The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1877-11-08


and business depres-
sion to the immense contraction of
the currency our country has suffered
in the last ten years. To carry on
the great civil war required a vast
expenditure of money. To meet it's
constantly recurring wants was COM
PEELED to issue large amounts of cur
rency. When the war closed, in 1865,
we had of greenbacks S433 100000, of
bank notes 5000, 900, of fractional
currency $26.OOO,OOO, State bank
notes $78,0O0,000, compound interest
notes $2l7 900. 900, temporary cert1fl-
Gates 5000, 100000. five per cent.
legal tenders $50, 100000, and 1.3o
bonds $3.50, 000,0 900, the whole constl-
tuting in round numbers, the immense
sum of So, 100, 100000. TO this large
volume of money all the business OF
the country became adjusted. Upon
it all its transactions were based.
prices regulated, wages estimated.
values measured, enterprises under
taken. purchases made and stock
bought. The expenditures of govern
ment, the salaries Of officers, the rates
of taxation. were all based upon the
same high state OF the money market.
Upon it also, obligations were in
cured. The nation, states, cities.
corporations and individuals, contract
ed debts with the just expectation
that the same volume of currency
would be maintained when they be-
came due, and when contracted. But
the policy was to expand the cur
| oh
incurred, and to contract it when the
same came to be met. In the spring
of 1865 the war came suddenly to a
close;the government at once reversed
it's policy, and instead of continuing
to increase the currency, contraction
became the order of the day. This
contraction was two-fold, first, a nat
ural contraction, produced by the
expansion of the country, and second,
an artificial contraction, produced by
the direct action of the government.
You will remember, gentlemen, that
this twenty-one hundred million dol
lars was confined. almost to twenty
six loyal States. The South had now
returned to the Union, their property
had been destroyed, the wealth con.
sumed, and their currency ami
hilated. TO supply these eleven States
with currency greatly increased the
demand for the same. A million sol
diers returned from the field to throna
the avenues of business, four millions
of slaves were liberated and became
independent operators, our population
had increased four or five millions
new States and territies had arisen il
our western frontier and great railroad
lines had been projected. All these
things produced an immense demand
for money upon the fund which
had hitherto been confined to th'
loval States Various channels wer
thus opened for the outflow of TIL
currency. 1t is plain to be seen thel
, that as the volume spread over
, wider sarface 1t would naturally d
minish in depth and by the time
had found its level and all those void
supplied. it had decreased in the pre-
. portionate aggregate full one-thlrC
! 1t is thus easily seen that the sam
-, amount of money which supplied tn
wants of twenty. six States and twe1
tv-five millions of people, would b
: more than one-third less when div
), ded among thirty-seven States an
y forty millions of people. Here W.
an immense contraction OF the Gu
: rency which salone would have pr
- duced financial embarrassment. III
>. this was not all. The governmel
! entered upon Il process of actual co
traction. The $217 200. 900
"a compound interest was matured al
y paid off. the State bank notes WEI
:, taxed out of existence, the Temporal
), certificates. the three per cent. certi
y icates. the five per cent. legal tende
:. and the 80 bonds were retired. I'll
- greenback currency was reduced $50
. 900, 900 and thus the process went {
! when in seven years the currency h;
; been reduced from $4,000 100000
! 500. 000. 900. making a total contra
e ton of 81 400 900 900. NoW.my fellO
- citizens. | desire to ask how was tn
- contraction accomplished | answ
- by funding the currency into 90
- interest bearing bonds. For eve
, dollar of currency withdrawn a go
;. interest bearing bond was substitute
. for every dollar taken from the peop
- dollar was charged up to the peopl
- As their ability to pay was diminish
i their obligations were increased;
~ the volume of currency sunk. t
II volume Of bonds rose. and when t
- currency had touched bottom at so
- 900. 900. the bonds had reached the t
- at 81 800 200. 900. Now. in view
~ this immense contraction of the CT
=. rency. both natural and artificial. is
= to be wondered that the currency
"a embarrassed 1t is easy to understa
,a how a nation whose business had
- come adjusted TO a currency
~ twenty-one hundred millions Wou
=. = be embarrassed to adjust larg
=, business to currency of seven HI
= dred millions. How firm that h
- been doing business with a capital
~ twentv-one hundred would be emb;
=, rassed to do larger business with
~ capital of seven hundred. or how
- man owing twenty-one dollars wou
"a embarrassed to pay it with sevt
~ Nothing but our immense resourt
nc and the wonderful energy Of our p
q nle saved the country from abSolt
III S,,,>ra follow citizens