Rensselaer Union, Volume 8, Number 41, Rensselaer, Jasper County, 29 June 1876 — An Address on the Currency question. [ARTICLE]

An Address on the Currency question.

Mr. Elliot 0, Cowdfn, of New York, at the invitation of citizens or both political parties, delivered at Cihctamti, a few evenings ago, an address on the “ History of Currency and Finance in the United States.” Beginning with the wampum and barter currency of Oolonial times, he described the depreciation of the first paper money issued by the Colonies and subtequcntly of the continental currency, outlined the expedients of Robert Mortis and the financial policy of Alexander Hamilton under the .Constitution, and re counted the organization of the United States Bank, the suspension of Bpecie payments in 1814, the establishment of the second united States Bank, President Jackson’s fight with the United States Bank, the panics of 1819, 1837 and 1857, and the financial measures of President Lincoln’s Administration. He closed by prescribing remedies for the financial embarrassments of the period.

it requires, said he, no logic to prove that the colossal financial transactions of oar late war have left a tremendous burden upon business of every kind. 8o far as the Government and its liabilities are involved, and so far as the actual weight upon the people is concerned, the situation remains much the same as when the war closed. We feel the pressure as wearily at this hour as at any previous period. And the question now arises, what is to be done for our relief? My answer shall be brief- The people must rely mainly on themselves, adhere strictly to their legitimate avocations, live within their means, cease croaking, and be of good cheer. Notwithstanding the debilitating drain of the war, the wealth of the Nation is constantly increasing. Never were its developed resources so great as now, while those undeveloped are of incalculable value. It is to these and to the inherent energies of the American people to bring them forth and utilize them that we should look for deliverance from present embarrassments and for future prosperity. At the same time our National, State, and city governments must curtail their disbursements. We must be prudent in our credits. We must stop investigating in speculative schemes. We must cease operating in lands for the mere purpose of laying out paper cities. We must stop constructing railroads through regions where there are no passengers ana no freights. ' We mttsf not irun into debt, and thus mortgage the uncertain earnings of the future to meet the improvident outlays of the present. By, such processes we can restore confidence, revive business, and powerfully aid itt A speedy return to a sound ctuxency. '- ’- ’-Li. It is now fourteen, years since die,suspension of specie payments. This is by ftirtofe longest period df suspension the Nation has ever experienced. The fact that Great Britain remained under suspension from 1797 to 1821 .affords no excuse I fog us. Although struggling for existence against armed Europe, after the actual close of the long war to put down Nitytolebn, Engird continued iij suspension only six years, while it is now eleven years since dhr great war terminated . The Bank of England voluntarily resumed Specie payments in 1821, instead of. waiting until 1823, the time fixed upop by law, and resumption had no serious effect upon the market beyond- temporarily* checkin# speculation. ' i ■ 1

Look at France in our own day. It is scarcely fiye years since the close of the terribly destructive Franco-German war, vet we find that, besides paying off her 5,000,000,000 francs of indemnity, she has reduced the amount of her paper money 750,000,000 francs. And although 1878 is the time fixed upon for legal resumption, paper money in France is now actually at par. How striking the contrast between the financial policy of France thus exemE lifted even in the hour of defeat and umiliation, with that of America in the fullifess ot,victory and exultation. The lesson taught by the facts I have cited is that a renewal of confidence and a revival of business lead to resumption naturally, and that resumption does not operirte so much as a cause of prosperity as an effect that follows it. It also shows that when paper money was at par nobody wanted coin except in special cases, preferring paper, as more convenient, for the purposes of a circulating medium; hut, as Franklin expressed it,Tt is “ paper money well founded” that has these advantages. With prudence and confidence we may reasonably hope to reach resumption on the day named in the act of Congress. To prepare for this we must, in tne meantime, submit to a caretul but gradual reduction of the volume of the currency. Prior to the outbreak of the rebellion the maximum of paper money ever in circulation in the country was $215,000,000. The outstanding paper currency at the present time is about $730,000,000; it is evident, therefore, that the first step toward a return to specie payments should be, in some form, a contraction of this war legacy of an inflated currency. This done, the whole country will then recognize the wisdom of repealing the legai-tender act, and the gradual redemption of the legal-tender notes. The United states now owe some $380,000,000 of these notes, or one-sixth of the entire indebtedness, long since past due. Now, gentlemen, Task you this plain question: What would be thought of a business house owing a large amount of borrowed money, or bills past due, in addition to notes on time, if it were to apply all its available receipts to buying up its unmatured long notes, leaving the demand claims unsettled, and ignoring the interest on them? The payment of unmatured notes and debts, while no effort was made to pay borrowed money and past due debts, would be a flagrant act of injustice which no court in a civilized country would tolerate between individuals, and under our laws would sr.bject a firm to be adjudged fraudulent bankrupts. Yet for moie than ten years such has been our National policy, to the serious detriment of our hidus trial interests, and to the debasement -of-pubHo,morals- r — - ———•«—i TrucFrench have not as yet reached the high commercial plane of selling eirgs by weight, as they undoubtedly should be sold -. but they are considerably in ad* anco of the Americans in graduating the price According to the size. A set of measuring rings i* a necessary part of a French eggde iler’s outfit.— Detroit Fn» Press.