Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1879-09-26
SHERMAN VS.. SHERMAN.
Gen. Thomas Ewing Exposes Some
of the Secretary's Boosted
Theories.
The United States Treasury Run in
the Interest of Favored Few.
trrom Cen. Ewing. spescn a, ealllrons. ol

(From Gen. EwngI Speech at GAll!pois, o)
Mr.. Sherman attempts TO make me ap.
pear ridiculous by asserting that attrib-
uted the panic of 1918 TO the resumption
act OF 1919. That is not perversion Of
anything | have ever said, but merely a
pure invention. | have always attrihu
ted the panic of 1878 in chief part TO the
contraction of the currency which went
on steadily after 1866, causing an cSpan
sion of credits TO take the place of dimin
iShing currency, which credits collapsed
in the panic
But Mr. sherman says "thc amount
Of paper money outstanding on the S0th
of June, 1878, was more than it was on
the 3Oth Of June, 1865; the amount on
the seth of June, 1873, was $749, ,00p,
and on the 10th of June, 1865, was but
$14i,233." | answer this assertion by
quoting from his own report, issued from
the treasury department on the first OF
July last, giving the total amount of
currency outstanding" vt various dates,
Us follows:
June 80, lSG5......,....... $9S3,StS,6G0
June 80, 1875. 10000 900
Total contraction. $232, 256, 0C0
Showing difference between Mr.
Shermans statement as secretary on the
18th of July and his statement as stump
orator on the Goth of August of over
$233, 0000U0
But there are two kinds Of contraction
both equally effective in shrinking val.
ues; one is by equal reduction efthc cur
rency; the ether by the growth Of bust
ness, the currency remaining stationary
the demand of business Tor currency
may be assumed 10 increase approNi-
mately in proportion 10 increase Of pop
ulation. The actual currency III 1865,
according to the treasury statement Of
Mr.. sherman, was SIS per capita, whie
the actual currency of 1878, by the same
statement, was but $l7SJ per capita be-
ing reduction of over one.third.
Before the contraction of our currency
our people and our cities and our coun.
ties were very little in debt rs statistics
and records and experience attest With
the contraction which followed up TO
1878 came the expansion Of credits 10
maintain business. The enormous
grants by the republican party o. public
lands TO promote the premature construc-
tion of railways, combined with this cx
pansion of credits to bring on the coll
lapse of 1878, from which the couu
try, as Mr.. Sherman stated in his speech
in tle senate IN 1914, had in eilccl recoy.
cred, when the decentralization of silver
and forced resumption in gold set in mo-
ton the influences which have shrunk
prices, paralyZes industry and ConiScat-
ed the property Of debtors and tan
payers.
Mr.. Sherman asserts that not only had
we mole currency in 1918 than at the close
of the war, but that we now have more
Than we ever had. In this treasury dc.
partmcnt statement of the 1st of July last
he gives the total circulation at $743, SOL
600 on the LIST Of July, 1879, which is
about $l4.51 per capita, as against $l1S5
per capita ON the same day in 1873, and
T2S TN the same day in 1865. This state
ment OF the currency now outstanding
includes $74,0Jo,000 of greenbacks with
drawn from circulation and boarded in
the treasury, and $125, 900 which the
comptroller of the currency in his speech
10 the national bankers at Saratoga last
month says are boarded by national
banks. MIR. Sherman attempts to sustain
his assertion that the currency IS greater
now than ever by adding to the volume
now alloat all the coin in the treasury
held Tor redemption. He might just as
reasonably count the gold in the noun.
tains. The coin will stay in the treasury
until the greenbacks are surrendered 10
take its place. and then the grcenbacks
will stay in until the coin comes back
again. When one is circulating the other
IS boarded, and both can't be counted as
part OF the circulation.
Mr. Sherman now asserts that the panic
Of 1873 was caused by an inflated and ir-
redeemable currency But here is his
speech in the United States senate, made
on the 10Th of January, 1874, in which
he says; Mr. President, the,condition of
our currency has no relation whatever 10
the panic that passed over the country
! never have charged the panic
upon the currency. Indeed, ! was The
first in the midst OF the panic to declare
that the currency had no connection with
it, Money was secure. Men boarded it.
2 These panics are but the ebb
and flow of great enterprises. No action
of ours can prevent them
He now asserts that all the business
distresses and blighted industries Of tie
past four years were due to the panic, but
in this same speech lie declares that the
effect Of the panic was then past | quote
his language: "Confldencc is restored,
and every commodity is advanced TO tie
price it was before the panic.
lie now asserts THAT experience has
shown that the resumption act has not
produced any distress;' but in his pub
lishcd examination before the finance
committee Of the senate last year, which
was carefully revised by him before it
went 10 the public printer, he says
We have now passed through al the
agony and struggle for resumption
To crown the display ofthis character.
istic versatility Of assertion, Mr. Sher.
man SAYS: suffice ii to say that every
step under the resumption act has had
tendency to produce easy times, restore
confidence, reduce prices, advance the
value on currcnces, and 10 lead Us gently,
slowly 10 The specie standard" Could
human ingenuity combine in one sen
tence eater tumble Of contradiction
II il perfectly true that every step 10.
ward resupmtion has tended to reduce
prices. or, in other words, 10 advance tie
value Or purchasing power of money
but the assertion that q reduction Ct
prices causes or can bc accompanied by
noptradfctc oil human