The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1878-09-19

were opened up, and operatives were
drawn hither hy the high prices oi
products and consequent high prices
of labor. so great was the demand fOl
irOn that, though the duty on foreign
iron was reduced in 1870, prices kept
advancing. Furnaces were built and
paid for out of the profits in II single
year. In 1872 / was told in The iron
region bordering on the Ohio river,
that they were producing iron ut 4
cost of $40 To S23,0 per ton that was
selling :,t sa5o.no to Sti5.m. But by 1879
the money borrowed on the land
grants and the bonds loaned by the
Government had been exhausted. The
| West had become convinced OF The un-
wisdom of this policy. In some
STATES local bonds had been pronounc-
ci unconstitutional, aud in others
amendments adopted 10 state Consti-
tutinns prohibiting ie@isia5i"n OF that
character The demand fnr iron ce:ls-
ed, and the furnaces AMI mines have
been idle or operated To hut n limiie,;
extent. The supply since then was
hey0ni the demand. The consequent
depression affected other branches OF
business. The result IS HE direct con
sequence of the land graui and suhsi-
dy policy of the Republican party now
denounced With equal einpiiasis by the
platforms of both the Democratic and
Greenbacl< or National parties.
In this condition of the currency in
1879, the Republican party passed what
| is known rs the ReSumitioH Act, the
| effect OF which has been to still further
contract the currency To the amount OF
about $S1G, ,00o,000. 1t waa, moreover,
intended by Mr.. Sherman, the author
| OF the bill, and by the leaders of the
| Republican party who passed it, to
produce that effect. In 1869 Mr.. Sher-
man, then Il Souator from Ohio, i'll
discussing in in the Senate Il bill re-
iatiou to the public debt aud currency,
in speak, ing of the effect Of fixing by
law day for the resumption of specie
payments. used this language:
d" Would not the effect of this meas
ure be that the Government would
hoard the gold and the people the
| Greenbacks, and thus make the con-
! traction he feared"' WOULD NOT
| EVERY BANK SHARPLY CONTRACT IT'S
CURRENCY and hoard Greenbacks as
the best investment it could make ?''
What prudent man would dare build
house or factory, a railroad or a barn
with the certain fact before him that
the greenbacks he puts into his i'm
proyement will be worth thirty-five
per cent. more in two years than his
improvement 10 ltlSil w Va IA AL
enterprise will be suspended every
bank will have contracted it's currency
to the lowest limit, and the debtor COM
PEELED to meet in coin 4 debt contract
ed in currency will find the coin hoard
Ell in the Treasury; no repr> entatiYe
of coin in circulation; his property
shrauk NOT ONLY TO THE INTENT OF
THE APPRECIATION OF TIE CURREN-
CY, BUT STILL MORE by the artificial
scarcity made by the BOARDING OF
GOLD.'
Yet with this opinion as to the effects
of fixing day for resumption, Mr..
| Sherman drew and secured the pass
aye of the present resumption bill. AT
| the time and before the passage of it,
| the Democratic party had deciain,ed
| against the evils resulting from con-
! traction. There was cunningly incor-
! po,a;sd into this u 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 provisions of this
section. IL provid;,d that eighty per
cent ia .srecni,;;ci;s should .e retired
for ali ne.v National bank currency is
sued until the ;.mGunt of wrecnbackS
should be reduced to $3oo, ,ma, ,001. In
the campaign of 1879, when the Dem
ocratic party of the State OF Ohio had
again protested against the further con
traction OF the currency, and dcnoiinc
| ed the Resumption act as y measure
designed to further contract the cur
rency by forcing the retirement Of Ma
| tiulal Bank currency, as Mr.. Sher-
man had predicted in his speech i'll The
| Senate in 1860, Senator Sherman, in Il
speech ut Marion, Ohio, used This Ian
guage: "But they say Il further con
with II view to :, forced resumption OF
specie payments. Well. gentlemen
i!r finance bill of last session provides
for free banking, so that all men who
want more money, and can give Sacur-
| ity for its payment, can have it,
BY this measure il was Intended
| that the yrecnhack circulation from
January ist, 1879, should he reduced Ia
%:;ipD tnh 900, and after that date that ii
should be redeemed and permanently
retired from circulation. 1t should be
retired by selIing interest hearing
| bonds for gold AND be used To redeem
tie greenbacks. This, ir the gold
should remain in the country aud cir
cuiate as currency, would not dimiu-
| ish the volume of the currency, but ri
| that time The balance of trade was
against us our gold bond and interest
| bea:ing 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
| il iir,t refused to make amy apprOpria-
ton for coming silver, and iiuaiiy de
monctiZed that that h:.l been previous
ly coined. While pretending to desire
u return to specie payments, they pro-
vide 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 curren-
cy question. What does il propose in
the future?
The Republican party of Ohio says
"The financial question having been
disposed OF by Congress, aud She coun-
try ut present needing repose in order
that capital may seek Investment, and
that industries may revive, thus III
creasing the demand for labor. the sit
uatiou ought to be accepted, and we
oppose the further agitation OF the
question at this time aS injurious to
business and devoid of other than evil
resuitS.n
How is it settled? By resumption
act, pronounced of doubtful and am
biguous meaning by Secretary Sher-
man, the author of the bill. ts.
In his report of Dee. Sd, 1877, he says:
EEistieg iascs do not Clearly defne
tchether United States notes ,chen re
deeme1 aiicr Jaaudry Isl, 1879. Deay
be 3'cisSueI.' ..saa.-
In his examination before the Com
mittee Oh Banking and Currency. he
rciterates the ambiguity and uncec-
tainty of the act, while ing him
self the author of the bill. -.. .r.....
But il is claiined Chat the bill passed
last session Congress providing that
tile mreenh.lcil circulation should not
bc reduced, that it's present volume oi
S::l6. IS! ,Hi6 should be kept aud main
tain i'll circui;ttion, removes All anhi-
guity, and t!iat ii shows that TIE Re
publican party is committed against
the i'tirt her retirement 0f that currency.
This legislation was wrunr from IN"
las; Congress by a coalition Of y few
GreenhaciI Republicans with the main