The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1879-10-16

the town where she llVeQ. WAS MS poverty
barrier in the way of his promotion? Not at
all. AS soon as he showed he was qualified for
a service he was recognized, While hundreds OF
rich Generals were sent to the rear. And this
man. ON his merits, was promoted and honored
by the American people, and to-day is the
most distinguished and most honored man on
the face of the earth. Applause].
A number of other illustrations were given of
poor men by self-relance and energy attainin g
Independence or wealth, while the speaker said
he never knew of case where any man had
got either riches or honors for whining that he
was not treated fairly or bowling for more
greenbacks, and in the nature of things no man
ever could obtain either wealth or honor
i that way.
THE CONTRACTION OF THE CURRENCY.
Now we come to the main question. Has
there been great contraction of the currency
since 1865, and can the panic of 1873 be attrib-
uted to contraction?
WHAT is CURRENCY?
BY currency is commonly understood gold
and silver coin and such bank and Government
notes as bear no interest, have no specific date
of maturity, that are issued for current circula-
ton and have no other character than that OF a
circulating medium.
Now con1ining ourselves to this definition Of
currency, there has certainly been no contrac-
ton counting from either 1861 or 1861
OFFICIAL FIGURES.
In 1861 we had $2O2. Oo5, 767 of State Bank paper
money outstanding. On the Both day OF April
last, we had including coin certihcates sly SS6
Then we had $275, 000 900 of coin and bullion,
which added to the paper circulation OF 1861
makes total of money resources OF SAT- ,OO5, 1871
On the 3Oth of April last the Director OF the
Mint estimated that we had $405 000 600 of coin
and bullion, which added to the paper would
give total of 81, ll5,936,773 as the money re-
sources of the Nation at the present time.
COMPARISON BETWEEN 1866 AND 1879.
In 1865 no gold or silver was in circulation or
available for circulation. We had of greenbacks
fractional currency, State and National bank
notes. STAT 1888 $685. which is 1868, 702 1913 less than
the total monetary resources of to-day. But
this amount in 1866 was worth only 70 cents to
the dollar and represented only real valne
equal to $523, 063,726 of our dollars of to-day,
every one of which is gold coin, at par with and
is 1892, 1878 O47 less than the available mon etary
resources of the Nation to-day.
INTEREST BEARING CURRENCY.
BUTT is argued that large amount of interest
bearing notes, bonds and certificates were in
circulation in 1865, and ought to be computed as
currency in that year, and it is the payment or
FINDING of those Temporary loans" that's COM
planned of as the contraction that caused the
panic. Let us inquire carefully into the nature
of these claims
First. [ ask your attention to the fact that
they were called " temporary loans y; that they
were issued under laws authorizing the Score.
tary of the Treasury to "borroW money!; that
that they bore interest; that they had a specific
date of issue and of maturity; and that they
were according to the laws authorizing them
paid or funded at maturity. All this 1t it meant
~
remain as a permanent currency, and they were
just treated as the laws creating them directed
they should be treated. To charge the Govern
ment with gross wrong in this matter is simply
nonsense. To have refused to pay or fund these
" temporary loans" when they matured as the
law authorizing them provided should be done,
would have been reputation. On August 81,
highest point it was:
Funded debt. Sl, lO9, 300, ~
Matured debt Observation-Disclosures. ], 503, 020
Temporary loans. Observation-Disclosures. 107 ,713
Certificates of debt 50, O93, 600
Five per cent. legal tenders. 80 954, 23O
Compound interest legal tenders. III, O24, 16C
Seven thirty notes ..............- $50, 900, 00C
United States notes (greenback le-
cal tenders. ...............,..... 433. 160, 569
Fractional currency ................ 26344, 742
Suspended acquisitions. ............. I'LL, 00C
And of these obligations only 1854, 1873 959, were
legal tender-thati is the greenbacks five percent
and compound interest notes, and of this amount
nearly two thirds were greenbacks ($433 100 ,569
leaving only $250,977 800, as the total amount OF
interest bearing legal tenders at the time when
the greatest amount was out, VIZ August 81
1865 Not dollar of seven thirtes" certif
Gates ofdebt, or of certificates of deposit, called
temporary loans in the above table, were ever q
legal tender.
INCLUDING ALL INTEREST BEARING LEGAL
TENDERS AS CURRENCY IN 1865 WE STILL
HAVE MORE MONEY NOW THAN WE HAD
THEN.
Adding all these legal tender interest bearing
notes to the greenbacks, bank notes and frac-
tional currency, it would give us total of
1888 1855 as the paper circulation of 1865,
which was at 70 cents to the dollar, and worth
only 1892, 256, 354 of our currency to-day-less
than the paper circulation alone to-day, and
1923 $50 419 less than the total available monetary
resources of to day $l 1885, 773 paper coin and
bullion)
BUT DID THEY CIRCULATE?
This is legitimate and pertinent inquiry
In answer, I say you cannot find single table
of currency, official or otherwise, published
during the existence of these temporary loans,
that rates them as currency, or afirms that they
were in circulation to any considerable extent.
On the contrary, such tables do not rate them
as currency, and reports made at the time show
that they did not circulate only to very
limited extent.
OFFICIAL REPORTS AND ESTIMATES OF CUR
RENCY IN 1865 AND 1866.
The official report of the Secretary of the
Treasury for 1865, on page nine, says: 1.-THE
paper circulation on the 31st of October was
substantially as follows:
United States notes and fractional
currency .$454 21S, O352 20
National Bank notes .............. 1856 900 900 90
State Bank notes. 5000 600 90
Total 1904 2l8 OBS 20
Then he refers to the compound interest and
five per cent. notes, and says: " 1t would
doubtless be safe to estimate that $50 000 900
were in circulation as currency;" and he con-
cludes "The paper money Of the country on
the 3lst of October, 1865, amounted to the sum
of 1874, 218, O3830."
NEW YORK TRIBUNE ESTIMATES.
SIN an editorial on the currency question
published on August 4, 1865 these statements
were made:
Of illegal tender" afioat there is not quite
$500 900; but over $3.50, 900 900 of this con-
ssts of notes interest, aDbscb haze been MAINLY
boarded for presentation aoea due Practically the
amount Of oar currency does not ecceed $500 000 00O
to which add the National bank notes in circu-
laton, and the aggregate is less than $780, $1,000
In an editorial on Treasury Report, published
on Tuesday, September 5, 1865. are these state
ments
The compound interest notes only serve as
temporary currency. For the first year of their
issue, they float about at par, but afterward be-
come absorbed by shrewd investors. We
shall have 'the seven thirties" to pay Tin 1850
and other securities of short date.
In the Semi Weekly Tribune of Friday, Novem-
Der 3, in an article on "Debt, Finance and Cur
rency," bearing all the marks of Mr. Greeley's
vigorous pen, appears this paragraph: