Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1882-05-16
WHAT srcenss o. TEE MONEY!.
EDITOR Posr-ISTKLLrorxcEa:

WHAT BECoMEs o. TEE MONET.
EDITOR Posr-ISTKLLrGKScER:
My attention has been called to the
sermon by Rev. j. F. Ellis, on the sub
published in the PosT-IETELLI0ESCREo OF
May 7th. am asked by patrons of the
Posi- who feel that Sir.
Ellis has ignorantiy thrown cloud over
the true cause Of what became OF the
money Of the nation during the period
covered in his sermon, to reply to that
portion Of his sermon. Had Mr.. Eliis's
sermon been confined to his pulpit, the
readers of the Posr-IsTEILioKscEE
would not have the same claim upon
your valuable time and space for re-
ply. Twin be as brief as possible.
The Rev. Mr. Ellis says: In 81 our
liquor outlay was 81 500, COZ, 0oo-more
than one-6fth of our income in 20. In
'78 came the panic and We wreetled on
till 80 and q. Now In all fairness,
candor, charity and sobriety Of judg-
rnsnt 10 thafe any color OF fanaticlsm In
attributing the panic and hard times
almost entirely 70 the enormous liquor
waste2 ID it fanatical to say that this
liquor waste had direct communication
with the panic which paralyzed and
prostreted the business Of this young
nation for nearly 8 years? Is our talk
ssnseless rant when We declare that this
IL +" what becomes of the money" It is
for the pablo TO judge whether "fanat-
ioism," Ignorance" or sound logic
which the Rev. Mr.. Ellis gives after a
few facts have been presented Fl om the
other side of the question. Suppose
that my income il q thousand dollars a
day, and every night spend this thou
sand dollars In riotous drinking, thus
impovsrishing myself and bringing
want, misery and desolatiOn upon my
family, il this money taken out of cir
culation, and does it create panic
and "hard times" any whore except in
my household? Docs not the man who
obtained my money for his liquor put
tho money into circulation again. using
his surplus funds to purchase real and
personal property which becomes sub
ject Of taxation and a source of revenue;
or were ali of the people in this great
nation drunk during the years cited
by the reverend gentlemen! 1t ap-
pears to me that more untsnable
ground could not have been selected on
which to base the cause of the hard
times and the scarcity of money during
the 8 years in question.
In 1866 there was in circulation
what served all the purposes OF money
- the sum OF nearly two thou
sand million dollars. Farms and their
products were in demand at remunsra-
tive prices; labor was fully and proiita-
bly, employed; emigration was flowing
into the country; the wilds and wastes
Of our public domain were rapidly COM
ing under the tanning hand of civlsiza-
ton. and adding their mite to the
wealth of tho nation, which, at that
time, was estimated at thirty thousand
million dollars. Let us now turn to
the record and see what becomes of the
money"
1aGS-On the 18th day of April. 1866,
Congress passed law authorizing the
Secretary OF the Treasury to sell 5-N
bonds, and with the proceeds retire
United States currency, including green
backs.
On December 4th, 1866, T.. G. Spauld-
ing, of Buffalo, New York, n banker and
McCulloch as follows: "You no doubt,
LOWy ~ ~ Ccl tdiA CAbCASs lhsC elO WA
troll of the currency of the country, and
think that you will of necessity con-
tract moderately, so as to preserve a
tolerable 0asy money market. There
may be occasional spasms and tightness
for money, but generally l shall
look for plenty of money for
at least ono year to GOMEZ
(Think OF one man having the
almost absolute control of the money Of
a great nation like the United States.
When this letter was written, the coun-
try was in possession Of $l,906.6S7. no
currency. During this year there were
but 662 business failures in the whole
country, involving a loss Of $47 ,625,
600. Labor was well paid and fully
employed.
1s67-This year the work of contrac-
ton was vigorously pushed, but bust
ness having beeo prosperous for years
and confidence unshaken, there were
1889 failures, with q total loss of only
ri, a3333, 600.
1S63-During this year $4,000 ,00(
worth Of money was destroyed, and
failures increased to 2lG0, with total
loss to creditors of $S6,2lS.OOO. Money
began to be tight, and Mr.. Spaulding's
financial "spasms" were frequent.
1669-During this year over 500, 600,
GOO Of money passed into the cremation
furnace, producing 2411 business fail.
urss, and u loss of $57,275,OOO. Money
growing tighter and wages lower.
lS70-This year $67 10000 of money
was destroyed and $50 failures took
place, involving loss Of 1924 ,OO6
Money was very scarce, and wages OF
labor were reduced all over the country
167l-rhirty-fivs million dollars OF
money this year is retired, with 2,91!
failures, and . loss of SIS, 80 600
More mon out Of work, and wages cut
down.
1S72-Only about $12,OOO,OO0 was de-
str0yed this year, but such had beer
the strain upon the business of the
country for the past five years that
there were 1867 business failures, with
. loss of $l2l ,05S,0 600. More cutting OF
wages ard strikes talked of.
1S73-This year the storm reached it,
climax. Business had hoped that, with
every returning season, prospects would
brighten, and money would become
more plenty. Instead of this, however
Notwithstanding but 81 sos, 900 were de-
stroycd. the people became panic strick-
on, and s, 18l business houses were pre-
cipitated, with loss of S22s. 49O, GOO
Five hundred thousand men were
thrown out of employment; wages were
cut down all over the country, and
strikes were Of frequent occurrence.
lS74-This year there were swept
out OF circulation by the death press OF
contraction, $40, 4Si. certificates of in
debtedness, which had been made legal
tender money, SIS, 76O Treasury notes,
g, x5, 045 legal tenders, $3,0OO.0OO frac-
tional currency, and $i,O0O,OOO bank
notes, producing $3.50 failures, and a
loss Ut $l5l $4,000 to creditors. A
million idle men began to tramp in
search Of work.
ls75-This year the currency was con-
tracted 141,Sl7.4lS. and the failures
reached 7404, with loss to creditors of
$l95, 80 600. Two million laborsrs out
Of work. Famine and hunger beg IN to
stare them In the face, and :" trampin2''
became profession.
lS76-This year the contraction of the
currency, in the destruction of green
ha0ka and The withdrawal NJ hank c,,r-