Indiana State Sentinel, Volume 25, Number 30, Indianapolis, Marion County, 8 March 1876 — Page 10

notes and refuse to take them for all debt doe

us attnelr face value on presentation, e have dishonored onr natter and thereby de predated It, and lost our credit and standing in the business community ana accea witu bad faith toward the nubile. The same rale applicable to business men equally applls to conducting the business oia great tovern-ment-No man or government can make their credit srood or maintain a aood standing in business circle It they deliberately dishonor their own paper; consequently, If It 1 desirable to maintain the Rood faith of this governmenr, and to make its silver coin and paper money par or equal to sold coin, th must be honored bv the government, by m' v. (ng lb em legs 1 tenders for all dues to ite maker of them, as well as to indltldu. for pri vat debts. The advocates or contraction to perpetuate a uselewa system of bank currency, and keep money and currency (ont of the hands of the people, may by such a system starve laborers ana drive business men to rain, and a slavish submission to measures necessary to maintain an aristocracy In this country, bat It will never make sliver and treasury notes par with a full legal tender. It mar support an aristocracy, but it will lm poverish the country and starve the people. Such are the ruinous effects of the contrac tlon and bank currency measures advocated by the gentleman from Maine and those who are opposed to us : and In the face of these facts we are at a loss to see how any mn claiming to be a genuine democrat or repub lican can uphold such aristocratic and ruin ons propositions, or hesitate for a moment to exercise their great power in this House by applying the remedies necessary, not only to maintain the credit and good faith of the gov ernment, but to relieve A DISTRESSED AND R CIN KD PEOPLE. I have been sent here to represent an earn est people, who demand par money ; no cur rency, requiring "specie basis" and redemption and the enactment of measnres to reduce taxation, and to revive, maie active, ana maintain the labor and wealth-producing in dustries of our country. 1 am resolved that if no measures to relieve the people are passed by this House, the responsibility or such crime shall not rest on me. A powerful moneyed Interest may combine the Kastern press against us; they may employ adherents to aenounce us ior aaring to oppose tneir selfish and heartless schemes; knowing, as I do by a long and extensive experience in business, that our propositions are correct and would promote the public good and the honor of our country, I shall not abandon them. Having referred to the fact that greenbacks are not payable or redeemable In other money, that no act creating them can be produced that makes them payable at anytime in coin or other money, and as the people, after July 1, 1863. were deprived of the right to convert them Into bonds, and as the gentleman from Maine has informed us that he is ashamed of the act that increased the premium on the boDd holder's coin and comparatively lowered the value of the people's greenback, let us see whether we can not discover tne design or passing so ruinously UDjust an act of bad lalth toward the people. Mr. Spaalding, on page lwf or bis history, says: "ine attempt or sec retary Chase to float a per cent. 10.40 bonds" caused the premium on gold coin to rise as follows: January 15, 1864, gold was 155; on the 15th of April it was 178; June 15 it was 197; on June 2 It was from 233 to !t0, which enabled 40 cents in gold coin to obtain (1 in greenback, which conse quently enabled 40 cents in coin to obtain a dollar's worth of bonds to draw interest on and deposit In the treasury, and obtain 90 per cent, of tne laoe value or tne Dona in national bank currency, on which additional Interest la paid the bondholder by the individual borrower of that currency, making to the bondholder and banker three rates of Interest on each dollar of bonds which cost him from thirty-five to forty cents on the dollar. Therefore the gentleman from Maine has Just caue to be ashamed of the acts of his party while exercising unlimited power in this Home over legislation. But worse follows: On July 11, 1864, the premium on gold advanced to 28ä at the board of brokers in üew York, making 38 cents In gold coin equal to 11 In legally dishonored greenbacks, which enabled the 86 cents in gold coin to obtain a dollar's worth of bonds. 'o such deliberate robbery of any people by cunningly devised legislation can be lound in any other country on the face of the globe, nor do we think that any other than the law-abiding people of this country would so long and so patiently have endured it. Mr. Chairman, this is a question between an oppressed people and their oppressor! between the doers of wrong and the sufferers of wrong and our oppressors and their supple tools say we are lunatics for objecting any longer to endure such monstrous wrongs, well calculated to drive a once tree and prosperous people Into worse than lunacy. Hear Secretary Fessenden on this subject In his report of December, 1861. He said : In the course of a few days the price of this article (gold coin) rose from f l 60 to ti 15 In paper for il in specie, and subsequently fell, in as short a period, to SI 87, and then again rove as rapidly to $2 60: and all without any assignable cause, traceable to an Increase or decrease in the circulation of paper money, or an expansion or contraction of credit, or other similar influence on the market, tending to occasion a fluctuation so violent. It is quite apparent that the Solution of the problem may be found in the unpatriotic and criminal efforts of speculators, and probably of secret eaemles, to raise the price of coin, regardless of the injury inflicted upon the country or desiring to Inflict It. Doubtless ex-Senator Fessenden, confounded, and Indignant that "speculators'" or "secret enemies" should have taken advantage of his own act, and that of his party, to obtain a dollar's worth of federal bonds for thlrly-flve cents In gold coin, when that very act was diotated by those "speculators" and SECRET ENEMIES" OF THE PEOPLE S RIGHTS and Interests. In disregard of those bankers and brokers, that able, firm and determined man, Thaddens Stevens, had procured the passage of the legal tender act In the House making the "greenback" a full legal tender equally with flrnlri mfn! Anti It art SWmfa i-v k'.BBUn 4 An then a senator and chairman of the finance committee, not permitted himself to be led by bankers and brokers in opposition to the public good, no such event oouid have arisen, our bonds would have brought more than thirtyfive cents on the dollar In gold coin and we would now have vastly less of interest-bearing debt to oppress the industries of our country. Congresp, by adopting our measures, can puts stop to gold gambling, prevent any more operations of that kind, and begin to protect the rights of our constituents, od our own rights and Interests as well. The national bank act was approved March 25, 1863, more than a year after It was proved by the act of .March 17, 186i, that full legal tender notes not redeemable in coin were