Ashtabula telegraph. (Ashtabula, Ohio) 1874-1880, 1878-08-30

Treasury Department, shows the volume Of the
per circulation at the several periods stated:

This statement exhibits a steady increase of the
currency volume from 1864 until 1870, when it
reached its maximum, since which time there has
been slight decrease. 1t was greater in 1873 when
the financial crash occurred, than at any former
period, OF the 81, 100000 OF legal tenders re-
tired under President Johnson Congress ordered the
reissue of S24000000, in vain effort to tide tie
country over the panic which swelled the volume
to S3S2 600 600. The decrease in the paper volume
since ISIS has been more than compensateCi by its
money volume. The coin value or the purchasing
power of money, motifs number Of nominal dollars,
constitute its true volume. In 1873 the coin value
of the aggregate currency was only S515OOOOOO its
depreciation being little more than 10 per cent.
Now its coin value exceeds s6S5 100000. since then
$50 600 600 of postal currency has been retired and
fractional silver coin substituted. The reconage Of
the silver dollar and the products OF our gold mines
have added many millions more; so that instead of
contraction there has been large increase in the
aggregate volume Of circulation, which now reaches
billion dollars in coin value, larger Uotle than
eUer eriSted at any former period
IT'S BUSINESS POWER
The period of greatest business activity in the his
tory of the country from 1869 to 1873. Every
enterprise was stimulated and the whole productive
power of the nation employed; not muscle was
idle not an energy dormant. All forms OF govern
ment securities which had in any degree entered
into the circulation, had been paid or funded and
retired under President johnson. The working
power of the currency its volume OF legal tender
and national bank notes, the average coin value of
which did not exceed $4,000 600; its maximum
being S64S 900 in 1873 when the panic occurred.
Their depreciation had practically demonetized
coin, which was boarded by the miser, or held for
then volume of exclusively paper currency was
sufficient to animate and give employment to the
entire industrial and commercial capacity OF the ma
ton then how can it be asserted that thousand
millions of currency and coin are insufficient to do
so now? Surely some other cause than lack of cur
rency must have produced the depression of subse-
ouent wears Not lack of currency is the cause but
lack of market commensurate with the capacity of
production. This, Judge Thurman frankly con-
ceded in his speech at Marion last year
in which he said: "By the introduction
of labor saving machinery about 90 per cent.
of our population using the improved tools and
chimes can produce all that 100 per cent.
can consume, and can. in addition produce all that
we have yet been able TO find market for abroad.
The consequence Is, that onetentA Of the labor of
the country is dispensed with"
This is forced idleness and its cause. Is it not dis
ingenious in Senator Thurman now 70 ascTibe IL to
the government Of an additional thousand millions
of legal tender notes prevent this result? Would it
create for US an additional foreign market? Would
it compel the whole population to consume more
than they can eonsume-mOre than 90 per cent.
can produce? Would it destroy the power and
capacity OF the 80 per cent to still produce
more than 100 per cent. can consume?
Would it dispense with the employment Of machin-
cry? The suggestion is prepOsterous-
Healthful prosperity exists only when the capacity
for consumption is substantially commensurate
with the capacity for production in all the various
for production in any one exceeds the
market demand for its wares, diminish
ed activity, employment in some other department
of industry, or idleness is inevitable. When the
whole capacity OF production is employed in work
ing its various departments to the full capacity OF
consumption in each, then, and then only can. and
will industrial equilibrium and solid prosperity
exist.
This condition of things was disturbed and broken
up by the violence of 1t can only be restored
by readjustmenJ to the conditions of peace. The
exigencies OF the diminished production, cTea-
ted an unnatural market, relatively augmented
consumption, and corresDondingly stimulated the
highest pitch of activity in order TO supply its enOr
nous demands. The resulting prosperity was un-
natural and ephemeral, ana destined to inevitable
collapse when its cause should cease to operate;
when peace should transform the consuming de-
stroyer into a competing producer. i
The war closed. For a while the wild extrava-
gance and reckless adventure which it stimulated,
swept like resistess torrent; butn policy, no
currency. wit of man could forever float the base
less balloon. Collapse, and the crash came they
always have, and inevitably must from
like causes, and from which re-
cOvery is possible only by time, economy and the !
demagogue may agravate the evils, agitation may |
Intensity and prolong them but can not avert their
coming nor hasten relief Hear senator Thurman |
again on this point. In the Senate, in December |
1874. he said
''The panic was the result of our trading and ex-
travagance until at last the bubble burst and then
came a season of retrenchment and economy. In !
the history of this country it has been shown that
the business of the country never revives in less
period than four years after panic. Nothing hut
time, honesty, economy, and retTenchment will set
the business in motion and make the country pros
porous. Tinkering at our financial system will
never accomplish this result"