The advocate and Topeka tribune., 1892-09-21
\ LETTER NO. 3.

Won. dated nWashingtOn, D. O., August
90, 1892" In reply to questions asked you
by Hon. John B. Allen, United States
senate. and Hon. w. Fl. Grain, respect
ING my discussions Of your official report
Of 1891, in my'former open letter to you.
lin your report for 1891, page %, you
say:
The Btringency OF the money arKSs oS,od 1eddhg bg
Ehe guntmer and autumn OF 1880 was Teheye0 Dy
me prOFnpt and effective measures OF my PFe0e-
cesslr and happily dsappea ed WitnOut pro-
duClng the grave consequences WhiCn WStS ~
feared by the public; but ltS existence anu ING
widespread apprehension which y caused IN
dneed a revival Of the erroneous ldea thag LMe
volume Of money In circulation was nOg Only I'M
ade0nste TO the needs Of the country, DnG was
very much less per capita Gnan 0uElng Gno 30
called flush times which followed the cNil wall
Further down on the same page you
call attention to "the mistaken opinion
that there has been q severe contraction
Of the money volume" etc.
This statement brings up the entire
subject OF the contraction OF the cur
rency and lts baleful results. But the
frat and main question is aS TO the status
Of the Z 80 treasury notes which played
10 important part as currency, and as
reserves in banks, setting free other cur
rency, until they were retired by fund
ing into gold-bearlng registered bonds.
Yo.4 deny that they circulated % cur
rency, and do not mention them as such
in your tables. Yet you admit that s44,
100000 Of them, in the denomination OF
$50, man have circulated as currency.
Should you not in fairness to yourself
have made some statement Of this ad-
misslon In your official reportS
Secretary Fessenden says that No
caused $2O,OOO,OOO Of the 73O notes to
be paid out to the soldiers In the field ut
one time. You think this cuts no figure,
Al the soldiers adesired to receive them"
II unsy fairly be supposed that the SOL
Gler0' families at home also "desired to
receive them" And that the merchants
at home and others "rscelved them with
alsCrity" for family supplies and in the
general course Of business, The fact 49,
Mr.. Secretary, your doctrine that the 7'SC
notes did not circulate as currency be'
cause, as you claim, they were not a le'
gal tender, will not hold good. The
same doctrine would be as good sgainsi
all the bank currency Of the country
both state and national, because none O.
It is or has been q legal tender to prlvat'
individuals. TO initiate your own state
ment, "paymasters cannot In any true
sense pay out these notes 70 creditors.
Hence, according to that logic, banl
notes have never circulated In this coun
try a currency. You count in your to
bles estate bank notes" and "nationa
bank notes" as active circulating cuI
rency. Neither Of them are legal tende
IN private debts, yet you reject the 7-S
notes for the alleged reason that tie
were not legal tender; and, apparentl!
you claim that they did not circulate
though they were readily taken In pay
mental" What an idea to come from
great public oficerl Currency cannt
circulate even II men accept It readily
paymentsI Your position Is, that no on
can in any true sense, "pay out" sue
notesI @Tell Il not In Gath. publish
not in the streets Of Ascalon!" 1t woul
be far truer TO say that such notes ca
not be prscemted from entering into ci
culaton.
As 10 Secretary McCullOugh'S report
I followed Gen. Logan's statements az
tablaa taken from McCullough'g~ X