The Leavenworth weekly times. [volume] (Leavenworth, Kan.) 1870-1880, 1877-12-13

'S- VI paper pfOinises 20 paw fhls Is
rarely denied as an abstract proposition,
and vet the duty of furnishing us with q /,
is sought to Be EARNED on. to cor
porations entirely and the full, free offer of
the people to loan the Government without
interest every dollar that can profitablv be
employed as 4 medium Of exchange Is
sp1rned or ignored. Not only is it desired
that the individual citizen should resolve |
himself into a corporation in order that he !
may avail himself Of some of the privileges
Of citizenship, but the volume of the cur
rency Is left TO be determined only BY the
dealers in money. men whose interests are
identical and whose powers Of organization
Tor the protection of those interests are
almost unlimited. Left entirely to them
it will contract and expand Just as profit
able margins are seen, in the one or the
other direction, and the interests of our in
dustries, the interests of the people, will
weigh as the small dust in the balances.
This power of the bankers and brokers
was clearly forseen from the first debates
upon the currency bill, and pending its
passage Mr.. Kellogg, of Illinois, said:
We know that, whatever the security may
there are strong and powerful combinations
against IL II IL Is based upon the idea Of ulti-
mate security rather than Of immediate con-
y , what VIII be the ., result. way
have direct interest to depreciate it. The
country owes them. The debts of the coun-
try are fixed In amount, and II they can
parafively force their debts up. They make
you pay in good currency what you owe
and they depreciate the currency you have 10
pay in. Why will they depreciate IL: Be-
cause they propose to furnish the currency
themselves. They propose To depreciaie it
and speculate in a depreciated currency.
And. sir, they can do IL by their hold on the
commerce of the country. They have become
the avenues of commerce, the OF gans of COM
merce, from East to West, frum North to
interests antagonistic TO this currency, they
will try TO depreciate and il will succeed.
Whether the resumption act is repealed
or not, our currency cannot much longer be
kept below par for the speculation OF the
brokers, but their power to govern the vol
ume of currency, If the furnishing Of it is
to be left to them, can hardly be doubted.
A steady flow of coin out Of the country
on the interest account, Steady flow into
the Treasury vaults to keep up an arbitrary
coin exchangeability of the notes, would
keep what coin there might be in the coun-
try in New York and Washington. Very
little gold and very few silver dollars would
find their way into the circulation of the
country, and the control of the currency by
the national bankers would be matter
easily managed.
1t has been suggested several times upon
this floor that the United States notes are
now so nearly at par that we ought to go on
under the present law and allow it to COM
plete its work. Gentlemen who favor the
maintainance of the resumption act mistake
the animus of the opposition. 1t is not re-
sumption that is opposed SO much, as the
process of contraction by which it il 10 be
brought about and by which il is to be main
tanned after it is reached. There are also
some few facts that should not be overlook
ed in this connection.
The greatest depreciation of English bank
paper during that memorable suspension
that was terminated in 1921 was in lSilwhen
500 of bank paper would buy $50 in coin.
During the last five years If the suspension,
or from lSl6 to 1921, there was a deprecia-
ton Of only per cent; and yet to over
come this inconsiderable difference required
or at least there uas hod-a contraction
of over Sl00,OOO,OO0. | have already said
that it very nearly ruined English indus
tries. Two quotations, one from Martineau.
in reference to the wears 1911, 1872 and
1918, and one from Lord Granville, during
the debates in 1919, will be sufficient to es-
tablish the truth of the assertion. SAYS
| Martineau:
| Our manufacturers were set fast and could
| not pay wages on which their workmen
| could live, and workmen could not live ON
| low wages when the average prize, of wheat
was one hundred and twelve shilIings 1.-THE
quarter OF eight bushelsl and that of meat
| Gig pence or nine p..nce per pound The or
4 ulnalN of rfi lar ~
| the hardware manufacture, was broken up.
| The Factor stepped an between the employer
ana the operative and made his market of the
| necessities Of both, leaving them discomfort
ed with each other. The employer sold OFF
his stock at a loss and the workmen made, in.
| f''rior wares by means of advances from the
| Factor for material.
| Grenville was resumptionist, and
charged upon redundant currency all the
evils which had fallen upon his country
We shall be allowed to draw our own con-
illusions Of the causes; but of the evils
which existed at that time he says:
| The whole kingdom was involved in a gen.
| eral desolatiOn not only its trade and com.
merce, but its agriculture, its landed interests
| even Classes the most remote from connection
with or even Knowledge Of the paper system
found themse YES suddenly CONSIGNED to to
tai and ineXplicable ruin. II their lortiships
| could see nj their bar not merely the victims
| of commercial failure but those numerous
persons, Of all ages, .xes, and classes, W he
had unconsciously suffered without even un.
| derstanding how or whence the evil came
| such spectacle would I'LL their IOrdships
it'll ACCOMPLISHMENTS History Of An,ericdn
Currency.
The price of gold at the date of the passage
Of the resumption act was liz and ll3
One year later it was 1l3 and ia. Con.
traction had been going on during the year
yet the price had not materially changed
Is it not to be doubted whether it would bt
an easy task to overcome even q per cent
depreciation by the contraction process.
alone?
Do We desire to duplicate the experience
of England by clinging to a measure that
no man upon this floor can prove has re.
duced the premium on gold one cent, and
whose only known effect is the destruction OF
a currency that costs us little and every
dollar of which is needed in our business
In two and half years twenty seven and a
half million dollars of legal-tender note.
have been destroyed; fifty-four and hall
millions more Of these notes must go before
this 2! per cent. discount is reduced and
the notes brought to par Can any one
prone that even this thumb-screw process.
will produce that result? No, sir: nc
man Why then continue in existence a
measure capable of working such positive
injury to all our material interests. and vel
a measure admitted by its friends to be in.
complete, uncertain in terms, and needing
bolstering legislation at every sentence?
Let come rather in lieu Of this lesump
ton act
First The reconciliation of silver. (al.
ready awaiting the action of the Senate and