Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1881-12-01

it will be in order for these gentlemen
to cast their votes with the Republi-
cans on the organization of the house.
1t is SO confidently believed that they
will do this (and only one Democrat
vote would turn the scale in favor of
the Republicans) that the better posted
members of the administration party
have no fears of the result when il
comes to voting for speaker.
With the arrival of members next
week the situation of both sides in rela.
tive strength and in the.canvass will
become more clearly outlined,
Various Questions and Their Ans,
wers,
Chicago Sentinel
A correspondent writes "SOme OF
my Republican friends claim that there
is as much money in circulation tc
day as there was in 1867, and further
they claim that the bankers do not con,
troll the amount Of currency in circula
tion, that they cannot contract the
amOunt-giving as Il reason that il a
banker or the nation redcems either 4
bank note Or a greenback that it pays
coin to exchange, therefore the amount
is the same. If the banks were put
out of existence how would we circu
late money? For instance a man
goes from New York to Chicago on
business: today he wants $500, TO-
morrow 500, next day $4,000 and SC
on. He cannot carry it with him
without danger of being robbed.
"Will you please explain the above
in your next paper?'
ANSWER.
Leaving out of consideration the
$50 treasury notes (Which really
though to Il limited extent, formed
apart of the currency in 1867 there is
more money in circulation in the coun.
try to-day than there was in 1867. Al
that time we had very little coin,
whereas now there are several hundred
millions. To offset the expansion OF
currency however there has been an
expansion Of the population. In 1867
there was only about j5,OOO,OO0 of peo,
pie, to-day there are jO,00O,000-ar
expansion of 50 per cent Again, the
South at that time, having just got
back into the Union, were not using
much of our currency. 1t was nearly
all used by the people of the North
numbering less than 25,OO0,0O0 of peO
pie. Taking these things into consider.
alton, although there has been an eX
pansiOn of the volume Of currency, yet
as compared with the expansion of tho
number of inhabitants, there has been
a real contraction. In other words
the amount per capita is less to-day
than-it was in 1867.
The bankers cannot control the vol
ume of greenbacks Or coin in existence
though by locking it up they can con
troll the amount in circulatiOn-and
the amount in circulation is what af
fects prices and business. Banks OF
issue like our present national banks
can and do control the volume of bank
notes. They can increase Or decrease
the volume Of national bank notes al
will. They can double the present
amount, or they can retire all that arc
now in existence.
As to the effect of "redeeming'
greenbacks with coin. If, for instance
the government had on hand 100000,
900 of coin to be used exclusively fol
redemption purposes, when it redeem
ed a greenback dollar by putting out {
gold dollar, the volume in circulation
would not be changed.
But if that $780, 1000, 900 had original
ly been in circulation and then with
drawn from circulation for "redemp
ton purposes" of course it would b
that much of a contraction, Again
one gold dollar can be made to ere
deem" ten, twenty or a hundred green
back dollars. For instance, if the gov
ernment puts out Il gold dollar to.da!
and "redeems" Il greenback dollar will
it tomorrow it may "tax' that SAINT
gold dollar back into the treasury fo
custom duties, and day-after tomorrow
"redeem" another greenback dolla
with it, and so on al infnittm. Ant
if the greanback dollar which is "re
deemed" should be destroyed (as it wa
originally intended by the presumption
act') in time even one gold dollar coulC
"redeem" the entire volume Of green
back money! contraction that woult
equal the difference between one dol
lar and the whole volume of gre anbacke
The sum of $50,000,000 of gold pal,
out for redemption AMI taxed in 70
customs, and then paid out again, AIT
so on, would soon play havoc with tn
entire volume of greenbacksGprovid
ed they were destroyed as fast as re
deemed.
If "banks were put out of existence
we could circulate money just as well
and perhaps better than now. 1t wOul,
circulate" better if in the hands o
the people instead of being locked u
in bank vaults. During our char,
times" the banks were "full of money,
so was the United States Treasury
That was a great trouble-the none,
was locked up instead Of being in cir
culation. There was sort Of idea,
lock" between the banks and the peo
pie. The banks said "we will not pu
out our money till times are better,
and the people said, "the times will no
be better till you put out your money
But congress passed law giving tn
old soldiers back pensions, which i'm
mediately put large amount of none.
into circulation, and about the sam
time there was a failure Of crops il
Europe and simultaneously a large crol
in this country, which turned th
balance of trade in our favor AM
caused IN influx in coin, putting still
more money into circulation. Sool
business began to revive (the same as
man who has been suffocatod with ga
begins TO revive when he gets breatl
Of fresh air) and then the banks begaI
to shave confidence" and put out thei
boarded money. Then followed on
better times-all because there was al
imitation of the amount of money /,
circulation.
But the Greenback party does no
advocate the idea of quitting the bank
out Of existence" There is no wa