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

S720, 412, COZ
leo9 693 GAG, 056
lolu 7O0,3I5S 800
oll.-............. ............-.... Il7,s75,75l
49, 73S 500, SOB
lcfo..... IoO,U62 36S
1t win be seen that it declined between ,68
and 69 little over rs millions and that from go
TIL 'I3 there was steady increase in the
amount in all to over S56,O00,000. 1.-Two use the
gold value of the currency which represents its
actual business or pure hasing power the con-
trast is still more remarkable. The gold value
of currency at the end of the fiscal year. June 3d.
1868. was $5O5, COS, 234; at the end of the fiscal
year, June 80 1873. 1t was $6iS. 1904 $50. showing
an increase of real business power of $li3 652
Stil we are told contraction caused the panic.
BURNING GREENBAcKs.
1t has been SAID, that Secretary Boutwell,. in
backs, fractional currency and National Bank
notes were burned in that year. and this he
says, was of itself enough to cause the panic
A little attention to the law will explain that
The law of February 4, 1868, ordered the secre-
tary to stop the retiring or canceling of green
backs as follows
AN ACT TO SUSPEND THE FURTHER REDUc-
TIoN OF THE CURRENCY.
''Section l. That from and after the passage
of this act the authority of the Secretary of the
Treasury to make any reduction of the cur
rency by retiring or canceling United states
notes, shall be. and is hereby, suspended; but
nothing herein contained shall pYeUent the cdnceila
tfon and destruction Of mutitated Tinted States
notes ana me replacing Of me same tcfh notes Of the
same character and amount"
This law was in full force in 1872, so that the
destruction referred to by Sec. Boutwell, is ex.
planned, and it did not effect any contraction.
The above tables show that the amount of cur
rency was greater In " than in II and larger
in 70 than ". II is just such msenbly foolish
and superficial and false statements as these
that have muddled and bedeviled peoples
minds, till many of them think they would be
justified in Instruction.
FACTS ABOUT GRRENBAcKs.
The greenbacks were issued under the three
acts of February %, and July IL, 1862, and of
March 3, 1868. Each act authorized $50 600 600
But the first act provided that So 900 900 of that
amount should be used to take up demand
notes." so that at no time the amount of both
outstanding should exceed Sl50,000 600. The &C.
OF July II. 1862. provided that $50 600 600 of its
amount should be used only as a reserve to
redeem temporary loan certificates; the act of
March 3, 1868, authorized $780, 900, 900, so that
S4j0,o00,000 was the total amount authorized
$50,00O,000 of which were to be issued for a
speclhc temporary purpose alone, and when
used for that purpose to be retired again as
quickly as possible and in harmony with all this
the law of June 3d. 1854 was passed by the un
animous vote of both houses of Congress; s.for
snail the total amount of United States notes
issued or to be issued ever exceed SAG, 00o 600
and such additional amount not to exceed S5,,,
600 900, as may be temporarily required for the
redemption of temporary loans"
The act of April 10, 1866, authorized the Score.
tary, "at his discretion, to dispose of any bonds
authorized by act of March 8, 1865 (beng 7-30's
5,2o's of 1865, and the bonds known as consols of
1902 1867, and 1863 for lawful money of the
United States and for Treasury notes, whether
bearing interest or not The law, however
said: Nothing herein contained shall be con.
strued to authorize any increase of the public
debt" and further: "Protided, That of United
states notes not more than s10,0O00OO may lie
retired and cancelled within six months from
the passage of this act, and thereafter not more
than 81, 600 900 in any one month";"
Under this act $44, 100000 of the 100000, 900
were retired up to February 4, 1868, when the
act quoted above was passed forbidding the
further reduction of the currency But this |
81 100000 was not burned or destroyed. for
$40, 000. 600 of 1t was issued at the time of the
panic of 1873, and the whole amount was found |
to be on hand in the Treasury, the Secretary
and the President holding it to be cash in the
Congress afterward set the question
at rest by resolution declaring this to be the
proper construction of the law. So no green |
backs seem to have been burned to make room |
for an increase of the interest bearing debt
THE RESUMPTION ACT.
The resumption act provided that when 500 !
OF new National Bank notes were issued $50 of |
greenbacks should be retired. But this aid not |
effect contraction, for rs per cent. more bank cur
rency was issued than greenbacks retired. The |
object was to reduce greenbacks To $500 ooo 0o0 |
to enable the government to maintain resumu |
ton. But when the greenbacks had been re- |
duced to S346, ,0l6, further reduction was sus
ing. repeat that not one dollar of the green |
backs authorized for currency purposes was |
ever funded into interest bearing bonds and de. !
stroyed.
BONDED DEBT IN 1868 AND 1873.
1t is attempted to make out that the bonded |
debt has been increased because it is quoted at |
only little over 81 100000 then, and at over
81, 900 now. 1t is correct according to the |
technical use of the legal term bonded But if |
1T is meant to say that the interest bearing debt |
has been increased it is not correct. There was
at that time large mass of floating debt, bear
ing high rate of interest, that had not been
funded and so does not appear in the table of
bonds or bonded debt. The facts are the total
interest bearing debt was on August 81, 1865.
10 "a -nn
duction of 1858 $50 SO, instead of an increase
The highest annual interest charge was $780,
977,6s1SZ For next year the interest will be
SS3 773, I7S5Oor S61 203 1887 less than in 1860
As to the point that it is harder to pay one dol
lar now than three then. The Governments
credit never was so good as now, nor its iinan-
Hia1 Condition Hhnr