Buchanan County bulletin. [volume] (Independence, Iowa) 1869-1891, 1878-09-06

day of July, 1877 SO that it is fair to
suppose that more gold and silver have
entered into circulation, especially dur
ing the last year, than the total amount
OF reduction in paper money But it
may be said that this coin is locked up
in the treasury. A large amount is so
locked up; but the increase of gold GER
tlficates, which go into circulation dur
ing this period, amount to $10,000,O00;
and the banks have increased their re-
serves in coin to the extent of twenty or
thirty millions of dollars s-thus reliev-
ing for circulation greenbacks to like
amount. Thus under the operation of
the Resumption act which has been so
severely criticised, | think it may be
said truthfully, that there has been no
real diminution of the circulating me-
dium. Indeed if the paper money were
reduced to gold values, there is now
$1,000, 600 more money in circulation
in other words, $10,000,000 more pur-
chasing power in the paper money in cir
culatlon-than there was in 1873, when
the Resumption Act passed If we re-
duce the paper money for series of
years to gold values, and reckon it's pur-
chasing power in gold, there has been a
constant expansion of the currency since
1870 up to this time That is to say, re
duced to gold values. there has been a
constant increase in the amount of mon
ey in the country since 1870. [ ought
to except, however, 1874; for during that
year the aggregate of paper money, val
ued in gold reached it's highest point; and
this, by the way, was the most disastrous
year to business that the country has
experienced since the close of the war.
On this basis (of gold values) we have
now $4O,O0O,0OO more currency than we
had during any one year from 1866 to
1873.
Now bear in mind that the greenback
circultion is now 's347 100000, and that
it can not be reduced; also bear in mind
that this is only $9,000,000 less than
were in circulation in 1863 and from
that time to 1873; so that, (but for the
additional issue made by the Secretary
of the, Treasury in 1864 our greenback
currency to-day stands substantially the
same as it did during the five prosperous
years ending in 1873. In the face of
these facts, how is it possible that men
eminent for their candor and fairness
will insist that it is part of the policy
OF the Republican party to destroy the
greenback currency? and moreover, to
assert that the financial distress which
brought about the crisis of 1873, and
reached its eliminating point in 1874,
was the result of the passage of the Re-
sumption act in 1919?
The policy pursued by the Republican
party has brought us now, fourteen years
after the close Of the war, to point
coin money; aud it does seem to me
now having the ability to resume specie
payment. and having passed through
this long struggle in order to accomplish
this end, to wantonly retrace our steps
would be consummate folly while to vio-
late the promises and pledges so often
and so sacredly made would be rightly
regarded as national dishonor and dis
grace.
CAUSE OF OUR FINANCIAL TROUBLES.
But it may be asked, if the contrac-
ton of the currency has not been the
cause of our financial troubles, what is
their true cause?
| will briefly state some of the causes
which, according to my best judgment,
have principally contributed to produce
these evils:
First-The cost and waste of war, and
the debt and taxation that accompanied
and followed it.
Second-The diversion of so large a
portion of our population from pursuits
of labor to the country defense in time
of war, and the difficulty of re-adjusting
industries after its close
Third--And largely, to the fluctuations
of values resulting from an irredeema-
bic currency, making it hazardous to
engage or continue in legitimate busi-
ness or industrial pursuits.
Fourth inevitable certainty that
war prices could not be maintained, and
the timidity of capital in making invest
ments on constantly falling market
And
Fifth-The fact that during our wal
: our securities were mainly owned at
home, and that following it, people
abroad soon came to believe that large
profits could be made by investing in
, them. These investments proving pro
. ftable, States, municipalities and cor
porations found it easy to negotiate
, their securities; and thus, by means of
borrowed foreign capital, was built up a
system of public and private credit
which induced even prudent persons tc
engage in wild speculative enterprises
far in advance of the wants or needs OF
the country These investments failing
to pay the interest anticipated, entaileo
with the failure great loss in our coun-
try, and in other countries where people
were so unfortunate as to invest In
these Improbable schemes
This system of credit expansion was
not wholly due to the currency. Other
, nations, on specie basis, were guilty OF
the same follies, and are reapng the
same harvest of disaster England and
Germany have sustained losses and
bankruptcies equal to our own; and the
, French people have only escaped like
great disasters by adopting the Poor
+ Richard" motto of PAY as you 60
Had her people engaged in similar spec
ulations, they would now be experien
cling like results.
5 But these losses and this depression
have been greatly exaggerated There
has been great depression among manu-
l featuring industries, and considerable
distress among business men, and tht
: debtor class, because of the depression
of prices and values; and there has beer
difficulty among laborers in securing en-
} ployment But the distress and loss o.
employment have been greatly magni
: fed, especially in the phillipics of so
: called ''Reformers," some of whom as
| sert that there are three millions of la
t borers unemployed. This is mon
: strous exaggeration. According to th'
report of the Superintendent of Labo
: Statistics of the State of Massachusetts
5 recently published only twenty thous
9 and of all classes are unemployed il
that great manufacturing State. At th
| same rate, this would make only 81,
: hundred thousand persons out Of EN-
: ployment in the whole United States
and most likely one-half that numbe
: would more than enumerate all the un
i employed laborers.
I SPECIE PAYMENTS.
+ 1t is said by some that specie pay
1 ments, if restored in accordance witt
t the Resumption act, cannot be main
}. tanned. Our ability to maintain speci
: payments does not depend, and neve
d has depended, upon special Legislation
e for that purpose; but mainly upon tn
" condition Of orr industries and on