Montgomery County sentinel., 1890-02-14
Deficiency in Circulating Medium.

4Mr Edtf0r:-For years past, and eSpe
cially since 1878, there has been a constan
decline in the price Of property and all the
products OF labor throughout the country.
When we take into consideration the fac
that il is entirely upon these products the
masses OF the people must always rely for g
living, il is plain that without a speedy
change for the better they will be deprived
oil the means OF supporting themselves in
comfort and responsibility. As n conse.
quence OF such privation, mental and moral
degradation must follow, and that virtue,
intelligence and manly independence of
| character necessary rs n qualification for
the performance of the functions of self.
| government will disappear, and thus our
national independence must ultimately be
lost. | think the experience of mankind,
In every agd and country, will Justify such
prediction. When we think OF the vast
extent OF our country, its variety OF climate,
soil and productions, with resources amply
sufficient to support abundantly double or
triple our present population it seems in
credible that the danger should be staring
us in the face OF general distress for want
OF the ordinary comforts of life And yet
great deal OF Misrepresentation exists in
the public mind il such is not the ca Sc.
That the responsibility for such a state of
affairs rests upon our national law makers
IS proposition that | wish to submit to
thoughtful and unbiased readers, with the
suggestions that il is too serious a matter to
be trihed with or considered strictly from
partisan standpoint. While am in full
accord and sympathy with the doctrines of
the Democratic party, and believe it is the
only earthly agency by which we can get
relief, yet | believe that when Il compare
lively poor man goes into Congress and
serves upon salary only sufficient to sup
a O nj vi Infr St1it ia htC
and in short time he turns up n million.
aire he is just object of suspicion, wheth.
er upon general principles he is DE mocrat
or Republican. There is good reas on to
suspect his completely in the execution of
those ingenious financial schemes so little
understood by the people, but so potent for
their oppression.
We are admonished by the Scriptures to
submit ourselves to the powers that be, be-
cause they are ordained of God, and hence
our law. makers should not forget that with
MS the powers that be reside in the people
and have not yet been surrendered to them,
but.they are simply the agents of the sove-
reign people, chosen 10 represent them in
the legislative branc h of government, and
are required to give account of their stew
ardship. With view OF calling the itten-
ton Of your readers To the conduct of those
law makers since the close of our civil war
| submit the folio wing:
by the courtesy of friend | am in pos
session OF statistics taken from the reports
to Congress and from the Comptroller OF
the Currency, showing that in 1866 we had
IN circulation among our people, number
ing less than thirty six millions, upwards
of eighteen hundred millions OF dollars
by a series of acts Congress gradually re-
duced it until in 1885, with Il population of
sixty millions, we had only II little upwards
of five hundred millions of dollars circuat-
ing to supply the wants Of this great popu-
lation in the multiplicity OF their business
transactions, being less than nine dollars
per capita instead fifty two dollars per cap.
ita in 1866
OF these acts many of our people were
cOgniZant, but perhaps very few were con,
scious OF the disastrous effect they would
have upon the business of the country. But
while the people have been the sufferers,
who have been the beneficiaries of these
acts Reckoning the difference between the
value Of greenbacks and gold when up-
wards of twelve hundred millions in bonds
were purchased with the greenbacks when
afterwards Congress decreed that these bonds
should be paid in gold, il made the bond
holders Il present ol nearly five hundred
millions of the peoples money, while the
withdrawal from circulation ot the vast sum
them less able to meet their just obligations,
public or private. That when the price of
all the products OF labor is reduced one half
the purchasing power OF money is increased
to the same extent, and the debts of the
people consequently doubled is a PROPOSE
ton as plain as that two and two make four
In support of the theory that the contrac.
ton OF the currency has been the prime
agency in bringing the present embarrass
ment and prospective ruin upon the debtor
class of this country, | have the testimony
OF quite large number of distinguished
political economists as TO the consequences
resulting from similar policy to other ma
tions in ancient and modern times They
all agree that starting with circulating
medium only sufficient to give reasonable
stimulus To business enterprise and life and
activity in all the avenues of trade, unless
the volume of money in circulation is in
creased in proportion to the growth of pop
lation, and the consequent multiplication of
business transactions such favorable condi-
tions will not be long maintained, and in ev-
cry case, as in ours, where the currency of
country has been continuously contracted
while the population expanded, active busi
ness enterprises have been discouraged, all
the productive industries paralyzed and dis
tress, bankruptcy and ruin, to fearful ex
tent brought upon the people.
Some of them assert that such financial
policy was the prime factor in the decline
and final overthrow of the Roman empire,
and in reducing 10 penury at one period
fully three fourths at least OF the Land
lords Of England. Before closing | desire
to notice some erroneous notions that pre-
vail among US upon this subject One is
that because vast Sums are offered at the
money centres tor investment at IA low rate
of interest, there must be an abundance OF
moLey in the country.
To this it may be said that an overflow
of blood TO the head is no indication of a
healthy condition Of body. In this connec-
ton qaote from the North Ame,icpn Reote,o
as follows: "a glut of loanable capital and
low rates Of interest are the inevitable final
accomplishments Of II shrinking money
volume and the consequent decline in mar
ket values "
But as il seems impracticabe to do more
in single article than introduce subject
of such magnitude, will conclude by pro
posing that while we Increasingly battle
against the party that is responsible for our
troubles, let us keep our eyes upon Demo.
Gratis, too, and if they betray us, we have
host OF tried men upon our side from which
we can select substitutes
Very respectfully,
THos WATERS, of $.
A Pleasant Dance.