The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1879-10-16

matureQ ana were palQ or funQeQ before the
end of 1868. The panic did not come till near
the end of 1873, or five years after the con.
traction was completed. Now, if this was the
contraction and it caused a shrinkage of values,
and the shrinkage caused the panic, why didn't
the values shrink and the panic come at the
time of the contraction. On the contrary, we
are told that these very years, 49, '67 and '6S,
were among the most prosperous years we ever
had. According to their own arguments, during
currency was stolen from the people, the people
had great prosperity.
THE PAPER CURRENCY FROM 1868 TO 1873
was as follows:
1863. 1920, 412. 602
1903 b9o, 94oUo6
lOO,5I3 o99
lSI.... 7I7,S7575
1917 100 oIO9Uo
1871. 75O,O62 36o
twill be seen that it declined between '6S
and $50 little over 26 Millions and that from '69
Till '73 there was steady increase in the
amount in all to over $50, 100000. If we use the
gold value of the currency which represents it's
actual business or releasing power the con-
traSt is still more remarkable. The gold value
of currency at the end of the fiscal year, June &c.
1858, was $505, 009 1884, at the end of the fiscal
year, June 3d. 1878. it was $648. O54, 1856, showing
an increase of real business power $143 652.
Still, we are told contraction caused the panic.
BURNING GREENBACKs.
Tt has been said, that Secretary Boutwell,, in
his report of 1872, said over 100000 600 of green
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.
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 prevent the cancelIG
tion and destruction of nutiIated United States
notes and the replacing of the same aoih 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 III and larger
in '73 than '72. 1t is just such mserably foolish
and superficial and false, statements as these
that have muddled and bedeyiled peoples
minds, till many of them think they would be
justified in Instruction.
FACTS ABOUT GREENBACKs.
The greenbacks were issued under the three
acts of February 25, and July Ii, 1862 and of
March g. 1868. Each act authorized $150,000 900.
But the first act provided that $4,000, 900 of that
notes." SO that at no time the amount of both
outstanding should exceed $3.50, 0OO 900. The &C.
of July IL, 1862 provided that $50 100000 Of it's
amount should be used only as a reserve to
redeem temporary loan certificates; the act of
March 3, 1868, authorized $150000,O0O, so that
$450,0O0,000 was the total amount authorized,
$50OOO,000 of which were to be issued for a
specific temporary purpose alone, and when
used for that purpose to be retired again as as
quickly as possible and in harmony with all this
the law of June 80, 1864, was passed by the un-
animous vote of both houses of Congress-; ''for
shall the total amount of United States notes
exceed $40
and such additional amount not to exceed $751;
100000, as may be temporarily required for the
redemption of temporary loans"
The act of April -, 1866 authorized the Secre
tary, "at his discretion, to dispose of any bonds
authorized by act of March 8, 1861 (being -3O's,
5720's Of 1865, and the bonds known as consols of
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
States notes not more than s10,OOO,OOO may lie
retired and cancelled within six months from
the passage of this act, and thereafter not more
than ST. 600, 600 in any one month";"
Under this act $44,OOO,0OO 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
$44 ,000, 900 was not burned or DESTROYED. for
$26,OOO,oOO of it 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
anu Vic IooluouG uOlulnS III TO De cash IN the
Treasury. 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 $1o0
of new National Bank notes were issued. $50 of
greenbacks should be retired. But this did NOT
effect contraction, for rs per cent more bank cur
rency was issued than greenbacks retired The.
0DJect was to reduce greenbackS to $500 600 600
to enable the government to maintain resumn
ton. But when the greenbacks had been re-
duced to $346 631 ,0l6 further reduction was sus
pended, and that is the amount now outstand.
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 aft
only little over 81 100 900 then, and at over
technical use of the legal term bonded But if
1t is meant to say that the interest bearing debt
mas been increased it is not correct. There was
at that time large mass of floating debt. hear
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.
$23o! 800, 29496. It is now 81, 1877 643 7OO-a re-
ductlon of 1888 1885, 594 49, instead of an increase
Inc highest annual interest charge was $780,
g77,69Lo7. For next year the interest will be
$S3, 5Oor S67 2O3 9l9. 81 less than in 1865
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 finan
clal condition so easy. There never was a time