Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1877-07-31

WASHINGTON. July 27.-Tbe Iolationi.ts arc
already beginning to assert that the present out
break of railroad and other laborers is the natural
result of the sharp contraction of the currency
which has been caused by Secretary Sherman's
financial policy, and demand that contraction shall
cease. Judge Kelley of Pennsylvania, one of the
high priests of that school of inancers, has been
in Washington this week, and his face has worn
that look of satisfied contentment which all proph
cts of evil carry when they think that their pre-
dictious have been verified. Quoting from the
New York Bank statement of last Saturday,
which showed decrease of SS7l 100 in loans 81
81 800 in specie, and 81 300 in deposits, he
asserts that these figures show a sharper contrac
ton in the circulation of the country than has be
fore been witnessed for long time. "lf," he
says, Eve see such results from the slight disturb
ance caused by the payment of two per cent on
the 60,OOO000 subscription to the new bonds,
what may we expect when the bonds actually have
to be paid for -
The complaint against the policy of the Secre-
tary Of the Treasury, and the assertion often re-
pested that Mr.. Sherman is forciby contracting
the currency, and that this is the cause OF the
cent strikes and their attendant destruction of
lite and property, were referred TO by the cores
pondent of the Tribune to-day in conversation
with Assistant Secretary Mccormick why"
said he, "this is simply absurd. The only
contraction of the currency is by the volun
tary retirement by the National Banks Of
circulating notes that they cannot use. The
United States is not contracting the currency IN
any way, except that when National Bank notes
are issued, eg hty per cent of the amount in Unit
ed States notes is retained. This process leads to
q general average issue of Sl,0OO,00O month of
bank notes, and the withdrawal of So00,0O0 of
United States notes. Every dollar OF fractional
currency is replaced by silver coin, and silver coin
has been issued III excess. Any person can have
bank notes upon deposit of United States bonds
which may new be had at par IN COIN. 10 show
that there is contraction OF the currency, 1t ap
pears from the debt statement that the amount OF
money deposited with the Government for safe
keeping, without interest, was on the first of July
S54 800 O00 and on the 10Th of July $50, 900 900
SO that nearly one-ih OF the United States notes
is voluntarily deposited in the Treasury without
interest by the owners Inc amount OF such de-
posts is steadily increasing
HAS the Treasury Department any informa-
ton" asked the correspondent that there is any
where in this country scarcity OF currency +
"None whatever" was the reply. Money Is ac-
cuinulated in all the banks anu al Gil the money
centres of the country, and interest on CONNER
cial paper is lower than it has been for years.
There Is no contraction of currency, but the great
est abundance and excess. 1t is Idle currency and
not the want of currency that Is the trouble
"Your official position gives you exceptional
in your opinion, the causes OF the present
troubles 7" was the next question OF the cores
pondent.
"Tbere are several" said Mr. Mccormick.
First the want of confidence, caused by enor-
nous losses in all kinds OF INVESTMENTS made dur
ing a period of great inlation; second, the fall
ing off of the demand for manufactured products,
especially of iron. This is not caused In any
respect by want of currency, but by over-pro-
ducton, not only in tins country, Dut IN all the
,,a,Lats in tho world. The present distress
general among commercial nations, with this
strong advantage in favor OF the United States
that here farming interests are 10 the highest
degree prosperous our crops are good, and our
markets are excellent mainly because OF the war
in Europe. In comparison with other nations, our
financial condition is far better than any other,
and now, Just at the time when our prospects are
most hopeful comes this strike Oh laDofefs against
labor. This effort of men employed against men
upemployed, this refusal to allow laborers to
make their own contracts forces distress and ruin
merely that men now in employment should be
kept in employment and paid higher wages In
the natural course of things when crops COM
menced to move, wages wouio nave aaVahceo,
and soon the money set in motion by the crops
would quicken all industries and give employ
ment to many idle people. The money now lying
idle is ready for active use the moment IL can De
safely employed. long period oil delection was
about to be followed with activity ana industry,
Surely nothing has happened in the history OF
mankind so injudicious the present movement
to prevent laboring men from working Even II
they were asked to work for insuhcient wages,
they had no right to prevent otner people from
working. The first effect of their movement is
to make it still more difficult to get food and
labor, and to bring distress upon the very class OF
people to which they claim to belong.
There is good reason to believe that the opin-
ions expressed as above by Assistant Secretary
Mccormick, are substantially IN accord with
those held by Secretary Sherman.