The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1877-06-07
MIR. SECRETARY SHERMAN AND
HA RD TIMES AND HARD NO
NEY.

Continued progressive contraction
may bring universal bankruptcy. Such
result is greatly to be feared and the
people look to the financial action of
Congress with earnest solicitude. Very
certainly this terribly progressive con-
traction will sOon reduce the people to
the utmost straits, and Mr. Secretary
Sherman, it occurs to US, should now
and then relax his grasp of terrific
contractile force and let US breathe
freer. But the writer OF the appended
letter will find that the financial rela-
tons of Europe to America are not as
in 1886 and 1912, and while this pro-
gressive withdrawal Of currency is ter
rible, we can come down to gold val
ues without that universal reduction
of salable values, which convulsed
the country's fortunes forty years ago.
rnV ''.:e-- ~~ya.
II Mr.. Sherman desires to enhance
the greenback to par with gold it is
only Deedful to declare greenbscks a
legal tender for the payment of custom
dues, and in q very few weeks they
will be OF equal value with, and pos
slbly premium over, gOld-certainly
largely over silver coin. THIS would
place money matters in the same anon
olous condition that exists al present.
Gold, silver and paper money having
different values, greenbacks would be
the higheSt on the list, next gold and
lastly Ailver. For this reason every
one would prefer the most convenient
money to carry-especislly business
men travelling to different sections of
the country TO buy produce. They
would not like to be encountered with
load OF gold or silver, and would
pay premium for greenbacks rath-
er than to be thus loaded down.
Business men don't want a variable
currency. They want it all of uniform
value. To give this, the government
must make greenbacks and silver and
gold coins full legal tender; also,
make all United States coins inter
changeable in greenbacks, the same as
formerly the fractional currency was
redeemed in large notes. Otherwise
the business community will be encum-
bered with the metals, and will only
be able to get rid of the same by suf-
| fering a discount with the broker.
The banks of this city at this time are
refusing silver coin on deposit or in
payment of bills receivable, and the
merchants are much Inconvenience
thereby. BY making the COINS change.
able into greenbacks the government
becomes the custodian of all the met
ais of the country, and in case there
should be call for them by parties
holding the greenbacks the govern.
ment would be at all times ready to
exchange. This call would be but
seldom made.
The people of this country are fnan-
cially approaching the condition they
were in between 1886 and 1843, and
from the same cause. The banks al
that time were incorporated by the
States and were required to hold one.
third of coin for every dollar of circu'
latlon. Then, as now, the metal left
the country to pay interest on bonds
negotiated in foreign countries, the
banks, losing their reserves, collapsed,
and their notes became worthless; the
country beng nearly depleted Of
money, caused q deplorable state OIL
affairs; property would only sell ir
proportion to the amount of money il
circulation, which was very limited
Real property tumbled first, mex
stocks and lastly bonds. They caved
in so soon as the States and municipal
tiles defaulted in the payment of the
interest owing on the bonds. In 1885,
Illinois bonds sold at a premium of 9
per cent. Indiana 5; Maryland, Penn
sylvania and New York, Toto IL. In
1912 and lS43, Illinois sold at II cents
on the dollar; Indiana, 10; Maryland,
35, and Pennsylvania and New York
at 70 cents on the d Dllir.
Owners of real estate, not being able
to collect their rents, could not pay
their taxes, and corporations, not col.
Letting taxes, could not pay interest OF
principal. The consequence was that
investors, not receiving their interest,
were forced to sell the principal, which
sold the same as other unproductive
property, just in proportion to the linn
tied amount of money in circulation
no property would sell for anything
like its real value, eventuating in the
enactment of the memorable bankrupt
law OF 1912 to give the people relief.
Now, as then, the coin is leaving oul
shores to pay interest, dividends, and
the carrying trade, and the silver ex.
ported for sale as a commodity, the
government refusing to coin it, and
the greenback going into the fiery fur.
mace. The country in few years will
be depleted of its circulating medium,
and the people must suffer the cOnse
queuces of this INSTRUMENTATION OF
their finances. God only knows how
the matter will end. l fear eventual
bread riots only will terminate thii
wretched mismanagemeut.