Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1895-12-05
NATIONAL MISTAKES.
6RAzEN IMPUDENCE OF OFF,
CIAL PROSTITUTES.
\ Striking Example OF This OniclaI
Prostitution to tho Money Power Il
Found In the Speech of Secretary
Carlisle at Boston,,

The history OF the world could
scarcely afford a more humiliating
prostitution Of the corrupt influences
Of any age than that which character
ICES the acts and utterances Of United
States officials In these degenerate days,
A striking example Of this official pros
titution to the money power is found in
speech Of Secretary Carlisle at din
ner Of the Massachusetts, Reform club
in the city of Boston on Saturday, Oct.
IL. In this speech Mr.. Carlisle said:
"The first great mistake in our cur
rency legislation was made In the act
of March II, 1862, which authorized the
secretary Of the treasury to issue Unit
ed States notes to the amount Of $780,
100000. This was a radical and danger
Gus departure from true financial prin-
ciples. IL not q serious infraction Of the
legislation Of the United States. This
deprecated paper, Of course, expelled
specie from circulation, but as the gov
eminent had not promised to redeem
1t at any particular time, 1t subjected
the treasury department to no serious
responsibility or Inconvenience"
The above statements are not only
at variance with the recorded facts Of
history, but there are hundreds OF thou
sands Of men and women still living to
whom those facts are familiar recol-
lections. Mr.. Carlisle deliberately
states that the deprecated paper issued
by authority Of the act Of March IL,
1862, expelled specie from circulation.
The fact is specie payments were sus-
pended by all of the banks Deem
Der 30, 1861, over three months before
the act of authorizing the issue Of treas
ury notes was passed, and there was no
specie In circulation from that time
until after resumption which took place
nominally in 1879. Mr.. Carlisle is not
ignorant of this fact. When he made
the statement that the deprecated
treasury notes drove specie from circu-
lation he deliberately stated that which
he knew to be false.
There are few facts bearing upon
the financiering of the times that may
be appropriately reclted in this connec-
ton. Mr.. Casca st. John Cole has col
lated these facts and published them in
so concise a form in his little pam
phlet, "Cold Facts" that we shall sim
ply quote and accredit to him. He
says:
In the Bankers Magazine, January,
1876, George s. Coe, president Of the
American Exchange Bank Of New York,
tells Of the meeting, August 9, 1861, Of
those who "were supposed to possess or
control capita" with Mr.. Chase at the
house Of John ]. Cisco, the assistant
treasurer of the United States in New
York. The result Of the meeting was
the appointment Of committee con-
slsting of ten bank officers to make ar
rangements to make the loan. Mr.. Coe
says:
at was unanimously agreed that the
associated banks of the three cities
would take $5O,OOO,OOO Of Z $40 notes at
par, with the privilege Of an additional
$50 900 900 in sixty days, and further
amount Of S5O,OOO,0OO in sixty days
more, making $3.50, 10000 in ALL"
The following figures also show that
the financial condition Of the banks at
this time was one Of great strength: