayed themselves, not one of them
voting to stop the contraction.
During the panic of '73, the Secre-
tary of the Treasury re-issued $685.
100000 of the $44,00O,OOO retired,
bringing the legal tenders up to $780,
600. Since that time there has been
retired about $22,OOO,OOO in green
backs, leaving the present volume in
circulation, in round numbers, $780,
100000. In 1868, one of the most
prosperous years Of the country, the
greenback circulation was less .han
it is now by from go, OOO, GOO to "a Co.,
900, and the total circulating medium
in 1868 was in round numbers, $780,
100000, while now it is $7l7O0O,OO0,
or SIS 100000 less in number of dol
lars than in the prosperous year Of
1868. But in 1868, the purchasing
power of our currency was very much
reduced by reason of gold being then
at premium of fifteen cents or more
the exact figures we have not at
hand. For this reason, there is not,
in fact and in truth, any diminution
of the circulating medium of the
country, comparing the year 1868
with the present.
We have interpolated more facts
above into this article than were
needed for this answer, but concluded
to inject them at all events.
In answer to the second interroga-
tory, We will say that we will have
not less than $3OO,OO0,OOO Of green
backs in any event, and probably not
less than $35O,0Oo,0oo, and added to
this, will be the $3l5,OOOOOO in bank
notes, or this latter sum reduced say
by five or ten million dollars by the
voluntary surrender by the banks of
their circulation. BY the act of June
20, 1874, Congress provided for free
banking by permitting the issue of
500 in bank notes upon the surrender
Of $50 in greenbacks, and further pro-
vided that this process might go on
until the volume of the greenbacks
should be reduced to $500, 100000 but
no further. This is the law which il
responsible for whatever Of contract
ton there has been in the currency,
since it provided that the banks might