equal In value to gold coin. Mr. Bpauldlng, on pages 187 and 188 of his history, says : Is o nation ai bank currency was Issued until about the 1st of January, Itbi. Alter that time it was gradually Issued. On the 1st of July, 1864, the sum of 25,000,0-0 bad been issued, and on the 22d of April, 1855, shortly alter the surrender of Uen. Lee, the whole amount of national bank circulation Issued to that time was only f246,V27,975. It will, therefore, be seen that comparatively little direct aid was realized from this currency until after the close - of the war. . . . This bank issue was in fact an additional inflat ion of I he .currency. It is not only an Inflated but a when its volume exceeds its basis of redemption; it Is redeemable In greenbacks, and the volume of It vastly exceeds Its redeeming basis of greenbacks, and the national banks can not redeem their currency in greenbacks, much less in coin ; therefore the absurdity of talking about redeeming bank currency In coin, and as one full legal tender has been shown to be equal in value to another, irrespective of the commodity or material of which It Is made; by making the greenback a full legal tender It will oe eqnal to gold coin, and thus produce immediate specie circulation, obviating any necessity of contraction to make the national bank money redeemable In. gold coin; and obviate all necessity of usurping the power to make the greenback a bill of credit'' or redeemable in violation of our obligations to cupporf the constitution, and in- disregard of the public good. By the passage of the "nine hundred million loan act" in May and June, 1864, the clrcula ting medium was sufficiently expanded to Induce the people to take the bonds which the secretary of the treasury employed agents at great expense to sell ; and whatever may have been the purpose or motive of congress In repudiating the convertibility of the "greenback" into a bond, 1 have clearly shown that gold gamblers were enabled to Increase the premium on gold coin as the only legal tender, and comparatively depreciated the greenback, enabling speculative capitalists to get the bonds for thirty-five and forty cents on the dollar. j THE REASON GIVEN BY CONGRESS IN 1865 FOB CONTRACTION. Secretary McCulloch, although he admits Inj his report of-1865 that the business of the coun try. was mainly done with cash pay-j ments, that the business men were out of debt and that the country was In a remarkably prosperous condition, he advised congress to contract the circulating medium, being perfectly aware that It would produce distress and ruin to the laboring and business Interests of the country. The House of Kepre- J

sentatives on D eember 1?, 1885, by a yoU of

Resolved, That töls House cordially concur In the views of the secretary of the treasury in relation to the necessity of a contraction of the rnrrcnnr.vith a view to as early a resumpt on of specie payments as the business interests of the country will permit; and we hereby pledge co-operative action to this and as speedily as possible. Here we have It clearly stated that in order to resume specie payments" contraction is a necessity, and as nothing but bank currency requires "specie basis" and specie redemption, the object of contraction Is tn mmoinkta t Km national bank currency. To carry out this p'ot bas taken the bread out of the mouths of our laboring and wealth-pro ducing population to enrich the non-weaitn-nrniin-inff capitalists bv special legu-latlon. The man that is In favor of "specie basis" and "specie payments" is essentially an advocate and supporter of bank currency as opposed to the people s money or a full legal tender United states tre-aurv note, which costs the government verv little to make it. but it costs the creditor of the government a dollar to get it. and when made a ID illegal tenaer it wui enable the holder of it to obtain its denomlna tiona.1 valn in return for it: whereas the na tional bank currency costs the bondholder riniv i rwr Mnt on the average amount of clr culatlon. while the government pays him about 10 ner cent, per annum for taking It to loan to the people at from 8 to 12 pe r cent per annum, giving the bondholder and banker from 18 to 22 percent, per annum on his thirty five or forty cents invested in each dollar's worth of bonds. Even though a representative of the people may be one of this highly favored class of bondholders and bankers, most certainly it does not Justify him in voting to perpetuate a system so ruinous to the Industrial interests of the country. On April 12, I860, congress, unfortunately for the country, carried out their resolve of December, 1865, by passing an . act authorizing the secretary of tne treasury, at his discretion, to recede ! any treasury notes or other obligations issued under any act of congress, whether bearing interest or not, in exchange for any description of bonds authorized bv the act (of March 8. 1H65i to which that is an amendment; and alia to dis pose of any description or bonds authorized By said act, either in the United States or elsewhere, to such an amount. In such manner, and at snco rates as he may think advisable, for lawful money of the United states, or for any treasury notes, certificates of Indebted ness. or certificates ot deposit, or other rt pre sentatlves of vslue which have been or wnlch may be Issued under either or any act of congress; the proceeds . tnereor to be used only for retiring treasury notes or other obligations issued under any act of congress: but nothing therein contained shall be const' ued to authorize any Increase of the public debt: provided that of United States notes (greenbacks) not more than tin. 000,000 may be retired and canceled within six months from the passage oi mat act, ana thereafter not more than f,r0i',(00 in any one month. The secretary of the . treasury, under the remarkable powers given him by the act of 1866, the designing work of contraction, was begun, which in a short time raised such protests from the business men as to alarm congressmen, causing them to pass an act to repeal so much of the act or April iz.ibw, as prevented any further contraction of the greenbackr, but did net stop the contraction of treasury notes bearing interest, and certificates ot Indebtedness and or depot! t, amounting to over 11,200,000.000. This repealing act was passed in January, 1868; it was returned without the signature of the president, but It was not returned within the time prescribed by the constitution, and therefore it b came a law on February 4, lfe8. without his approval. The people not having critically examined the designing act of April 12, I860, were deceived by the repealing act of 1868, supposing that the contraction oi the cir culating medium was stopped, whereas It was rapidly and stealthily carried on by the secretary of the treasury, producing the commer cial crash and money panic of 1873, causing the prostration of our Industries and the pecuniary ruin of thousands upon thousands of worthy business men . who knew nothing of the danger that threatened them. I will now show that the bondholders and bankers IN WHOSE INTEREST CONTRACTION WAS BEGUN and carried on, knew perfectly well what result it would produce, as is shown by the following correspondence. From Buffalo, New York, on December 4, 1866, Mr. Bpauldlng wrote to Secretary McCulloch as follows: . . . You no doubt now, to a large extent, have control of the finances ot the country, and I th'nk that you will, of . necessity, contract moder ately so as to preserve a tolerably easy money market. ... mere may oe occasional spasms and tightness for money. . . but generally I shall look for plenty of money . . .for at least a year to come. To this McCulloch, on December 7, I860, replied as follows : . . .My object has been to keep the market steady, and to work back to Bpecle payments without a financial collapse. 