Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1878-06-11
The Contraction BuqaboO.
Extract OF senator MorriITs speech en-
Resumption.


Ii Is sometimes asserted that great
contraction Of money in circulation has
been the cause of the recent depression Of
American trade; and the multitarious Sc
eurities of the United States, outstanding
in 1865, and which have been funded at a
lower rate and longer dates, have been III
eluded in the aggregate to prove the
assertion; but the old $3.50 100000 OF
100 notes, and the s2l7 ,0OO, OOOof COM
mound interest notes were never in any
proper sense money, but we're very profitable
investments. to which the holders chung as
long as they were permitted to do 50. Il
is therefore prepOsterous 70 lug those
securities into any computation OF the
paper money once outstanding In truth
= general business depression has pre-
vailed and still does prevail over the larger
portion Of the globe. The era OF wild
speculation and collapse has passed over
Us IS over others the bubbles Of watered
stocks have exploded everywhere; the
wastes Of war, as the magnitude Of pas,
taxes and present debt pointedly shows,
have not yet been restored; and nowhere
has property Of any sort escaped severe
and inexorsble depreciation.
To begin with, there were on the
LIST Of January, 1873 Of legal tender
notes and national bank notes IN circula-
tion. S736,l2S,l50, and on the lst Of
Nav, ISIS. there were S66e, SD, 695, or
an apparent diminutiOu OF Sb6,5O7 800.
As an offset, however, to this, 1t Is Just
70 claim that the increase OF gold and sill
yer money in the country has much more
than reduced all Of the dismissed paper.
In the Treasury alone there has been Al
addition since the lst OF January ISIS.
less coin certificates Of 500 ,235 ,942, and
also SD addition 10 the coin represented
by coin certificates Of $50. $50 200 This
rubs out st once the assumption tina:
there has been any contraction ST all. |
DO not take into account the frac;j0ua.
currency, a. that, 50 far as It has dIsap-
peared, was at once replaced by subsidiary
silver coins.
II should be observed that coin certid-
Gates are in constant circulation, and they
must be included as perhaps the best
part Of paper money circulation There
i, no doubt about their redemption on
presentation. With such a state Of facts
II requires no small amount Of patience
to listen 10 imprisoned trades about
ssntraction OF the volume Of available
money. There has been no contraction
sxcept that done By the imagination,
which diverts itself by a contraction Of
ruth. If there Is less OF one sort OF
money there is much more Of another
and It's character has only changed for
the better. as viii be seen By the follow
ing statement
jan Is,5. MAY D. ISIS.
49, 49, 5000 sl.,Csl oIso1
Rsti0psl tsak note 50 uOo 1000" 5-1lGi E-a uJ
CEN In the Treasury.
tless coin cart dcA.c- 4i-t 50 lu.,oiA, ~
Com certificates, - oe' lt''' 'tfN''-f'VN
Total sS645oS4sS ss,5,s,g, slI.,,
Instead Of contraction this table shows
We have over s2O.0O0,000 more money
than We had in 1875.
True. DOT so much money has been
wanted or could be used and il the con-
traction sometimes charged had actually
taken place, under existing circumstances
it would have had no Perceptible effect
It's absence would not have been noticed
What seems 70 be most lacking l. not
20 much the lack Of money as the lack Of
confidence. The large depreciation Of the
stocks Of many Of the best banking ins,i-
buttons Of the country shows, that while
their capital has been subjected TO more
onerous taxation, national, State, and To-
ca. than any other kind Of property 10
the country they have been wholly unable
for some years past to loan their capital
nj much profit If they have kept up
their usual line Of dis cunts, IL has been
done az unremuneratiye rates, and a.
greater risks And vet they are subjected
70 political reproach for not doing more
when there was nothing TO DO The very
large amount Of bank deposits Is another
sigma proof that the demand for money
has dried up, aud sagscious operators
have largely ceased to apply for discounts.
They want confidence, aud viii venture
nothing more than driblets until they can
build on the solid rock
A practical resumption Of specie pay.
ments, will il Is true, add largely 10 the
volume Of money seeking employment, not
only in the usual channels Of business but
in all markets, whether Of the cities or Of
the country, and will give q more healthy
activity as surely to idle labor as to idle
capital Resumption restores TO gold and
silver all the functions Of money Neither
viii then lie dormant IN hidden burrows
nor be bought and kept as mere merchau
disc at the expense Of more than an equa
amount Of currency, but will become Co
workers with sll the paper redcemable il
coin al the will Of the holder \ healthy
augmentation o. the volume Of money
will at once appear aud the loud common
scolds against contraction will have no
even the skeleton Of the dead topic Il
point At. and no delusive watchword witt
which 10 stun the ears OF honest men
The only other vocation that will b
- ,,;u he that If the Gold brOk er