Weekly Chillicothe crisis., 1885-05-28

by lOlnt resolution Ot Congress, anu |
consisted of Senators John 7. Jones,
Lewis V. Bogy,and George S. Boutwell, !
and Representatives Randall L.GibSOn,
George l." Willard and Richard p.
Bland. Three experts were also added
to the commission, viz: Hon. VIM. S.
Groesbeck, Prof. Francis Brown and
George NJ, Weston. All of these gem
tlemcn We're Democrats and Republi-
cans. None Of them We're avOwedly
"Greenbackers. " Bear IN mimi The
tact that This report waS made in 1876,
and cOuered the period J0lLowing The pan
ic Of 1873,
In their report the commissioners
say:
"At the Christian era the metallic
money of the Roman Empire amounted
to Sl,SOO, 100000.
By the end of the fifteenth century it
had shrunk to less than S20O,OOO,0OO.
During this period q most cxtraordin-
AIRY and baleful change took place in
the condition of the world. Population
dwindlcd and commerce, arts, wealth
and freedom all disappeared. The
people were reduced by poverty and
misery to the most degrading cOndi-
tions Of serfdom and slavery. The dis
intcgrati0n Of society was almost COM
plete. The conditions of life were so
hard that individual scliishncss was the
only thing consistent with the instinct
of sclf-prescrvation. All public spirit,
all generous emotions, all the noble as
prations of man shriveled and disap-
peared as the volume of money shrunk
and prices fell.
1t is in q volume of money keeping
even pace with advancing population
and commerce, and in the resulting
steadineSS Of priccs,th the wholesome
nutriment Of II healthy vitality is to be
found. The highest moral, intellectual
and material development Of nations is
promoted by the use OF money unchang-
ing in its value.
That kind of money, instead Of bciug
the oppressor,is one Of the great instru-
mcntalites of commerce and indus
tries.
StcadinesS in prices insures labor to
all and eNacts labor from all.
1t gives scarcity TO credit and stabii-
ty and prosperity to business.
1t encourages large enterprises re-
quiring time for their development, and
crowns with success well-maturcd ard
carefully executed plans.
1t dscouragcs purely speculative
ventures and especially those based up
on disaster
1t encourages actual transactions
rather than gambling on future prices.
1t prevents capital from expressing
labor and labor from expressing cap
ital, and secures to each its Just share
of the fruits OF industry and enterprise.
1t secures reasonable interest for its
use to the lenders of money, and Just
share in the profits of production to the
| borrower.
1t keeps up the distinction between Il
mortgage and Il deed.
1t insures n moderate competence to
the many rather than colossal fortunes
to the few at the expense of the
many.
While the volume of money is de-
creasing, even although very slowly, the
value Of each unit Of money is increas-
ing in corresponding ratio and proper
ty is falling in price
Those who have contracted to pay
money find that it is constantly bccom-
ing more difficult to meet their engage
mcntS. The margins of securities melt
rapidly away, and the coniiscations by
the creditor of the property on which
they are based becomes only question
of time.
All productive enterprises are dis
cOuragcd and stagnatc because the cost
of producing commodities to-day will
not be covered by the prices obtainablc
for them tomorrow. Exchanges be-
come sluggish, because those who have
money will not part with it for either
property or service beyond the require
ments of actual current necessities for
the obvious reason that money alone is
increasing in value, while everything
else is declining in price.
This results in the withdrawal of
money from the channels of circulation
and its deposit in great boards, where it
can exert no influence on prices. This
boarding of money from the nature of
things must continue and increase not
only until the shrinking of its volume
has actually ceased. but until capital
lists are entirely satisfied that money w.
ing Idle on special deposit will no long
er afford them revenue, and that the
lowest level of prices had been reach
ed.
1t is this boarding of money,when its
volume shrinks, which causes fall in
prices greater than would be caused by
the direct effect of decrease in the
stock of money.
Money in shrinking volume becomes
the paramount object of commerce in
stead of its beneiiccnt instrument.
Instead of mobilizing industry it poi
sons and dries up its life currents. 1t
is the fruitful source OF political and So
cial disturbance.
1t fomcnts strife between labor and
other forms of capital, while itself
hidden away in security, gorgcs on
both
1t rewards close listed lenders and
iilchcs from and bankrupts enterprising
borrowers.
1t circulates freely in the stock ex-
change, but avoids the labor exchange.
1t has in all ages been the worst enc
my with which society has had to con-
tend.
The great and still continuing fall in
the prices in the United States has
proved most disastrous to nearly every
industrial enterprise.
The bitter experience of the last few
years has been an expensive but most
thorough teacher.
1t has taught capitalists neither to in
vest money in nor loan money on such
enterprises, and just rs thoroughly has
taught business men not to borrow for
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