Year: 1875

the Democratic Party Of Ohio who asks the people to
vote fol- him on the very ground of his financial prin
eples, does not know yet that in this civilized coun-
try only about per cent of the business trans.
actions are accomplished by actual transfer and
delivery of currency from hand to hand, and that
fully nnetythree per cent of those transactions are
effected by the transfer of bank accounts through
creeks, notes, and bills of exchange. He does
not know that nnetythree per cent of the circula-
tion of money in this country is effected through
those very banks, which he ikens to the bottom OF
the Pacific Ocean, He does not know yet that in the
progress of civilization have passed that ancient
period of barbarisln when business carried his
treasury in his wallet and his counting room in his
hat. 1t seems almost Incredible in this, the nine
teenth century, and yet this very absurdty is the
basis of all the reasoning Of the infatonists and
Gov Allen is not only the blunt, but the true repre-
sentative of the ideas of his followers Believing
pretending to believe that money in the bank is lost
to circulation and no longer performs the Office
money, they strive either to force that money out Of
the banks or to issue which will not go the
banks, and decide at for the latter course Now
suppose more Of irredeemable greenbacks be is
sued, no matter who gets them, the first thing the
people who receive them will do is to go straghtway
and deposit them in banks-all except Gov. Allen.
"Hold on" cries he, ''that will never do, You
destroying your greenbacks for all purposes of mon-
ey and currency You are throwing them to the bot
tom OF the Pacific Ocean, and he sagely proceeds to
stow his away in an old stocking, earthen
pot under the bed for circulation for If he lends his
money to anybody, or pays it out in business trans
action, the man who gets it, If it is considerable
quantity will forthwith deposit it In a bank and ev-
en- if hid out in small sums 1t will eventually get
there. Yes, this is perverse age when people viii,
insist upon depositing their money in lbank.. Now,
Gov. Allen will say: "This experiment not having
answered, the great mass Of the greenbacks having
gone into the banks, which is the same thing, to
lie bottom OF the Pacific Ocean, of course we must
issue more greenbacks, and more and more, until
the money stays out of the banks" and finally, Gov.
Allen would accomplish his purpose. That is when


the greenbacks will have become utterly worthless
that it will ne longer be of any to deposit them
in the banks at all. Then, I suppose, the green-
backs would, in his sense, be better than corn
stalks" They would at least the purposes Of
money and currency, and really circulate as medi-
um according to Gov. Aliens enlightened financial
conception. This would as Gov. Allen gives us to
understand, be making and keeping the volume Of
the currency equal to the wants Of trade In pursu
ance of the Ohio platform. desire to prove that the
Ohio platform means imitation, Will any follower Of
Gov Allen deny it yet? But OH citizens of Ohio, /
ask you in all soberness. would 1t not be a burning
shame for the people OF great State intelli-
gent, an educated people, at critical moment, when
| SO much depends upon their decision, to designate
him who claims their votes just because be is the
ponent of such policy, their chosen chief thus
putting the seal OF their appreciation upon finan-
cal theory SO utterly absurd and childish to be-
come the laughing-stock Of the world wherever they
are mentioned I earnestly hope the people of Ohio
| will think better of themselves


/ TIE VOLUME OF THE CURRENCY AND THE WANTS
OF TRADE. .,-..--
Some Democratic speakers pretend that thu policy
Of making and keeping the volume OF the currency
equal to the wants of trade may in the of the
Ohio platform, under circumstances mean, instead
of imitation, reduction of the currency, namely.
when it appears that the volume of the currency Is
in excess of the wants of trade. When will the
be admitted if it is not admitted, while large
quantities of money lie in the banks idle for want
| employment, and that paper money at a heavy dis
| count as to gold? If, now the wants of trade
considered to require still more currency, under what
circumstances will they he considered to require less?
| 1t is easy to show that as you go increasing
| the currency the demand will not be salts
fed, but it will be still more excited. One
thing is universally admitted; if the volume