1 thall act in the future, as I have in the past, with great caution, and attempt no Impracticable thing. From Buffalo, Jew York. on January 22d, 186T, Mr. Bpauldlng wrote to Mr. Hubbard, comptroller of the currency, aa follows: The act of congress passed on the 12lhof April last, 1866, it seems to me is a wise and judicious measure. It authorizes the secretary of the treasury to sell & JO gold bonds, and with the proceeds to retire per cent, compound interest notes and plain legal tender greenback currency and other Indebtedness ot the government, but not to retire more than ti,0JO,uuO of greenbacks a month, or f 4,0,000 in a year, but without restriction as to the amount of compound sixes , and seventhirties that may be retired during any wek or month, into long bonds. This law is discretionary with the 'secretary of the treasury. Power is given him to con tract the currency, but he will no doubt use his discretionary power prudently and not retire either greenbacks or compounds (and seven-thirties any faster than It can be done without materially disturbing the legitimate business of the country. .... The secretary will no doubt., by a moderate and prudent course of contraction, endeavor to seep the business and industry of the nation la a pros perous condition. ... gradually reduce prices, and bring greenbacks ana national currency nearer the specie standard. Ureenbacks could have been made equal to gold coin at any time by making them a full legal tender. On this point the secretary, in his last annual report, makes the following J udiclous remarks: "How rapidly the. United Hlates notes may be retired must depend upon the effect which contraction may have upon business and Industry, and can be better determined as the work progresses. . . . The policy of contracting the circulation of government notes should be definitely and unchangeably established, and the , process shomd go on, just as rapidly as possible, without producing a financial crisis, or seriously embarrassing those branches f Industry and trade upon which our revenues are dependent. As the volume of currency 1 re duced, It will increase In value: and aa seon as the specie standard is reached, the national banks will be obliged to redeem their circulating notes in specie." No remarks are necessary on this correspondence, as it speaks for itself and proves conclusively that the knowing ones were perfectly aware or the result that so thorouh a contraction must produce. I shall now refer to the designing act of March.. 18, 1869, which reads aw follows: Be It enacted, etc., That , . . . it Is hereby provided and declared that the faith of the United etates Is solemnly pledged to the payment in coin or its equivalent of all obligations of the United S taten not bearing interest, known as United Stales notes, (greenbacks,) and of all lnteret bearing obligations, except In casee where the law authorizing the if sue of such obligations has expressly provided that the same may . be ' paid In lawful money or othr currency than gold and silver; (that other lawful currency being greenbacks,) but none of the said interest bearing obligations (5.20 bonds) not already due shall be redeemed or paid before maturity, unless at such times as United States notes shall be convertible into coin at the option of the bolder, or unless at such time bonds of the United IStatea bearing a lower rate of Interest than the bonds to be redeemed can be paid or sold at par in coin. And the United States also solemnly pledges Its faith to make provision at the earliest practicable period lor the redemption of the United Stales notes in coin. That the designing character of this . remarkable act may be the more apparent, be it observed, first, it: provides that greenbacks shall be paid In coin or its equivalent; second, it admits that there are bonds redeemable or payable in greenbacks not full legal tenders; third, it prohibits the payment of those bonds before the expiration or twenty years from the date of issue unless they can be paid in coin, wnlch they knew could not be done; fourth, they foreshadowed th lr purpose to perpetuate the bonded Indebtedness of the federal government by converting overdue or redeemable 6,20 bonds into bonds that could not be paid off for a long period of years, bearing a moiety less interest than the 6.20 bonds; and fifth, they presumed to pledge the public faith to make the greenbacks "bills of credit" or redeemable in coin at some future time which wonld be a usurpation of power no granted to congress, bat purposely denied it, and would be a certain means of further DISHONORING AND , DEPRECIATING GREENBACKS. On the day this act was approved the premium on gold was thirty per cent., there were

over ,ll,400,COO,CCOof 5.20 bonds, redeemable in greenbacks, which Increased the obligations of the people as taxpayers 140 , 0GiO for the benefit or bor dholders. Senator Morton, of my own stale, In the Senate, in relation to the act of Mai ca 1 7, i860, said: What Is the purpose of It, and what will be the effect of It? Simply to raise the price of bonds in the market and to put money into the hands of the speculators. Sir, It is unceretood, 1 believe, that the. passage of a bill . of lb Is. kind would have the effect In Furope, . where our financial questions are not well understood, to increase the price of our bonds and increase the demand; .and that wiJl enable the great operators to sell the bonds they have on hand at a profit. it is in its nature a broker's operation. It is a vbull" movement, intended to put up the price of bonds for the interest of pan is dealing In them. And yet congress presumed to pledge the faith ot the people to an act passd Id bad faith towaid the constituents and in disregard of their rights and interests. These acts have been condemned by the people, and most of the authors of them have been retired from seats In this House to the shades of private life; and It does not become those who participated in those acts yet lingering in this House to lecture it upon the pledges they made in bad faith and in . gross violation of the rights of the people to promote the Interests of bondholders and bankers. Congress In I860 admitted that the necessity for and direct object of contraction was to resume specie payments, to perpetuate the national banc currency, and take from the people tne legal tender greenback. It Is apparent tnat the act of 1860 and the refunding acts were designed to perpetuate the bonds, making them a perpetual burden on the people, to be met by heavy taxation : creating a neces

