Year: 1875




posed to the furtherance OF that denomination by the
success Of the imitation democracy In Ohio II there
are any Grant men this campaign they those who
| advocate Governor Aliens election The truth is
there were set OF republican politicians who thought
raised The crv ~ rnhe any o,hlers ney ,ha Tny
could permit themselves any iniquity If they only
| raised the cry Of Grant" opposed the former as
false preenders and upon the principle | oppose
the latter for Is sincere conviction that there is
Just as little danger in the tricks Of willy politicians who
! tfy 10 moe their mschievous schemes behind what
they believe popular cry No, my democratic fellow
citizens, have not changed since / stand upon the
same ground which occupied when you cheered my
utterances; ! advocate the principles and serve
the same ends TO the same sentiments which you then
loudly appiauded. | ask you now TO give patient
and candid hearing AS democrats you profess 10 be
above all in favor OF things: first the strctest
maintenance OF the limitations of governmental mower
Indispensable safeguard Of free institutons and
second an honest and economical conduct of public
affairs. Its fidelity to these two things is
the particular boast of the democratic party,
and upon this fidelity IL bases its claims popular
confidence and support As to the necessity OF these
two things fully agree In fact while contend
ing for the maintenance OF the constitutional limitations
OF governmental and for the restoration of honest
and economical government that the independents
broke with the controlling influences OF the republican
party Tor which you appauded US so loudly. Now that
protest we are in earnest and in good faith in that
struggle actuaed not by motives OF small personal
spite, but by sincere solIctude for the integrity OF
republican institutions and the public good and being
earnest and In good faith, must recognize duty
defend that cause against whatever power whatever
party may mperil IT, against democrats less than
against republicans We're you democrats of Ohio in
earnest and good faith also when you represented the
strictest limitation OF governmental powers and
hostility to corruption and extravaganza
your pet principesY Examine your present
attitude. You adopted in your State Convention
platform insisting upon an augmentation by the gen.
eral government OF its irredeemabe paper currency
and now assert that those who advocate imitation
Of our rredeemable paper currency, although calling
and exercise of power by the government far moro
overrreaching and dangerous, and corruption and
pronigacy far demoralizng and oppressive than
any we have SO far experienced


Alter showing from the document itself and from
the speeches of Governor Allen that the demand en-
bodied in the PLATFORM that the currency should be
creased in order to meet the demands Of trade is
imitation in its worst FORM the principle carried to
its legitimate result would make continuous and in
definite, the Senator proceeded


DANGEROUS POWER OF THE GOVERNMENT


Now let me return to the point from which this was
digression l affirmed that those who advocated an
imitation of our irredeemabe paper currency pretend
ing TO be democrats advocating assumption and
exercise OF power by the government far over
reaching and dangerous and corruption and prongacy
far more demoralizng and oppressive than any have
yet experienced thus betraying the very princpl
which the democratic party puts in the foreground in
soliciting the confidence and support OF the people.


First, then, as TO the limit of governmental power
YOU my democratic friends insist that strict Limitation
of the powers of government according TO consu-
tonal principles, the essential and indisuen-
sable safeguard of popular liberty and free institutions
contend for the same doctrine. But you insist
also that our irredeemabe paper currency shall be
augmented according TO the supposed wants of trade:
and who is TO determine what the of trade are





augmented VI course, the government Have you
considered what that means In specie paving times
the amount of coin circulating in country regulated
by the circumstances of business If there is more
than finds profitable employment it will flow out and
go where it finds better market If there less
the wants OF trade require, 1t will become dear flow
in from countries where is cheaper The issues of
well regulated banking system based upon specie will
conform TO the rule. Temporary disturbances
brought by panics or artificial operations
may arise; but the whole the rule holds
good The government has no arbitrary CON





1t to IL that the coin struck the mint be of the
prescribed standard Of value, punishes counterfetng
1t regulates the banking system to make il safe
and then lets currency and trade in their relations
take OF themselves. That is sound democratic
true sense Of the word There the government is re-
duced TO Its proper functions. But how is when an
irredeemable paper money prevails Then the volume
of currency is not regulated by the Of
trade, the paper money not having outside of the
country that value which specie possesses 1t does
flow out and in the needs of business NAV require
The quantity the country shall have is determined by
the arbitrary will of the government This
power of awful extent and significance. 1t is
not disputed that the value of the pur-
chasing power of an irredeemabe paper currency
is affected by the quantity in circulation.
and that other such confidence of
the people solvency Of the government remaining
the same, and appreciable expansion of currency
will result in its depreciation and But the
currency changes in purchasing power so the money
value OF all you possess and all you have 10 buy or 10
sell changes also. So that the power of the govern
ment determine the quantity Of currency that shall
be in circulation virtually equivalent the power by





value of all the private property in the land other
words the private fortune OF every placed at
the mercy OF the governments arbitrary pleasure
You cannot venture upon any business enterprise; you
cannot sell or buy lot of merchandise
time for cash; you cannot mako
contract involving the outlay payment
of money, but the government will have the power to
determine whether II will be to your profit or loss and
perhaps, in extreme cases. whether II will make you
rich or bankrupt This then, is the awful power OF q
government intrusted with the Office Of making and
keeping the volume of currency equal wants Of
trade. You may ask me Cannot the Congress OF the
United States be depended upon to exercise such O
power with wisdom and discretion ?" The Lord pre-
The wisest assembly of fnanciers in the !
world would be unable TO discover any other
make and keep the volume Of currency equal to the
wants OF trade than by return specie basis where
trade and currency may adjust themselves But give |
the most honest and intelligent Congress
expect TO be blessed with and the adaptation of the
volume Of irredeemable paper currency the
changing wants OF trade by annual legislation will be
found an utter impossibility.


After referring to the Legal Tender and the emer-
gency out Of which it Mr. Schurz continued


HRUGALIrY, ECONOMY AND HONESTY.
Now word about imitation. As the price of corrup-
tion and profgacy you my democratic friends profess
nd for frugal economical honest purc govern.
mept so do l. Is there a single candid m an among
you who sincerely believes that rugaity, economy,
honesty and purity of government can be promoted by
expansion of our irredeemable currency, is
in any way compatible with itS Let us look at plain,
practical side OF the question 1t has frequently been
asked How you going to get your additional green
backs aaoatY The query seems TO have caused some 4
embarrassment, and the answer has usually been-


''Ohl shall get IL out somehow


But there is need Of indefniteness The matter is
capable of precise statement Obviously there
ways to set additional anoat One by buy
ing up United States gold bearing bonds in the market
or by buying gold pay of the bonds they fall due
But IL is certain that this method will only
very limited measure, for this simple reason--as you
put green backs with the prospect of a large
emission the greenbacks will rapidly deprecate to
gold, and the bonds are payable principal and in
tcrest gold they will maintain their gold value and
their price in paper money will thereby become so
high that the method Of putting out gree nbacks BY
rhacin
be dropped or you mean g reppdjSte the bonds &
which, as gndersiepd hele Il af present no declared
rnfp0se thep, W coITse, you would simply repudate
uR n and not buy them up at ALL But there is an
other way TO put aoat issues of greenbacks Ii is
by carrying the expenses OF the government beyond /
its revenue and this, have doubt will be resorted
10 as the favorite method. Do you know what that
meansH Imagine a Congress making appropriations of
money for the avowed purpose of getting out putting
IL.