The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1897-08-26

tion that gives it a high or low pur-
chasing power, take away half the
money in circulation and all products
of labor would sell for only half as
much as when there was double the
amount with which to do business.
When this bill passed the lower
house, and was sent to the Senate for
its approval and ratification. the bill
was amended by the Senate and
made to read, "This is legal tender
for all debts public and private except
duties upon imports aud interest up
on public debts" Belmont's tamper-
ing with the Senate had had its de-
sired effect, to the great approval Of
the money power and the oligarchy Of
the country. The bill was sent back
to the House in that crippled condi-
ton. and that grand old Commoner,
Thaddeus Stevens of Pennsylvania,
made speech objecting to the Sen
ate amendments, and explained to
the House of Representatives the
effect that would follow if the amend
ment crippling the legal tender quality
of the money was allowed to be
attached to the bill. The news came
to Washington Of the Bull Run dis
aster, indicating possibility that the
confederates might march to Wash
ington, and money was needed and
there was no time to parley over the
exception clause, so the act was
passed as it came from the Senate
providing for the issue of money at
once, and in that crippled condition.
Immediately Mr.. Belmont wired
Drexel, Morgan & Co, of Phila-
delphia and the leading bankers in
New York and Boston, to hold on to
their coin, that now they had
bonanza etc. Gold and Silver made
a leap from dollar to one dollar and
half. AT that time State bank cur
rency was in circulation. and when
this crippled government money was
put into circulation, gold and silver,
with the first issue of 500, ,ooo,o 900 Of
demand notes, went out of circulation /;
was boarded by bankers and specula-
tors, for they could plainly see that it
would go to premium, as importers
would have to have it to pay import
| duties, which, at that time or soon
after amounted to S25o,ooo, 900 per
annum. Soon after this another batch
of currency was issued with the ex-
ceptlon clause on the back. Impor-
tiers had to buy coin to pay import
duties and had to pay $I.5o of Grip
pied paper money tor every SI.oo of
coin. Following this the national bank
act was passed which enabled those
who bought bonds to pay for them in
greenbacks, and by depositing them
with the treasurer of the United
States could go into the banking busi-
ness. The government would issue
to said bank 90 per cent. Of currency
signed by the Secretary Of the Treas
ury of the United States stating on
said currency that this note is Sc,
cured by the deposit Of governmen,
bonds with the treasurer of the
| United States, which made the cur
rency good. At about the same date
the government passed an act stating
that all private or state banks issuing
notes and putting them in circulation
| should pay to the said government q
tax OF ten per cent. annually on such
| Of their notes as were in circulation
The act virtually compelled all bank:
of issue to 60 out of business. State
banks were turned into nationa
banks or had to bank on what genu
Inc money they could command.
! AS the war progressed and tht
large volume of currency increased il
circulation, prices of everything in
creased, prices went up. 1t was ;
great time then to make money TO
| labor and the products of labor were
going up in price. Shrewd peopl,
got out of debt and had plenty o
money to do business on a cash basis
About the year SO or "a Mr.. A. T
Stewart, that great importer, had q
great cargo of costly goods come tt
New York from Europe, the impor
duties upon which was $Ioo,ooo
Mr.. Stewart took $780, 900, in green
backs to buy metal money with which
to pay import duties, as the govern
ment would not accept the same kline
of money that it had paid to the gur
holder and plow holder. Mr. Stewar
went straight to Wall Street to tina
! great bank, Smith & Co., and the,
asked him $a.S4 IN greenbacks TO
one of coin. Stewart said he though
he could do better with Gilman
Co. All right, Mr.. Stewart, that il
your privilege. When Stewart lei
the Office of Smith & Co., Smitl
wired Gilman & Co., "Stewart" i
coming, asked him $a.S4" Stewar
| SteDDed into the hank of C;llp,,n &