The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1878-01-12
SECRETARY SHERMAN AS A PROPHET.

Ia have precisely that effect?
SECRETARY SHERMAN AS A PROPHET.
Secretary Sherman, whatever may be thought
of his patriotism or integrity, is not fool. No
hubble man in the nation, after the close OF our
treat civil war. had u clearer view of the iinan-
.cial problems the country had before it, or OF
The distrcsscs that must attend the process OF
the appreciation of our then Gcbased currency
ito par. He opposed the Schcnck rascality in
the [. :. Senate in 1869, and against Il measure
looking to an early enforced resumption OF
spccie payment made one of the most remark
able speeches on rccOul-rCmarkablc for It's
extraordinary presciencc, tortelIing as II did
the disasters in store from the measure he de-
precatcd in language which the event has
verified with an accuracy 50 astonishing that
nothing but positive proof can convince the
common reader that the prophecy was not
or poyt tacto. We give an extract from this
speech, made tn February 1869
The appreciation Of the currency is far
more distressing operation than Senators sup
through that process before. OK For
eighteen years, Iprevious to 1921 the notes OF
the Bank of England were practically legal
tender, and upon them, az upon our green
backs. was based a currency issued by the
country banks When the war with Napoleon
WAS over, measures were slowly adopted for
the appreciation of the paper currency to the
gold standard. 1t is only necessary to appeal
to the histories of the time to show the disas-
trous effects. Small traders, debtors and Ia
borcrs were reduced TO the sorcst distress. The
loss to them was far greater than the actual
appreciation of the currency, for all confidence
and trust were lost. The only compensation
to Great Britain was the rapid fall IN the rate
of interest, from the abundance Of idle capital,
and her ability to reduce the rate of interest on
her public debt within short period to three
per cent.
ut is not possible to take this voyage with
out the sOrest distress. To every person eX-
Cept capitalist cut of debt, or Il salaried Off
Ger or annuitant, it is period Of loss, danger,
lasstudc of trade, tall of wages, suspension OF
enterprise, bankruptcy and disaster. To every
railroad it is an addition of one third to the
burden Of its debt, and, more than that, deduc-
ton from the value of its stock. 1t means the
ruin of all dealers whose debts are twice their
their actual property. II means the fall of all
Agricultural productions without any great re,
ducton of taxes What prudent man would
dare to build house, a railroad, a factory or
a barn, with the certain fact before him that
the greenbacks he puts into his improvement
will in two years, be worth thirty-fve per cent.
more than his improvement is then worth
When the day comes, every man, as the sailors
saw will be close.rected all enterprise will be
suspended: every bank will have contracted
its currency to the lowest limit. and the debtor,
compelled to meet in coin debt contracted in
currency, will find the coin boarded in the
Treasury, no representative Of coin in circula-
ton, his property shrunk, not only to the eX-
tent of the appreciation of the currency, but
still more by the artificial scarcity made by
the hoarlers of gold. To attempt this task by
a surprise upon our people, by drresttHg them
ii tie midst IF their MtrtW business dHddppiy-
ing u He,o standard IF raluo III hetr property,
,rtthOH any reduction Of their debts, or giring
item az opportunity 10 compound nth their
creditors or to distribute their losses, roUld be
M act IF toNy ,ctttem az eromp'c il erH IL
mQdtrn ttmGi'
The astonishing part of the matter is, that
now, when the country has endured all-suf
ered all-and patiently dragged itself up to
he point where its currency is at par with the
metal it agreed to pay it in, this same John
Sherman who could describe in advance the
distressing ordeal with such accuracy that it
'eads more like history than prophecy, should
insist on prolonging and intensifying the
lgony by applying the very new standard"
lc SO solemnly deprecated, and adding ten or
fifteen per cent. more to the painful apprecia-
ion, consequence which he of course well
Knows is involved in the decentralization of
liver and heavy addition to the value of gold
,y making it the only standard. In lS49 Sher-
nan seemed to have a heart for and to be in
with the suffering people; today he
5 apparently owned body and soul by the
Wall street money kings and Shylocks. Can
he man so change and claim to be honest?