The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-08-14

Fractional currency 16,O5I ,46s
sse 7e7 $50
CURRENCY.
National bank notes................... els5OOOOO0
state bank 65,OOOOe0
Certificates of lndebtedness.---....... S5,0O0OOO
Total........... ................... sss5y 10000
Total circulation of ney
and currency Oct. 81, lS65-...sl ,S2i ,767 0S0
Contraction from 1855 to lS7S....-sl O5S, ,07S SS5
United states notes and bank currency in
circulation December /, 1873:
United States notes-greenbacks- 1857 .OOl ,6S5
fractional currency ;-,-,-....:. $50 0SOo
National bank notes.. 350,OOOeO
556796S5
From the expansion and contraction which
have shown took place under specie basis
from 1911 to the commencement of the war,
who can argue that q currency upon such a
basis Is stable one? In every case history
informs us that bankruptcy and ruin to the
business men and laboring community was
the result. There are many here to- might who
recollect the panic and bankruptcy that fol-
lowed the contraction from 1887 TO 1913 The
amount OF the contraction of the circulating
medium was proportionately as eat as the
contraction since 1876. can not think there
is q man in Indiana who will study
the history OF the expansion and
,ntraction OF paper money redeem.
conclusion which have, that IL is ruinous to
the laboring and producing classes who pro-
duce all the wealth, and that IL should be
abandoned as not suited to the wants of the
people. If you notice, a contraction of s23.000,
COO from 1911 to 1876, contraction of $50 900
from 1887 to lS43 caused the crash aud hnan-
ciaI panic of those periods. A contraction of
forty mine millions of dollars from 1864 to 1857
caused the gsnIc NC of Of the lat latter year: con;
the money panic and the suspension OF specie
payments in December, 1851. The vol
q %bcb the bpnS were uSsbe ss
redeem until the issue Of greenbacks. A con-
traction of from S23,0O0,O00 to $4,000, 600 was
cial ruin. But in 1873 it took hundreds OF
millions TO produce like result, from the
obvious reason that from 1911 to 1858 the busi-
us by bank currency redeemabIe in coin.
Whereas, in 1855 there was an abundance OF
currency to do business, and no necessity to
for cash. Therefore, 1t required enormous
contraction to force the credit system on
the country. As contraction was
carried on credit was substituted until 1t came
to the bursting point in 1873.
HAS THERE BEEN CONTRACTION?
Republicans of the designing class deny thar
there has been contraction of the currency.
Seeing the PROSTATE and bankrupt condition
of the country, they would have the people
believe it is not the result of their policy.
They deny the fact that the 7-30 and compound
interest notes performed the offices of curren-
that were made and designed to circulate as
money. L want YOU to hear what MIR. Spauld-
ing, of Buffalo, says in his history of legal
tenders. You will remember that he was
member Of the finance COMMITTEES OF the house
during the whole war. He is a banker of high
of his History: ST m THAT Mr.. McCuiloch. when
he became secretary OF the treasury, did not
increase the issue of United States notes, but
continued the issue of $50 and compound in
terest bearing notes, made a legal tender at
their face value, and after the surrender of
General Lee he obtained the means, princi-
ftNsaO hxrf
notes" And yet there has been no con-
traction of the circulating medium, accord
the reports of their own treasury officials
show decrease OF slO5S,O7s,SS5 between 1860
and 1878.
The fact that there is no active business 60
ing on in this country save in the bankrupt
courts, starts the inquiry as to the cause of
this, and before we can apply remedy we
must know the cause, for the remedy consists
In meeting our wants.
The volume of currency or money that per-
forms exchanges In any government reg
erty end all commodities. When there
is an average quantity OF the same
supply and demand always exert their infiu-
ence In regulating the value of commodities.
Apply this rule 10 our depressed condition,
taking the amount of money in circulation I'm
as ta hy bs a1 iand h0 bich as
gagged for one-half its value some years ago
now belongs to the mortgage. No laboring
man will be at a loss TO Know why his labor
has lost half its value; the question is easily
answered: Contraction has taken away one
half the value of his labor.
CAN THE GOVERNMENT ISSUE LEGAL TENDER
NOTES?
1t is now argred by the bank currency advO-
Gates that the deralgovernmentca can not make
its own notes legal tender in time of peace,
that the decision of the supreme court max
ing them legal tender would undouo bedly be
reversed. can not say as to that.
L have lost a large portion of the
N nc OF
himself, on page 80 of his appendix to his his
tory, while defend .Dg the national bank bill,
arguing in favor of making these notes legal
tender, said:
az would go one step further and make
The national bank currency Ike the
bank Of England notes, q general legal tender
so long as the bank issuing it redeemed IL in
lawful money, except that the currency issued
py any bank st parately should not be legal
tender for any debts such ban2 itself might
owe"
Now, just think that these gentlemen. the
national bank advocates, Mr.. Spaulding
among them, after having argued in favor OF
making national bank notes a legal tender,
and insisted on the constitutional right to do
stitutional right of the federal government to
make her own notes legal tender. Such
guments more ,u'ly confirm an opinion have
long held, that those favoring a moneyed
aristocracy have never found anything I'm
their way when their interests dictated that
carry out their purposes. But whenever an
argument is brought up In favor of the people
as against theirs there is found in the constl-
tuition ample provisions to prevent the passage
OF any act in favor OF the people.
ANOTHER NATIONAL BAEK IDEA.
In order to alarm the people and prevent
them from demanding their rights in body ,as
they would do in any business matter disc m
nected from politics, in having their
money raca;gya,Ia made 5 t5a legal - tender and nd
payment OF all cues, they tell them
that IL that Is done the secretary of the treas
the public debt. This / deny. When the
treasury notes are made receivable for tariff
dues, speculating in coin will cease at once,
as 1t he's been gradually falling off since the
remonetizing of silver. All dollars being equal
In perform ing exchanges, nothing can be per-
formed with any dollar other than exchanges
or TO loan to some person for that purpose.
The paper dollar being so much superior to
the coin dollar in convenience, all active ex-
changes will be performed by it. The coin
will find its way into The treasury and bank
vaults, and the treasurer OF the United states
will have more gold then than he has now.
This cry OF the gold ring to secure legislation
in its own favor should alarm no one. AS IL is
the member t1llr governmental