sity for an excessively high tariff to enrich manufacturers at the expense of consumers; and to give to the bondholder a perpetual and steady source ot Income, payable semi-annually in gold coin bearing a premium, with exemption from stale and local taxation. that their calldren may be educated out of the taxes of the toiling millions: and finally to establish and maintain in ptrpetulty a moneyed, at lstocracy. i"r. Chairman, the people propose to pay off or buy in this bonded indebtedness with par money, and by so doing to put in circulation the mooey necessary to revive, make active and prosperous the wealth-producing industries of the country, and have sent us here 10 carry out t is policy. Shall we do our duty to our constituents, or shall we sit idly in this ball in dread or thegodsot Mammon? Let us have action, if one national bank with a capital of only thirty-five millions was considered dangerous to the morals and liberties of our country ov General Jackson in 1832, how much more dan gerous is over two thousand such tyrannical and corrupting institutions. Let us act promptly and with determination. THE SOLE CAUSE OF PANICS. The advocates of contraction and of bank currency deny that any contraction of the cir culating medium has taken place and also that col traction caused the crash and pahlo of 1873. I will prove that contraction uniformly pro duces such results and that the circulating medium, principally composed of treasury notes (bearing Interest) and greenbacks, has been contracted since April 12, 1866, over 11,200.our, 00. A contraction of bank currency of only tXi,tXX0U0 from 1816 to 1820 caused the era ih. panlo and distress at that time A contraction of 183,000,000 from IStf lo 1843 caused the crash and panic of that period. A contraction of forty-nine millions from 1854 to 1857 caused the crash and panlo that took place in 18)7. A contrac tion or tweniy-tnree mi; Hons from itw to 1:62 produced the money panic and suspension of specie payments in December, 1861. The vol ume of slate bank currency in 163 was two hundred and two millions, which they were unable to redeem In specie. The following was the volume of money, currency, and cir culating medium (exclusive of coin) on September 1, 1865: United Btates notes, (greenbacks)... 1433,160,569 Fractional currency- 2UJÜ4.742 Compound Interest (legal tender) notes 217.024.160 United States treasury notes legal tenders', (a per cent, interest).... 32,6.56,91)1 United States treasury notes (over due) ana not bonded, legal tenders... 1.503.020 United States treasury notes, legal tenaers, tnree years interest at 7 3-10- .. .. 830,OCO,000 Total amount of treasury notes. 140.569.482 Certificates or loan, (lu d. d.) - 107,148,713 Certificates of Indebtedness .. 85,083,000 Total amount of treasury notes and certificates of the tit astiry MMHwMiwittM(..MHm jsa732 1 19) National bank currency 18i.uoo.CM 0 State bank currency..... .. 18,867,670 Total amount circulating medium September 1. 1865 1.996.878.770 The amount of circulating me dium, exclusive of coin, December 1, 187J: United States notes, (greenbacks) ... 307,001 ,685 Fractional currency- 48.000.000 Certificates of indebtedness, (bear ing interest) 678.000 National bank currency. 350,1 0U,tU Total circulating medium December 1, 1873- 765,679,685 Showing a contraction of 11.210 '199.085 from 1865 to 1873. which was stealthily carried on under the act of April 12,1866. In the face of these facts no man can deny that the crash and money panlo of 1873 were caused by this enormous contraction of over 11,200,000,000 of circulating medium. Previous to 1863 a con traction oi from twenty-nve to eighty millions of dollars would produce a commercial crash aud money panic; but In 1873 it required a contraction of hundreds of millions of dollars to produce such a result, for the obvious reason that from 1820 to 186i the btulness of the country was carried on under the credit system, forced on it by bank currency requiring redemption in lawful money. The basis being limlttd and insufficient for the wants of trade, commodities had to be sold and bought on credit; consequently business men were in debt, and then a small contraction would produoo a crash and a panic; hereas in labt there was an abundance of circulating medium, enabling commodities to be bought and sold for sash. Business men were mainly out of debt, and therefore It required a large contraction of , the circulating medium to force the credit system on the country ; and as contraction was carried on, credit was substituted for the cash withdrawn from circulation, resulting in 1873 In such an expansion of credit as enabled, a crash and money panic to be produced ; once more S lacing the labor and wealth-producing innstries of the country at the mercy of NOTE SHAVERS AND DEALERS IN "CREDIT CURRENCY." The congressional resolution of December, 1865, frankly asserts the necessity of contraction to maintain the useless and expensive national bank system of currency, which policy Is designed to perpetuate the system of bank currency, and force the country to do business on credit, so danagerons to business men and so profitable to money lenders and note shavers, carried out under the act of Aorll 12th. lfcbft. bv ihum mnvrnn. inl hni. izing the notes and certificates of the treasury to be contracted, and the act of congress of February 4tb, 1868, prohibiting any further contraction of the treasury notes known as greenbacks" than the K4.C0T.00U then retired by the secretary of the tieasury under the act of April 12th, 1866. In proof of the fact that those who make such a denial know better, and - do it knowing that a large actual contraction has taken place since April 12,1866, I quote from the president's message of December, 1873. He says, "In view of the great actual contraction that has taken place in the currency." Certainly, the president, as the representative of the contraction and bank currency f action, had no Interest or motive to induce him to make such an admission had it not been true and easily substantiated, by the acts of congress and an Inspection of the books of the treasury. The advocates of this currency system also deny that Ihe 830,000,000 of treasury notes. If gal tenders bearing two cents Interest per day in lawful money ana convertible Into 0.20 bonds in three years, together with other treasury notes, legal tenders, bearing interest and convertible into 6.20 bonds after one, two, and three years, were used as a circulating medium. In proof of the fact that they also make this denial knowing that they were so used X quote from the reports of Secretaries Fessenden of 1864, and McCulloch of 1865. Secretary Fessenden, in his report of 1S64, say s: Of five percent, interest bearing notes there were outstanding on the 1st day of November, 186, 120,519.110. To a. considerable extent these notes have been and will continue to be used As currency. In the same report he also says that be paid, out many millions' of the 7.3 notes toofllcerslnthearmyln lieu of the ordinary currency meaning treasury notes not bearing Interest which previous to July 1, 1863, were convertible into a six per cent. 6.2u bend at the pleasure ot the bolder. Secretary McCulloch, In his report of 1865, says that these (7.8) notes were extensively used as currency, and for that reason ought to be withdrawn, and urged a contraction of the currency. Unfortunately for the country, congress carried out the contraction policy advised by McCulloch In the interest of those who had plotted to fasten on the country a bank currency oli

