The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1882-06-08

Jan. u, 1873 ..................... ej16661, $50
May 81, ls'a......... 322,S S,066
Contraction. 2a,9o5,4ss
Amount Of legal tender Jan. II, 1875. 49,
On May 81, 1875. ................... 346, Gs4,Oi6
Contraction from Jan. II, 1875, to
may ~, 1876. .....................t 3o,3la,vsA
Contraction Of paper currency In two
fs years , aa nxe months ; n.s.
The above tables show that under tho decept-
Two pretensc Of specie resumption our specie
basis financicrs contracted the iegaltender cur
rcncy s35,3is, 9si during tho three years from
1875 to 1873. The national banks contracted
their circulation 1905, 1856 during tile same
period. The national Understanding debt
was increased s72,0Do, 900 during tho same
period. All this contraction Of tho currency
aud increase Of the Understanding debt was
made while there was continual increase Of
population, and the people were suffering hard
times caused by previous contraction Of paper
money and the demonstration Of silver. Who
shall bc held responsible for this spccie-basis
absurdity, this Pagan idolatry which annually
robs the people Of millions Of dollars called in
tcrest, and wthholds from tho circulation hum
dreds OF millions, the life blood OF industry?
The above table shows tho increase Of tho
total Understanding debt from 1873 to 1850
to be $l3, sos, $50. The table also shows the
circulation during seven years, While the peo-
pic were suffering hard time. for the want II
that money and paying millions Of dollars
Of unnecessary interest upon tho bonds.
The Secretary Of the Treasury, In his annual
report, Nov. l, 1881, says The amount OF out
standing bonds bearing 81 per cent. interest
payable at the pleasure Of the Government, il
e563. $50, $50. The Secretary also reports cash
in the treasury, S249 1863, 415. The Director Of
the Mint reports S12s, 0O6 1873 at the mints and
assay offices in coin and bullion.
We have coined portion OF that material in
FOR the commerce OF barbarous nations. II ID
our right to use these accumulated metals to
stop interest upon bonds. They are adapted
to the intelligence and demands Of the bond
.lo.a,rs Of lsG9: make them take the metal or
tx te,acr papr. and stop interest. Give the
creditor the option Of metsl OF the legaltender.
notwithstanding paper. and We have such
confidence in their intelligence and civilization
Int We have no doubt that our interest-bear.
| iua ,i,st would lc pald, with ~ many millions
Of gold and silver dollars left in the treasury 40
al tie present hour.
CONTRACTION ~ the UNITED STATES
Tie S.iver Commission, composed equally Of
ne,aocrats and Republicans. and presided over
~ distinguished Republican Senator, Mr..
Jones' Of Nevada. say concerning tle effect OF
thie contraction on page SO OF their report
II al the debts in this country had been
aeubltd by an act OF legislation, it would have
cen far less calamity to the debtor and to
the uliy than the increase in their real
burden already caused By contraction in the
volume OF money. And infinitely more disas-.
irons IN every sense than All unjust increase in
the Inrd~n u debt il the universal stagnation
or industry AMI commerce, resulting from the
-ame cause"
1859. predicted this very result in the following
language:
at is not possible to take this VOYAGE fof
contrac.onl without tho sorcst distress to
every person except capitalist ont OF debt. or
salaried officer or annuitant it is period OF
loss danger. lassitule OF trade. fall of wages,
SUSPENSION of enterprise, bankruptcy and disas-
ter.
SILVER Commission. pages IS, 10, lis, IS, 1877,
"A shrinking volume of money and falling
prices always have had and always mnst have
tendency to concentrate wealth, to enrich the
few, and to impoverish and degrade the many.
