The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1897-08-26
FINANCIAL HISTORY.
A Glimpse at Congressional Legislation
Since 1860.

1t looks very much as though the peo-
pie must submit to become hewers of
wood and drawers of water. Make
them poor and dependent, and they
will become humble and obedient
servants. As it is in Europe, SO shall
il be and will be in America.
While | am radically opposed to
the financial views which some OF my
friends are said to hold, yet l am
conscious of the tact, that am not
opposed to reasoning with the advo-
Gates Of the other side. Therefore l
feel at liberty to make an argument in
behalf of liberal use of silver as
money of redemption. We know what
the condition Of the country is to day.
We know that prosperity is not coming.
We know that high tariff alone can
not bring prosperity among the people.
We know that an increase in the
volume of money is the one thing that
is necessary to restoration of pros
perity. We know that such an in
crease would have a tendency to
cheaper all other money, and that
holders of the latter would speedily
invest their holdings to catch the
resultant rise in prices of labor's pro-
ducts. So far as the necessity of an
increase in the volume of money is
concerned gold and silver men agree.
But as to the means they are at wide
variance. The gold men believe that
the increase should come through the
National banks. The bimetallists con-
tend that it should come through the
government by free and unlimited
coinage ofSilver aud government paper
money. Within the limits OF our
present administration a move in one
direction or the other will have to be
taken, Which is the better plan ?
Let US take a brief glance at our
financial legislation since 1860. Let
it be remembered and never be for
gotten, that when the war of the last
rebellion broke out in 1861 the treas
ury was left empty. The bankers of
that day came forward and offered to
furnish the government all the money
it wanted, i. e. Of its state bank notes,
and take government bonds at SO
cents on the dollar in exchange for
these notes.
Salmon P. Chase the Secretary OF
the Treasury, thought the government
of all the people would be better than
any bankers bank notes, who had not
one dollar in coin back of every ten,
and IN many cases twenty paper pro.
mises to pay, which they put out, SC
congress passed an act, Aug. 5, 1861,
to issue $5o,coo,ooo demand notes
which were paid to soldiers, officers
etc. The bankers, however, woulc
take them for only 50 cents on the
dollar, as they lacked the legal tender
quality of money. Congress Act o
Feb. IL, 1862 issued another S1o,
100000 and likewise $50, 900
already issued without the legal tender
quality of money, and called in ths
first issue OF demand notes.
This sixty million never deprecated
one cent after being made full lega
tender by act Of March II, 1862, but
soon disappeared from circulation
just as did all the metal money Thi
money lasted but few days. Con
gress was about to issue another batcl
of SI6o,ooo,ooo and that greatly
alarmed the bankers, for they saw
that their craft was in danger They
dispatched their most polished lobby
lists to Washington to advise the mem
bers of Congress what was best to dc
IN case of issuing paper money as they
called it. Then the house of repre-
sentatves passed an act to issue
SI5o, 900 OF the same kind O
legal tender paper money, making i
legal tender for all debts public anc
private; while Mr.. Belmont and other
were laborng with the Senate, sayn.
that they would have to issue 60NA.
and that Mr.. Belmont had beer
authorized to say that Baron Roth
child would take three or four hun
dred millions of our bon1s if the,
would make the interest payable in
coin. Now my friends don't you Sc,
why England does not want silver tc
come into circulation. Should silve
become legal tender to pay public
and private debts, money would be
come plenty. At present we cal
not pay debt with silver money
the debt exceeds $500 if the party WI
owe objects to silver. Salmon P
Chase remarked: How could We pa,
the interest in coin, the treasury i
empty ot coin, and likely to be9
"That is a very easy matter" re
marked Belmont Make your impor
duties payable in coin then you will
have the coin come in the treasur
with which to pay the interest. Yo,
connot expect England, or RothchilC
M EnnlonI IL