Year: 1875

a year ago there was convention or small
gathering in Philadelphia, composed of
very respectable but certainly not very
minded or practical men, representing
especially the iron interest Of Pennsylva-
mia; and among the resolutions adopted
was one denouncing Secretary McCulloch
for contracting the currency, and attribut-
ing the depression in the iron trade to the
policy he had recommended and endeavor-
ed to carry out; and yet these gentlemen
could not have been ignorant Of the fact
that iron of all descriptions, especially iron
rails, Notwithstanding the contraction of
which they complained, (which in fact ex-
isted only in their imaginations), went up
enormously in price between 1868 and the
spring Of 1873. They must have known
that this rapid and really unhealthy
advance in iron was chiefly owing to the
unprecedented demand on the part of rail-
roads which were being constructed, and
many of which we're undertaken by reason
of the plentifulness of money, years 10
advance of the need of them; the failure of
which has brought dismay and ruin to
thousands of households. Could anything
be more absurd than the denunciation of
contraction as the cause of the prostration
OF the iron interest, in view of the fact
that within period Of less than six years,
during which there had been no contrac.
ton, the price of railroad iron (other kinds
of iron being subject to the same fuctua-
tions) advanced nearly 100 per cent. and
then reccded to point lower than it had
ever before reached? Can there be any
doubt that this advance in iron was owing
mainly, as have said, to the imprudent
expansion of our railroad system, or that
the decline was the result of its collapse
If the withdrawal Of the legal tender notes
was the cause of the present depression,
how happened it that this unprecedented
advance in the prices of iron occurred after
the contraction complained of had taken
place? Does not the history of the iror
trade in the United States conclusively
refute the statements and arguments, il
arguments they can be called, of the in.
fations? | submit that this should be re.
garded test


THE WORLDS CURRENCY.


Was there any depression in prices Oh
business which could fairly be attributed
to contraction? Was there, in fact, any
depression while it was in progress? Or
the contrary, did not the prices greatly
advance after the withdrawal of the lega
tenders had taken place, and did not thu
collapse occur when the volume of cur
rency was full? The question of the cur
rency is one of vast importance of sucl
Importance that all ordinary political ques
tions. in comparison with it, sink into in
significance. 1t ought to be dealt witt
fairly, for the welfare of 4O,O00,0O(
of people depends upon the proper solution
of it. Nothing, to my mind, is NOR,
certain than that our financial embarrass
ments and industrial prostration are chief
| ly attributable, not to scarcity, but to
plethora of paper money, which gave brit
to speculative enterprise and expanded
credits, tempted counties and cities to rul


heedlessly into debt, and became the fruit


ful cause of extravaganza and wastefulnes


among all classes of our people. In the re


port of the secretary of the treasury fo


1866 may be found the following remarks
i Continued on third page.l