Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1881-09-22
A Few Facts Recast.

thilNh NllbC NNNl IhNIll lNilo up "
1862. The losses incurred have neye
been appropriately estimated. The di
rect and immediate loss of products
has been small in comparison to tn,
greater loss of unperformed labor, de
creased revenues and reduced valua
tions. The people have PERSISTENT,
refused, even after all this terrible eX
perienCe, TO discern the real cause o.
these disasters and have blindly fol
lowed in the lead Of those who entict
them into these snares. Are thes,
sweeping disasters to public and pri
vdte creditors necessary CannO
commercial foresight and statesman
ship avoid them? If unavoidable
what good purpose do they deseryei
Must bankruptcy and prostratiOn scat
ter aCcumulatiOns and drag the nati0i
into deep distress every ten Or molC
years? We know that these results
are unnatural hurtful, destructive ant
logical events Of violated law, the
products of unequitable laws and un
just systems, based on commercial
greed.
Let it re.ur briefly To- few well au'
thenticated facts in our history. Wher
the first bank suspension occurred in
1909, there were S29,0OO,OQO in circu.
latiOn. When the crisis wa5 past, the
iniquitOus system Of inhlting bank
credits was resorted TO-, and in seven
ears $GS, 100000 were in circulation
Hhe war with Great Britain permitted
enterprise TO stimulate trade and give
ldustry its first permanent fOOthOld,
Wealth increased. Then when pros.
petty spread her wings over us, and Il
great future revealed itself, the money
power resolved into a policy Of con
traction. And why? Why not let
prosperity shine on, industry laugh and
roar and the young nation shout; The
money power resolved to contract the
currency ard depreciatc values, and
then swallow up the patient accumula-
lions of trade and industry. In 1911
all the banks outside Of New England
payments. In 1878, $lOO,-
100000 were in circulation. The next
year over One-half were withdrawn.
Trade was paralized in consequence.
The plodding people began anew.
had made Il nation of
thrifty people a nation of paupers al.
most. Wealth increased year by year,
and prosperity smiled on all again.
The banks again resortcd TO their
crafty imitation. The volume Of money
was cautiously increased, and when
1887 came lil,OOO,OOo were in circli-
lation, presumably redeemable in gold,
But CIny's compromise tariff bill had
worked disastrous results. and aided 10y
tn imitation Of bank credits, plOduccj
that memorable crash. Our gold was
abroad an We lid not have
It.
1t IS impossible in the narrow com
pass of Il newspaper Article, TO recltt
all the steps which the money power
took to produce alternate seasons oI
prosperity and adyer5ty After a few
years Of p'Caty the bankers would re
yiyc the cry of specie payments,
"honest money and then contract and
sweep in the earnings and savings OF
a nation OI--fOols. They refused tC
see the cause. But lei us make note
of Il few of the salient points.
In 1889, 343 banks out Of $50 closed
entirely. The circulation was contract
ed some $S0,OO0,0)O In 1871 another
partial suspension occurred. Then in
1912 the pretence Of resumption was
made. \ protective tariff helped tC
industrial enterprise. The
currency was expanded until in 1851
it exceeded S2OO,0OO,OOO The bank
ers after 1851, conclude the people
could endure another panic, They
hnd had ten or eleven years OF
prosperity, and had accumulated much
wealth. Contraction was therefore in.
augumtcd, and some #5O,0OO,OO0 were
withdrawn. Loans We're cnrtailed
The panic of 1851 was the result
Scarcely had the crisis passed when
the imitation Of bank credits were re-
sorted to. and in 1860 there were some
300 100000. an increase from Sljj,'
100000 in 1858. Why these constant
vacillations in the volume Of the cur
rency? Do not the bankers cry for 4
stable medium" Il "unifOrm eur
rency?" Run your eye through these
igurs showing the chicanery of the
banking interest. In 1909 the figures
were 2S. Then IS; next l5, l3l, So
I5j, 2O7, lS3. A congress of politica
demagogues could do no worse.
The financial system Of the United
States is equivalent in its results to
vast, well organized conspiracy to rol
the producing and commercial claSse.
of accumulated earnings, as a bee keep
er gathers in the product of Il swarm
of bees.
Why do we recall these facts so ia
miliar to every intelligent reader of on
financial history? Are not truths un
needed, sounded in our eal, day afte
day, from the sacred desk? Tue none,
power is the enemy of popular liberty
of republican institutions. Unless al
rested, it will drag us every decade in
to poverty that it may seize the pro
ducts of a nations industry.
The people are induced to believe tn
ordeal through which we have passe'
is the price of resumption and prosper
ity. But the shunling and evasiv
policy of Sherman already proves tn
promised resumption sham, deceit
The bottom questions are these
Shall the producing interests be tn
prey of the money power? Shall tn
producing capacity of forty millions o
people be determined and limited b,
the pleasure Of combination o
bankers? Shall Il nation, representing
thirty thousand million dollars of ag
gregated wealth, have that wealth in
creased or diminished as the none,
power shall decide? Shall Il nation o
freemen permit a cliqueto determine tn
volume and value of their annual pro
ductions? Shall merchants turn owe
their books of accounts, and their mer
chandise to the bankrupt courts at tn
bidding of the banks? Shall the indus
trial bees wear rags, live in novels, o
tramp at the command of this power
Shall all the holy affections of our ma
ture be torn from the hearts holy alta
TO be trampled under foot by the evi