Daily Los Angeles herald., 1878-09-13
4 msvsnsns which Compsis Rec
ogassf0m.

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4 meve0sns which Compels Rec
0gassfOw-
The Congressional elections 30 far
hslds and the Gubernatorial candi-
daey Of Benjamin F. Butler in
Massachuset tts-the latter q candl-
dAcy which has shaken the precls-
clans Of that State from center to
c1Tcumference - show that the
efbenback movement is one which,
from its inherent strength, cannot
u despised. A candid examina-
tlon Of the facts Of our financial
situation will lead any disinterested
observsr to the conclusion that the
psopls have suffered great injustice
10 the headlong and entirely too
prsclpitate contraction OF the cur
rsncy. First We had tho spectacle
VI An expensive war being made
unnecessarily costly by the is.
ous Of unlimited greenbacks. 1t
has been 90 much the fashion to
invest eyery incident Of the war for
the matntsnance Of the Union with
"a exaggerated and toploftical
eommeudAtion that, until Of late
Years, it has not been worth any
ens's while to appear In the role of
Z doubter. For our part we have
never doubted but that the cur
seney was purposely expanded. and
the war dssiynsdly prolonged, to
aimIt Of the creation Of an eGor-
mems National debt. We have al
uays had In this country . school
Of politicians, beginning with AL
oxauder Hamilton, who have
locked upon = "Nationsl debt as 3
National blessing" The war gave
thsse men their opportunity. and
thoy were not slow 70 avail them
oslves Of 1t. Not content with pro-
vidlng for the issuance of large
quantities OF greenbaoks, the Re-
publican party created an immense
number Of National Banks. Under
shs law establishing these lnstitu-
items the capitalist who chose to
make United States bonds the ba-
sis OF banking could command a
doubls. Interest. For every $780,
90 worth Of bonds deposited with
the treasurer Of the United States
he received $50. 900 In currency,
uDon which he could obtain such
Interest ~ the usages of business In
his nsighborhood accorded. The
true statement of the fact is that,
| on the supposition that he made a
prudent business mans use Of his
fasiiitiee, and secured ordinary In
tsrest on the currency given him
by the government, be nominally
reeeived from the United States six
PER cent year on 100000, while
fAis interest was really paid on
&4lO, 600, the difference between the
Race Ct the bonds deposited and the
currency received by him. This
was really sixty per cent. instead
Of ak.
Bad a. was this showing, it was
by no means the worst Of the infa
niles which have excited the in-
dignation of the masses. AS soon
- the war was over, and the Ma
tional banks were fairly estab-
lished. q movement was begun to
retire greenbacks rapidly, while
the National banks were tc be left
undlsturbed. That is, the green.
backs. which saved the people In.
tersst, were to be retired, while
the National bank issues, which
were = CALLING burden, we're not
tnoTested. Through this National
bank swiudle the people OF the
United States, in the last fifteen
years, have been robbed Of fully
$500, 600, 600, paid as interest on the
bonds deposited as a security fol
this currency. Any honest gov.
eminent, even II 1t had regarded
the National banking system as 9
desirable thing, would have in
serted . provision in the law ere.
atins II providing that interest or
the bonds should cease as long al
they were made the basis of cur
rency. .-.-..-.--.
The last straw was placed upor
the patient cameps back of thu
people when a policy of speed.
centractlon was annOunced-a con
traction which retired the currenc,
which cost the massea nothing an,
continued that which was a yearl,
burden. The policy of this system
Of contraction was simple one
By retiring greenbaoks rapidly
debts which had been incurred ut
time when grssnbacks were worth
forty cents or less on the dollar
would have to be paid In N ediuu
much more valuable-a great booI
10 the capitalist classes. Real es.
tate and most Kinds Of securities
would, Of course, shrink in value
aud be more accessible to the pos
season OF ready cash. The calcula
tion was q diaboIicaIly clever one
aad IL has been CARRIED ont YER,