Year: 1877




convertible into gold, let them read
the story of the times after the Rev
olution and after the war of 1912 and
after the revulsion of 1887, all of
which were yeriods Of transition from
q deprecated to a convertible paper
currency. 1t is not possible to take
this voyage without the SOrest dis
tress. 10 every person except a
capitalist out of debt. or to the sala-
rled officer. or annuitants, it is period
OF loss, danger, lassitude Of trade, fall
OF wages, suspension of enterprise,
bankruptcy and danger! To every
railroad it is an addition of at least
one-thlrd Of the burden of it's debt;
and more than that deduction from
the value Of it's stock. It means the
ruin Of all dealers whose debts are
twice the value Of their capital, though
one. third less than their property. 1t
means the fall of all agricultural pro-
auctions without any great reduction
OF taxes. 10 attempt this task by a
surprise upon our people, by arresting
them IN the midst of their lawful
business, and applying new standard
OF value to their property, without
any reduction OF their debts,o or giving
them an opportunity to compound
with their creditors, or to distribute
their losses would be an act of folly
without example for evil in modern
times. If merchants. dealers
and traders owe more than they can
promptly collect on debts due to
them, they must lose to the full ex-
tent of the appreciation (of the depre-
clated currency,) and they must make
this loss by sale Of part of their
property at reduced prices, or by con-
tracing new debts. to be paid in an
appreciated currency. AS general
rule, any appreciation of the currency
is injurious to all classes. =
What does specie payments mean to a
debtor! 1t means tho payment of
Sl25 where he has agreed to pay 500.
Where he has purchased property and
paid one-fOurth of tilt means the loss
OF property; it means the addition of
one-four tn to all the currency debts
III the United States. A measure to
require a debtor not to pay his debt
In gold or currency equivalent to gold
requires him to pay one hundred and
thirty-five bushels Of wheat where he
agreed to pay one hundred, and if the
appreciation is extended through a
period of three years it requires him
to pay an interest of twelve per cent.
in addition to the rate he has agreed
to pay. When we consider the enor-
nous Indebtedness of a new country
like ours, where capital is scarce and
where credit has been substituted in
the place of capital, it presents diff
Guilty that may well cause us to pause.


: All the historical precedents
show that fixing the day for resump-
ton inevitably let to a contraction of
the currency by the banks, so that
when the day came the actual scarcity
of currency prevented a demand for
coin, and the process of contraction,
both in England and the United
States, produced the sOrest distress;
and was relieved in England by par
lament authorizing loan of excheq-
uer bills and new issues by the Bank
OF England. So, after the war of 1912,
the sore distress caused by the failure
of the State banks was only relieved
by new paper currency issued by
the Second United States.''


Why then did he so soon after this
speech cease his opposition to resump-
ton, and help plunge his native land
into all the miseries which he so
graphically described Was he
bought! And if not why did he do
it!