garchy. The people demand a In alt fn this ruinous policy, and will have their will respected sooner or later; It Is only a question of time. The only policy proposed to us by the advocates of bank currency Is conti a ued contraction, more distress to the wealth-producing industries of the country, in order to return to coin basis, for bank currency and specie payments. Inthefaesof all the facts which 1 have shown, 1 ask the advocates of bank currency why they persist In a denial of the fact that "a great contraction" has taken place, and why they also deny that It caused tbe commercial . crash and money panle of 1873? They do it because they do not wish to apply the only remedy that ever has been applied to remove the effects of a commercial crash and money panic. Moreover. If they were to admit the truth, they could not defend the resumption actor any other measure looking to contraction. Their professed Ignorance ot well-established facts is their only excuse for turning a deaf ear to THE DEMANDS OF A ' DISTRESSED PEOPLE FOR RELIEF. Mr. Chairman, these advocates of bank currency tell ns that they want to come down to a "solid basis" to touch "hard pan." I am in favor of placing the business of the country on a solid basis, but not on one which produces bankruptcy and takes the bread out of tbe mouth of the laborer, and surrounds him with bis wife and children suffering from hunger and nakedness, while he is willing to work and beggng for employment and can obtain none, although money dealers say tnat money and currency are abundant. They may be abundant with bondholders and bankers, but money is not abundant for general purposes, or it would not command so

high a rale ot interest as it now does, when money is plenty, the interest on it is Jow; when it is scarce, the interest is high, as at presen ; and to-day we witness the remarka able spectacle of real estate, and the productions of the farmer and the manufacturer, falling in price and the value of money going up, with an increased cost of producing, as contraction goei on. The Bolld basis I want is tne entire wealth of this country as a batls for full legal tender or par money of sufficient volume to revive and make active the wealth producing industries of tbe country, lowering tbe rate ot Interest on money, and thus cheapening the cost of productions, without imposing unjust wages upon the laborer; increasing our exports until the balance of trade shall be in favor of this country. No individual Is on a safe or solid bacis unless he has more credit than he has occasion to use. And 1 have no confidence In tbe business capacity of Judgment of any man in this House who thinks or affects to believe that it is possible to resume and maintain 'specie payments with tbe balance of trade against us, our productive industries crippled or prostrated, our laborers oui of employment, and the capital that employs labor and produces wealth commanding from 10 to 12 per cent, per annum more than the business capital pays in the oontiiea with which we must compete: a difference and difficulty which no amount of tariff subsidy lo manufacturers will enable them to overcome, bo long as the currency Is scarce, producing usurious rates of interest, beyond what labor can earn, on the money that employs the laborer ; snd so long as it concentrated into the hands of bondholders and bankers, who draw interest on their bonds, with exemption from state and local taxation, and can lock up tbe currency and live, until tbe laborer and those whose !uJntss it is to produce wealth are starved into slavish submission to the unjust demands of speculative capital ibis. Mr. Chairman, this question of a return to specie payments, as an excuse for contraction, has not been entertained by me lor one moment, and shall not be, producing, as it has, the present ruinous slate of affairs; and no vote wi l I give in favor of any measure looklr g toward permanently fastening on the people an institution that periolically prostrates our industries, controls tbe volume and regulates the value of currency ; an Institution that expands and contracts the circulating medium at the pjeasnre of selfish speculators, who never risk a dollar in producing wealth, and who insist on maintaining the legislation dictated by them, which bas enriched them and impoverished wealth producers. Never shall this Interest command my vote or support until it shall have shown Itself willing to aid in placing tbe business of the country on that solid bla indicated by me. I will not make myself responsible, either directly or indirectly, lejr tbe continued and increasing distress of my countrymen, produced by the contraction policy. THE PROPER REMEDIES ARE EASILY AP PLIED, and would be Instantaneous in their opera tion; but In consequence of this conflict be tween aristocratic and democratic republican forms of government, legislative relief so Imperatively demanded by the Interests of the peotsle if delayed, although this House is largely controlled by representatives elected by democrats and Independent republicans, who desire full legal tender money and its substitution for the national bank currency, and the prohibition of banks f issue. Why shall congress give to individuals or corporations the high power to make a currency and regulate its value and volume? The powers of congress are delegated, and not sovereign; therefore I ask by what part of tbe constitution is congress authorized to give up to speculators a power delegated to it only? Mr. Webster, in a eontltutlonal argument on this subject, said the whole control over the standard of value and medium of payments is vested In the general government. That this is a correct conclusion is obvious, from the fact, that the constitution does not contain any clause granting to congress the power to Issue a note or "public bill," authorized by law to circu late as money or currency, promising payment in lawful money; and as such a power was purposely and by a distinct vote of the lramlng conven tion denied to congress, it would be an act of usurpation to assume it or confer on individuals or corporations a power not delegated to congress, and destructive of the pnblio good. For the past fifteen years the Eastern bondholders and bankers have controlled the legislation of congress in their own Interest to the injury and oppression of the great agricultural and commercial interests of tbe country. Their "cunningly devised scheme" to make the Interest on bonds and duties on Imported goods payable in gold coin, as the only full legal tender mosey, creating an Increased de mand lor It, and thereby oreaung a premium on it by law, which act Air. Stevens, of Pennsylvania denounced, as I have shown; and Mr. Bpauldlng, in his spetch on the lyth of February, 1862, in opposition to the Senate amendments, said: Who are they