New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-08-07
SUNDAY EDITION.
AUG. 2, 1892.
FOR A SOUND CURRENCY.
SECRETARY FOSTER OPENS TIE CAMPAIGN
IN OHIO.


oon at Iinwood Grove. II was virtually the
oneninc of the National campaign of 1872 in
Oho for the Republicans, and the enthusiasm of
those present found vent when at 80 p. m,
+be orator of the occasion introduced Charles
Foster. Secretary of the Treasury who left Wash
incton Yesterday for the special purpose Of being
present here this afternoon. The great outburst
Of applause was partly in the nature Of a tribute
10 the pcrs nal popularity of the distinguished
Ohioan and was gracefully acknowledged by him.
The audience was largely composed of farmers.
When the cheering had somewhat subsidized, and
the crowd was comparatively quiet, Secretary
Foster said in part:
The occasion viii not permit the Introduction OF
political discussion and for this the subject as
signed 10 me is one that in lis presentation will be
largely historical and free from partisanship. since
began the investigation as 10 be able TO give
full and accurate history OF the subject one OF the
great parties Of tho country has I'm effect declared in
favor Of the rehabilitation Of the present discarded Sys
tenn of state banks. II Is possible that some Of my
hearers may think that have exceeded the bounds %
propriety in what may upon the subject Of The
proposed substitution of the old state banks for the
present National banks n banks OF issue Of paper
currency. 1t seems that the blame, II there be
any, rest upon the convention and not upon
Mr.. Foster then proceeded to give historical
account of American currency from the time of
following alusion TO the paper money of the
Continental period
Ii has become more less fashionable In some
quarters lately 10 denouncc Congress for IFS action
during the War in borrowing honestly to main
tain the Government instead of paying the Nations
debts I'm greenbackS. Experience with the Con
tnental currency shows the folly of the these
people would have approved and the wisdom of what
was actually done. The Continental Congress was not
for vha
the colonies TO levy taxes and It's only resource was
10 resort TO the issue of paper money. The cost of
tbe Revolutionary War fell the patriotic people
who received the currency. The Tories. who were
the Copperheads of those times, refused the Con
tnental money, and were the only ones who escaped
ruin.
PANICS OF FORMER YEARS RECALLED.
He next reviewed the condition of the circu-
lation prior to 1860 and described at considerable
length the panics of 1914, 1887 and 1867, and
the disastrous results that followed each. Tile
derahgement of the paper currency he said,
was the important factor in each of the three
revnlsions The trouble was always preceded
by A period of great prosperity. The people were
growing rich They desired TO grow rich faster
TO this end they substituted for legitimate en-
terprise wild speculation, in which they were
aided and indeed, often led, by such OF the
banks as were untrameed 10y restraining laws
Had the banks coniincd then Issues OF paper
money IN the proper needs of trade and industry,
the panic in each would doubtF~s nave
been less intense and the recovery from dc-
preston more rapid He gave an interesting
account of the circulation ana the means
used by tn Government to raise money 10 carry
on the contest, and said
The -ry~trrn issuing bank notes WIS Ihui'nii'
changed by the Bank act OF June 3, 1e64 The notes
issued by state banks not uniform IN vne' eve"
at home while very few banks were 50 wiHeiy KNOW"
Ms to give currency at par TO their notes at any
considerable distance from the place OF ISSUE y
traveller passing from state TO another, or even
between distant points In the same state war com
ne,,ed 10 provide himself with coin If b" WOULD aN"io
the v.xatIon and loss Incident to thi> CONDITION.
An extensive and prosperous business known aS more
tbavng grew out Of this state OF IN" currency, anu
ttnt had as was thi. condition, 1t was far worse III
times Of panic. Then he suspension DI Npci' pi IS
Of ali bank notes. and in many instances comptatH
destroyed it, There no d9nDt }hat a' rressed
the cost Of living and dimnlShea u1 w. 1 % ,b .
classes and that nom nov va" vbo , ocnpa6 was note
Tha s yos another AZURE Of the State bank crcu
,otnn that was productive Of loss and inconVelenc'
Zach hank had it, jwn plates engraved In mgm "r
low style Of art according - te .Gn OF ada lid
ard indifferent were Therefore In existence. ana oniy
an expert could distinguish counterle's from genuine
notes Thi, incroa ed The tendency OF the notes 10 TO-
main within narrow circle and at Tn. same ume
added TO tse opp )rtuncs OF profit or fau1 IN tI'r
bs bcsi Ohio paptr money was about per cent
since ti,c establishment If the National banking SyS-
e f s, sei saks The notes Of our Ohio National banks
are good in every state Of the Union ana ps n0,r
~ tho National bank. Of other states equally gO0d
In ohio The business OF note shaving Is unknown
and e counte'feiter Is promptly detected IN n, WORK
The suspension or failure Of National bank has ABB
solnteIv NJ effect on IT. notes, because tie tnc1
state bonds depo-lt'd IN Washington are ample &c
curity for their redemption al par
RESUMPTION or SPECIE PAYMENTS.
The Secretary next gave an account Of the re-
sunption OF specie payment, and eNtolied the WIS
dom of the lei lator. who provided for it. lie
said:
oaTmcuts and resumption Tie former occurred about
January /, Ioc2. AID the latter JaHuhr, l. lo'o'
1herc was therefore an interval o! seventeen Years,
during which papci money constituted the c!rcuatlhS
medium Of the nited states. The use OF ltp'r "ino"
This was pelIIp, not felt in transactions between tt
State where tn same currency WeUVuG T s.i'a
Of our products abroad paid toll In me shape VI oo
missions on the coin which changed iahus !" va
transactions, Tbi, commission was ultimately qua
by the consumer Of the goods imported, and by me
producer of The product exported. ard not liieleN
an additional pot was made by overStating The price
Of god when -lling the imported gods. and under
stating 1t when making return, for our piT were he
This illustrate, one Of the reasons why specie
basis is preferable 10 paper basis. ana our fsl''
lators therefore. wise when In lo11 thcy Pro
vided FOR the resumption % specie payments. Inc
act was passed January Ia 1873. 1t provided Tor
the coinage Of subsidiary silver coins 10 replace lbe
fciiouaI paper money then In existence. IT removed
The charge for converting gold bullion into coin II
ieadjused the national banning system; mailng !.
OF legal tender notes In excess OF oOOooooO I've re
,remcnt 10 be 40 per cent Of the increase Of national
hank circulation. II directed the redemption In coin,
ON and after January !. 1879. OF all United states
notes presented q The sub Treasury IN New,lorl in
sums OF not less than $50. and TO enable the secretary
OF Tho Treasury prepare and provide for such re
6empion It authorized him 10 use from time 10 time
any suiplus revenues I'm the Treasury not otherwise
and to sell United states bonds OF Ger
tain descrptions at not less than In coin 10 the
xent necessary 10 carry the act into full effect The
emonnt OF United states notes outstanding January
IA Ic7, vas :Ja1 .OOOU'O As the national bank |