Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1896-08-20
The Ru1nous British Policy.

Hon. r. L. Fulton. for twelve years
mayor of Galveston, Texas, in a pam
phlet entitled The Irrepressible Con-
fict," thus describes the policy and
effects of currency contraction:
The spectators in United States Sc
curities having secured all they de-
manded to inure the permanence of
the public debt, they set to work to in
| crease the value of their fixed incomes.
With full knowledge how the thing
had been done by the English parlia-
meut, they knew just how to proceed.
When the war closed we had ST.
906, $50, 40 in the form of legal tender
paper money. 1t was the largest vol
ume of money ever in use in this coun-
try. The Industrial classes in all
parts of the country were prospering
as never before.
New and generally profitable enter
prises were constantly being started.
Into these labor was called and was
well paid. The products of labor of
all kinds brought good prices.
All kinds of business were adjusted
to cash basis. Hundreds of thous-
ands of the hardy yeomanry of the
country as just reward for industry
were securing ownership in farms.
homes. shops and tools. By the use
of this money prosperity came to this
country similar in almsst every re-
spect to that experienced in Great
Britain from 1897 to 1916.
Plutocracy insisted that there was
too much prosperity; by its influence
Hugh Mccullough was made secretary
of the treasury, and under date of De-
cember 9. 1866, E. G. Spaulding wrote
| him letter in which he used the fol-
lowing language: .'You no doubt now
to certain extent have control of the
currency of the country, and think
you will of necessity contract moder-
ately. so as to preserve tolerably
easy money market. There may be
occasional spasms and tightness for
money. but generally shall look for
plenty of money for a year to come. =
Mr.. Spaulding was banker. He
knew what would produce 'sspasms'
in the business world. The thumb
screw, contract moderately at first, ;
was applied, and the spasms consist.
ing of business depressions, in conse.
queuce of idle labor and low prices on
its products, because the toilers were
obliged to sell the little stock they bad
on hand to pay taxes. interest on mort.
cages. and keep the wolf of want from
the door. 1t was the contraction o.
the currency that preceded business
depression in Great Britain; as the
same thing took place In the United
States the logical inference is that re.
duciug the volume of money will cause
business depression every time.
| During 1866 there were only 52(
business failures in the United States
Labor was fully employed; the indus
trial classes were well paid. Tramp!
were unknown
i 10 1867 contraction was pushed, bu
in consequence of the preceding year.
OF exceptional prosperity its effects
were not to any great extent realized
In 1868 $473. 900. 600 of money was de
stroyed, and an interest-bearing deb
substituted for If. This was followed
] by 1855 '.spasms." business failures
In 1869 $500. 900. 600 more none,
was destroyed and more interest-bear
ing debt made. The enormous straif
upon the country began to be felt. fol
the spasms (business failures) got NJ
to 1862. Strikes this year were o
i frequent occurrence.