Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-04-26
Ilailp yirnnrbrt soutnal
Contraction of the Currency.

OODITittIOu VI titC Suti CutN'
The Secretary OF the Honest Money
League of the Northwest, Thomas NJ
Nicbol, has issued in pamphlet form IAN
Argument ia favor of Honest Money,
which answers most of the sophistries and
fsllscies of the greenbackers. On the
subject Of contraction of the currency the
author SAYS:
The advocates of initiation insist that
the panic, and consequent 'hard times,
were caused by the wicked system OF
contraction" pursued by the government.
Nothing could be farther from the truth. We
have had at all times since the war, more
than twice as much circulating currency
as we ever had at any time previous to
the war. But the inflationists insist that
at the close of the war We had two thOus-
and millions of currency, which is clearly
either great mistake or base falsehood.
What do people generally understand
bv money or currency Coins, green
backs. and national bank notes, and the
fractional paper currency when 1t was IN
use Now as only 40 millions OF green
hacks were ever authorized; only 80 mil
lions of fractional currency; and at the
close of the war only 354 millions of ma
,ional bank notes, ii the whole amount OF
each authorized, had been issued, it would
have only have made S04 millions. Where
then do the infationists get their 1000
millions?
Many of them have heard this statement
made so often they honestly believe such
An amount of currency WAS really issued,
h...,n lar i'm nj
cuation. The facts are the amount is OBJ
tanned by adding to the currency the
Temporary loans" of the government,
which were in the torn OF bonds, and
bore interest The 80 three years bonds,
one year compound interest notes. &c .
were issued under authority To make
Temporary loans" and were all PAID or
funded exactly as intended and provided
in the law authorizing their issue. They
were all either so paid or funded before
the end of the year 1868, and II their pay
ment was contraction, and contraction Is
so great az evil, we have here the Singh
lar paradox of the greatest prosperity at
the very time that contraction was gong
on. The panic did not come Till Septem-
Der, 1873, five years after this contraction
was completed. Ii we return 10 our an-
alogy between money and blood. and con
slider these temporary loans money, we
have the singular circumstances OF TWO
thirds of the peoples blood being drained
of, and the people not feeling the effects
Tor five years atterward Now, no wrong
could have been done to any man by the
Governments paying off this debt and
stopping the interest, or funding II at
lower rate of interest. And il any man
presented such bonds for payment, he did
il of his own accord, and received then
full value for them in return. There has
been no such thing as an arbitrary "con-
traction and burning of greenback curren-
cy as is so persistently and falsely charged
by the imitation leaders, Pomeroy, Gen.
Cary and others. Their whole argument
on this point is an entire fabrication.
There is no more sense in calling these
temporary loans money, than there would
be in calling state bond, county order,
or city warrant money; or even your own
note or banks certificate of deposit.