The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1878-01-31

WHOLE No. 492.
time such measures have been accom-.
pitched the horrors Of history have
taken place. No shrinksge in the
amount of money. no contraction Of
the currency in the hands Of the peo-
pie was ever enforced by law to any
extent, except amid bro.
ken lives, ruined hopee, despair, lost
honor, aud all the vices springing fron.
the lowest depths of poverty and hu-
man misery.
1t is said in highly intelligent quar-
ters that at this hour there are 5000,
600 of our people unemployed who
have no other dependence for food and
shelter than the labor OF their hands
aud one half of whom are now tramp
ing from place to place for crumbs o
Pitiable aud dangerous spec
tacle! 1t never happened before il.
this land of bounteous nature, MOI
would II. now bot for the fact that in
these latter DAYS : class has srisep in
06f Ulld5t nl56 b 6Gf elt<d ~ fllg
scarcity Of money and the consequent
destruction of all those great indus
tries which afford employment to Ia
Dor. He claimed that at the time ths
act OF January IA, 1875, was passed
our volume of currency was aiready )
reduced, in proportion to population.
far below European nations, where
labor commands barely subsistence
wages. We had nearly one-half les.
per capita than Germany, England and
France. The money of the countr.
had been diminished nearly $4,000
600 by contraction. The liabilities TO,
failures aud baAkruptcie.
had arisen from an average of Sill,
OO0. 600 per annum 10 nearly $500, 900,
900.
THE SPECIE RESUMPTION ACT.
He commented at some length on
the Specie Resumption act. aud ssid
many efforts haye been made to ascer
tain the exact amount of actual gol
which this government now owne
none Of which have been entirely sue
ceesful, for the reason that the sum j.
SO small, but it is perfectly safe t.
state, after deducting the amount du.
as interest on the bonds, that there al.
not this day fifty millions of gold in
the United States Treasury and in al;
the national banks besides. Ii re
sumption is to take place ON that basis
the gigantic tack of this poor pittancs
will be 10 stand good for the redemp-
ton of $3.50, ,OO7, ,3OS 80 of legal tsnder
notes and $29l. .874, ,236 of national bank
making in all the sum o.
$6l 1881 5A so. 1t is very plain, eve,
10 those who believe that one dollar in
gold ls sufficient for the circulation,
aud. redemption of three dollars in
paper, that our present condition o.
one dollar in gold to about fourteen il
paper must be radically reyolutionizei
against the day fixed for specie re-
sumption.
THE NATIONAL BANKS.
Not only, however, has this govern.
ment failed in this great duty, but tn,
manner it has adopted to furnish tn,
people with their limited aud insuffi
cient supply of currency was conceiv
ed and perfected by the owners Of re
tired capital, The system of natioua
banking now IN use is the most elabo
rate and complete scheme for maxim,
the people pay tribute to wealth in or
der to obtain circulating medium
ever known in the financial history o
the world. There is not n dollar to
day in the hands OF the people OF
which they have not paid q tax for th
privilege Of having it put in circuls
ton by the government. The nationa
bank ia the middle man between til
government and the people, and j
enormously paid for doing what tn
government ought directly 10 do itself
According to the report of the Comp
troller of the Currency there wer
1850 national banks October l, lS7,
and they owned in even number
$685., ,OO0, 900 of the government bond
as the basis of bank note circulatio
of $291 100000. The interests paid b
the people on the bonds thus used t
secure q currency on which to transae
their business amounts to not less tina
SIG, ,OOO,O 900 per annum. This is ih
tax paid for the bank note circulatio
The b0ndholder has been made til
banker Of the country, and he is bank
ing OH the interest-bearing debt OF th
people. For every 500 OF currenc
they pay him nearly Sc interest on tn
bonds which secure that 500. Iii
advantages, however, only begin vi
this bonus Of SIG 100000.
The report of the Comptroller show
that October 1, 1877, the national bank
had loans outstanding to the amour
of $S9I. .CJO.OC3. No one will preten
that these loans were made on an av
crage interest Of less than ten pc
cent. This makes an interest acccOul
of $50. .OOO. .OOO per annum, and this
an under, rather than an over estiInat,
OF other bonds, stocks, debts, res
estate, specie, currency. Clearing Hous
exchanges. Uuited States certificate
of deposit and all other resources, til
property of the national banks at th
above date amounted to someihin
over $514,OOO, 600, which. At the 10,
rate of five per ceut, makes an add
tional interest Income OF $4,000 Cox
The following statement will there
fore correctly represent the facts -
OCTOBER l. 1877.