Juniata sentinel and Republican. [volume] (Mifflintown, Juniata County, Pa.) 1873-1955, 1878-10-02
THE VITAL ISSUE.
CARL ScHURz'S SPEECH ON THE
FINANCES.
A CLEAR AND VIGOROUS STATEMENT.

THE CAUSES WHICH LID 10 THE PANIC OF 1910
AND THE COMMERCIAL DEPRESSION THAT HAS
sINCE EXISTED ExPLAINED-A SOUND CUR
RENcY AND A SAFE BANKING SYSTEM THE
ESSENTIAL REQUISITES.
CINCINNATI, Sept. 2s.-Music Hall was filed
TO its utmcs: capacity tonight with ladies aud
gentlemen to listen TO the speech by Secretary
Carl Schurz. Mr.. Schurz was introduced by
Richard Smith, and was greeted with enthn-
eisstic cheers. he spoke as follows:
FELLvw-cIrIzzSs: This is til. sscnnd time that I
have honored by citizens of Cincinnati with
Invitation TO speak to tkem ON the financial ques-
tions before the people. thank you sincerely for
the confidence which that invitation implies and |
respond TO it with deep seass Of responsibility.
The remarks going TO make Tonight will be,
IN certain sense, supplementary 20 those l
made here three years ago. then sIeiched
the disastrous consequences which = policy
OF currency imitation would bring after II 10 the
merchant, the manufacturer, the business man
generally, well to the farmer and the lasorer
for wages, and especially the latter. Al that time
the people of Ohio In their State election adninis
tered wise and noble reOuse to the Imitation move
ment then attempted By the Democratic party of
this State. Ii 10 be hoped that this rebuke
would sufficiently check that movement TO prevent
its repetitOns. That hope has been disappointed.
Indeed, both political parties In their National Con-
veutions of 1876, pronounced in favor OF an
early resumption OF specie payments, and
thus seemed to be agreed to the
object to be attained, and the preparations
for resumption have so far proceeded that IL is in
Immediate reach But while in hairs
breadth of a nal settlement OF the veIed question.
the Imitation mania has broken out afresh. and IL
must be admitted that many weli-meaning citizens,
under the pressure of temporary distress, are hon-
for Of relief. and tending
toward conclusions, which, in the opinion OF those
who think as do, fsilacious and fraught with
great danger TO the National honor as well as the
public welfare. To that class OF honest and we'll
meaning citizens l shall respectfully address myself.
and in doing so 1 shall, instead OF making an effort
al hgh-fovn oratory, express myself In the way OF
. straightforward. homely, common sense talk.
STORY oP THE ISFLATIoNIsTs.
From time immemorial and in all countries II has
been the habit of politicians. when the people were
laoOrIng under business depression and distress.
such has been aniciing for the last five years,
20 charge those managing the Affairs of the Govern
with the responsibility for it ALI. And so they
do now. When you ask them 10 particulariza their
charge in our case. they viii tell you the busi-
ness collapse of 1873 brought on by q contrSc-
tion Of the currency, and that the Government
Withdrew from the business OF the country the means
with which carry that DuSn and that there
fore business broke down. This charge has been so
often and conciusivey refnted that it well nigh
exhausts ones patience refer it again. But you
have heard Of VINO tell the same warn often
that they at last believe II themselves. So
81 may with thoss who still insist that the crash OF
1873 was caused by contraction. Indeed the inna-
tOuists need story for theory. They cannot do
without IL. aud therefore, vslizntly stick 10 1t.
What the facts? have the oreisl tables before
There was, indeed, contraction Of our paper
currency from 1855 TO 1855. Bnt the business col
larSa 4 unr AFT
later, and those five years. between iS6S and 1873,
generally regarded as years OF uncommon pros
perity. Now what happened with the currency be-
and 1873? In 1865 contraction stopped.
In 1869 the OF paper currency outstanding
oss3. s4s In 1870 il 500. S75 500 Is In
1871 it s7I7 SIS ISL .os In is7e 1t s73s 5o,
sos So. In ls7s it go. Ose 1854. This state
includes not only the greenbacks. the National
bank aad the fractional currency, but also the
State banks circu lztion. the demand notes. the
aad Years notes Of Ise3. and the compound in
teresi notes. Thus 1t appears that during several
years preceding the crash of Is.3. the currency
not only not contracted. but very materially in
Creased, so that in ls7S it amounted to
over $50, 600. 900 more than in Isss. The
fact thea stands thus: The currency
contracted between 1855 and isss, and several
years of prosperity followed The currency ex-
banded from 1889 ls73. and the collapse Of busi
occurred. II II were true, the iuaationists
Insist tl3t the increase decrease OF currency
bottom of prosperity. and the depres-
sion. respectively. would have To answer. that,
according 10 TIE clearly ascertained facts o. history.
It contraction that caused prosperity and eX-
panson that caused the collapse. l might
even add that tween 1873 and 1874 currency
expanded $50 Os2 3ss s.si $40. sl6 OF, ths
Is 10 say over thirty-one millions, and yet
the depression not only not relieved,
but grew in distressing severity our Imitation
frf III. rails hat ind ~ I'm
what have you TO answer? Those who know will
bear witness that I have never hesit2ied to
criticise those In power for things thought wrong,
but caudidly think TO charge those in power with
having brought the crisis OF 1875 by contraction
OF the currency would be just ressonIble as TO
make them responsible for the equnOcIial storms
for the depreGstons OF the iccusts in the West. II
the Government is 10 be made responsible for every
thing, then solemnly demand that the abundant
crops this year put the credit OF the adminis-
tratioH sad Of the Department OF Agriculture in
Particular.
EXAMINING THE CAUSES OF THE COLLAPSE.
Let examine the of the collapse
of is7S and the subsequent depression a.
unprejudiced, sensible We all know that at
tile same time when the panic occurred here in the
autumn of 1873. a similar crisis broke in Europe
and swept over all Austria, the German Empire aud
almost the whole European Continent except France.
while severe business depression felt In Eng
land surely. although this Is a great country, onr
Congress and Administration and the Repubcaa
party been bottom OF all that: aad
Vet the effects produced by the crisis in Europe was
almost in every respect the same here. sPecuil-
tion collapsed, values shrunk violently, real estate
went down, banks, manufacturing and trading
frms failed in large numbers, extensive
branches OF industry stopped laboring men we're
thrown out Of employment or compelled TO work al
lower wages. aud grievoGs distress spread all over
those countries well own; and upon candid
examination you viii ind that. as the effects were
similar IN the two hemisphere, were the underly-
Ing In none OF those countries was IL
r-ncy contraction that brought about the disaster.
Just little in own: There rather an
expansion Of II, especially ia Germany No: ths
real causes were, As l have more than once had
casOii to describe them: great resulting In
sustries ministering the work Of destruction In
stead OF producing additional wealth. Brt after
that excessive enterprise, stimulated by apparent
success, the sinking of large amounts OF capital in
great undertakings which could yield immediate
return, such the building OF railroads where they
were not needed: for anticipating the future:
the Invention and Introduction of la
oor-sayiHg machinery. creating facilities
of production aud exciting excessive manufacturing
beyond present demand; with speculative dealing
Ed gambling in all sort of Ina snarv values: i'm
mense number Of people frantic4y striving to make
money quickly by any except solid WORK
infatuated faith in the OF windy schemes
snd unnatural sirainins Of the credit system by
pushing speculation and enterprise far beyond the
means ~; those engaged In 1t: and finally almost
everybody believing himself richer than lie Vas,