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 convertible paper
currency. 1t is not possible to take
this voyage without the sorest dis


tress. 10 every person except q
capitalist out of debt, or to the sala-


rled officer. or annuitants,it is a 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-third Of the burden of it's debt;
and more than that deduction from
the value of its 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-
dnctlOns without any great reduction
OF taxes. To 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, 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. II 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 a 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 800.
Where he has purchased property and
paid one-fOurth of tilt means the loss


Of property; it means the addition of


one-fourth to all the currency debts
in 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
thlrty-five bushels of wheat where he
agreed to pay one hundred, and if the
appreciation is extended through


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
Of FOL ~,


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


boughte And if not why did he do
it!