Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-07-24

|
IN order 10 discuss with lhtriiigchce theh'eaS
ureS that have been proposed and executed,
ana the questions that >ti'i remain open ior
drclNion. pnr money then was paper money,
| lrrcdtcmahie IN com ana worm ABOUT c'gh-
| tN-scNcn cents on inc u"llar' me amount
! outstanding was larger thah ever pelnre'
Sometimes tins has been disputed ny counting
rs money III the close ol the war All 'he COM
pouhC-lhtefcNt notes ana '."o treasury notes
These were no more current money thah III"
| " per cent. bnndS Into wilch thcy "er" con-
Nrrtcd' BON bore interest ana were Always
ahoNc par III paper money an" were heih as
investments not as currency. ne amount
OF paper money outstanding, lpciudinS All IN
ttrtst nearing notes. Jnhe ~, $500 was
S'i' ~, s91''6. The amount on the "'uh OF
June, 1913, Just before the panic was S'lo'
no, o,SG'.9f. while on the ;Hth OF June, lSi,
after the pane. 1t was SfSo''io,oNi ~.
AGAIN, the rate "f interest was hiSher IN
lS'j than before or since. before 'he pane
the bony OF thr "nNtrnmcnt dcp' nore ih.e!
'Ht ~ per cent. III tola; '"rI"r'lloiis III l'ir
crcdlt PAM to ~ per cent ahh ihdiI inuaiS
-"SpcclaliN IN Ia" W Nest-hnr'gag'd 'hcIr
farms at 10 to y per cent. ne current rate
oi interest may be sald To nave pcch !" per
cent.
me utmost reckIeSshcss III contracting
! denls was lhcn UNIVERSAL hot ohiY ny irli' ~,
nalS. pu' ny cl''''' c"uh'ieS' '"%hS' ana all
KINDS OF private corporations 1t was an era
oi wlld ana reckless waste ana lmprovidehcc.
In th"Se speculative tunes the tonnage oi
American vessels in foreign trade dwlndlcd
from 2'I.9'"?6 IN 1850. to ']'''p33 tons IN
l7'' " hereVer we were brought IN com
pvtih"h WIN countries uolhS business upon
Il specie ha'IS, we were drlVen from co'hpeu-
ti"n' elthcr on the ocean or IN workshops
hallroahS were bullt "hrre thev were not
"e'''c''' ~ "!Fa'lcc "i >e'tie'"eh'n furnaces
were put up IN excess OF all possible pcrma-
neht demand, ana over production ana over
trading occurred in all branches OF business.
ne balance oi trade wlth foreign countries
had hceh Tor a series OF years steadily against
us From 1863 to 1873 the excess oflmports
over exports was SI.os6.ito,'S', ana from
am not ohl, IN aiv,. van tlc omount of
private and corporate Indebtedness contract
ed in foreign countries during these years of
reckless speculation, hut it was probably
equal to or in excess Of the balance of trade
against us. We then cnjovcd the prosperity
of a profigatc while wasting its inheritance
or the happiness of drunkard while on a
spree.
The panic of 1873 called halt, and, as by
a stroke, paralyzcd all domestic industry. and
bankruptcy and ruin spread from corporations
to individuals, and property was unsalablc
except at prices far below its value.
1t is hardly worth while for us to enter in
to the discussion of the cause of this calam-
y. Honest men would differ about it. Some
attribute it to the waste of the y ar, some to the
| over production that followed the waste of the
war; some TO irrcdcemablc paper money.
But whatever may have been the cause, the
calamity was admitted by all to he wide
reaching and long-continued. 1t affected for
cign nations much more severely than our
own. Every nation in Europe suffered as
much or more than the United States. The
industries of Great Britain were paralyzed
Our earlier recovery from th, stagnation j.
due to our vast territory and undcveloped
resources, and the natural energy of young
and vigorous nation.
r,,,.p,.,.,,,..,..,.
''"N ~
W heh congress met IN December. 1919, 1t
undertook 10 ma Il remedy for these evils,
ana for year we had discussions in Con-
gress' IN inc press ana among the people, a>
10 now nest 10 rrile't our di,tress"s anu re-
| StoIc our INDUSTRIES I" soma iouhuatlon. In
''c course VI '"i> olSc"SSioh the people nat
| uraiiI uNlued' 'h inc one hahd II was lil-
sisted that the true remedy was to initiate the
| currency ny large increase OF paper money,
ahu WIN tnat view, Wenty-sN millions OF
collars Ill hl'eu states notes were thrown
! npoh the market on the other hand 1t was
| insisted that Tue "hly nope Tor relief was to
| return 10 II specie pass ana to advance all
forms OF currency to that standard.
IN january lN'1, ana during the second
session on NohgrcHs-clghteen months after
the panlc-the measure known a> the resump-
tl"h acl was alopteu ny majority OF both
branches ana approved by the President.
rms was n republican measure, for. though
many democrats favored resumption yet
party diScip'lne ana the hope OF party advan-
tagc lhuuced every one OF them to vote
against lhc resumption act. inns measure
was very S'hpie one, containing nut TWO
pr'p"shlonS-ole was that SILVER com should
ne pra"'aiiN lSsueu lnr the redemption OF
lr"'''"",' CURRENCY anu the nther one was
that on January t. lS'" the National Treas
ury should redeem IN CON- any I nited
Nth''S hotes that were presented. Tins act
was not 10 take erect, III It's material provis-
ion' uhtli tour years from the date OF ITS pas
sage steps were taken ny Secretary Bris-
Tow ana your distinguished to"nsman, Soc
fctarN Morril'' ior the gradual Replacement
OF fractional currency by silver coin but uu-
Ill the spring OF lStf no material preparation