The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-09-23

policy, to outline it in a paragraph as
1t was first inaugurated, was the con-
traction of the volume Of the people S
money after it had gone into general
circulation so as TO fix prices and de-
Uermine all their business and economic
interests, the money was literally burned
Over S,2O0, 100000 was destroyed, so as to
reduce the volume from about two thor-
sand millions 70 little over seven hum
dred millions. This was done to meet the
demands OF spectators, brokers' and
bankers. Republican policy was the pol
icy of greed and SelhshuesS that was dc
tated by the cormcrants who sought 10
gorge themselves with the abundant
wealth of a patriotic people. l will state
the principal features and circumstances
of the great crime of contraction under
the following specifications, and viii then
furnish official data by way of proof and
confirmation.
1.-The money that was destroyed
amounted to over twelve hundred mil
lions. 1t was mainly legal tender for all
purposes except those that the exception
clause required to be paid in coin, such as
tariff duties and the bondholders' interest.
that the bondholders were bound TO de-
stroy legal tender money, for it was is
sued by the government and yielded them
no interest. The bankers were opposed
10 it, for they could not manipulate it
and dole it out to the people.
2-ThiS vast contra ction Of the currency
was effected through the sale Of long
time, interest bealing bonds which were
bought from the government by speculat-
ors with deprecated paper money; but
the bonds drew interest on their face or
par value. Thus, bonds bought with de-
preciated money were deposited with the
United States treasurer as a basis for
banking, these bonds drawing interest at
par; and nine-tenths Of the par value of
the bonds furnished by the banker were
returned to him in notes TO loan ont to
his curtomers. Hence the entire banking
interest was furnished an indUcement to
promote contraction. They would buy
bonds with currency: and the paper mon
ey used for the purchase would be with
6raWn from circulation. Up to January
1865 there were legal tenders destrovei
to the amount of $40, 736, sc: and aside
from the legal tenders there We're over
S-500OO00OO Of treasury notes used as
currency destroyed See Money Wars,
page 29S.
Sit is important TO note that the Re-
publican policy of contraction was inaug-
urated after the var closed, and when
the people were adjusting themselves to
the arts of peace. The strength of the
government had beer tested, and the
Preservation of .he Union had been dem
onsrrated. The national debt amounted
to nearly three thousand million. \ large
part of it was ron-intereSr bearing; but
contra ction put the debt into bonds draw
in interest, all except the remnant of the
Ereenpacks that were preserved from de-
slruction.
At is inportan. TO note that up 70
not a single dollar in gold or silver
had been subscribed or paid by any
banker or capitalist, either in Europe
or America for bond of the United
States. Moreover. it was not until seven
months after the close of the war that
single bond had been sold in the mar
kets Of the old world. See Philosophy OF
Price by Dunning, page 107.
5-There was no good economic reason,
no reason other than blindness. or COM
pGcity with heartless SPECTATORS for
the preparation of a financial outrage
unparalleled in history! What was that
crime2 II was this: About 81, 800 0O0 GOO of
the nations Indebtedness was being used
ny the people as money. 1t was giving
When contraction commenced green
backs had risen TO II per cent measured
by gold value. And there We're over $50
per capita Of paper money in circula-
never been exceeded before or since
This viii be shown in the table of bust
ness failures for the preceding and fol-
lowing years. And just then the entire
South was coming back into the Union.
and there was need of more money
rather than less. But what followed? At
one blow $1,200, o00.000 of what had been
circulating as money was converted into
$50 bonds, bearing six per cent. interest.
AND SOLD ABROADt Our currency had
been reduced from 1883, 4e9, 216 in 1866 TO
less than 1874, 756 liz in 1868. See Philoso-
ply of Price. 10.
6-The annals OF economic history af-
against the industries of a confiding peo-
pie. The shock that followed battles de-
scription. The people had become pros
porous They dreamed of no change Of
values But here by a simple act of Con-
gress every debt was more than doubled.
And the people were deprived of more
than half their means of payment The
following table of failures is taken from
Hunts Merchants Magazine; and up 10
1871 it is calculated only for the northern
states. Note, the small number of fail
ures from 1868 to 1866 when there was an
amply supply of currency. AS soon as
contraction begins in earnest in 1867, the
number of failures rise from hundreds