that ask to have a preference given to them over other creditors of the government? Sir, It Is a class of men very sharp In all money transactions. They are not among those who by their labor and skill make the Wealth of the country. ... Men who are willing to lend money to the government If you will make the security beyond an question, give them a high rate of interest, and make it payable in coin. . . . Sir, the legal tender treasury note bill was Intended to avoid all such financiering and protect the govern ment, and - he people who pay taxes, lrom all such hard bargains. ... In every aap et in which you view this nam money provision lis practical working will be disastrous. As scon as the country was at peace, these bank ers and money lenders generally, in oaa faith with the people, exerted their power to procure legislation to compel the people to pay the 6.20 bonds In gold coin in order to defer the payment of them, as tney knew there was not the gold coin in the country to do it with as those bonds became redeemable, nor could it be obtained under the contraction act of 1866. It Is obvious that the purpose was to perpetuate the interest on the bonds, to be met by heavy taxation as a perpetual burden on the labor and industries of the country. How much longer are we to be compelled to endure the yoke of servitude which a selfish and covetous interest has plotted to fasten on ns and our constituents? There are gentlemen on the floor of this House, honored as repretentalivea ef the people, who are officers cf national banks, and freely admit that a respect for the rights of the people makes It our duty to MAKE THE GREENBACK A FULL LEGAL TENDER and substitute It for the national bank currency, and let bankers do business with the people's money. Why should we hesitate or delay to meet this issue, forced on us by those who wish to still longer enjoy the immense advantage of supplying the people with bank currency, instead of allowing them to have and use their own paper mouey, which may be made and maintained on an equality with gold coin. Are we to be deterred from acting on his question because the gentleman from Maine (Mr. Blaine) has informed tnis House and the country, in his speech of tbe 9lh instant, in defense of the national bank currency, that to abolish banks of issue or substitute the full legal tender greenbsck for the national bank currency would place "the currency wholly In the power and under tiie control of congress?" : liiere is where the constitution puts It. But the gentleman from Maine says that congress is "utterly unfitted to determine

front time to time the amount of circulation required by tb wants ot trade. But indeed no body of men could be Intrusted with that power." And yet he advises congress to continue to confide that power to national bankerr., especially uader the late law of congres, which makes national banking free to all bondholders by depositing their bonds in the treasury and getting 9t percent, ot their face value in national bank currency requiring redemption, to lend at such rales of interest as can be squeezed rut of needy borrowers who are brought into the clutches of these 'creditmongers'' by an expansion of a redeemable currency anere evidences of debts lue tue public by bankers equal to the bonded indebtedness of the federal government les 10 per cent. Tbe next operation is to put their subsidy currency out on Interest, secured by well-indorsed note, and thus Induce very business man to extend his business to Ii. utmost limit. Just at that point these bankers remember that tbeir currency calls for redemption in lawful money on demand ; and, as they have not tbe means with which to redeem it, they begin to on tract discounts, calling for payments or their loans, which contracts the circulating medium, producing a pressure in business circles, tbeu a crash aud

a panic; and, having no means to pay their notes In lawrni money, they lock their doors and coolly retire, sneering In disgust at tbe lunatics wno are tools enough to im-gtne that the promise to redeem bank currency in green backs or coin was made to be performed. Such Is the see-saw, the up and down, expansion aud contraction policy and process of banks of Issue and It Is to tnese bankers hat the gentleman fiom Maine would hand over the power to regulate tbe volume and value of money. This is tbe result of studying political economy out of books in a law office, where a rich creditor as a client is always welcome, no matter what Decomesor tne poor ceiuded debtor who was foolish enough to take the advice of the gentleman from Maine, and trust the banks to regulate "the wants of trade," and fix tbe price of land and of everv commodity throughout tbe country. Instead of wasting time in studying books on political econony. written in the interest of bank currency and f speculative capitalists generally, tht gentleman will find It more profitable to study the wants audio terestsot business capltalisis. Moreover.besides having spent his time in studying the interests of banks of lsue, as he doubts the capacity of the people's representatives to ba trusted with orrylrg out the fundamental lw by which our acts must be governed, it would seem that he has aio been devoting some ot bis attention to studying tbe views of the Hamilton scho lof statesmen, who, as 1 have shown, doubted tbe capacity of the people for self-government, anu inuugui mat system or government best which tag s c ire of the rich and leaves them to protect the poor. Mr. Chairman, I repeat if, It is this conflict between two widely differ ent systems of government that makes this contest necesfitry between full legal tender money and bank currency requiring redemp tion in 1' gal tender money. The contest Is not between gold and silver coin and legal tender treasury notes; no conflict can arise between them If they are made by law to per form lue tame functions. iheconUB' is be tween THE PAPER MONET OF THE PEOPLE, which dees not need redemption In other money, and tbe promissory notes of banks of issue. The volume of legal tender money has a very safe limit fixed to it. Congress can not pass any law, constitutionally, to pay out money for any other purpose than to pay constitutional and lawful demands on the treasury, and it is the duty of congress to pay a debt at the earliest moment possible, that not one dollar of taxation may b- drawn from the reopie to pay interest on a suspended debt for the want of par money to pay It wita so long ai the high prerogative is In congress to make money, and regulate it vaiue, by making it a lull legal tender; being the only way In which congress can give it a fixed or unfluctuating value. Tbe great delusion ol the gentleman from Maine consists In nls mistaking the medium of exchange or a tool of trade tor wealth. Money, or a legal tender, Is not wealth ; it is simply the means of exchanging commodities and of paying debts. Although it may cost the government very little to make a legal tender paper dollar, whoever gets it out of the treasury lawfully, must give a dollar for it, and being a rull legal tender, It will be certain to get him its full denominational value in exchange for if. Being based on all tbe wealth