The tendency IL subtle, active and portcntous
throughout the world to-day. An in
clcasing valne OF money and falling prices have
been aud arc more fruitful Of human misery
than war, pestllence or famine. They have
/ wrought more injustice than all the bad laws
that were ever enacted. 1t ia one Of
the admitted advantages OF our present syatem
Of irredecmalle paper that it shelters us from
the recurring demands for gold by tho Bank OF
| England Nothing can ea more GER
| tain than that the production of tho precious
metals bears no scientific relation to the in
crease or decrease OF population or commerce,
/ which alone should govern the increase or de-
/ crease Of the stock OF money. II
Congress can dcmonet 10 silver il can demOne-
tie gold, or both gold and silver. and can none
| tie any substance or any form Of paper. Mar
rowing money to gold il for tho intended al
though really doubtful advantage Of creditors,
but they have more TO lose than to gain by
/ affirming power which can 80 easily 10 used
III diffcren, direction and To their rum. =
Manfes,ly the real reason for tho denlonetiza-
uon o. silver vas the apprehension Of the cred
/ tor classes that the combined production OF
the two metals would raise prices and cheaper
| money unless one Of them WAS shorn OF tho
money function. In Europe this reason was
distinctly ayowed."
The Silver Commission of the second session
Of the Forty-fourth Congress, page IS. says:
"Whtn the money stock il diminishing and
/ prices are falling the lender not only receives
interest, tut finds profit in tho greatly III.
creased value Of the r.ncipal Wien it il re-
| turned 10 him. loan Of money made in 1870,
IL repaid III 1913, would have been repaid with
/ MI addition u lis per cent. IN tile purchasing
/ power cf principal and interest beside Ill the
| interest paid. Those who have loaned money
to this Government Stree 1861 have already re-
ceivod nearly as much in the increased value OF
their principal AZ in interest and all the prob
abilities are, in respect to the per cent thirty
year national bonds now being negotiated, il
they are redeemed in gold, that more profit
will be made by the augmentation in the
value Of principal than through interest In
deed the signs II the times are that he bonds
OF a country possessing the unboundcd Resources
| and staple institutions of the United States
payable in gold at the end Of thirty years With
out any int,res. whatever would, through the
increase Of the value Of that meta, prove q
most profitable investment.
/ .EEFECTs or A SHRINKING VOLUME or MONEY ON
i PRODUCTIVE INDUSTRY.
1.-THE worst effect. however. economically con-
/ sidcred, Of falling prices il not upon existing
| property nor upon debtors. evil a. il ia. but
upon iaborers whom it deprives OF employment
| aid consigns 10 poverty, and upon society.
winch it deprives Of that vast sum OF wealth
which resides potentially in the vigorous arms
OF the idle workman. shrinking volume OF
money transfers existing property unjus;ly and
causes concentration and dim mutton OF
| wealth."
1t also impairs the value OF existing proper
| ty by eliminating from it that important ele-
ment OF value conferred upon it by the skill,
energy and care OF the debtors from whom 1t ID
| wrestcd. But il does not destroy anv existing
property, while it does absolutely an,.ihilate
all the values producib.e by the labor which j,
condemns to idleness The estimate is not a.
| cxtravayent one that there are now in the United
States 5000, 900 persons willing to work. who ART
idle because they cannot o1tain employment.
This vast poverty stricken army il increasing
aud will continue to increase ~ long as falling
prices shall continue to separate money capital,
the fund out OF which wages is paid from
labor, and to discourage its investment in Other
forms OF property. Under the false pretenst
that the legaitender money deprecated be-
cause of tho amount IN e regulation
the specie-basis doctors enacted Law
in 1865 providing for the coatrac-
ton OF the currency, which caused contraction
in three years OF s372, asa TO, according to thu
Treasurcr's report in 1865
President Grant, in his message Of December
1873, said: "Dnring the lost four years (frou
1869 to 1879 the currency has b. Ell contracted
by the withdrawal Of the 3-pel cent. certificates
componnl-intcrcst notes, 81 bonds, on:stan l
ing on the 4th Of March, 1861 ali Of which too,
the place Of legal tenders III the bank reserves
to the extent Of $50. 100000"
/ We have had history Of shrinkage Of valne
and universal paralyzation OF industry of hare