The daily gazette., 1878-08-30

ana afterwards in the Senate of the Uni
ted States the Finance Committee upani-
mously passed resolution declari pg tn A
TINS reissue was without warrant of
law.
In 1873, the crash came. The system of
credlt anu confidence was destroyed. 1t
was the legitimate result of the idea en-
tertalned by many that men could grow
rich without labor, and that Congress
could ordain that men should be happy
without following the well defined laws
OF trade. The failure of jay Cooke sent
thrill of distress through the country,
wnicn was felt In every part of the land,
and in our own city of Wilmington was
made manifest in the cases of hundreds
OF poor people who, by consequent fail
ures, lost all their hard-earned savings of
many, years. This widespread distress
was the necessary consequence of disre-
garding the laws in relation to labor and
properly which are beyond human con-
troll and legislation.
Mr.. Richardson, who was then Secre-
tary of the Treasury, suffered S29 900 900.
or the recalled notes to go back into CIR
culatlon, which increased the amount
outstanding to 1884 900 900 so it stood un-
tll the law commonly known as the ore
sumption Act" was passed in February,
1870, at which time $50, 6,000, 600 of Trea-
sury demand notes had been retired, and
upwards of $40, 900 600 of National Bank
notes had been issued in their stead. To-
uay The amount of Treasury demand
notes outstanding is S347 200, 900.
This "R-sumption Act" promised that
all the Treasury demand notes outstand-
ing should be redeemed in coin after the
lst of January, 1879, when presented at
the Treasury of the United States. I'm
der the belief that this would be done,
and that there was to be honesty and
good sense in all public questions, pros
perlty began to return to the country.
The premium on gold faded almost to
nothing, and silver became less valuable
than the notes themselves. Four hun
dred and twelve and half grains of sill
yer, 800 fine, can be purchased for ninety
cents. Not of coined silver, for the
Government resolved to turn 85 cents
worth of silver into dollar, and say it
shall be received as such. But no Gov
ernment can establish and regulate
market value for any product. That
must be done by mon themselves.
Resumption has been almost practically
accomplished, and will be entirely reach
ed if we stand still a little longer
The cry of contraction is now raised in
many parts of the country, and is is as
serted that the reason people are so poor
is because there is scarcity of greenback
money. l can't see how it is possible
possible that any such change can be
made. Look at the daily papers of to-
day, and you will see that the money
market in all OF the great financial cen
tres is stagnant, with rates of interest
only three, four or five per cent. This
shows that there is glut in the market.
For if the men loaning money had not
so many of these notes they certainly
would ask more for the use of them.
The U. s. Treasury tables up to May l,
1873, show that there are SIC, 200, 900 more
in circulation than on January /, 1875.
Then there were 1882 100000 in green
backs, 1854 ,0O0,00O in National Bank
notes, S45, 100000 of coin in the Treasury,
and $4 ,000,0 900 of coin certificates, max
ing total of S804, 900, 900. On the first of
May, 1878 there were S346, ,681 900 in
greenbacks s323, ,141 GOO in NationalBaak
notes, ,S101 ,045, 900 ofcoin in the Treasury,
and $54 100000 of coin certificates, MAX
lug total of 1924 1867 ,000- an increase of
nearly S20,000,000 over the total for jan
uary l, 1875.
Therefore, am amazed when [ hear
men say that contraction is the cause of
our present depression when there has
been none. The only contraction there
was, happened between 1860 and 1868,
but it was arrested by the demands of
who had been engaged
in speculations IN property at high war
rates, (which were fixed by q paper money
that was not redeemable. These values
could not be permanently retained. Only
get the people to believe that prosperity
is coming in some form, make them
hopeful of securing increased values, and
they will trade in accordance with these
hopes.
ANOTHER CAUSE OF DISTRESS.
was the incredible policy of the govern
ment pursued fIom 1869 to 1874, In rela-
ton to our bonded debt. When a man
has debts due and debts not vet matured,
as a matter of business policy, he first
pays those that are due, and waits for the
of those not due. True credit
Is to pay when you promise, to meet all
demands when called upon, according to
the terms of your contract. This plain
idea, however, was wholly dsregarded
by the Government. An enormous debt
that was not due, that had twenty years
in which to be paid, was paid off. The
bonds were forced to the highest price
and bought at the heaviest premium.
The payment of these bonds not due
was very unwise. The law of March,
1868, entitled "An act to strengthen the
public credit" undertook to settle the
question whether these bonds were pay
able in paper or in coin, and it decided
that they were payable in coin. The
platforms of the new parties assail this
law, and there was nothing that / can
see to make the law necessary. If one
fourth of the money paid for bonds not
due had been used In bringing the Treas
ury demand notes TO par and restoring
q specie basis, there never would have
been question how these bonds were to
be paid.
The disregard of true business princi-
ples in the payment of debt not due,
and the addition of the heavy premiums,
was one of the greatest causes of our
present distress.
The Western people are demanding an
of the extent Of the Treas
ury demand notes, some to an amount
sufficient to pay off the national debt,
and others, who see that such dishonesty
can only result in national dishoDor and
simply want to replace
the National Bank notes with green
backs; or to issue greenbacks to Gan
justly demanded by the interests
of the people," or some other phrase
about as vague as this. A great objection |
TO this proposed substitution is that the
notes of the United States are not sub
iect to national or State taxation. All
property protected by the Government
should bear portion of the expense.
thorgbt it unwlse to exempt national
bonds from taxation, as ir creates the |