of the country, including its bullion or coin, it is tnerefore a representative of wealth or value and may Jus'ly be required to be taken at its denominational value. But when gold coin is made a tender, it being made a commodity constituting a portion of tbe wealth of the country, it must be tendered by weight according to its actual commercial value; the value of coin can only be determined by its weight. That tbe paper doliar may maintain a steady unfluctuating value, without being affected by the change in values of tbe commodities it represents. It is only necessary to make it, at the pleasure of the holder, convertible into a certificate of deposit or bond pajableon demand, and bearing an accommodation rate of interest, and when the paper dollar is made a full legal tender, performing all the functions of money, it does not require redemption, as there is noticing superior to it. The gentleman from Maine says that "no wisdom of legislation has been able to avert the periodical revulsion in trade com men to all commercial nations." I have shown that the crash and panic of 1873 were caused by an act of congress, and not as formerly, until 1862, by the banks suddenly expanding and as suddenly contracting their currency. An act of congress did it to maintain bank currency ; and so tar from "the wisdom of legislation", having "been able to avert it," none bas been tried. On the contrary, legislation has been made by congress since September, 1873, increasing the evils of taking from the people the necessary volume of circulating medium, a policy begun in 1869 in the interest ot bondholders and bankers THE MANIFEST REMEDIES. The cause of a disease being known, it is easy to know what remedy to apply. As contraction caused the crash and panic of 1873, and has been carried on by the resumption act of 1875, remove tbe cause and tbe industries of the country will revive. For this purpose I propose: First, an act unconditionally repealing the resumption act of January 14, lso ; second, an act oi con gress making com and United btates treasury notes full or caoal legal tenders, leaving speqlnc contracts to be earned out or paid in socn money as may have been specifically slated in the contract; third, an act sustltutlng par United States notes for the national bank currency; fourth, an act making par greenbacks convertible at the pleasure of the nolierlnto a certificate o deposit or bond, bearing a low or an accommodation rate of interest, which certificate or bond shall be made payable in lawtul money on demand. The resumption act should be repealed, because it is causing a still further contraction of the circulating medium and Is more and more, day by day, increasing the difficulties of business men, decreasing the value of lands and of all commodities of barter; thus giving money and currency more and more an undue purchasing power. Its repeal will have the effect of enar ling bankers to. put their currency Into circulation without any fear of a run on them for redemption, which will aid in reviving the industries. it will prevent the further retiring national bank currency (laying idle in tbe bank vaults in consequence of the stagnation of the general business of the country) in order to lift bonds bearing an Increased premium, In consequence of this resumption act and tbe act of March 18, 1869, which was one of the designs of its authors, as 1 have shown. The passage of an act making United states treasury notes and silver tuli or equal legal tenders with go d coiu would make them equal to each other as money, and would give us real or par money, causing real values to lanos, bouses, and all salable commodities; it would destroy the premium on gold coin, which would dlspeme with the go:d gambling rooms on Wallstreet and elsewhere, and would reduce tbe cost of living and of doing business equal to the fluctuating premium that gold commands, in consequence of it being tbe on'y full legal tender. In reply to thoe who have thoughtlessly asserted that by making coin and United States notes equal legal tenders would compel the purchase of coin to pay the Interest on enr bonds driven to Europe by a contraction or the United States treasury notes, I call their attention to the following remarkable facts: At the conclusion of the late contest between France and Truss la, France was in a seemingly ruined condition. Prussia held armed possession of Paris and demanded the payment of over a thousand millions of dill are as an indemnity. To meet it the notes of the royal Bank of France were made rail legal tenders, and the bnk was prohibited from redeeming its notes in coin. The bank was authorized lo Issue over $ 100,020,000 In full legal tender notes. Tbe French government oorrowed 9100,000,000 of tne bank at one percent, per annum. When the notes were first issued, ruoney-changers rated them at two and a half percent, discount; the bank was authorized to issue tJUO,000,060 more of those notes, when they became equal to coin In value, they revived and made active the wealth, producing industries of France, renewing its exporlaüons, and thus l

producing the balance Of trade In favor of France, CAUSING! AN INFLUX OF THE PRKClOUa METALS. In the mean time the French government, to make the stipulated payments of the Indemnity, took the full legal tender notes of the bank and purchased foreign bills of exchange, thus enabling the French government to obtain them sans of paying -its Indemnity to Prussia in advance or the times of payment stipulated. Tbe Bank of France is still prohlbl:ed lrom redeeming Its notes In co n;they are continuously on an equality or par wl til coin. France is in a hlghiy prosperous condition ; the French government la rapidly paying the loan made it by the b.nk, which is reducing its paper circulation to make a channel of circulation fcr the coin flowing Into France. No candid man who piopeny eonaiders these Indisputable facts will assert that by making treasury nous and coin equal legal tenders would compel the federal government to purchase col a to pay In te rest abroad or at home. I think that no one will i resume to assert that the credit of the federal government and lis full legal tender treasury notes would not be equal to the creditor the royal Bank of France and its notes, backed by the Tench government. That our full legal tender treasury notes would be par with gold coin, and would purchase exchange on Europe as favorably as gold coin, there can t o. be a Question ot doubt; because they will purchase, at the same price as coin, all com mod ill es of exportation that command coin in Europe. There Is one oiner fact in connection with this subject of French experience which it is proper to call to the notice of this House. That fact elates to the volume of the escalating medium required In France to maae lis indu tries prosperous. France has a population about equal io the populat on of this country; its territory being much smaller and the population more compact, its money circulates more freely and a less volume will accomplish as great an amount of trade there as here. Tbe total amount of circulation in France by the lowest estimate, as staled by HAgenot, Lombard treet, Nort h American B dvle