Year: 1874

THE BUSI ESS PROSTRATlON.


Since the opening of Congress one year
ago the nation has undergone prostration in
business and the Industries such as has not
been witnessed with us for many years. Spec
ulation as to the causes for this prostration
might be INDUCED in without profit, because
as many theories would be advanced as there
would be Independent writers who should
express their own views upon the sub
ject. Without indulging in theories as
to the cause of this prostration, therefore,
/ will call your attention only to the
fact and to some questions as to
which it would seem there should be no dis
agreement. During this prostration two es-
sential elements of prosperity have been
most abundant-labor and capital. Both
have been largely unemployed. Where Sc.
"urity has been undoubted, capital ads been
attainable at very moderate rates, Where
labor has been wanted, it has been found in
abundance at cheap rates, compared with
what of the necessaries and comforts of life
could be purchased with the wages demand
ed Two great elements of prosperity, there
fore, have not been denied us; a third might
be added. Our soil and climate are une-
qualed within the limits of any contigu-
GUS territory under one nationality for its va
rieties of products to feed and clothe people
and in the amount of surplus tospare to feed
less-fayored people. Therefore, with these
facts in view, it seems to me that wise states
manshp at this session of Congress would die
tate-ignoring the past-distributing in prop
er channels these great elements of prosperity
to any people. Debt abroad is the only ele-
ment that can, with always a sound currency,
enter into our affairs to cause any continued
depression in the industries and prosperity OF
our people.


THE CURRENCY.


A nt for n0fin al icfa M od a
necessary, for temporary purposes, the rails
Ing OF large sums OF money from whatever
source attainable. 1t was made necessary in
the wisdom of Congress, and l do not
doubt their wisdom in the premises,
regarding the necessity of the times,
to devise asystem of national currency, which
it is proved to be impossible to keep on a
par with the recognized currency OF
the civilized world. This begot a spirit
Of speculation involving an eXtrava-
gance and luxury not required for the
happiness or prosperity of people, and in
volving, both directly and indirectly, foreign
indebtedness. The currency being of fuctu-
ating value, and unsafe to hold for legitimate
transactions requiring money, became sub
ject of speculation in itself These two causes,
however, have involved us in a foreign
indebtedness contracted in good faith by the
borrower and the lender, which should be paid
In coin and according to the bond agreed
upon when the debt was contracted-gold or
its equivalent. The good faith of the Gov
ernment cannot be violated toward its
creditors at the national disgrace. Our COM
merce should be encouraged; American ship
building and carrying capacity increased /;
foreign markets sought for products of the
soil and manufactures, to the end that we
may be able to pay these debts. Where mar
ket can be created for the sale of our products,
either of the soil, the mine or the mandatory,
anew means is discovered of utilizing our idle
capital and labor to the advantage OF the
whole people; but in my judgment the
first step toward accomplishing this OBJ
ject is to secure currency good wherever
civilization reigns-one which, il II becomes
superabundant with one people will find a
market with some other--a currency which
has as its basis the labor necessary to pro-
duce it which will give it value. Gold and
silver are now the recognized medium OF
exchange the civilized world over, and to this
we should return with the least practicable
delay. In view of the pledges of the
legal tender system was adopted and
the debt contracted there should be
no delay, certainly no unnecessary delay, in
fixing by legislation method by which we
will return to specie. To the accomplish
ment of this end | invite your special atten-
tion. | believe firmly that there can be no
prosperous and permanent revival OF business
and the industries until policy is adopted,
with legislation to carry it out, looking to a
return to a specie basis. 1t is easy to con-
ceive that the debtor and speculative classes
may think it of value to make So
called money abundant until they can throw
portion of their business upon others; but
even these, believe, would be disappointed
by the result if course should be pursued
winch will keep in doubt the value OF the
legal tender medium of exchange. A revival
of the productive industries is needed
by all classes, and by none more than
the holders of property, of whatever sort,
upon it's sales. But admitting that the two
classes of citizens referred to are to be ben
Gifted by expansion, would 1t be honest to
give it? Would not the general loss be too
great to Justify such relief? Would it not be
just as honest and prudent to authorize
each debtor to issue his own legal-tenders to
the extent of his liabilities as to do this
Would it not be safer, for fear of over-issues
by unscrupulOus creditors, to say that all
debts and obligations are obliterated in the
United states, and now we commence anew,
each possessing all he has at the time
free from ncumbrance? These propositions
are too absurd to be entertained for mo-
ment by thinking people. Every delay i'll the
preparation for final resumption partakes of
this dishonesty, and is only less in degree as
the hope is held out that convenient season
will at last arrive for the good work oi
redeeming our pledges to commence. II
viii never come, in my opinion, except by
the positive action of Congress or by ma
tional disasters, which will destroy, for a
time at least, the credit of individuals and
the State at large. ! believe it is in
the power of Congress at this session
TO devise such legislation as will renew conf
dence, revive all the industries, start us on a
career of prosperity to last for many years,
and TO save the credit of the nation and of the
people. Steps toward the return to a specie
basis are the great requisites to this devout-
ly-to- be-sough end. There are other
points l may touch upon hereafter.


A nation dealing in a currency below that
of specie in value labors under two great dis
advantages. First, having no use for the
worlds acknowledged medium OF exchange,
gold and silver, these are driven ont
of the country, because there is no
demand for their use; second, the me-
dunn of exchange in use being of
a fuctuating values for, after all, it is
only worth just what it viii purchase of gold
and silver, metals having an instrnsic value
just in proportion to the honest Iabor it takes
to produce them A large margin must be
allowed for profit by the manufacturer and
producer. 1t is months from the date of pro-
duction to the date of realization. Interest
upon capital must be charged and risk of
huctuation in the value of that which is to
be receive in payment added; hence high
prices, acting as. protection to the
foreign producer, who received nothing
in exchange for the product of his
skill and labor except a currency
good at stable value the world over


Itseems to me that nothing is clearer than
that the greater part of the burden of existing
prostration for the want of sound financial
system falls upon the workingman, who must
after all produce the wealth, and the salaried
man man who superintends and conducts business.
Inc Inc burden falls upon them two ways: by the
deprivation of employment and by the de-
TtGaseu purchasing power of their salaries
- - = tle auty OF Congress to devise the method
Q! correcting the evils which are acknowl
eNge4 W eAiss, and not mine; but I win ven,
. .uIg = = sSsggst sss Two Or thgee things which