Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1878-08-23

EXTRACT FROM THE SPEECH OF HON. JUSTIN :
MOERII. OF Vt. IN THE U. 5. SENATE.

hLlltb hCCOEuiuB 10 tue tAit,euCies VI tiic IA =
gument. Now it is bankrupt law which
must be repealed, or it is the lack of a war
income tax which must be enacted. Again
it is an internal tariff, and the panacea pro-
posed for this is free trade, for which there
is IN English patent to be sold cheap for ex-
port only. Once more it is subsidies for
cheap transportation by land and water.
Then it is the tax on whiskey and tobacco
which is evaded by many who wilfully refuse
the use of either. Finally no comfort or
patriotism. it is alleged, can be expected un-
til the Government not only furnishes free
homestead of one hundred and sixty acres
but shall furnish the farming-tools and
pocket-money to work it. When no other
bug-a-boo has seemed available,
THE CRY OF CONTRACTION
has been kept up until every broken prodi-
gal considers himself down with the disease,
down certainly in credit, if that can be said
to be down which was never up. The recent
vicisstudes in business most undoubtedly
have been great, and many worthy men have
been Frustrated, but contraction has had as
little to do with their prostitution as the tele-
phone or the Kelley motor.
The charge that contraction was and is the
potential cause of the widespread dizziness
which has everywhere prevailed in business
has been repeated with SO much pertinacity
that many well-meaning persons have accept
ed the charge as unalloyed truth /; they De-
lieve themselves more or less to be the VIC
tins of contraction ; and it may be well to
inquire as to the exact extent of the contrac-
tion from which it is claimed the country has
so greatly suffered. In the broad sunlight
of iacts it will possibly all disappear.
To begin with, there were on the LIST of
January, 1875 of Iegal.tender notes and ma
tional-b bank notes in circulation S736, l2S, go,
and on the LIST of May, 1878, there were
5000, ST., 695, or an apparent diminution OF
see, 305, 800. As an offset, however, to this
it is lust to claim that the increase OF gold
and silver money in the country has much
more than replaced all the dismissed paper.
In the treasury alone there has been an
addition since the LIST of January, 1875, less
coin certificates. of $50, 235, 942, and also an
addition to the coin represented by coin GER
tificates, $50, 326, 200. This rubs out at once
the assumption that there has been any con-
traction ut all. do not take into the ac-
count fractional currency, as that, so far as it
has disappeared, was at once replaced by sub
sidiary silver coins.
There has been
NO sTRISGESCY IN THE MONEY MARKET
since 1S75-only continued dullness. No
properly supported demand for money has
been refused. Moreover SIG 900, 900 of legal
tenders were issued by Secretary Richardson,
soon after the panic of 1873, as temporary
measure though with somewhat OF disputed
authority, but with an undisputed purpose of
n withdrawal whenever the exigency should
have passed away. After 1867, for years the
outstanding legal tenders had stood at S35d,
600, 900 but they were suddenly increased
to s3S2, 600, 900 without the slightest benefit
to the country.
Again, il should be observed that coin GER
tiiicates are in constant circulation, and they
must be included as perhaps the best part CT
paper money circulation. There is no doubt
about their redemption on presentation.
With such n state of facts it requires no
small amount of patience to listen to impas-
stoned Trades about contraction of the vol
ume of available money. There has been no
contraction except that done by the imaglna-
ton. which diyerts itself by n contraction of
truth. If there is less of one sort of money
there is much more OF another and Its
character has only changed for the bet
ter. as will be seen 10y the following state
ment:
january /. 1875. May |, ISIS.
tender notes. s3s2 900 90 s3i6 6sl .Oi6 %
National bank notes 3ji,ooO.0Oo 10 3l3'iil,6's 10
Coin In the Treasury -
less coin certiicaies) A sO9,7Si IS IOl,Oi5.736 SS
Coin certilicates 2i,655. 300 " 5i,s5l 500 w
Total........ so. 465.Os4 s. So. sie.s3i 81
Instead of contraction. this table shows
we have over $4,000, 900 more money than
we had in 1915.
True, not SO much money has been want
ed or could be used ; and if the contraction
sometimes charged had actually taken place,
81 Ctan xvOuln have
had no perceptible effect. Its absence would
not bave been noticed.
What seems to be most lacking is not 80
much the lack of money rs the
LACK OF CONFIDENCE.
The large depreciation of the stocks of many
of the best banking institutions of the coun-
try shows, that, while their capital has been
subjected to more onorous taxation, national
State, and local, than any other kind OF pro-
perry in the country, they have been wholly
unable for some years past to loan their capi-
tai at much profit. If they have kept up
their usual line of discounts, 1t has been done
Mt unremunerative rates, and mt greater risks.
And vet they are subjected to political re-
proach for not doing more wien there was
nothing more to do The very large amount
of bank deposits is another signal proof that
the demaud for money has dried up. and
SngaclDuS operators nave hIbtly Cehstu W
apply for discounts. They want confidence,
and will venture nothing more than driblets
until they can build on the solid rock.
A practical resumption ofspecie payments.
will, it is true. add largely to the volume of
money seeking employment, not only IN the
usual channels of business, but IN all mar
kets. whether of the cities or OF the country,
and will give n more healthy activity MS sure
ly to idle labor Ms to idle capital Resump-
ton restores to gold and silver all the func-
tons of money. Neither will then lie dor
mant in hidden burrows, nor be bought and
kent AZ mere merchandise at the expense of
more than an equal amount of currency, but
will become co-workers with all the paper re-
deemnble in coin Mt the will of the holder. A
healthy augmentation of the volume OF mon
ey will ut once appear and the loud common
scolds against contraction will not have even
the skeleton of the dead topic to point at,
and no delusive watchword with which to
stun the ears of honest men. The only other
vocation that will be missed Will be that oil
the gold broker. The only tenement that
will he yacated will he the gold-room of the
commercial metropolis, and from that the
.bulls" and bears may be expected to de
part without asking for further reverence
Whether lovely or unlovely in life. in death
they will not be divided. The premium on
GOLD will cease to pursue any contract. En-
terprises and engagements can lie entered
upon without palpitating apprehension ihat
Il change may occur IN single niBht' prihs-