w, Jau nary , 1874, and Review of tbe Two Worlds, November i, 1873, is 1.30,1x0 out1, wlt'a a population of 36,i0i,öil, gives an amouut ot money per head of 134 62; and or this amount of circulating medium S70t ,000,000 is in coin, wee re as the circulating medium of this couutry is stated by the same authority at tsOü.iM'.om', making a total cli culatlon per head of 121.72 ; by deducting a reserve fund of only I2ou,out ,ou,U would be an amount per tead of only 116 72, as compared with that or France, amounting to Sil ti. If those who assume Ut ba statesmen can learn no useful lesson from these facts to profit by, all common-sense exp silenced business men can. Money may be too abundant in this country to promote tbe interest of those who have a cash capital and are engaged in tne tiadeof money lending and note shaving, but that it is far below tbe wants of the pioductive ii-Uusirles and the interests of Ux payer, there is not a question of doubt in my mind. My third proposition is to pass an act substituting par treasury notes for national bank currency. This would be a saving to the tax pay er of over V2u,oi0,0 v annua ly, and, had tbe national banks never been incorporated and state tanks of Issue beeu abolished, the treasury note made a nil legal tender and been used to redeem the 5. bonds as they became redeemable, we would now have at least Si,2uo,OOl',uou less debt wl h some sixty millions less taxation, and we would have avoided a commercial crash and money panic, and thousands of business men would have avoidtd the ruin and poverty to which they have b-en subjected by a stealthy contraction of over f i.iax),t)UU,ouO in tne Interest of bondholders and bankers. Mr. Chairman, In the laoe of these facts I am at a loss to understand why democrats should hesitate about what course to take on this question when there is BUT ONE CORRECT COURSB TO BE TAKEN. The national banks, being founded on special laws to promote the interests of a Special cla.s at the expense of the publle good, ever have and ever will oppose sound democracy and genuine republicanism, any attempt to compromise with such an interest is, in my Judgment, useless. Divided as the House and SDnate are, and threatened by a presidential veto, we may be com pel led for tbe present to accept less than should be done; but tor one lam reolved not to compromise any principle to obtain anything, as It cocld not result in advantage to the reople. Mr. Chairman, the fourth proposition to make the treasury notes interconvertible wllh certifies tesof depositor bonds bearing a low rate of interest to Insure the notes being kept on aa equality with lull legal tender coin : and if no more money fa to be issued, it will be a measure Indispensably necessary to open loans by offering a low interest bearing bond; to loan the moaey now in circulation to bay up in the open market our bonus now in Europe, the interest on which greatly aids in keeping the balance ot trade aalnt ns. Mr. Chairman, I have snowa that the democratic party has one uniform record in favor of legal tender coin and treasury notes and of determined hostility to banks ot issue. Tne democratic party in Convention in New York In J uly , 1868, la its third resolution, says: Payment of the public debt as speedily as practicable, . . . where the obligations of the government ao not expressly state upen their face or the law under wfalen - they were Issued does not provide that they shall be paid In coin, they ought In right and in Justice to be paid In the lawful money of the United States. I Thunders of applause. 4. Equal taxation of every species of property according to its - real value. - including government bonds and other pabtle securities. IKenewed cheering, and cnes of "Read It again." 6. One currency for tbe government and the people, the laborer and tne officeholder, the pensioner and the soldier, the producer and thebondholder. Ureat eneering, and cries of "Head it again! The fifLh resolution was agaia read and again cheered, 6. Economy in the administration of the government, the reduction of the standing army and navy, great eheerlng, . . . . discontinuance of inquisitorial modes of assessing and eoliectlng internal revenu, so that tbe burdens of taxation be equalized and lessened, the credit of the government and the cunency made irood. . . . We have this clear announcement by the demociatle party so early as 1868 in favor of the popular doctrines ol to-day. 1 had the honor to be for them then as one et their original advocates. 1 am lor -them now against any and all opposition: I am prepared to stand by these principles as an issue superior to all ether questions of jKrblle policy ; they do not admit of any compromise whatever. The credit of ihe government can only be made good by paying Its debts, ana Its currency can only be made good, or par, by making It an equal legal tender with - gold coin; and 1 am for Its being done wittaout further delay. Mr. Cnairman, earry out these principles and government wtli no k)nger take from the month oi labor the bread it has earned.' if represent all res in this House honestly desire to give the People par money, and to restore goid and silver to circulation, and to maintain the good faith and credit of the federal government,-congress must pass an act to enible the government to honor its own paper by receiving K tor all dues to the maker of it, a9 It can not be

done by any other means. 1 again call the at tention of this uouse, and especially tne attention of the gentleman irom Maine, to the fact that the contest is between United mates notes and bank currency and nauks of Issue. Our opposition is to ail banks of issue, "bills of credit," and all kinds of oepreolated money and currency, "cant currency must oe suppressed and . the circulation restored to the nation, to whom it belongs." This was tbe battle cry of Jefferson and oi Jackson ; and fidelity to tne people requires ns to atop contraction ; substitute full legal tender convertible United States notes lor bank currency; prohibit banks of issue; espand the oonsittutlonal money of tbe federal government by paying Us debts until thevolumeshall be eqoal to the wants of trade;' stop all useless '.station ; repeal the odious, demoralizing, and unjust excise or Internal revenue laws (revive the wealth producing Industries and general business, tnat the laborer may be employed and promptly paid, even though mere should be a surplus of money, as it is better that money should be idle than labor. The man who has more moner than be can profii-ibly employ or put at Interest, Is In no dAOger oi starvation, ana .is mere iure uwi a subject for our charltlesl n this crisis. THE FACTS I HAVE REFERRED TO pBOVi: 1. That congress has unlimited control 'over tbe mcney question. 2. The constitution does not compel con gress to make gold, silver or anything else a legal tender. 8. Congress only can coin and make money and regulate its value by a lull legal tender act. . Congress ean neither Issue a bill of credit" constitutionally nor authorize it to be done. . . . . 6. so state cam eotn money Or emit a wu of credit" vor authorize it to bedonefstr make coin a tender in payment of debts, un less oongreoa raus to ao so.