Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1878-10-17

friends, who pretend to be so jealous of the
DOWer Of the general government, how are
yon fallen from the high estate of your
ancient principles. that you should now be
willing to give to that general government
the power to dispose of every citizens pr;
vate fortune! Oh, shades of Jefferson and
Jackson, where are you?
repeat, it il not only question OF con-
gressional wisdom. The very fact that con-
gress is to dispose OF SO tremendous an iu-
terest by mere legislative act, cannot fail to |
have most disquieting and enervating IN.
fuence upon the business of the country.
Are we not all witnesses to the fact that for
years, during every session of congress, the
whole business community stood on tip.
toe with fear and trepidation, lest some
tinkering genius in congress get up and
push through some measure interfering with |
all their business calculations and arrange
ments? Have you not all heard the heart
felt prayer of business men at the beginning
of every session that congress might do its
necessary work quickly and then adjourn
Have you not time and again heard the
general sigh of relief when congress at last
did really wind up and 90 home? And now
posed of such financial geniuses as adj
vocate the "Ohio idea," every one
whom has his unfailing financial nostrum
in his pocket, and that congress intrusted
with the power to determine the value OF
every mans property, and the chances tor
profit or loss of every mans enterprise.
viii the business community ever get out
of state of feverish uncertainty and appre-
hension? Are fits to be the normal condi.
ton of our economical system! Are we not
at last to have that repose which is SO neces-
Safo hug q
quiet rebuilding of our fortunes, and new
reriod of prosperity? If so, then in the
name of common sense let US get rid of a
system of irredeemable paper currency
! which puts into the hands OF congress the
power to determine how much money we
shall have and what that money is to be
| worth. Let us at last reduce the govern
ment again to its proper functions, and re-
turn to that condition of things in which
the currency regulates itself. No congress
knows how much money the business of the
country needs, but business itself feels and
determines it with certainty.
When specie payments prevail, and there
is more coin in circulation than business
needs, it will flow out and 60 where it
finds more profitable employment. When
there is less coin in circulation
come dear and flow in from countries where
it has less profitable employment. The
same rule applies to well'regulated system
of bank issues based upon specie. When
the quantity of n otes out are in excess of
| the requirements of business, they will
flow back to the bank for redemption.
When the quantity of bank notes is insult
fcent for the wants of trade, the bankers
will find it profitable to increase their
Local and temhorary disturbances, oc-
casional panics or speculative periods,
which under no money system can be en-
tirely prevented, may sometimes interfere
with this self-adjusting machinery, but on;
the whole the rule holds good. The gov
eminent has nothing to do with it, but to
see to it that the coin struck in its miut' be
of the prescribed standard value: it
prevents and Furnishes counterfeiting,
it regulates the banking system SO
as to make it safe; and then it lets cur
rency and trade in their relations take care
of themselves, without assuming an; arbi-
! trary control over volume and value. These
are the simple principles of q souns! money
system under which business can regain
confidence in itself, and prosperity. will
revive That is the end which we should
accomplish, and which is now within our
. reach. The paper money men have con-
trived to befog the public mind with certain
superstitious impressions, to the prejudice
of the cause I advocate. Let us look some
| of them in the face. One is sort of dark
terror with which the word contraction has
been invested. 1t would almost seem as if
contraction was some diabolical power
bringing forth all the ills human flesh is
heir to. Thus we are told that contrac'
ton, with all of its concomitant evils,
was one of the internal effects of the
resumption act. It is true that, under the
resumption act, since 1875, the currency
has been. contracted; but it is also true
that this contraction has not had the least
depressing effect upon the business of the
country, and I can easily prove it. If con
traction had cramped business-that is te
, say, if business had wanted more curreu cy
than was out, it could easily have had it
Banking was made free by that very re
sumption act Any FIVE persons, procuring
the necessary capital, can start a bank I'm
; der the national system. and issue banl
: notes. Had business required more cur
rency than was out, the issuing of more banl
notes would have become profitable
There is plenty of money lying idle
.. and waiting for chance. That chance
would certainly have been taken hold of b,
enterprising persons had business reall.
. needed more currency. But not only ha
the volume of bank notes not been increased
but it has been voluntarily reduced b,
:, the banks This is conclusive proof no
only that business does not want more cur
. reucy than is out, but that it has even NOR
than it can probably employ. The contrac
ton was, therefore, not The result of 3 force,
operation, but was of natural process.