The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1878-09-19
was There Contraction Previous

to the Fannie OF 1879.
From the Cincinnati Enquirer
General Garfield states the contrac-
ton problem i'll :i;s way:
81 ask every man who believes in
this allegation 10 wrcs:ie with the fol-
lowing facts: In 1860, IA year of pc: &C
and AT least Of fair prosperity, year
of Democratic rule, this country had
S2O7, ,000, ,0C of p"pcr currency. Up 20
that time S4I5, t1OG00 was She largest
amount of paper currency ever IN cir
cniatiOn at any one time in this conn-
| fry. Banking Was free in most OF tlic
States, and bankers were issuing all
the currency they could keep in circu-
lation. No one then claimed that there
was an insufficient volume of currcn-
cy, and doubt whether any reason
able man will now claim that the cur
rency of 1850 was insufficient in
amount. Nov, IN the month of June,
1873, just before the great panic struck
us, our outstanding paper currency
was $3.50, ,G0O,O00, or more than three
times the amount in 1850. In the face
of this fact, will any man of intelli-
gence say that the panic of 1873 was
caused by an Insufficient volume OF
paper currency"
That is not all honest presentation
of the case, aud nobody knows that
better than General Garfield. The
people, who have not the means to
study out the matter for themselves,
are entitled to fairer treatment. They
should be told the truth, and as clear
ly as possible. That General Garfield
has not done. The more his discredit.
General Garfield compares the pa
per circulation of 1860 with the paper
circulation of 1873. Why the paper
circulation, leaving out the coin? TO
deceive! lie knew it was deception.
The coin circulation of 1860 exceeded
the paper circulation at that period !;
whereas, in 1873 there was no coin
circulation at I'll. For some years
prior to 1860 the coin circulation had
been gradually increasing, Ow ing to
the unstable and unreliable character
of the paper money based on and re.
deemable in specie. 1t is estimated
that the amount of gold and silver
coin in the country in 1860 was S275,-
OOlOUl. The bank paper circulation
at the same time, according TO the
Treasury Department, Gnounted to
S207, CO l,0tO, making together total
circulation of S4S2,i ),tO. Of that
the banks held as reserve in co'n
SS4 O0O0CJ. That left for actual ci:cr-
lation among the people $39S,O9O,C 10.
The population Of the country ut this
time was 3l,4i3,32l. So the actual
circulation among the people for all
business purposes was $l2.65 per
cdpite.
According to recent statement
from the Treasury Department the
circulation June 80, 1873, amounted to
S75O,G!0,G }. the banks held as law
full money reserves, excluding specie,
S2O6CJ JOt. D. That lett for actual Cir
culation among the people S54l.C D..
loco. The population at that time
amounted to 42,C00.Wo. So the actu-
al circulation among the people was
$13 per capita,
That being the true state Of the
case, the reader can see why General
Garfield, in comparing the circulation
of 1860 with that of 1873, gives only
the paper and not the paper and coin
circulation of 1850, as that only made
all actual circulation among the peo-
pie of $6.5S per capita, instead OF
Sl265, what It really was.
But why did General Garfield COM
pare the circulation of 1860, and not
that of 1865, with the circulation OF
1878? Simply because that would
have made the contraction horse ap-
pear of an entirely different color
from what the General wanted his
audience to sec il, 1t would have
made it very dark instead of very
light. The business of the country in
1865 was not based OH the limited Cir
culation of 1860. According to one
Republican authority that basis was
1885, ,3,9,GS5; according to another
Republican authority, it was Sl.125,-
1884, making in the first case con-
traction between 1865, to which the
business of the country had adjusted
itself, and 1873, Of S233,3lG,GS5, and in
the second case, q contraction of S315,-
SS7, ,I34. Democratic estimates make
the contraction much greater than
those Republican figures, some of
them S750,U J.. ., and others as high
as ST. 'O,t &c ,. The Republican fig
ures are sufficient. however, to show
why General Garfield chose 1860, and
not 1865, - prove there had been no
contraction of the currency previous
to 1873, and that, therefore, the panic
of that year could not be justly charge
able to a contraction of the volume of
currency. General Garfield must try
some other dodge than that to avoid
the facts presented to show that there
was a ruinOus contraction of the cur
Lotu,oop 1SES ou1 1879