The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1878-09-12
gn1ttica1.
GENL WlLEY'S SPEECH,
DemoeratIc Candidate for Congress In the 10th
District, Delivered Before the Young Mems
Democratic Club OF Wooster, o., on Sat-
urday Evening, Aug. 81, 1878,
THE CURRENCY.

is, beyond all question, tne ohe loia'lnS
to the currency, Of what shall 1t consist
and how shall the volume of it be regu-
lated. In the discussion ofthis question
there are several propositions that l
claim are clearly demonstrated by expe-
rience, and which must not be lost
sight of.
1st. That the volume Of the currency
regulates TIE values of commodities
That if the volume of it be decreased, al !
other things being equal, the price OF
commodities decline. If the volume be
increased prices Of all commodities are
advanced.
2d. That if it is an established fact
that the volume of the currency is to be
diminished, capitalists will withdraw
their money from active industries, men
of affairs will not undertake enterprises
to be conducted upon borrowed capital,
capital will be boarded and remain idle,
idieness of capital will enforce idleness
on the part of labor, both production and
consumption will decline and in about
an equal ratio.
Sd. That to maintain the same volume
of currency while population increases,
while the productive industries of the
country increase, while the exchanged
BILE commodities increase, is to produce
the same results as though these condi-
tions remained unchanged, and the vol
ume of the currency was actually di-
minished.
From these propositions it follows that
he population of the country, the pro.
ductive industries of the country, the
amount Of its exchangeable commodities
are important factors in determining the
volume of the currency, and that when
once the volume is fixed and prices and
values adjusted to it, it should be increas'
ed as population and production increas-
es, as the exchangeable commodities of
the country increase, else you offer a
premium to ideness on the part of Capi-
tai, and handicap energy and enterprise
in its race for profits.
Now, in the light Of these propositions,
let us see what has been and is now the
position of the Republican party on the
question of the currency. 1t has not on
ly asserted the right and power of Con-
gress to regulate the volume of the cur
renCy, but it has exercised that right
By its tax upon State banks it compelled
the retirement of their circulation. 1t
established the National Banking system
and fixed and limited the amount of Ma
tional bank currency that might be is-
sued. 1t issued the greenbaCk a legal
tender currency, and of course regulated
the amount of its issue. By the issue Of
this paper at time when the revenues
of the Government were far below its
expenditures, and with uncertainty as to
the duration or results of the war in
which we were engaged, it drove out of
circulation all the specie that before
that tire constituted part of our cur.
renCy.
Has it by an unreasonable contraction
of the currency since the close of the war
produced the stagnation of business that
now prevails? From the closing of the
war to 1873, the time of the panic, the
various interest bearing notes that had
been issued by the Government, had
been retired from circulation, thus re.
sulting in actual contraction of the cur
rency. As parties differ as to the extent
to which this class of Government paper
circulated as currency, we will omit it
from our argument. The population Of
the country, according to statistics, in
Creases at the rate of about 81 per cent.
per annum. During these eight years,
population would have increased % per
cent. The increase in the productive in.
dustries Of the country, owing to inven-
tions and improvements in labor saving
machinery, must have been in much
greater ratio than the increase in popu-
lation. There were other causes that
largely increased the uses of currency by
increasing the exChangeable commodi.
ties of the country. Congress had grant
ed to railroad companies about two hum
dred millions of acres Of public lands
These lands had been mortgaged and the
bonds sold in Europe, and the proceeds
became part of the active capital of the
country. Government had discounted
the industries of the nation for a genera
tion to come by issuing its bonds to the
extent of 50 or 80 millions of dollars, and
had loaned them to these companies to
aid in the construction of their railroads.
Township and county bonds to aid in the
construction of railroads had been issued
all over the Western States and sold
abroad, and large loans had been nego.
tiated abroad by older railroad corpora.
tions to aid in extending their lines. All
this property became capitalized and as
the stock became part Of the exchanged
BILE property of the country, thus inCreas.
ing the business and exchanges that had
to be performed by the volume Of our
currency.
During this period it is safe to say that
there had been relative contraction of
the currency, that is an increase in the
uses Of it, to the extent of fifty per cent,
producing a decline in prices of Commod.
tiles, decline equal to the interest on
invested capital 1t is idle, therefore, to
say that the volume of the currency or
its insutticienCy had nothing to do with
the panic of 1873, because nominally the
amount of it had not been reduced.
General Garfield in his speech at Mas.
sillon last Saturday evening, is reported
as using this language; "In 1860, year
of peace and at least of fair prosperity,
year of Democratic rule, this country had
SZOG GUUO,UOO OF paper currency, Now in
the month of June 1873 just before the
great panic struck u.s. our outstanding pa
per currency was $3.50, 100000, or more
than three times the amount in 1860 -
In the face of this fact will any man Of
intelligence say that the panic of 1873
was caused by an insufficient volume of
paper currency"
The gentleman omitted to state thatin
1860, according to the most reliable esti-
mates, there was specie in the country to
the amount of about S285 900 900 that al.
30 circulated as currency, making the ag.
gregate currency OF the country in 1860
$492,000,000, an amount relatively great.
er, claim, than in 1873, taking into &C.
count the increase of population, increase
of productive industry from improved
machinery and mechanical inventions,
the capitalization of so large body of
the public lands and the changed condi.
s ofp, ,,,1 -, -