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

commissioned-so poor, II Is said, his VIE was
refused provisions for her family by grocer IN
the town where she lived. Was his poverty
barrier in the way of his promouonI MOI az
all. As soon rs he showed he was qualhed Tor
a service he was recognized, while hundreds OF
rich Generals were sent to the rear. And TINS
man, on Ids merits, was promoted ana hohorsu
by the American people and today Is the
most distinguished and most honofed man on
the face of the earth. Applausel.
A number of other Illustrations were given of
poor men by selfreliance anu energy as I
he never knew of case where any man had
got either riches honors for whining that he
was not treated fairly or bowling for more
greenbacks and in the nature of things no man
ever could obtain either wealth or honor
in that way.
THE CONTRACTION OF THE CURRENCY
Now we come to the main question. Has
there been a great contraction OF the currency
since 1865 and can the panic of 1878 be attrlD-
uted to contraction?
WHAT is CURRENCY?
By currency is commonly understood gold
and silver coin and such bank and Government
notes as bear no interest, have no specific date
of maturity that are issued for current circula-
tion and have no other character than that OF
Now confining ourselves to this definition of
currency. there has certainly been no contrae-
ton counting from either 1861 or 1860
OFFICIAL FIGURES.
Tn 1861 we had s2O2 COS 767 of State Bank paper
money outstanding. On the 30th day OF April
last, we had including coin certificates SUB g5o,-
three ana -fldlT ilucS 40 MUM tcVAs
Then we had s275, 100000 of coin and bullion,
which added to the paper circulation OF lool
makes total of money resources OF $iii ,o0o, loI
On the Soth OF Ar last tee no nSn Of tde
and bullion, which added TO the paper would
give total of 81, rs as the money re-
sources of the Nation at the present tiihe,
COMPARISON BETWEEN 1865 AND 1879
In 1se5 no gold or silver was in circulation or
available for circulation. We had OF 7reenDacks,
fractional currency 9tate c s roo ~ i ph
the total monetary resources of to-day. But
this amount in 1865 was worth only ~ cents TO
the dollar, and represented only real value
equal to s523, 063, 726 of our dollars of to-day,
every one of W hich is gold coin, at par with and
is $685., 1913 047 less than the available monetary
resources of the Nation to-day.
INTEREST BEARING CURRENCY.
Rutit is argued that large amount of interest
bearing notes. bonds and certificates were iii
circulation in 1865, and ought to be computed as
currency in that year, and 1t IS the pay ment or
FINDING of those Temporary loans that COM
planned of as the contraction that caused the
panic. Let us inquire carefully into the nature
of these claims,
First. | ask your attention to the fact that
they were called temporary loans y; that they
were issued under laws authorizing the Secre-
tary of the Treasury to borrow money y; that
that they bore interest; that they had speeihc
date of issue ana of maturity and That they
were according to the laws authorizing them
paid or funded at maturity. All TINS II II meant
anything, meant that they were not intended to
remain as a permanent currency, and they were
Just treated as the laws creating them directed
they should be treated. To charge the Govern
ment with gross wrong in this matter is simply
nonsense. To have refused to pay or fund these
g temporary loans" when they matqred as the
law authorizing them provided should be done,
would have been reputation. On August 81,
1865, the date when the public debt reached its
highest point II was;
Funded debit. 81, lO9 56s, 192
Matured debt. ...............-,. oO5, w
Temporary loans 107,l4s, 7l3
Certificates of debt S5,O93,00O
Five per cent. legal tenders. ...... 33,954, $50
Compound interest legal tenders. 2l7024, 100
Seven thirty notes. o30,OOdVO
United States notes (greenback le-
fractional currency ......... 26, 344, 742
SUSPENDED requistions. ........... 2,1l1, 200
And of these obligations only 1854, l3S $50, were
legal tender-that is the greenback ks nye percent
and compound interest notes, and OF TINS amount
nearly two. birds were greenbacks (S433, $50 569l
leaving only S250,977 800, as the total amount or
interest bearing legal tenders at the time when
the greatest amount was out, viz: August 81,
1896 Not q dollar of seven. thirties" certlf-
ca.es ofdebt, or certificates of deposit, called
temporary loans in the above table, were ever
legal tender
TENDERS AS CURRENCY IN 1865 WE STILL
HAVE MORE MONEY NOW THAN WE HAD
THEN.
Adding all these legal tender interest bearing
notes to the greenbacks, bank notes and frac-
tional currency, it would give us total of
1888 3lS,6S5 as the paper circulation OF 1865,
Wnlcn Was az o, ~ oe 20 "
only oooa u tior eInnya today and
imam Ihe papet ~ ~ iIo ~ " 80 s.a
$40 ~ ess t f S ,I5 99e "a eve, COW; and
resources VI '0-A"S ~i'--N'''''''O FNfN-
BUT DID THEY CIRCULATE?
This is a legitimate and pertinent inquiry
In answer, say you cannot nhu Single tapie
OF currency, omcial ol otilet oe, Pl'i I
during the existence OF tnese temporary Iodns,
that rates them as currency, or aIhfnls that tney
were in circulation TO any considerable extent.
On the contrary, such tables DO not rate tnem
as currency, and reports made at the time show
that they did not circulate only to very
limited extent.
OFFICIAL REPORTS AND ESTIMATES OF CUR
RENCY IN 1865 AND 1866.