Buchanan County bulletin. [volume] (Independence, Iowa) 1869-1891, 1878-09-06

of the legislation of Congress in regard
to our currency into
FIVE PERIODS:
l. The period Of expansion, begin
ming with the legal tender acts of 1862
and ending with the close of the war, in
1865, with it's eliminating period of ex.
pansion in 1864, during the darkest
days of the war.
2. The period from 1865 to 1868
when all, or nearly all, of our short-time
currency interest bearing obligations
were either paid off by taxation, OF
funded into long bonds-being a period
which many insist upon calling period
of great and rapid contraction of the
currency, but which was, in fact, per.
iod of moderate contraction only.
3. The period from 1868 to 1873
known as the prosperous period, when
| the greenback currency remained absO-
lutely stationary in volume, with mod
| crate and gradual expansion of bank
note circulation; and also period of
expansion Of credits, and great increase
of State, municipal, corporate and indi-
vidual indebtedness. This period ter
minated IN September, 1873, with the
failure of Jay Cooke 4 Co., followed by
universal and all-pervading financial
crisis.
T. The brief period following this
crisis, beginning in the fall of 1873, and
ending in 1874; period of expansion
of legal tender notes to the extent OF
twenty-six million dollars, with the
hope of restoring confidence and re-es-
tablishing prosperity; but which in
creased issue utterly failed to accom-
plish its purpose.
5. The period from the passage of
the resumption act, January II, 1875,
to the present moment, being period
of gradual and moderate contraction of
the volume of paper money; this mod
crate contraction, however, being more
than counterbalanced by a moderate in
crease at first, but afterwdrs, and es-
pecially during the past year, rapid
augmentation in the quantity Of coin,
so that during this period there has
been no real contraction, but actually
an addi tion to the aggregate volume,
besides considerable increase in the
purchasing power of the money in circu-
lation.
TIE FIRST PERIOD.
The legislation of the first period re-
suited in an expansion of the currency,
which was found to be essential to the
preservation of our national existence.
The history of that period shows that it
was the aim and purpose OF Congress at
the time to so regulate these various is
sues as to secure their rapid retirement
after the war closed, and the necessity
for those issues ceased. Therefore it
was that, in all these acts, public pledges
and promises were made; first, that the
greenback currency should never ex-
ceed $4OO,OOO,O00 (besides $50,000,0 900
additional for the redemption of tenn
porary loans); and second, that the one
year notes, and the compound interest
notes, both bearing interest, but made
legal tender for their face value, should
be regarded as temporary issues only,
contemplating their conversion at ma
turity into long bonds. So of the Z $40
notes, or seven-thirties, so-called, being
short obligations of the government,
payable at the end of three years, and
legal tender By the very terms of
the law authorizing their creation, it
was provided that at their maturity
they should be converted into long
bonds, and the option to so convert
them was given to the holders; thus
showing that, although a necessity ex-
listed for the expansion of the currency,
the very legislation authorizing it con-
templated also that this expansion
should be only temporary; but the ne
cessities OF the war prevented any con-
traction of the currency until after the
adjournment of Congress, on the Bird
of March, 1865. Soon afterward the war
ended, and with it the first period in our
currency legislation. During this period
the Democratic party, in Congress and
out Of it, wholly opposed the financial
measures Of the government, on two
grounds: first, their alleged unconstitu-
tionality; and second, because of neces-
sity these measures had tendency to
postpone specie payments. But after
their bitter hostility to the legal tender
act of 1862, they acquiesced in legisla-
tion of similar character, always pro-
claiming, however, that it was the duty
of the government at the earliest posi-
BILE moment to return to specie payment
And this was also proclaimed as the
policy of the Republican party. So that
after 1862 and up to December, 1865
the two parties were in accord upon the
subject Of an early return to specie pay
mentS.
THE SECOND PERIOD
begins with December, 1865, when Mr.
McCulloch, then Secretary Of the Trea-
sury, made his first report to Congress
in which he expressed the opinion that
the legal tender acts were war measures
passed in a great emergency; that they
ought not to remain in force day long
er than would be necessary to enable
the people to return to gold standard
and that the work of retiring the notes
which have been issued should be com
menced without delay, and carefully
and persistently continued, until all are
retired"
In commentator of this policy, the
House Of Representatives on the 18th
day of December, 1865, passed the fol
lowing resolution:
| lSeSOtCGU, Inat THIS House cOfulally cOHCuT'
| in the view of the Secretary of the Treasury IL
relation to the necessity OF contraction OF thu
currency, with view to as early a resumption
of specie payments as the business interests o.
the country will permit and we hereby pledge
cooperative action to this end as speedy a!
possible.
Against this resolution only six votes
were cast, and of these six, five were
Republican votes. Every Democrat but
one voted in the affirmative, including
such leaders in the party as Senator
Vorhees, of Indiana. The Democrats
then were reaffirming their action o
1862, when they opposed the lega
tender acts on account OF thei
unconstitutionality, and because of th'
dangers which might result from drift
ing away from a coin basis.
On the 18th of April, 1866, in pursu
ance of this unanimous pledge Of boil
parties, a law was passed providing TO
the retirement of legal tender notes
which was largely supported by tn
Democratic party in both Houses o
Congress. l have recently examine,
the vote upon the passage of this bill
and I think L can say with truth tha
not single Democrat, in either Hous
of Congress, voted against it. 1t passe,
the House by vote of So to So. fin
my own name recorded in the negative
I Al Il