Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1879-08-21

RESUMPTION NOT THE CAUSE Or HAM
TINES.
Again, ii contraction OF the currency
is the cause of the hard times, why dld
the hard times extend to all Europe anu
10 the whole civilized world? 1t Is
clearly shown that the panic OF lS'" ex-
tended i'm its widening folds SO as 10 ein-
brace all the commercial nations oil Eu-
ropc. which could not be affected by the
volume of our paper money, Out sllu
were affected by the general distress
under which We suffered. The kepuO-
leans believe that the volume oil our
currency. being irredeemahle ana Narl-
able i'm value, was one cause which pro-
dueed the panic oil 1875, and that Otiler
causes. such as the waste OF great wars,
over production, wild speculation, un-
productive enterprises, inflated prices,
a reckless gambling spirit, which at
times seems To seize upon nations ana
individuals, concurred 10 produce the
great panic Of 1868, and that the chlel oil
these was an irredeemable paper money
which varied in value from day to day,
Al tthe very time this panic came upon us,
| was trayerSing the country rs MEM
ber of the Senate Committee on Trans
portation, charged with the duty OF eX-
amiuing whether il would not be eNpe-
dent To build three great lines of water
transportation from the West 10 the sea,
which. ii entered upon, would have cost
not less than 500, 700. At that time
the grievance Of the hour on the part Oi
the Changers, or the farmers OF the west,
was that the cost of transportation was
80 great ~ To consume their product;
and among the wild schemes OF the time
il WAS proposed To embark the National
Government into vast expensive public
works. which would, in my judgment,
have been of little value il constructed.
This high cost of transportation was
itself the effect of inflated prices, while
cheap transportation, the cheapest IN
the world, has been one Of the beneficial
results OF the panic Of 1875.
FALLAcY or INPLATIoN.
Now. as 20 the remedy. Our Green
back friends proposed 10 meet the panic
of 1873 by Il large issue ot irrcdeemable
paper money. Yielding 10 the demand
Tor an increase in the volume OF the cur
rrucv. General Grant did authorize the
issue of S2O,OOO,OOO OF United States
notes that had been retired prior to
1855. This action had not the slightest
effect i'm arreStlng that panic, but tended
rather tO impair confidence and cause
the boarding of capital. Free banking,
also. WAS reSorted 10, and was one oil the
provisions of the resumption act.
Under that act, banking became as Tree
~ any other trade or occupation, and
any amount Ot paper money couid
be issued upon the security OF bonds
deposited i'm the Treasury. But, al
though this privilege was open TO every
one, scarcely any banks were organized
under il, and an amount OF circulation
greater than was issued under this open
privilege was freely surrendered, be-
cause il could not be used. Our green
back friends would have forced the issue
of So large amount of irFedeemable pa
Der money as to have lifted out OF debt
the greatest bankrupt in the country.
They pointed 10 the wrecks OF broken
fortunes stranded along the great ocean
Of business, and demanded money
enough to be put atiOat to raise them all
into SOlvency.
Ii is scarcely necessary, at this late
day of the discussion, To point out the
tlliacv Of these wild and reckless
schemes of visionary enthusiasts, who
would have flooded the whole country,
DESTROYED all values and driven the na-
ton into universal bankruptcy, and
rOrnpelled il 10 return, through barter,
10 coin again. The sober Judgment OF
orr ,enplc has so often condemned
this that it is scarcely necessary
Tor me to point out the nevlta-
ble effects OF such an issue oil paper
money. Republicans n well rs Demo
Gratis shared i'm the delusions oil the
time: but aS the discussion proceeded,
and the public Judgment was cleared,
the Republican party did, rs 1t has uni
formally done for the last twenty years,
take the responsibility for proposing a
definite measure To cure the evils under
which we were suffering. Eighteen
months Of failure and disaster had pro-
Crctr,l before the Republicans could be
So far united as 20 propose and pass the
resumption act through both lluuSesol
Congress: and this was intended as the
remedy for the panic The final judg-
mcut 0i the Republican party was, that
the only proper remedy was to base our
currency upon acoin standard and lSSue
no money in any form except that which
was relccmlhlr lu gold and silver com.
This central idea had been uniformly
advocated bv the leaders ui the Demo
cratic party; but they. a. ON other pueS-
tionS, finding the responsibility resting
unon the Rcpublicans, and willing tn
make political capital out OF any act,
however meritOriOuS, that the Rrpuhll-
cans might pass. voted against the IT.
sumption act, and thus made a party
mraSurroi that which should have been
supported by everybody in the land.
NECESSITY roE COIN RESERVE.
Oi what do our GrcenbIck friends
now complain? They say that there ls
a large reserve of gold kept idle IN the
Treasury. 80 there Is. one hundred
aud thirtv-cight millions ot dollars oil
coin Is i'm the Treasury awaiting any de
mund, that may Toe made upon II IN the
redemption of United states notes. But,
why is this2 Because experience has
shown that sufficient coin must be held
I'm order "a produce tile necessary con-
hdcnre 10 maiutaIu resumption. IhIs
l. on established axiom in all systems OF
banking since any existed.
II is said that We lose interest on the
amount OF money invested in this coin.
| - we do: but a part Of this fund would
be necessary, at all events, to carry on
| the ordinary operations OF the Govern
rent. Ninety million dollars of it was
/ created by the sale Of bonds on which
We are now paving interest to the
amount of S},925, GOO. This is the cost
of resumption, and the only cost. But,
I i'm return, We have already secured an
/ annual saving bv our reiunding opera
uons Of Sl4,297, ,l77. We have also Sc
| cured a large reduction OF interest on
private and public debts and the debts
| of cities and corporations.
You say that this reserve rs too large.
/ The answer Is, that it is better 10 have
enough. With enough there will be
no demand for redemption, while a
doubt would create Il demand. ENpe-
riencc has shown that 40 per cent. is
sufficient, and therefore that amount
has been accumulated. Those who
would attack this reserve are opposed