Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1879-10-16


than his career. When the war broke out he
was poor and oSscure-so poor ne could not pay
for a saddle to put on his horse When ne was
commissioaed-so poor. IL IS SAID. his wife Was
refused provisions for her family by grocer in
the town where she lived was ms poverty
barrier in the way of his promotions. Not at
all. AS soon as he showed he was qualified for
a service he was recognized, while hun'l reds of
rich Generals were sent 10 the rear. Ana TINS
man, on his elits, was promoted ana honored
by the American people, and today Is the
most distinguished and most honored man on
the face of the earth. lApplausel
A number of other illustrations were gwen of
poor men by self.reliance and energy attaining
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 Tor more
greenback ks and in the nature of things no man
ever could obtain either wealth or honor
in that way.
THE CONTRACTION or THE CURRENCY.
Now we come to the main question. Has
there been great contraction of the currency
since 1865, and can rhe panic OF 1878 be attrib-
uted to centractions
WHAT is CURRENCY?
Bv 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 cireula-
ton and have no other character than that of
circulating medium.
currency, there has certainly been no contrac-
tion counting from either 1851 or 1860.
OFFICIAL FIGURES.
In 1861 we had S202 0o5, 767 of State Bank paper
money outstanding. On the 30th day OF April
last, we had including coin certificates 500 1885,
77S, three and e-half times as much as in 1861.
Then we had 900 of coin and bullion,
which added to the paper circulation or 1861
makes total of money resources of $i77 ,O05 767.
On the 30th of April last the Director OF the
Mint estimated that we had Si05 .0OO,Oe0 OF coin
and bullion, which added 10 the paper would
give total of sl,ll5936,173 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. STAT 233 1885, which is S36s ,702 s1s 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 ,726 of our dollars of to-day,
every one Of which is gold coin, az par with and
is $685., S73,0i7 less than the available monetary
resources of the Nation to-day.
INTEREST BEARING CURRENCY.
BUTT is argued that large amount ofinterest
bearing notes. bends and certificates were in
circulation in 1863 and ought to be computed as
currency in that year, and it IS the payment or
fnndingo those Temporary loanse that 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 q temporary loans y; that they
were Issued under laws authorizing the Secre.
tary of the Treasury to borrow 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 ii meant
anything, meant that they were not intended to
remain as 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 his matter IS simply
nonsense. To have refused to pay or fund these
" temporary loans," when they matured as the
law authorizing them provided Should he done,
would have been reputation. On :, Igust 81,
1865, the date when the public debt aehed its
highest point II was:
Funded debt. 81, 100 56S, 1872
Matured debt. .....-............. 503, 020
Temporary loans. ...........-....-. lUI Ia, Il3
Certificates of debt. s5,093 900
Five per cent legal-tenders. ....... 1885,, $50
Compound interest legal-tenders.. 2l7024, 100
Seven thirty notes ................. $4,000 900
United States notes (greenback le-
gal tendersl...-... ............... 433, l60, 563
Fractional currency ................ 1884, 7l2
Suspended acquisitions. ............ 2,lll,000
And of these obligations only 1854. l3S $50, were
legal tender-that is the greenback ks i've per cent.
and compound interest notes, and of this amount
nearly two thirds were greenbac ks (T433 l60 569)
leaving only $780, 800, 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 " seyen-t hrties" certif.
Gates of debt, certificates of deposit, Called
temporary loans in the above table) were ever a
legal tender.
INCLUDING ALL INTEREST BEARING LEGAL
TENDERS AS CURRENCY IN 1865 WE STILL
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 S692, 256, 1854 of our currency today-less
than the paper circulation alone to-day, and
1923 $50 4l9 less than the total available monetary
resources of to- day (Sl, ,7I3 paper coin and
bullion)
BUT DID THEY CIRCULATE?
This Is a 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 as currency, or afflrms 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 3ist of october was
substantially as follows
United States notes and fractional
currency. S454, 2ls OBS 20
National Bank notes.. $4,000 900. 90
State Bank notes.................. $4,000, 900 90
Total $50. ..... s7O4, 2ls. OBS. 20
Then he refers to the compound interest and
five per cent. notes, and says: 1t would
doubtless be safe to estimate that $4,000 600
were in circulation as currency and he con-
cludes "The paper money of the counGry on
the 3lst of october, 1865, amounted to the sum
of 1874, 2ls, 03S30."
NEW YORK TRIBUNE ESTIMATES.
"In an editorial ON the currency question
published on August 4, 1866, these statements
were made:
OF illegal tender" afloat there is not quite
500 100000; but over $250000. 900 of this con.
ssts of notes on interest, sclich hare been mainly
boarded for presentation tchen due Practically the
amount Of oar currency does not erceed $500 600 000
to which add the National bank notes in circu-
laton, and the aggregate is less than 800 600 900
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 lin lS6S-9)
and other securities Of short date
In the Semi Wedkty Tribune of Friday, Novem-
Der 8, in an article on debt, Finance and Cur