The midland journal. (Rising Sun, Md.) 1885-1947, 1893-11-17
QUESTIONS OF THE DAY
A FINANCIAL HISTORY.
Course and Effect of Legislation
Since 1861.

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The 4th of March came, and
Abraham Lincoln was inaugurated
President. Less than month previous,
February 8, a convention of the South
ern States was held at Montgomery,
Ala, which adopted constitution for
the Confederate States of America and
elected Jefferson Davis president
Almost Immediately following the
Inauguration open hostilities began
between the States. Fort Sumpter was
attacked April II. 1861, and on the
18th President Lincoln called for
$4,000 militia to serve for three months
10 arm and equip these troops required
money, and in providing and expanding
this amount and the hundreds of mil
lions which followed lies the entire
cause of our present difficulties. Many
other explanations are given for the
universal depression in business which
pervades all sections of our country at
the present time, but none reaches the
true reason except the inscriptions
manipulation of the currency during
the past thirty years. 1t is the "power
of money to oppress'' that the people
have to fear and from which they are
now suffering. The magnitude Of
these financial transactions were without
parallel in history, and the amount of
our national debt as a national result
was enough to destroy all hope of pay
mept. Yetsuch was the power of recup.
Grafton and production among the peo-
pie that, vast as the debt was, it would
have proved beneficial to some extent
had not "few planned while the many
worked" Thrift, energy and economy
on the one side has been contestlng
against great odds for the past twenty
five years, with monopoly, greed and
the "power of money to Cypress" on
the other side. A continuation of this
Investigation will disclose record OF
fraud, corruption and sel6shness that
will astonish the most charitable. The
real fiscal policy under which we now
live began with the administration Of
President Lincoln. After the inaugu-
ration the Senate remained in session
until March 28th and adjourned.
Difficulties continued to increase until
a call for an extra session Of Congress
was made for July 4, 1861. The report
of the Secretary at that date stated that
the estimated expense for the fiscal
year 1862 was $5lS,519.5Sl, which
proved to be more than $4,000 900
short of the amount actually expended.
The tariff bill of March I'd was amend
ed and the dutiable list largely increas-
ed. This measure brought into the
national treasury only $50 4o2,l25-
$14, 100000 less than 1860, and $25.-
100000 less than 1856. The demon
allied condition of the people gives the
only explanation. The credit of the
Government had reached very low
stage at this time, and is fully disclosed
by speech at the session by Mr..
Spaulding, member of the House
He said:
"The Treasurer is in the market
today with his per cent treasury notes
without being able to get them taken
The 6 percent coupon bonds are now
selling in New York at 50 to 81 cents
on the dollar, discount Of II per cent.
Treasury notes of December last are
held at l02, showing already that thu
Government is at this moment unable
to negotiate any of its loans that have
been authorized by Congress except at
the most ruinous rates OF discount. y
/ believe, sir, that we are now entering
upon system of taxation that will last
for years."
Secretary Chase had been in con-
sultation a number Of times with
bankers from the large cities, and could
make no arrangements for placing the
bonds or treasury notes. There seemed
to de at that early period either con-
spiracy to break down the credit OF the
Government, or very general fear that
the Government was not safe. Whca-
ever was true, one fact remained per-
fectly plain. No bonds could be
marketed at any reasonable rates
When this was made known to the
President and other members of the
cabinet, it was determined, as Secretary
Chase said, to cut up the credit of the
Government into small pieces and lei
the people use it themselves.
Acting upon this resolution bill
was introduced into the House July 8
1861, to meet the expenses of the war
by obtaining loan of S25O,0O0,O0O
and considered in committee of the
whola the navt dau Dehate on this