The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1878-09-19
SPEECH OF
GEN. AQUlLA WILEY,
Democratic Candidate for Cen
gress in the Sixteenth
District.
Delivered sseSOrc the Young MEMS
dc esnOcrmtic Club of ~ SOstcS, o.,
On Saturday Evening. AH-
uSL 3ISt. 1878.
THE CURRENCY.

Iht paramount ISSUE III t!tiS t'iiii
paign is, beyond all question, the ono
relating to the currency, of what shall
it consist, and how shall the volume oi
il bc regulated. In the discussion oi
this question there are several PROPOSE
tions that | claim ar. clearly deHin;i-
straied by experience, an! which must
not he lost sight OF.
lst. That The volume OF the curren-
cy regulates the values of commodities
That If the volume of il be decreased,
all other thinga hein" equal, the prices
of commodities decline. II the vol
ume he increased prices of all conn
mOdities are advanced.
I'd. That if il is an established fact
that if the volume of the currency is to
he diminished, capitalists will with
draw their money from active indus
tries, men OF 3ilaifs Will not undertake
enterprises to he conducted upon bor-
rOwed capital, capital will be hoarded
and remain idle, idieueSS of capital
will enforce idleness; OH The part of Ia
Dor, both production and consumption
will decline, and in about an equal ia
tiO
Sd. That to maintain the same VOL
ume of currency while population in
creases, while the productive indus
tries of the country increase, while The
exchangeable commodities increase, is
to produce the same results as though
these conditions remained unchanged,
and the volume of the currency was
actually diminished.
From these propositions it follows
that the population of the country, the
productive industries of the country,
the amount of its eXchangable conf
modities are important factors i'll de-
termining the volume of the currency,
x-xA1
and prices and values ad justed to it, it
should be increased us population and
production increase, as the eXchanga-
BILE commodities increase, else you offer
a premium to idlenrss on the part of
capital, and handicap energy and en-
tcrprise in its race for profits.
Now, in the light of these PROPOSE
tons, let us see what has been and is
now the position of the Republican
party on the question OF the currency.
1t has not only asserted the right and
power of Congress to regulate the vol
ume of the currency, but it has eXercis-
ed that right. BY its tax upon State
banks it compelled the retirement of
their circulation. 1t est ..blished the
National Banking system and fixed
and limited the amount OF National
bank currency that might be issued. 1t
issued the grcenback Il legal tender
currency, and OF course regulated the
amount of its issue. BY its issue Oi
this paper at 4 time Wien The revenues
of the government Were Ia" below It's
expenditures, and will, uncertainty ;tS
to the duritioii Or results OF the wax in
which we We're enga I'd, il drove ont ri
circulation all the specie that before
that time constituted i part of our ear
rency.
Has it by All unreasonable cOHfrac-
ton of the currency since the close oi
the war prodnced the st;gnotion al
business that now prevails: From the
close of the war to 1879, the time of the
panic, the various interest hearing
notes that had been issued by the gov
ernment had been retired from circui:,-
ton, thus resulting III actual contric-
ton of the currency. As PARTIES differ
as to the extent To which ihis class OF
government paper circulated us cur
rency, we will omit il from our ar.u-
gunent. The population OF the country
according to statistics. Increased at the
rate of about =. per cent. per :tnnunI.
During these eight years population
would nave increased - per cent. The
increase of the productive Industries oi
the country, owing TO Inventions and
improvements in labor saving machin-
cry, must have been in a much greater
ratio than the increase III population.
There were other causes that largely
increased the uses OF currency by in
creasinS the eXc!IangeaUic cnmmodi-
ties of the cOuntry. Congress had
granted To railroad companies about
two hundred millions Of acres of pub
lie lands. These lands had been mort
gagged and the bonds sold in Europe,
and the proceeds became part of the
active capital of the country. Govern
ment had discounted the industries OF
the nation for Il generation to come by
issuing its bonds to the extent of 81
or 60 millions of dollars, and had
loaned them to these companies To aid
in the construction of their railroads.
Township ana county BOMBS to aid III
the construction of railroads had been
issued all over the Wes,e,.. States and
sold abroad, and large loans had been
negotiated aD.oad 10y other railroad
companies to aid in extending their
lines. All this property became capl-
taliZed and rs the stocl. became part of
the eXchangeable property of the
county, thus inc teasiug the h,sin. :
and exchanges that had to be perform
ed by the volume of our currency.
During this period il is safe to say
that there had been {, relative cOntrac-
ton of the currency, that is an increa Sc
per cent, producing Il decline in prices
of commodities, Il decline equal to the
interest on invested capit.u 1t is Idle,
therefore, to say that the volume of
the currency OF its insufliciency had
nothing to do with the panic of 1868,
because nominally the amount of it
had not been reduced.
General Garfield, in his speech at
Massiilon last Saturday evening, is re
ported rs using this language: an 1860
a year of peace and at least Of fair pros
perity, q year of Democratic rule, this
country had $2O7 ,00o, 900 of paper eur
rency." "Now in the month of June,
1873, just before the great panic struck
us,our outstanding paper currency was
$3.50, 900, 900, or more t;ian three times
the amount in 1860. In the face of this
fact will any man of Intelligence say
that the panic of 1873 was caused 10y an
Neutrality-suspicious. of paper currency"
The gentleman omitted to state that
in 1860, according to the most reliable
estimates, there was specie in She cour-
try to the amount of about $3.50 ,tWu, 600
that also circulated ;i5 citrrency, max
ing the aggregate currency of the
country in 1860 e,i93, ,0jO Uf, AN amount
relatively greater, claim, That in 1863,
taking into account the increase oi
population, increaS, of productive in
dustry from improved machincry and
mechanical Inventions, the ctpitalizI-
ton of So large :, body OF the ile pub
lie lands and the changed condition of
affairs III the Southern States.
There were other c:,u~sa that coatri-
buted to that pahic and the consequent
depression, for which Republican leg
islation is directly resnOu' 'hlc. II had
by its land grants and subsidies tmeas-
ures which are now conAc,. icd by all
parties,) encouraged the building of
railroads beyond the wants and ncces-
stiles of the country. The Western
States, stimulated by tire example of
the General Government, had inau@u-
rated similar policies Thus was crea-
ted an artificial demand for certain
commodities. notably iron and coal,
far beyond the means Of supply. The
prices of these commodities advanced
rapidly, Notwithstanding the genera