The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-07-29

and trade are PROSTATE they would like
to see the country once more on the high
wave of prosperity they have been told
that a severe and pinching contraction OF
the currency caused the collapse Of 1873
and the prostration which followed and
they believe that, in some way, they know
not how new and great imitation OF the
currency would give US new period OF good
times.
Now, if they were right in their conclu-
sions and belief, we should agree with them
and support the greenback-labor party II
they are wrong, however, they are in the
| position Of physician who, when called
in to treat very serious case OF disease,
should mistake its nature and give the
wrong remedies He would injure the
patient and not help him. Where the SICK
man is big country like this it becomes
grave matter to offer prescriptions, and
we have at least right to require that
the doctor who presses his medicine upon
US shall understand the disease
l. Now, it is a green back-labor fallacy to
assert that great contraction Of the cur
rency has caused the collapse and hard
times There has been, in fact, no such
great contraction. Official statistics show
that the amount Of paper money out, ex-
elusive of interest bearing notes, which
cannot properly be counted, because they
very rapidly disappeared from circulation,
was greatest in 1874, after the panic and
collapse of 1873; that, therefore, the great
est amount of paper money in circulation
did not prevent or cure collapse or panic,
but as we hold, was one of its main causes.
The total paper circulation, exclusive OF
interest bearing notes, was in 1871,
J $698, 0O0, 900 in 1871 SIG, 600, 600 in 1872,
$737, 900. 900; in 1873, the year when the
| panic and depression began, $749, OOO, 600;
in 1874, $7S3, 600, 900; in 1875, sta, 900, OO0
In 1878, the present year, when for the first
time there are real signs of an industrial
revival-slow, but apparently sure--and on
q sound basis, the circulation is within q
few millions Of the year 1870 (s6SS, 900, OOo),
and when the honest greenback-labor man
looks back with sigh to the good times OF
1870 he should understand that the
country has now substantially the
as then; and when he is told by
some quack like Ewing or Cary that what
is needed is more currency, he ought TO re-
ply by pointing to the fact that it was pre-
cisely when the greenbacks were most
abundant that the big panic broke. But
he ought to add, for the information of the
quacks who are misleading him, that while
the currency is now nearly at the same VOL
ume as in the prosperous year 1870, its
value, reckoned in gold, has greatly appre-
| ciated, and if we count in gold there was
but $500, 000, 900 worth Of paper in circula-
ton in 1870, against 1854, 900, 900 worth in
the present year.
| III. 1t is another greenback fallacy that
the country is poor. If it were really poor,
surely no one will be SO absurd as to say
that printing great quantity Of paper
promises could make it rich It is not the
amount of notes farmer or merchant has
out which makes him q rich man, but the
amount of grain OF title or merchandise he
owns, and the country is in this respect like
an individual. In fact, however, the coun-
try is not poor 1t has had a succession Of
great crops; it produces, Us official statis-
tics show, more cotton and woollen goods,
more iron, more coal, more products Of all
kinds this year than in 1870, which
was the year of model prosper
ity to which the greenback-labor
man always refers. In fact, the American
people are SO ingenious and industrious
that, in many and perhaps most branches
of industry, they produce more than they
can themselves use. But "prices are low
is the general complaint; and so they are,
to the great comfort of everybody who con-
sumes. Prices, however, are lower than
they ought to be; and for the reason that the
greenback-labor people have persistently
opposed the repeal of laws which, while
they exist, prevent us from selling abroad
| what we cannot use ourselves. Prices are
lower in China than here, and for the
reason that China carries out even more
vigorously than wo the policy falsely called
"protection" China is the model protec-
ZIONIST country of the world, and the
Chinese laboring people are happy if they
earn five cents by days work Our New
York Greenback-L Convention de-
manded in its platform the other day pro-
hibitive tariff which is what China has had
for centuries-that is to say, they complain
that wages and prices are too low, and
therefore demand legislation which will, as
all experience proves, lower them still more.
III. 1t is a greenback-labor fallacy that
irredeemablo paper aud plenty of it is good
for the workingmcn. On this head tho
history of the years 1863 to 1875 ought to be
enough to warn the workingmen. Citizen
schwab summed up that experience so we'll
the other day that we cannot do better than
repeat what he said. A new imitation of the
currency would give the spectators new
chance, perhaps it would make the for