The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1878-09-12

| iron WAS feuuCeu III low PiiCoo hNPN -"
yancing. Furnaces were built ana pald
for out of the profits in single year: In
1872 was told in the iron region bor-
dering on the Ohio river, that they were
producing iron at cost Of $40 to S2S per
ton that was selling at $50 to $6b' But
by 1873 the money borrowed on the land
grants and the bonds loaned by the Gov
ernment had been exhausted. The West
had become convinced of the wisdom
ofthis policy. In some States local bonds
had been pronounced unconstitutional,
and in others amendments adopted 10
State Constitutions prohibiting legisla-
ton of that character The demand for
iron ceased, and the furnaces and mines
have been idle or operated to but lin
tied extent. The supply since then was
beyond the demand The consequent
depression affected other branches of bu-
siness. The result is the direct conse'
auence of the land grant and subsidy
policy of the Republican party now de
nounced with equal emphasis by the
platforms of both the Democratic and
GreenbaCk or National parties.
In this condition Of the currency IN
1875, the Republican party passed what
is known as the Resumption Act, the et'
feet of which has been to still further
contract the currency to the amount OF
about S76,O00,000. 1t was, moreover, in.
tended by Mr.. Sherman, the author OF
the bill, and by the leaders of the Re-
publican party who passed it, to produce
that effect. In 1869, Mr.. Sherman, then
Senator from Ohio, in discussing in the
Senate a bill in relation to the public
debt and currency, in speaking of the
effect of fixing by law day for the re-
sumption of specie payments, used this
language:
"Would not the effect of this measure
be that the Government would hoard
the gold and the people the greenbacks,
and thus make the contraction he fearsP'
"Would not every bank sharply contract
its currency, and hoard greenhaCks as
the best investment it could maker?
What man would dare build a house
or factory, railroad or barn, with the
certain fact before him that the green.
backs he puts into his improvement will
be worth 80 per cent more in two years
than his improvement is then worth?
All enterprise will be suspended; every
bank will have contracted its currency
to the lowest limit, and the debtor COM
PEELED to meet in coin debt contracted
in currency, will find the coin boarded
in the Treasury; no representative of
coin in circulation; his property shrunk
not only to the extent of the apprecia-
ton of the currency, but still more by
the artificial scarcity made by the hoard
ing of gold"
Yet with this opinion as to the effect
of fixing a day for resumption, Mr. Sher-
man drew and secured the passage of
the present resumption bill, At the time
and before the passage Of it, the Demo-
cratic party had deClaimed against the
evils resulting from contraction. There
was cunningly incorporated into this a
section that was claimed to authorize
free banking, and it was argued that if
there was really any scarcity of currency
it might be increased under the provis-
ions of this section. 1t provided that so
per cent in greenbacks should be retired
for all new National Bank currency issu.
ed,until the amount greenbaCks should
be reduced to 300,000000. In the cain
paign of 1875, when the Democracy of
Ohio had again protested against the fur.
ther contraction of the currency, and de-
nounCed the Resumption act as a meas
ure designed to further contract the cur
renCy by forcing the retirement Of Ma
tional Bank currency, as Mr.. Sherman
had predicted in his speech in the Sen.
ate in 1869. Senator Sherman, in a
speech at Marion, Ohio, said: "But they
say further contraction of the currency
is proposed, with view to forced re.
sumption of specie payments. Well,
gentlemen, the finance bill of last ses-
sion provides for free banking, so that all
men who want more money, and can
give security for its payment, can have
it."
By this measure it was intended that
the greenbaCk circulation from Jan. 1st,
1879, should be reduced to 100000 900,
and after that date that it should be re-
deemed and permanently retired from
| circulation. Itshould be retired by sell
ing interest bearing bonds for gold, and
the gold used to redeem the greenbacks,
This, if the gold should remain in the
country and circulate as currency, would
not diminish the volume of the Curren-
Cy, but at that time the balance of trade
was against us; our gold bond and gold
interest bearing indebtedness would
soon have drained the country again of
the gold, and we would have been left
with nothing but the National bank cur.
renCy in circulation.
To still further contract the currency,
it first refused making appropriation for
coming silver, and finally demonetized
that which had been previously coined.
While pretending to desire return to
specie payments, they provide for the
coinage of the trade dollar to facilitate
the expectation of silver out of the
country. Such has been the course of
its legislation on the currency question.
What does it purpose in the future?
The Republican party of Ohio says:
"The financial question having been dis
posed of by Congress, and the country
at present needing repose, that capital
may seek investment, and that industries
may revive. thus increasing the demand
for labor, the situation ought to be &C
Cepted, and we oppose the further agita-
ton Of the question at this time as injur.
ious to business and devoid of any other
than evil results"
How is it settled? By resumption
act, pronounced of doubtful and ambigu.
GUS meaning by Secretary Sherman, the
author of the bill.
In his report of Dec. Sd, 1877, he says;
"EGiSting JaC8 do not clearly define Whett-
p