The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1877-11-08
traction are seasons Of adversely. In
the light of the self-eYident princi-

traction are seasons of adversely. In
the light of the self-evident princi-
ples. we can trace the cause of our
embarrassment 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 ss433 100000 of
bank notes 5000, 900, OF fractional
currency Ss26,000,0OO, State bank
notes $78,000,0O0, compound interest
notes ss2l7 900, 900, temporary certii-
Gates $4,000, 100000, five per cent.
legal tenders $50, 100000, and 7.3O
bonds $3.50, 100000, the whole consti-
tnting 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 it's 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
1 Of
would be maintained when they be-
came due, and when contracted. But
the policy was to expand the cur
rency until the obligations were
incurred, and to contract it when the
same came to be met. / In the spring
of 1855 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 throng
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 In
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 the
loyal States. Various channels were
, thus opened for the outflow of thu
: currency. 1t is plain to be seen thel
. that as the volume spread over
! wider sarface 1t would naturally di
4. minish in depth and by the time
had found it's level and all those void
supplied, it had decreased in the pro
. portionate aggregate full one-third
! 1t is thus easily seen that the sam
, amount of money which supplied tn
9 wants of twenty.siX States and TWEEN
. ty-five millions of people, would b
: more than one-third less when div
= ded among thirty-seven States an
= forty millions Of people. Here wa
an immense contraction OF the cu1
: rency which salone would have pre-
6 duced financial embarrassment. Blu
=. this was not all. The gOvernmer
4 entered upon process of actual col
;. traction. The $217 100000 {
a compound interest was matured an
: paid off, the State bank notes wei
= taxed out of existence, the temporar
!. certificates, the three per cent. certi
v icates, the five per cent. legal tender
- and the 7:30 bonds were retired. TIL
q greenback currency was reduced $50
;. 900, 900 and thus the process went c
Z, when in seven years the currency ha
!; been reduced from 100000. 900
= 800. 900, 900. making total contra
e ton of 81 400, 100000. Now,my fello
- citizens, desire to ask how was tn
- contraction accomplished! | answ'
- by funding the currency into go
70 interest bearing bonds. For ever
! dollar of currency withdrawn go
p. interest bearing bond was substitute
. for every dollar taken from the peop
a. dollar was charged up to the peopl
~ AS their ability to pay was diminisht
i their obligations were increased;
If the volume of currency sunk. IL
n volume of bonds rose, and when I'll
"a currency had touched bottom at S1ot
III 100000. the bonds had reached the t,
-. at 81 800, 900, 900. Now. in view
n this immense contraction of the Gu
=. rency, both natural and artificial. is
= to be wondered that the currency
I'd embarrassed! 1t is easy to understal
no how a nation whose business had b
- Ecome adjusted to currency
~ twenty-one hundred millions YOu
= - be embarrassed to adjust larg
business to a currency of seven hu
= dred millions. How a firm that h
"a been doing business with a capital
n twenty-one hundred would be emb;
=, rassed to do a larger business with
~ capital of seven hundred, or how
man owing twenty-One dollars Won