Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1879-08-07


terest at G per cent. In gold; corporations
in fair credi, paid s to 10 per cent; and
| individusls-especially In the West
mortgsged their farms at from 10 20 IL per
cent. The current rate of interest may be
said to have been 20 PEE rceut.
The utmost recklessness In contracting
debts was then universal, not only by To-
dividual-. but by cities. counties. towns.
and all kiuds of private corporations. 1t
was an era Of wild aud reckless waste and
| improyldeucc.
in those speculative times the tonnage
/ OF American vessels In foreign trade
| dwndled from :. 2.S19, 1896 In 1850, to .S1s.- :
| 533 tons 10 1873. Wherever we were
| brought in compeiion with countries doug
| business upon specie basis. We were
driven FROM competition. either on the
| ocean or In workshops
| Railroads were buiit where they were
no; needed. in advance OF settlements !;
furnaces were pot up ia excess Of all pos
| siole permanent demand. aud oyer-produc.
| ,iOn aud oyer-iradl3g occurred In al
| branches OF business.
| The balance of trade with foreign couu-
| tries had been Tor a series of years steadily
against US From 1863 10 1873 the excess
OF Imports over exports was 81 .0s6 no.
| 5s.. and from 1859 TO 1873. 1854 ,052 COZ.
| avn not able to give you the amount OF
private aud corporate Indebtedness COZ
tracted Ia ioreiga countries during these
years OF reckless speculation, but vas
probably equal 70 or in excess OF the bal
ance OF trade against Us. We then cn-
joyed the prosperity Of a proaIgaie while
waslng his inheritance, or the happl0ess
OF n druusatd while on spree.
The panic Of 1873 called A halt. and, a.
by stroke. parslyzcd all domestic indus
a q
corporations TO Individuals. and property
was nusaiablc eXccp, al prices far below
il va'gr.
Il i hardly worth while for us 10 enter
into the discussion OF the causes OF this
calamity. Honest ucn would differ abou;
K. Some attribute Il IA the waste Of the
war; some io the uvcr-prodgctiou that
followed the wAstc OF the war; sot1e to IT,
rcdeemaolc paper money But whatever
mas have been the cause the calamity was
admitted by all 20 be fAr-rcschlng arl
long continued. Il affected foreign pa'ious
much more severely than our own. Every
nation ia Europe suffered a. much or more
than the United States. The industries of
Great Britain were paralyzci. Our earlier
recovery from this sisgna.lon Is due 10 our
vast territory and undcvciopcd resource.
aud the natural energy OF yonus aai
vigorous nation.
IuE RESUMPTION ACT.
When Congress asrt la Dccr mber ls.3.
It undertook To nod remedy Tor thee
evils. aud for year w. had discussions Ia
Congress. ia tile press. and aGong TIE
people, As 10 how bc.t "a relieve our q y
grcsscs agj restore our Industries 10 -. ia
foundation. In the course oi lhis discus
,iou the people naturally divided. On Tho
one hand II Sas insisted that the true rem
edy was - initiate the currency by large
increa-e uf paper money, and, with thst
view, tweniy-.ix millions Of dollars lu
United States notes were thrown gpoo lie
market On the other hand l. was it-
sisted that The only hope Tor relief was =
return 10 a specie basis, aud to advance
all torms Of currency To that standard.
10 January. 1875. and duriug the second
session oi 1ougEcss-cightce months ai.eT
the pauic-ihe measure known as the re-
sumption act WAS adopted By maj ~
oi both branches and approved by the
Pre,idrni- This was Republican meas
urr, for though many Democrats favored
resumption, Yet party discipline and The
hope Of party advantage iadueel every one
OF them TO vote ssain,t the resumption act
This measure was very simple one. coz
tanning bgi two proposliious-oae was that
silver cola should be gradually issued for
the redemption oi fractional currency. and
the o.her was thar on January l, 1879. the
Naiioual Treasury should redeem, 10 colH.
any United States notes that were pr
seated. Til, act was Dot to take effect, 10
H. material provision, until iour years
from the date OF ITS passage. Steps We're
taken by Secretary Bristow. and your DIS
tluguished towusman, Secretary NOrrii,
for the gradual replacement OF fractional
OF 1877 no material preparation was, Or
could well have been. made for the r..
demptIon OF United States notes, which
continued 10 be deprecated. worth only 50
TO ~ cents ia coin. A widespread feeling
prevailed that resumption was impos sibr
that il would not bring better times AMI
the country continued to suffer the panic
OF 1873.
During the whole OF 1875 and ls.. the
resumption act was made the subject Of
denunciatIon. The absurd notion was put
forward that II MAS the cause of hard
times. though no material action had been
taken under II, and the hard times came
eighteen months before tie resumption act
passed. All sorts OF prophecies were
made Of its failure. We were told that
the resumption act was 4 sham that 10
was a hindrance 20 resumption; that the
attempt to accumulate coin would put up
its price; that IL would be worth fiiiy
Thousand dollars TO Oe on the right of the
line on that day OF resumptioni that re
sumption was impossible; that II would
PROSTATE industry; that it would stop the
sale OF bonds; that IL would raise the rate
OF Interest for the baGedt OF the bondhold-
ers. shylochs and capitalists.
The Democratic party, in Its platform
adopted in ST. Louis 10 ls.G, while pre-
tending 10 be Tor resumption. denounced
the Republican party because IL had made
10 preparation Tor it, but. Instead, had OBJ
structed IL by wasting orr resources and
exhausting all surplus Income; aud be-
canse, while annually protesting to intend
a speedy return TO specie payments, II had
annually enacted fresh hindrances, there
TO. IL denounced the resumption act of
1878, as such a hudrance. and demanded
its repes
Mr.. Ewing OF Ohio, and Mr.. voorhees,.
OF Indiana. with Others, made minority
report, in which they declared that the law
for the resumption of specie payments on
the lst OF January, 1879. having been
enacted by the Republican party without
deliberstion In Congress or discussion be-
fore the people, aud being so Inadequate TO
secure lis object, was highly injurious to
the business of the country, and ought TO
be forthwith repealed.
M. Tilden, in his letter OF acceptance
endorsed this doctrine, and. at the same
time, declared himself for a speedy return
to specie payments, saying: The Gov
ernnent ought not 10 speculate on its own
dishonor 10 order TO save interest on It's
broken promises, which Ii still compeis
private dealers to accept at q fictitious par"
will read sOme Of the prophecies made
by very distinguished gentlemen In regard
to the resumption act.
General Ewing Ia the House Of Repre-
sentatiyes. November p. 1877. said:
live were wholly out Of debt TO Europe, IL
our foreign commerce hoated under our own
nag, II there were no system Of absenteenism
smons our wealthy classes, expendins their
wealth abroad, resumption in gold, or even
gold and silver, would be impossible on our
present volume Of paper currency for many
years TO come. . The national banks,
the importers, the gold rings In New York, the
desperad Of Wall street, the money kings Of
Europe, to whom We are financially euslsyed,
hev will present the greenbaeks for redemp-
tion and destruction as fast as the gold can De
IL -. 49, ~