The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1882-06-08
FINANCIAL FACTS.
Speech Of Hon. Ira s. Hasel-
tine. of Missouri.
Delivered In the House OF Represents
tises, Tuesday, May IL, 1882.

loving To its great length, we are compelled 70
emit large portion Of Mr.. Hsscitine's spcech.l
We have now used the legal-tender currency
during the last twenty years. 1t has performed
AL the functions OF money. Tho people prefer
1t to any other In 1870 the Supreme Court de-
clared that the legal-tender treasury notes had
become the universal measure Of values.
Twelve years have elapsed since that decision
the people have become accustomed 70 ito use /
it ia worth more than gold, not only In this
country hut in other civilized nations. Tho
people have learned their constitutional rights
to have legal-tender paper currency ITO
regulate commerce, to establish justice. pro.
mote the general welfare and TO secure the
Dressings Of liberty 70 ourselves and our pos
The objection to : specie basis is tho same
% that to specie alone, the impossibility Of OBJ
tanning sufficient quantity for currency. II
II conld be kept uniform, and gradually in
crease in tho proportion Of increased wealth,
commerce, population and production, the prin-
cipal objection then would be the unnecessary
cost OF material, it, weight, and loss BY wear
ing But ito supply depends upon the nero
chance discovery Of metal, and this supply fail
ing in Europe Vas the chief cause Of the do
cline and fall OF the Roman empire, and the
periodical panics Of all nations. Its amount in
the country at any one time depends on not
only the supply from the mines, which IL nm
certain, but also upon the demand for foreign
expectation
Suppose we had paper based on specie q
war on the continent of Europe would create 3
demand Tor the specie, and the commodity on
which our currency would be based might bs
removed.
The paper would have no adequate basis, and
. crisis would bo the result
This vas the case in England in 1873, 1873
1881, 1887, 1889, lS47, 1857 and 1856. u it not
better 10 base our currency on something that
We can keep at home; It least, something less
desirable to foreign countries. Again, paper
based on specie would increase - the specie
increased, and decrease with it, scarcity, which
10 the fruitful source OF panics, crises. general
want Of confidence, bankruptcy and ruin.
The contraction in England in 1888 Of &C.,
O0O, 900 and in 1889 OF $4,000, 900 caused their
great panic there OF 1889 and 1910, and bank
ruptcies doubled and the stagnation was most
disastrous to the laboring classes, who were
thus thrown out OF employment. The histor-
ian Allison, speaking Of this period, says Of in
terest on money lvolume s. chapter sly: 1T
raised by tue 1st OF August, 1889, to
6per cent. from 81 per cent, which il had
been tho year before. The great advance in
the interest paid for money diminished the
profits Of trade." great fall in the price Of al
articles Of commerce was rninOus to the trades
aDu Ill hign ueREee OIS66JIOub tO the lADOFl0R
classes. The bankruptcies, which had been
very r. aucnt ever since the abolition Of small
notes and consequent limitation Of bank accom-
mediation. became numerous in 1889 and 1870.
nearly double what they had been five years
before. The number Of panpers increased in
frightfni progression, insomuch that in the year
1910 they amounted to l,72l 900 Of population
at that period not exceeding l6. 600, 900, show
ing that more than one-ninth of the whole pop
ulAtion had become recipients OF public charity.
At the same time the paupers Of Ireland were
2,2s500o and in Scotland 8, 600, making total
OF 4,OSl, 900 in the British islands.
Allison. in his History Of Europe (volume 8,
chapter 49, says:
II il a fact well established by the history Of
nations that m increase OF currency. well
founded, always has and will cause prosperity
for the iabor1ng. manufacturing, mercantile
and producing industries Of the country; And
It ID equally true that a contraction OF the cur.
rency always has and always will cause high
high rates Of interest and prostration Of hls-
ness thereby causing universal bankruptcy,
pauperism, ignorance and crime, human suffer-
ing and hard times.
During the panic Of 1898. in England, Will.
lam Pitt had the paper currency increased
e25,O0o. 600. It stopped the panic and gave
prosperity to the country. The drain Of tho
money from England to carry on her Napoleon
10 wars thereatened to ruin the kingdom, and
on Feb. Is, 1897, the Parliament Of England
0uluOIIAoO luc DNHh VI LLkIdAlu 10 buSpeUQ
specie payments aud TO issue its bills without
limit, and ~ legal tenders. and, pursuant to
this law, the Increase Of ESQ, OOO,OOO stayed the
panic aud gave prosperity.
In 1911, when there was scarcely metallic
sovereign left in England. and 80 per cent. WAS
paid to obtaiL coin to carry on its peninsuar
war, it again increased its legal-tendcr pa
per currency <75.000,000. This increase
Of currency to about sI35,00O,O00 in 1916
revived al the industries of the country. Ali
son. in hls :. History OF Europe" speaks OF tho
unparalleled prosperity it caused. This cur
reney was increased on the suspension Of specie
again III 1917 and 1878, and the paper currency
IN England reached e24l, 1896, $50. or this
period the historian speaks Ne follows
"Thc paper circulation Of Groat Britain had
Increased during the drain OF tho metals and
compensated for their want. In 1918 the cur
rency reached $40, coo, 900 in England alone, a
larger amount than III any previous year Of the
war. Hence the prosperity in this eountry
Which coexisted with the most serious PRESSURE
and d stress on the continent. "-ARisoas His
tory Of Europe, rotssne l, pages 395-397.)
The great paper currencv guaranteed by ID
The aie powers. issued 40 plentifully during
1918 AMI 1914 and which had circulated Is cash
from the banks OF the Rhine TO the Wall Of
China. gave great prosperity to the whole
country until 1917 aud 1918, the period Of con-
friction on the continent.
FALL OF paicEs OF WHEAT ON THE CONTINENT
raoa ,sls TO 1879 cAUsLD BY CONTRACTION OF
THE CURRENCY.