The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-07-24

o To,
cured by the constitution. 1t tramped with midnight
murder and ma querade and last year it capped the
climax by election frauds more shameful than the
ballot-oox stufhn3 and repeating OF Tweed and his
infamous Ring III 1868.
Several members of Congress. who confess
edly elected by tssue-balot box stuifng the plean
est form OF crime against the elective franchise
ticpated in refusing the necessary appropriations
for the support of the government unless the Presi
dent would approve the repeal of the election laws.
When. by the hrmness of the President. they failed
i'll their main object, they sought by conditions in
appropriation bills to compel him to agree to nulify
laws in violation OF his oath of Office
When the President again defeated this scheme by
his veto they refused to appropriate money 10 en-
force the judicial mandates OF the government. and
the United States Courts are now poweriess to en-
force their DEGREES to serve process or to keep
the peace. unless the marshals serve without the
pay fixed by law. In this way majority of either
mcnt. We thought all such dogmas were overthrown
by the amendments to the constitution. Such
policy il sanctioned will nullify the amendments,
and is more dangerous than secession or State multi
hcation. 1t il revolution and anarchy.
The evident purpose of those now dominating in
tho democratic party Is to beitte aud degrade the
national government, to elevate provinciaism above
nationalsm TO weaken the tie that binds this vast
country into a nation, that the winds and the
waves of faction may beat upon it and shatter it.
General Wade Hampton is reported to have said that
he does not care whether the candidates are hard
money soft money they are democrats. few
democrats from the North. elected upon any false
issue or artice whatever. give Them with the solid
south, the control of the Electoral College and of
the Senate and House. Through the caucus, con-
Quoted in secret and controlled always by the most
violent men. in which the solid South has the
joriy they hope to rule this whole country and sap
and mine all the strong foundations OF the power
and authority upon which the national government
rests.
This is the issue before which questions Of money
labor or property sink into comparative insgnif-
canoe. While intend in the remainder of my
remarks to confne myself to financial questions,
beg you to remember that the battle tor national
authority, for the right of the United States to
enforce it's laws and protect its citizens every foot
land water within its limits. though won.
Is i'll danger OF being lost Remember that the
national debt. twothirds OF the national taxes the
destruction of our commerce on the high seas. all
the sacrifices which accompanied and followed the
war, caused by the very party and the very
who now seek to divide us questions of political
economy. so that through our divisions they may,
with unchanged principle. seize upon the govern
ment that was defended against their arms by
millions Of our countrymen trust to the well
will not be diverted by divisions in our camp about
money matters while our old enemy is reviving the
lost cause and is sapping and mining the national
government.
FINANCIAL CONDITION IN 1873.
In the fall of 1873 there happened financial panic.
ont of which most of the economic questions upon
which divided naturally sprung. We
must understand the actual condition of things when
this occurred in order to discuss with Intelligence
the measures tina: have been proposed and executed
and the questions that still remain open for decision.
Our money then was paper money, irredeemable in
coin, and worth about eighty-seven cents the
dollar. The amount outstanding was larger than
before. Sometimes this has been disputed by
counting as money at the close of the war all the
compound interest notes and 1880 Treasury notes.
These current money than the per
cent bonds into which they were converted. Both
bore interest and were always above par paper
money, and held rs investments, not cur
rency. The amount of paper money outstanding.
excluding all misunderstanding notes, June 3d. 1865.
was S747. 223, 1876 Is. The amount the 30th Of
June. 1873 just before the anic was s749 s63 a.
while the 30th of june 1874, after the panic, it
was S7s0,94s.Usl II.
Again, the rate of interest was higher in 1873 than
before or since Before the panic the body OF the
debt bore interest ut six in gold
corporations in fair credit paid eight TO ten per cent,
and individuals especially in the West. mortgaged
ftatr fav,f fyvaly
rent rate OF may be said to have been ten per
cent.
The utmost recklessness in contracting debts was
then universal. not only by individuals. but by
cities. counties, towns and all kinds OF private
porations. 1t was era of wild and reckless waste
and improvidence
In those speculative times the tonnage of Ameri-
vessels in foreign trade dwinded from 2379.396
in 1860 to 137S, 533 tons in 1873. Wherever
brought in competition with countries doing bust
ness upon specie basis we were driven from COM
petition, either on the ocean or in work shops.
Railroads were built where they were not needed
in advance OF settlenients furnaces put up in
OF all possible permanent demand, ana over
production and ovcrtradtng occurred i'll all branches
The balance Of trade with foreign countries had
been for series OF years steadily against From
1868 to 1873 the excess of imports exports
44O587. and from 1869 to 1878. s554. 26O7
and corporate indebtedness contracted in foreign
countries during these years of reckless speculation
balance OF trade against us. We then enjoyed the
prosperity Of a profIgate while wasting his in
heritance. or the happiness of drunkard while on
q spree.
The panic of 1873 called halt and. as by stroke,
paralyzed all domestic industry. and bankruptcy and
ruin spread from corporations to individuals, and
property was unstable except at prices tar below its
value.
1t is hardly worth while for us to enter into the
discussion OF the Of this calamity. Honest
would differ about it, Some attribute il to the
waste OF the war; some to the overproduction that
followed the waste Of the some to irredeemable
paper money. But whatever may have been the
cause the calamity was admitted by all to be wide
lpnar ffrat1n
tons more severely than our own. Every nation in
Europe suffered Us much or more than the United
States. The industries OF Great Britain were par
alyzed Our earlier recovery from this stsgnation is
due to our vast territory and undeveoped resources
and the natural energy OF u young and vigorous ma
ton.
THE RESUMPTION ACT.
When Congress met III December, 1873, IL under
took to ind remedy for these evils. and for year
we had discussions in Congress, in the press and
among the people AS to how best to relieve dis
tresses and restore industries to solid founda-
ton. In the course of this discussion the people
naturally divided. On the one hand it insisted
that the true remedy was to initiate the currency by
large increase OF paper money and with that view
twentysix millions or dollars III United States notes
were thrown upon the'market. On the other hand
1t was insisted that the only hope for roller WAS to
return to specie basis ana to advance all forms OF
currency to that standard.
In January. 1875. and during the second session Of
Congress-eighteen months after the panic--tho
measure known as the Resumption act adopted
by majority of both branches and approved by the
President. This was republican measure, for,
though many democrats favored resumption, yet
party discipline and the hope of party advantage in
duced every one OF them to vote against the Re-
sumption act This measure u very simple one.
containing but two propositions. One that sill
yer coin should be gradually issued for the redemp
ton OF fractional currency, and the other that
January l. 1879, the National Treasury should
redeem in coin any United States notes that were
presented This act not to take effect in its ma
eral provision until four years from the date of its
passage. Steps were taken by Secretary Bristow and
your distinguished townsman. Secretary Morrill,,
tho gradual replacement oi fractional currency
by silver coin, but until the spring of 1877 mate
rial preparation was could well have been made
for the redemption OF United States notes, which
continued to be deprecated being worth only 80 to
% cents in coin. widespread feeling prevailed
that resumption impossible, that 1t W. uld not
bring better times. and the country continued to
suffer the tortures of the panic of 1873.
During the whole Of 1876 and 1877 tho Resumption
act made the subject OF denunciation. The alb
surd notion was put forward that 1T the caase
OF the hard times, though material action had
been taken under 1t, and the hard times eigh-
teen months before the Resumption act passed. All
sorts Oh prophecies made of its failure. We