River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1879-10-02


ury, and this being deducted would leave the bal
ailce Of the debt as before. Thus, if you cws a
thousand dollars, with the GIT to pay it your
Pleasure and borrow money fer thar purpose, you
--'l have two notes outstanding at the same time
until yon can Apply the borrowed money 10 the pay
msnt of the first note
This is precisely the condition the United States
was in when borrowing monty to ray or itanding
bonds. The debt statement Of July LIST shows as
part of the public debt the whole of th ten-forty
bends, and also the whole OF the bonds issued for
their payment, but also shows the money in the
treasury TO pay them. In the next debt statement
the ten-forties will disappear, such unpaid
vii appear smong the debt bearing no Interest
The cash in the treasury will also decrease accord
1ngly. thought the notice required by the law
WAS entirely too long, and in my annual repeat to
congress, Democratic in both branches, earnestly
urged shortening Of the period TO Thirty days or
less, in order to this double interest," but the
recommendation was declined or ignored. If any
one is 10 be held responsible for the double interest
It should be congress- In justice to the depart
meDt, II is but fair TO state that all the loans
negotiated for the last two years have been on more
favorable terms than any loans ever made by the
United States. They were generally made By
popular subscriptions by the people directly. The
saving from the amount allowed for tie expense of
negotiating the loan is ever 81 100, GOO, and the
premium exacted Az and 4 per cent bonds
amounts TO 81, 1926 9tS.25. can Sc without fear Of
contradiction, that no nation ever negotiated its
loans at less cost or on as favorable terms. The
sales OF the famous per cent. OILS of England,
when made, were on far less advantageous terms
Iran the United States was able to secure after
accomplishing resumption.
The resumption OF specie payments has had the
same beneficial effect upon the business of private
citizens. The reduction Of interest on the public
debt has made it possible to reduce the rate on an
debts, whether state, corporation or private
Nothing is more certain than that irredeemable
money necessarily leads to the increase of the rate
Of interest The first effect of its issue is to reduce
the rate of interest and to advance prices If not
redeemable in coin it depreciates in value, and
more OF 1t Ia necessary to conduct business. 1t
car ses over trading and speculation, not only as
70 prices OF commodities, but as to its value.
This is soon shown in the advance of the rate of
interest, and what is called scarcity OF money.
This general rule is stated by such old writers as
Adam Smith and Thomas locke, and is fully yeri-
fed by the rate of interest before the panic and
since resumption. Private debts are now being
rapidly reduced from 10 to and even to per cent.
OPPONENTS TO RnsumPTIo
Now let us examine the specific complaints of
our fellow citizens who have heretofore been OPP
posed to rosumi ton and to the entire financial
policy of the Republican party.
OF what do they complain?
Fret, they said resumption would contract the
currency; that we would have nothing but coin in
circulation. This have shown TO be entirely de-
lusve. The resumption act provided for no con-
traction Of the currency but United States notes
were to be retired only greater amount of bank
notes were issued. The only contraction that has
occurred since the passage Of the resumption act
has been by the voluntary withdrawal by national
banks Of portion of their circulation when they
found it could not pr ftably be employed in BUSH
ness. Every act done under tbs resumption act
/ tended to increase rather than diminish ercus-
ton and now that all this circulation is at par
with gold, the coin itself becomes inn ortant
factor in the volume of circulation, and swells the
amount that is available for the transaction Of
business
The amount of coin and currency in circulation
the 1st instant follows: .
United States notes. .............S3 46. 6s1, O16
Fractional currency. 15,s42,6o5
Certificates. 17,Ss0,65p
Total: $40 o95, pes
Coin, estimated. 1892 1891
Showing aggregate Of 81 ,o42, 539615, or s2l IL
per inlabitant.
The amount of national bank notes has actually
increased siHoe the LIST of January in the sum Of
IS SOC, 023, so that the result OF resumption has
been to increase instead Of diminish the actual cir
culation.
Again, they demanded that the bonds should be
paid in greenbacks, There a question, upon
which honest men fairly differed, whether the five
twenty bonds were not properly payable in United
States notes. They insisted that this should be
done, though the payment OF the bonds in green.
backs would have increased their issue, III viola
ton Of the limit of $4o0,000000 prescribed
by the loan laws, and would thus have kept
United States notes in perpetual dishoncr and
depreciation but now they have been SO paid by
resumption. All the fve-twenty and teG-forty
bonds redeemed this year, amounting to 1887 676,-
$50, have been paid in greenbacks, and the inter-
est on all the bonds is paid in greenbaeks, and all
this is done without raising any question of good
faith with the public creditors.
They also demanded that the customs duties
should be paid in greer backs This is now daily
done, without question, as the result Of re
We receive United States notes for all purposes
and all demands, and pay them out for all purposes
and on all demands Resumption has enabled us
to do this 1t has accomplished every object which
tn, Greenb ackers sought to accomplish by the re-
peal of the resumption act. Should they not be
content? What more do they want: Are not we
who have brought about these results better en-
titled to the name of Greenbackers than they who
would forever keep the greenback dishonored
and rrede, nable note? We presided over the
birth of the greenbae ks, and guar ded them IN the
cradle. The Democratic lesders denounced them
fraud, wi b the mark of Cain on their brow as
worthless, TO be bought some day by the cord.
We have crowned them with honor. They are no
longer deprecated, but may travel the circuit of
the world, equal to the best coin issued from
the mint.
GREENBAoK POLICY IN MAINE
The policy of the modern G-eenbacKer is to de-
precate the green back, to destroy its purchasing
power, to make it depend not upon the intrinsic
value of the coin into which it be converted,
but upon some imaginary value given to it by law.
The peol lie of Maine will have TO choose between
those Greenbackers who strictly preserve the ma
tona faith, seek to maintain the greenback at par
with coin, and those who, with utter disregard of
the public. faith, wish to restore the old state of
affairs, when the greenback could only be passed
at discount, and could neither be received for
customs euties nor be paid upon the public debt
They would revive the old distinction between the
boz dholder and the notehoIder, when 10 j-eent
gold dollar paid to the bondnolder aud an So
cent irredeemable note was the pay of the laborer.
We would have ore money for all, and that good
moncy, each dollar of which will buy 100 cents
worth of food and clothing.
One would suppose, fellow citizens, that our
Greenback friends, after all their prophecies had
been proven to be false alarms, after we had Sc
cured and joyed for brief period the blessings
OF sound currency redeemable in coin, would be
content to let well enough alone but dropping the
resumption act, they come to the front with new
set OF dogmas, and invite on them a contest with
the Republican party.
He next reviewed the
ARGUMENTS OF eREESBAcKERs
in Maine and Ohio, answering them:
The truth is, the intelligent commercial world,
except only the Greenbackers, has been full OF
praise and wonder at the remarkable success of the
government Of the United States IN the reduction
of its debt and interest. No nation in the world,
in ancient or modern times has in SO short