Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1899-06-29
The Currency Question.
THE ApoTHEosIs OF DEBT.
Course of the ssFinanciers'' OF TWEEN
ty-Five Years Ago to Prevent
Too Much Prosperity.

In 1865 Hugh McCulloch, then secre-
tary of the treasury, reported the peo-
pie of the United States practically
out of debt" This alarming statement
created CONSERVATION everywhere.
The outlook for the future of the coun-
try under such threatening conditions
was appalling. 1t could not be denied
that, under the circumstances then pre-
vailing, the people would not only keep
out of debt but would soon become fore
handed. Mr.. McCulloch, himself, took
pessimistic view of the situation and
made no hesitation in saying that II the
financial condition then existing were
allowed to continue, corruption OF
morals and other evil incidents to sol
vency were inevitable. Chilled by APP
prehensions as to where such DRIFT
might lead the nation" Mr.. McCulloch
promptly took steps to avert the GER
tain calamity too much wealth IN the
hands of ''the ignorant and lrresponsl-
BILE masses was sure go bring about
sooner or later. He began at once to
contract the too redundant currency,
which, as everybody knows, is always a
menace to prosperity
This method of guarding against dis
aster, was, however, resisted by many
misguided people and it became appar-
ent that some other plan must be adopt
ed to prevent accumulation by the
masses and to dissipate that at
this juncture John Sherman, the
financial oracle of the period, was
called in for consultation. 1t did
did not take him long to discover and
point out the cause of all the trouble.
It was plain to him that the farmers
were getting too much for their crops.
He demonstrated that for every $500
worth of goods bought in foreign mar
kets $3.50 worth of American prod
ucts was exported to pay for 1T.
This left a balance of trade" in
favor of the United States of $50,
which our customers were Obliged 10
pay by shipping to this country that
amount in gold. This was intolerable.
If it went on it would plainly over
whelm the country with wealth, the
burden of which it would be impossible
to sustain.
! Some way must be found to obviate
this appalling danger, by reducing the
price of those products at least one
half, in order to reverse these alarming
conditions and to shift the balance of
trade" to the other side, or disaster was
certain. It was plain that by reducing
the price of the products of American
farms so per cent. then for every
500 worth of foreign goods bought,
only SIS worth of those products would
be esxported to pay for it and there
would be a ''balance of trade" of S25
against US to be paid in gold instead of
$50 in our favor to be collected. This
was bitter. This might be called the
Sherman system of finance. Under this
enlightened system was evident that
the farmer would not be able to raise
produce at the price which would then
obtain and the necessity for borrow
ing money could not be evaded. Soon
everybody would be in debt and hap
piness and prosperity assured. 1t
was left to John Sherman to secure the
necessary legislation to bring about
this ideal condition, and it was with
this object that the ''crime of 1878" was
perpetrated. The act passed by con-
gress fully accomplished the object in
tended. 1t has brought the farmers
and producers to their present enviable
condition of hopeless and ever-increas-
ing debt, which seems to afford them so
much qualification and pleasure. 1t is
evident that they desire no change, for
they continue to vote to maintain and
perpetuate existing happy conditions.
STEPHEN BLACKFOOT.