of our irredeemable paper money is increased, It


will further depreciate. The paper dollar, which is


worth eighty-hve cents in gold now, will be worth


eighty, seventy, sixty, or fifty cents then, and





or $3.50, or S1.4O or s1.5o then. As the paper


money depreeiates and =loses-.--ia purchasing


power, its power Of affecting exchanges WAN decrease
s . e-.-t'o..,1ss 1.'s-ssrs. a transacfion reqnir-
ing the use OF hundred dollars now will require
si25, or $780, or $3.50 then. What follows? The IN
creased quantity Of the currency bringing with 1t
no increased power of efecting exchange in conse-
quence OF corresponding Depreciation you are, after
the increase just far from satisfying the supposed
wants Of trade you were before. You try further
expansion, and the result viii be exactly the same.
You go on trying in that way to make the volume Of
currency equal to the wants of trade and the nfia
tion will be Indefinite until finally the currency be-
comes worthless cffeot exchanges at all and
| the whole edfce tumbles down in universal repu-
| diation, bankruptcy and ruin. Is there any advo
| cate OF the Democratic platform who can gainsay
| this? If not, then let us hear more about that
platform not meaning imitation. 1t means imitation,


Indefinite, unlimited, until the currency is utterly
worthless. Besides, you eed only listen, not to the
trimming apologizers, but to the real makers and
exponents Of the Democratic platform, and you hear
| nothing but the roar for more money, more money.
If it did not mean imitation it would have value
| at all to them. TO bubble about it is not only
useless, it is simply a ridiculous attempt at eva
sion. The infatonists Of Ohio themselves will laugh
| at you did you tell them that the platform
does not mean more money, much, very much more
l money.


INITIATION AN UNDUE ASSUMPTION OF POWER.


Now let me return to the point from which this
| was a DEPRESSION affirmed that those VINO advo-
| Gated an imitation of our irredeemabe paper cur
/ rency pretending to be Democrats, advocating
an assumption and exercise Of power by the Govern
ment far more overreaching and dangerous, and
| corruption and profigacY far more demoralizing
and oppressive, than any we have yet experienced,
thus betrayng the very principles which the Demo-
cratic Party puts in the foreground in soliciting the
confidence and support of the people, First, them
as to the limit of Governmental power; you, my
Democratic friends insist that strict limitation
| of the powers Of the Government, ac-
cording to constitutional principles, is the
most essential and indispensable safeguard
| of popular liberty and free institutions.
contend for the doctrine But you insist also
that irredeemable paper currency shall be aug
mented according to the supposed wants OF trade;
and who is to determine what the wants Of trade
are and to what extent the volume of currency shall


be augmented? Of course, the Government. Have
| you considered what that means? In specie-paying
times the amount of coin circulating in country is
regulated by the circumstances of business II there
| is more than finds profitable employment, 1t win
| flow out and 90 where it finds better market. If
there is less than the wants Of trade require 1t VIII
become dear, and flow in from countries where 1t is
cheaper The issues of well-regulated banking sys-
| tenn based upon specie will conform to the same
| rule. Temporary disturbances brought ON by PAN
| les artificial operations may arise, but on the
whole the rule holds good. The Government has no
arbitrary control whatever the value Of the cur
rency 1t sees to it that the coin struck in the mint
| be of the prescribed standard value. 1t Furnishes
counterfeitng 1t regulates the banking system as
to make it safe and then let's currency ard trade
in their relatonsItake care of themselves That is
sound democratic and also sound financial principle
and practice in the true sense Of the word. There
the Government is reduced to its proper functions
But how is it where an irredeemable paper money
prevails? There the volume of currency is not regu


lated by the circumstances of trade. The paper
money not having outside Of the country that value
which specie possesses does not flow out and in
| the needs of business may require. The quantity
the country shall have determined by the arbitrary
| will of the Government. This Is a power of awful
extent and significance. 1t is not disputed that the
| value of the purchasing power of an irredeemable
paper currency affected by the quantity in circua


tion and that other circumstances, such the con
| denca of the peOple and solvencv Government