Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1878-03-19
The "Contractionn Question.

immaterial from the standpoint OF those
who want the greenback as good as gold.
whether or not there was ga contraction
OF the whole volume of currency" bet
weeu 1865 and 1873; for the reason that
il is not the volume Of money, but the
value OF each dollar that affects prices.
We have to day fifty per cent, more cur
rency than we had before the war. aud
vet prices now are on the average about
the same as then. But as our greenback
fr.snds have insisted that "hsrd times
were caused by forced contraction OF
the currency between 1865 and 1873 to
the extent OF twelve hundred million dol
lars, we have been endesyoring to show
them from the official reports that they
are mistaken. Some OF them. who pay
no attention to facts, it is of course useless
to sttemPt to set right. But the Belfast
Age. although thoroughly devoted to
greenback ideas, is TOO respe table pa
per to shut its eyes to official facts; and
notwithstanding it still claims there was
contraction" yet it has the fairness to
publish the following from Secretary Nc
Culloch's Report to Congress in Decem-
Der. 1855:
Without including seven and three
ten,hs notes, many of the small denomi-
nations OF which were in circulation as
money, and all of which tend in some
measure to swell the imitation, the paper
money OF the country amounted, on the
Slst OF October, 1865, to the sum of 1884,
2lS,0SS.2O."
The Age accepts Secretary McCulloch
as final authority on the question Of the
currency, so far he goes. although it says
that his estimate Of the amount OF CON-
pound interest notes in use as currency
is only guess. In abiding to further
issue OF rational bank notes after Oclo-
Der lst, 1865. as Increasing the currency,
the Age iorgets that for the most part
these were simply substituted for state
bans notes.
The Age goes on to say that Secretary
McCulloch's statement that there Was
1874 2lS ,O3S of paper money October 81
1850, excludes the seveu-thirty notes;
and that there were 500. 600 600 OF these
issued under the act OF June S0lh, 1864,
snd $500. 600, 600 under the &C. OF March
30. lS6j-"both according to the Age)
legs tenders, and IN circulation as mon
ey in October, 1865"
This uarrows the question OF the
amount OF paper money in Oct, 1850, TO
the seveu-,hirties. The most serious
mistake Of The Age. Gas it will see on
turning 10 the L. 5. laws) is that 1t as
sumes the act OF March Sd, 1865 under
which $500, OOO.OO0 seven.thirties were
issued. made them legal tenders, as the
&C: Of June SO;h, 1864. did the two hun
bred million issue. This was not so.
The last issue were never possible curen-
CT, any more than 5-20s were.
That sets aside al the 1908 except The
first issue OF two hundred millions which
were legal tender by law. a portion
OF these were paid cut aud circulated as
currency Tor time; bot tbs most OF
them we're scld as investments. Bearing
interest, u NAs inevitable and was iG-
tended that, IS soon as the first six mouths
interest accumulated. all excepting some
of the smaller denominations would be
laid aside as investments. The Comp.
lroiier OF the Currency in his report 10
Congress. IN December. 1865, estimated
that tive per cent. OF them $50 900 ,OOO)
still remained in circulation as money.
Add these to ,be amount Of all other pa
per money as given by Sec. McCulloch,
snd Wt have nearly S745 900. 900 as the
amount OF paper money Oct. Slst, 1868.
The 4g, correctly gives the amount OF
paper money in 1873. when "hard times
struck toe country, Is $3.50. l5l,2S9; and
Jan. lst. 1874, as S77Gs74,365. These
official figures show that the "contrac-
tiou" chal ges ii our greenback friends
have no foundation except in magma
ton aud that when the Secretaries OF the
Treasury speak Of the contraction OF the
currency. they refer to L. S. notes, and
no. 10 the whole volume OF paper money,
which includes national bank notes as
well as gTeenbscks.-LeCiSt0n Journal.