The Inevitable Ruin of Business Men July 17 1877

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The Inevitable Ruin of Business Men  July 17 1877 - : : - Tbe Inevitable Hnln of Business Hen....
: : - Tbe Inevitable Hnln of Business Hen. Philadelphia," Penn., July 17,1877. To the Editor of the Enautrer: The circular of the Mercantile Agency of Dun A Co., of New York and Philadelphia, states the number of failures for the first six months of three years as follows: First half of 1877, the number of failures was 4,749; first half of 1878. the number ot failures was 4,600; first half of 1873. the number of ( failures was 3 563. ' j nix gebat cokspibact TS 1S66. lrrl8G6 the bondholders and bankers influenced Concrress to pass the Contraction Act of April 12. 1866. The circulating medium, including coin. was a- a- follows: fl.M0.56y.i82 . of United 8tates legal-tender legal-tender legal-tender Treasury notes; 1107,148,713 of certificates of loan payable on ten days notice; XS5.0U3.000 of eertlfloates of indebtedness; 1185,000,000 of National Bank notes, legal- legal- tenders for public dues and demands, except for customs and interest on the public debt, and $78,- $78,- 867,573 State Bank currency, which, together with say f 100,000,000 of coin, made a total circulating medium of ti 096, 678.770. This waa mainly in cir culation in tbo Eastern. Middle and Western States: eleven States were unaupplied with a circulating medium. The riuw.nw.ouu supplied about thirty minions oi peopiti wim a meuiura oi exenange wbicn nas aptly oeen railed "a tool ot trade.' which gave us nearly 70 per capita. The conse quence of having plenty of money was to make business more prosperous than had ever been known in this country. Buying and selling were mainly for cash.. Business men, in consequence of the C- C- sh system of doing business, were mxinly j "out oi dcDt. ana merer ire out of danger." The National Bank Act had been again forced on the country in 1863. Kivintr bondholders 90 tier cent oi tne lace vaiue oi tneir oonas in r-auoual r-auoual r-auoual Bank currency to loan at usurious rates of interest or to buy more bonds with. It made a golden har vest for bondholders with banking privileges: but busine-s busine-s busine-s being mainly on a cash basis in 1866, there were but few time notes to shave. Nor could bankers control business men. as they are accus tomed to do when there is a scarcity of circulating medium and tbe credit system of business is forced on the people. They induced Congress to pass the infamous Contraction Act of 1S66. knowing that as the cash was withdrawn from circulation, "forced credit would be substituted for the cash with drawn." aud that when the credit system became inflated "to the bursting point the first slight derangement sucn as tne iaiiureoi uooxe dc jo., wonld cause a money panic and a commercial crasr. Therefore the knowing ones in 1866 turned all ibey had Into greenbacks, to be .prepared for the harvest harvest The main purpose was to enable a few men to concentrate the real estate or real wealth of the country into a few hands in order to establish "a peerage" for the "new nation," in contemplation. by the means oi contraction ana consolidation. A FALSB AUU ABSURD ASSERTION. Tbe contractionists constantly assert that the crash of li73 was produced by building too many railroads and from overtradins. This mav be a trood reason to assisn for tbe failure of an indi vidual, bnt it ia aa absurd reason to give for tbe scarcity ot circulating medium, cauea in ana de stroyed. Id the failure of individuals or corporations. what they lose others gain : if does not diminish the circulating medium of a country: whereas the present stagnation in business ana distress among laborers or American worxmgmen is causea by a deficiency of circulating medium, produced by contraction, to advance the interests of money-lenders, money-lenders, money-lenders, which was put into bonds ana tnen destroyed. THB UNIFORM CAUSE Or XOMIT PAVICS. In order to. determine tbe proper mode of relief. It is necessary for us to understand the uniform cause that has ocrlodunUv prostrated American in dustry, under the useless, costly and fraudulent system ot Banks of Issue. The following facta relative to the expansion and contraction of the monev. currency and circulating- circulating- medium, from 1811 to 1873, will show the cause of money panics and commercial crashes. Expansion and contraction of the circulating medium, ana ine results, irom usu to ie.3: Bank currency in 181 1 . f-iS, f-iS, f-iS, 000,000 " " IMS. . 68,000.000 contracuon irom jsia to ism, oommcrcuu crash. 23,000.000 Bank currency in 1J0 46,000.000 " 1K37... ULOUOuOOO Contraction from IS37 to vas. commercial crash . 83.000.000 Bank currency in lll..,..-.. lll..,..-.. lll..,..-.. 58.000.000 " " 184. .. J04.000.000 Contraction from 1864 to li58, commercial - crash . - 49.000.000 Bank currency in 1858. ....,...l.5.0i0,u00 .. .. lago, J2O7.O00.00O uon traction irom law to isoc commercial crash 23.000.000 Bank currency in 1H62. 184.000.000 " " 1863. JaO2.0u0.0U0 Circulating medium ia 186?v over two thousand millions oi aouara ? AHOCirr TN 187S. Circulatine medium, exclusive of coin. December L 1873 . .. 1765,679,685 Contraction irom teoa so loi. (com mercial craan) J1.31UISVS1085 Til MAIN JC EST IOI. A Question of Daramnnt Importance to tha wealth-producing wealth-producing wealth-producing and Industrial interests of our ennntrr is how to devise measu of foretna Into cir culation sumaent ragat wran - par money to en able commodities to oe c-tuani c-tuani c-tuani aa I soia tor casn. as then the failure 6f one a.-n a.-n a.-n cat not cause the failure ot others or produce a i-uty i-uty i-uty of mouey. ExrAKSIOK THB VI I. T BEBIEDT. Merchants, manufacturers, and bnalt eenerallv may be out of debt and yet fail in busi ness, simply because, in the stagnation of busloads for want of a circulating medium, their expenses ara trreater than their receipts, in which ease it ia only a question of time when they shall have ex pended tne principal, ana wiereuy raiiea to eon- eon- tinua in business. Tbe failures are inereasinar annually as contraction goes on, and most continue to do so, but tne moment expansion oi inn legal tender or par money composed of gold, silver and T!nrtid states Trt-Hjurv Trt-Hjurv Trt-Hjurv notes 4 adopted by Con gress as the settled policy of this great country, tne threatened ruin of buainess-men buainess-men buainess-men will be at an end. Tbe way tn expand is by paying off and by buying up tne reoerai oonaa. HO BEX1EP CIS BB CrVinV BV TUB BAirKa. Bank-notes Bank-notes Bank-notes ara mere Dromisee to pay. on demand, in leval-tonder leval-tonder leval-tonder monev. Thev now bave more of such promises in bouo than they can meet on de- de- in and in greenbacks, much les in coin; therefore nst t n-t n-t n-t riaii. tn can come from that source: nor ia it desirable, as then promissory notes are au inflated cutrenrv, because the volume exceeds the basis of a I on redemption Irom. fonr to twenty for one; and it is 1

Clipped from
  1. The Cincinnati Enquirer,
  2. 23 Jul 1877, Mon,
  3. Page 5

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  • The Inevitable Ruin of Business Men July 17 1877

    cruther64 – 20 Jun 2013

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