The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1878-01-11
TmH FINANCIAL CONFLICT
IN. beauties II Contraction.

lIfnH fh@ GtnsiHnafi En.lHtfFr.l
With the heginning ~ tl,i. year the
country will learn some Of tho effects ot
the Sherman policy II forced rcsump.
tion. Tho saidtst New. Years day the
p.opleof thc United Staten have known
since the war was ycsier,lay. l spit.
Of tho bouniiful gifts of Providence, yea.
tnrlny carried bankruptcy into more
homes than any of tile New. Years days
since tho WIZ began. The divine ben.
srtIpg ont NJ tho soil, haA not becn
.uilal 10 the task 0f overcoming the In
hnmane financial Legislation of thu last
f"w years. Our special dispatches yea.
terlay announced eiglty.niiie failures In
tic city of Nrw York III tI.c month oi
December. nnd eleven assignments. The
aggregate liabilities were es,OOO, ,ODO,
three times the amount of the failures ut
thr previous month. The bitter Distress
of bankruptcy has multiplied thrce times
IN one city In one month. This iH only u
portion of the record. Tho Meters and
the kinneys anl tho 1lonncrs src II bo
found, unfortunately, Ia every city III
tho lind. In Every corner of tile cOun.
try savings banks are eollap.ing aud tile
harl.enrtlfa accommodations of the people
~ small means nru melting AWAY. The
wiao. md the fnthefl.ss afe left pcnili.
less, ani the explanation given 10 them
III place oI their money IN deprecia-
sion of values It's Tho John Sherman
resumption policy. Tho statistics of
failures for 1877 will bo awaited with
lnonfnfnl interest. The number ot
bankruptcies IN the yenr determine thc
prosperity of the country In TINT yenr.
4 single failure sends agony into many
hearts and homes. II means lhc bitter.
nerA " unavoidable shame. II In m.
Enish for Il family circle. II carries lts
wpe aud suffering fur beyond single
family circle. Multiply the sorrow, the
sense ~ disgrace, tin humiliation. thc
sant. that accompany one failure into
10000. and one npproxiInntes 10 thu
years record Ut tho working of the
policy oi forced rcanmption-~ihc work.
inra eysn III the threat of II. While the
mercantile agencies nre making up their
reports 10 again call attention 10 some
very eloquent faets wllicl, tell the story
~ the pitileHS financial policy tlint hA.
been pursued for more tllnn decade
will not be out of place on this second slay
III il,e new year. ono day lcss than year
away from that on which John Sherman
says ltis policy can bc, and ought ~ bc
and will be executed.
In iStI3 the number of failures In the
United States was only iA5. Il WAS tho
year In which tho effect III having
abundant machinery for tho conduct ol
business wns hrst felt. Tho various
forms of United states notes, honda,
ete.. TINT wcra made legal tender, or
tised M money, matlc money plenty.
The amount of indebtedness involved In
these failures WIN only e6, 6Ol, 7UU. One
city In thc country Inst month furnished
4 larger amount III indebtedness IN IT.
failures. In 1Htt4 thr number of failmreA
III the country was but $40. M addition
of only thirty. 1--we, anl tho total inlebt~
nlncss wns only 4H,67O, ,OOO. This !.
about equal 10 the record of New York
alonc for the last thirty days. In lnj5
tlic policy III contraction WIN begun, but
llnd not begun ~ br felt. lhe failure.
in that fiscal yrnr; ending June 10, we're
only N,O. md the indebtedness Involved
WHe Uut 4btsVSbbUWs AHEb1 WIZ
years Of abundant money. Tho
machinery for Tho carrying on u
business wns ample. They are la
emphatic contrast with the years follow.
ing mud the years preceding. In i6tj2
tho failures had been i,O52 nnd tho LA
billts. a:s;l, ,OiO. I'M. A change u 1uan.
eial policy Ia one year reduced the nun.
her and amount three -fomrths. In 1891,
before any u the war financial measures
| were adopted, the failure. wcru 0,OO3,
and the indebtedness o207. .3i0. .OOO. We
nsk critical attention 10 these years and
figures. for they show that thc prosperity
ot the people and sufficient currency
for tho conduct of that peoples husi.
ncss Ar indiHsolubly connected. We
lind TINT for tllcSe four years when paper
money In various forms wan abundant
the failures were few and nnimportant.
There was universal prosperity. In 1886
tho policy of contraction VIVA adopted
~ Mr. NcUulloch, ANIL IN ono shape u
another Inns boon consistently and ~
morssicsAly pursucd since. Ia ono yeAl
tho nn.nler VI failures Increased 10 002,
nud tho amount involved wAs tScblcd,
reaching ol7,333. .0OO. LII another yeAI
the results of the fatal policy we're ss<'n.
Tho failures hal increased ~ 2,060,
with liabilitica amounting 10 mOr0 thAu
~, ,O0O, 900. With out tracing them yrai
by year. II IL sualeleus sr ray Nes tls
dr@sd ssfsefsss tho tehsnle n ocntfsctlss