Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1879-08-29

| and at lower rates of interest than before re.
sumption to the fact that now the
lender has no fear that the money he loans
will be paid in deprecated paper currency.
Industries have not been broken down,
but. on the contrary, in all parts OF the
country there has been rapid improvement
since specie resumption; the exchanges
effected by the clearing houses have increased
20 per cent; the number of unemployed
workingmcn is rapidly growing less; prohts,
though small, are made up in an increased
demand BY strict economy and pru-
dent management, private Indebtedness
has been largely reduced, and bust
ness is conducted on safer basis than
for 20 wears. Our exports have become
unpreccdentedly large and by cheapened
methods and wise direction we have seriously
alarmed the world 10y invasion of American
products. Confidence is rapidly returning,
and to-day the people of this country are
economically in a soundcr condition than
any people IN the world. We have only to
he wise TO realize the highest prosperity.
THE ONO IDEA
After abiding To the candidacy of Gen.
Ewing as that of the initiation party, whether
or not il has platform. and that his success
would be considered victory of the intia-
ton clement, Mr.. Schurz asks: What does
the Ohio Democracy demand? Do they
seek 10 overthrow specie paymcnts?"
Mr.. Schurz then quotes that plank OF the
Ohio democratic platform which demands the
substitution of Treasury notes for the cir
culation of the national banks which shall
be made equal to coin as Il legal tender
This is a proposition 10 nearly double the
amount of paper money for which the Gov
eminent is responsible. How will this affect
specie payments? This will involve the
necessity of nearly doubling the specie re-
serve held in the Treasury TO secure redemp-
ton of that paper money. MIR. Schurz thinks
that the amount of coin reserve in this case
will have to be more than doubled, because
to nearly double the stock of paper money
will involve greater strain upon public CON
fidence. What would be the result of the
adoption of the Democratic planI II would
be regarded as a measure designed by the
enemies of specie payments and as an attack
upon the resumption policy. Under this
condition the Democracy would enjoy as
much confidence rs a bull in china shop.
General alarm would follow, and those hay
ing the notes of the Treasury would rush Tor
their redemption until the stock Of coin
should be exhausted. The only way to pre-
vent such an alarm would be to increase the
coin reserve in the Treasury reserve pro-
portionally larger under Democratic rule
because of the confidence enjoyed by Re-
publican control of the finances. To make
the country believe in their good faith the
Democrats would have TO add 10 the coin
reserve at least $50, 900, 900. This addi-
tional reserve would have TO he secured
either by increased taxation or by the sale OF
United States bonds. To substitute Treasury
notes for national bank circulation under
any other condition would result IN specie
suspension. Mr.. SchurZ thinks that the plan
of substitution is designed by the imitation
lists to break down specie payments and that
that is their purpose. He ridicules the
proposition to keep the Treasury notes thus
issued on an equality with coin as "a bril-
liant ray of darkness" thrown by the plat
form maker He next ridiculcs the idea of
fixing the amount of currency to be kept in
circulation by constitutional amendment as
impracticable, requiring as it will the assent
of the Legislatures of three-fourths of the
States. The time will never come when
three fourths of the Legislatures will agree
to any such absurdity. The danger of Con-
gressional action is more serious after the
country has seen the potency OF the Demo-
cratic caucus The Democrats in some
States have demanded that the currency he
regulated 10 the demands of business, and
Gen. Ewing says that prices rise and tall
with the volume of the currency, and that II
Is the duty of Congress to take charge OF
this matter and regulate the currency. This
is strange doctrine for n party whose tradl-
tons are hostile 10 the concentration of
power in the Federal Government, and
whose mission now is TO preserve the SOW
creignty of the States. Never did the Fed
cralist or Wing claim such Il monstrous
of governmental power as Gen.
Ewing claims for the Government when he
gives il power to regulate the volume of the
currency of the country-pOwcr to deter |
mine how much or how little money the
people shall have, and by regulating the
volume of currency, change its value; to |
determine arbitrarily what every dollar in |
Inc land shall he worth day by day. and the |
value Of every piece of property of every |
kind week by week. Under our present |
regime of caucus rule in Congress it would |
be in the power of a caucus To determine the |
value of all property in the land. Now that |
The Democratic leaders claim this power let |
Us hear no more of Democratic opposition TO |
of power in the General Gov
,rnmeni
What would be the effect of the success of |
such theory upon the business of the coun-
ny? Who would feel like investing |
f caucus could dictate the vol
line of currency? A wanton suspension of
'pecie payments by such policy now would
-uin industry and business and lead the world |
q believe that the country was governed by
| band of sharpers. Business men will feel
when the Ewing tinancicTs are managing the
country, like people who live in house
moving that boys with matches are in the
'elar playing around "A barrel of powder
Business cannot thrive under this condition.
THE NATIONAL RANKS.
Mr.. Schurz next notices the statement of
General Ewing to the ctfcc, that it is for the
interest of the National banks to ruin their
ustomcrs The banks are corporations under
he law To carry on banking business. This
ystem is not IA monopoly, nor is it managed
" few moneyed men There =, 100 banks
nd 210, 900 stockholders. The law dIscrim-
mates against the large banks in favor OF the
mailer The complaint that the National
'anks can cOnspirc together To disturb the
money supply is groundlesg No one can
,Ont to such an instance and the statement
# General Ewing that the National hanks
an make millions by contracting the cur
ency is the richest gem of nonsense the
ountry has ever seen. II this logic is cor
ect, the banks would have made the most
money by moi issuing any currency at all.
f. on the other hand, the increase of the
olume of paper money raises prices and
elps business then the fact that The Nation
! bank circulation has been increased
i, 900, 600 since January last should
ommend the system to the inilatiunists.
he interests of the banks are the same ~
hose OF the people The profits of banking
ARE not in circulation, but in their deposits
nd loans These can only bc large when
usincss is lively and there is general con
dencc The hanks made most money in
he flush times nearly II per cent. During
he dull years stockholders realized only
I per cent. In the three years ending in
s7S the loss of the hanks was SGT ll9,ll5.
IfteT further considering the subject, MIR. !
churL says And now | assert that never
4 the history of this country have We had
anking system which, in every respect, de
rived and cnioycd the confidence of the
usincss community ms the National banks I
cserve and enjoy it. Let them hc Judged !
V the test of experience Since thu first or ,
lnizaiiun of the National banking system ,
q have gone through great civil war with
Il its vicissitudes, We have gone through "A !
rriod of hcadlong speculation and reckless
rss in the contraction of debts. We have +;
Dnc through II terrible financial collapse |
it'll widespread bankruptcy and general $
Isincss depression. During all that time |
ntil the first of July last year, all the losses {
lilcrcd by all the creditors of all the Nation r
banks in the country amounted I" only |
i, 4l5 423 And these losses are constantly a
duced by the dividends paid in the winding a
} process. No banking system, nor any
here in any county, can show such RECORD
T safety under such circumstances The on1 !
ilure Of the City of Glasgow Bank in Scot |
nd, last wear, inflicted upon its creditors Il I