Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1879-10-16

have been talkiug about couI be furnished
than his career. When the war broke out he
was poor and obscure--so poor he could not pay
for saddle to put his horse when he was
commissioned-so poor, it is said, his wife was
refused provisions for her family by grocer in
the town where she lived. Was his 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 or
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. Applausel.
a number of other illustrations were given of
poor men by self-reliance and energy attaining
independence or wealth, while the speaker said
he never knew of a 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
n that way.
THE CONTRACTION OF THE CURRENCY.
Now we come to the main question. Has
there been a great contraction of the currency
since 1865, and can the panic OF 1873 be attrlD-
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 speclhc date
of maturity, that are issued for current clrcula
ton and have other character than that OF
circulating medium.
currency, there has certainly been no contrac-
tion counting from either 1861 or 1865.
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 certificates $709 $780,
773 three and one-half times as much as in 1861.
Then we had 1915 0000 900 of coin and bullion,
which added to the paper circulation of 1861
makes total of money resources of SAT- 005, 767.
On the 30th of April last the Director of the
Mint estimated that we had $405, 0o0 of coin
and bullion, which added TO the paper would
give total of 81, liz, 936,l73 as the money re-
sources of the Nation at the present time.
COMPARISON BETWEEN 1865 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. $747 33 1896, which is 1868 7C2 S7S less than
the total monetary resources of to-day. But
this amount in 1865 was worth only 20 cents to
the dollar and represented only real value
equal to 1928, O63, 726 of our dollars of to-day,
every one of which is gold coin, at par with and
is 1892, $50, O47 less than the available monetary
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
currency in that year. and 1t 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 attenti ton to the fact that
they were called temporary loans y; that they
were issued under laws authorizing the Secre-
tary of the Treasury to fbOrroW money!: that
that they bore interest; that they had specific
date of issue and of maturity; and that they
were according to the laws authorizing them
paid or funded at maturity. All this if it meant
anything, meant that they were not intended to
remain 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
50 Temporary loans" when they matured as the
zin no
would have been reputation. On August 81,
1865, the date when the public debt reached its
highest point 1t was
Funded debt 81, 100 56S, 1872
Matured debt. ......-.....-.-.... l,5O3,O20
Temporary loans OBSERVATION-DISCLOSURES. Joy las, 713
Certificates of debt................ So, G93, 900
Five per cent. offenders ........ SO, 954 230
Compound interest legal tenders. 2l7 0A 100
Seven thirty notes. $50, 000 900
United States notes (greenback le-
gal tenderS) Abb, I6U.565
fractional currency ............... &c, 34, 742
Suspended requiStions ............ 21u,000
And of these obligations only 1854, 1873 $50, were
legal tender-thatis the greenbacks five per cent
and compound interest notes. and of this amount
nearly two thirds were greenbacks (S433, 16O, 569l
leaving only $3.50, 977, $780, as the total amount of
interest bearing legal tenders at the time when
the greatest amount was out, viz: August 81,
1865. Not a dollar of " seven thirties" certif-
Gates of debt, ofcertifcates of deposit, Called
temporary loans in the above table, were ever
legal tender.
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, 3lS,6S5, as the paper circulation of 1865,
which was at 20 cents TO the dollar, and worth
only $692 256, 354 of our currency to-day-less
than the paper circulation alone to-day, and
1923 $50 9 less than the total available monetary
resources of oday S1,l1 1885, 773 paper coin and
bullion.)
BUT DID THEY CIRCULATE?
This is legitimate and pertinent inquiry
In answer, say you cannot find single table
of currency, official or otherwise, published
during the existence of these temporary loans,
that rates them currency, or affirms that they
were in circulation to any considerable extent.
On the contrary, such tables do not rate them
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: "The
paper circulation on the 31st of October was
ubstantially as follows
United States notes and fractional
currency. ,U3o ~
National Bank notes. $4,000, 10000
State Bank notes.. $4,000, 600 90
Total $50. NEUTRALITY-SUSPICIOUS.. 1904 2ls, 0Ss 20
Then he refers TO the compound interest and
five per cent. notes, and says: 1t would
were in circulation as currency and he con-
cludes "The paper money of the country on
the 3Ist of October, 1865 amounted to the sum
of 1874, 21S, OBS 80"
NEW YORK TRIBUNE ESTIMATES.
In an editorial the currency question
published on August 4, 1865, these statements
were made:
Of illegal tender" af1oat there is not quite
500 900, 900; but over $3.50 000 600 of this con-
sists of notes on interest achich haze been mainly
boarded for presentation ICbe1 due PRACTICALLY the
GD1Oat Of currency does not eCceed $500 OOO
to which add the National bank notes in circu-
laton, and the aggregate is less than 500 900 600
In an editorial on a Treasury Report, published
on Tuesday, September 5, 1865. are these state
ments:
The compound interest notes only serve as a
temporary currency. For the first year of their
issue, they float about at par but afterward be-