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Chicago daily tribune. [volume] (Chicago, Ill.) 1872-1963, August 30, 1875, Image 4

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Clark and LafUllo. Engagement of Emerson'! Cali
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tb# ladle# who prrpetua's tbo boauiyof tiiolrclrmuud
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vulgar rsd and wait® pigment*. VVh«t a enuifjr. It
t* to oto a cotmelio ao peorlm and *u barmleai. bold
by aU dnuglits.
Ulyt tribune.
Monday Morning, August 30, 1675.
At tbo New York Exchange on Saturday
tho price of greenbacks opened at 87J aud
closed nt 87 /, all tho sales having been made
at these figures.
San Domingo is enjoying its periodical
revolution. Tbo latest demonstration tins ro
suited in the restoration of Baez to tho Pres
idency, so far ns that result can bo brought
about by the revolutionists’ proclamation.
Gonealxb, however, will havo a word to say
before giving up tbo control of the Repub
lic, and a litUo blood-letting will prove neces
sary to quiet tbo body politic.
The Herzegovina outbreak assumes more
formidable proportions, by the fact that the
Servians, finding it impossible to keep out of
the melee, have sent 1,000 volunteer soldiers
to the assistance of the neighboring province.
The new Turkish General, Meuouet Am,
who was to have mode short work of the up
rising, bas boon recalled to Constantinople
by telegraph; and it is rumored that an in
surrection has broken out in Albani.
Mr. Follet, one of the speakers at a
Democratic mooting in Cleveland, got hold of
a stick that was tarred at both ends when, in
order to illustrate Republican corruption, ho
told of his experience in bribing a Now York
Cusloro-Houso officer to pass his trunk duty,
free. Even a Democratic audience could see
that thoro was more than one corrupt party
to the bribery in question, and the laugh
evoked by tho doublo-cdgod joke was not
exactly the sort of laugh Mr. Follet an
Tho interest felt by Chicago in the won
derful work of her representative evangelist
in England was attested lost night by tho
largo attendance at Farwell Hall, to listen to
an address by Mr. John V. Farwell on tho
subject of tho labors of Moody and Sankky.
Tho time, tho occasion, and tho feeling wero
ripe for tho beginning of a first-class revival,
and tho only thing lacking was Brother
Moody himself to sot tho glorious hall a-roll
ing. Tho largo gathering listened with close
attention to the interesting narrative given
by ilr. Farwell, but if Moody bad boon
there they would still more gladly have
yielded to his powerful persuasion. Chicago
needs the great ovongolizer, and impatiently
awaits his return.
The Sabbath in San Francisco yesterday
was devoted in part to preaching aud listen
lug to sermons on tho dead monoy-mngnate,
and in part to a calm and careful survey of
tho financial field after tho catastrophe of tho
preceding Thursday. The dispatches indi
cate a cessation of excitement ond a return of
confidence and quiet. Tho banks shaken by
tho great explosion will, it Is believed, recover
folly, onoof them preparing to resume business
to-day, while another will require a few days
in which to adjust matters and continue busi
ness. Everything indicates thot the numborof
failures attendant upon tho Ist of Septem
ber, settlement-day, will bo few ond unim
portant, and that there will bo no panic nor
crisis on the Pacific Coast In consequence of
the oollapso of tbe Bank of California. The
remaining solid men in the bank have under
taken the task of winding up its affairs, and
it is expected that depositors will realize not
less than 80 per cent of their claims.
The telegraph has already brought very
complete details of tho recent assassination
of Gaboia Mobeno, President of Ecuador,
which took place in his palace at Quito, on
tho Oth inst,, and the mails now give a hint
as to tbe real causes of the assassination,
from which it Is quite apparent that he pro.
voked bis own fate. The subjection of hia
people to the domination of priestcraft
and tbe absolute and oppressive rule of the
priests and thoir complete control of tho in
dustries and revenues of tho country at last
exasperated them and brought about revolu
tion. Tbe merciless sway of Mobeno and
tho merciless manner in which ho punished
every offense against himself or tho clergy,
provoked the same merciless retaliation upon
himself. The now candidate for the Presi
dency is said to be a Liberal. Ho at least
needs to be a Liberal, if ho has any regard
for the warning of his predecessor's fate.
If he should be elected, however, it will only
be a question of time bow soon tho Ultra
montane revolution will sot iu, to bo followed
again by a Liberal one.
The Chicago produce markets were very
irregular on Saturday. Mess pork was active
and 350 per brl higher, closing at $20.25®
20.30 cash, and |20.35®20.Q7j for October.
Lord was quiet and [email protected] per 100 lbs
higher, closing at [email protected] cash, and
♦ 13.20®18.26 for October. Meats were active
and a shade easier, at 8o for shoulders, 11 jo
for short ribs, and 11 Jo for short clears. High
wines were quiet and steady, at sl.loj per
gallon. Lake freights were in fair demand
and unchanged j quoted at 2c for corn to
Buffalo. Flour was more active, but weak.
Wheat was in very good demand, and ad
vanced IJo, closing at |LI7J cash and |LIS
for September. Corn vu active, and jo low
er, closing nt IWSo cash or Boiler September,
mnl OMc for October. Oats wore dull and
lower, closing nt M{o cosh, nml RSjc for Sep-
Icmbor. Ryo was quiet and firmer, at 84c.
Barley wan quiet aud stronger, closing at
SI.OB for September. Hogs wore in moder
ate demand, at $7.7‘"(5»7.5)0 for common to
extra light, and nt [email protected] for poor to
fancy heavy. Cattle were Blow of sale, and
the feeling was ea«y. Prices were nominally
the name as on Friday. Sheep Bold moder
ately nt s:i.OO(S‘'4.7"» for poor to best. One
hundred dollara in gold would bnysllß.B7j
in greenbacks nt the close.
The Springfield (Mass.) JfrpubliMn, In
view of the forthcoming Republican Stato
Convention in Massachusetts, culbusiafiticnl
ly suggests Henrv Wilson ns tbo presiding
officer of the Convention, assigning two
reasons therefor. First, ho represents the
historical Republican party of the Stato as no
one else cau, ami. having lived to survive An
drew nml Sumneji, “ho stands well-nigh
alone among the younger politicians of a now
generation—the Nestor of Massachusetts Re
publicanism, embodying in his own person
its glorious traditions, n veteran from the old
wars.” Second, the Jtepuhlican claims that
he represents the beet ideas, impulses, aud
aspirations of tbo Republican party of to-dny.
With regard to this reason, the liepublican
makes the following very strong point:
If tho party la to te eared at all, it muet be by that
saving common aonso which impregnated Hembt Wil
son's li-ttcra to this Journal aud to the Trib
une. Whether be will bo the candidate of
tho party next year, is a question by itself; the
odda are heavily against It. But them la no
question aliout the fact that, to Lo saved, tho Republi
can party will have to Uku UsMnr Wilhon’b plklform.
Be had demanded from it nothing more nor Idea than
what the people are demanding from It—honesty, re
form, tho correction of abused, Uie genuinely national
temper and statesmanship which Joun A, Andhew
hud in hid mind when ho aummoued Msssnchusrtta
to •• prosecute the reice as vigorously aa abo hart pres
ecu led Iho war," Ilia relccilun lo preside at Worcester,
next mouth, would be construed a* meaning tho aa
scut of tho party In Mmadiueotta to hla propoeltlona,
its jnirjxjso to follow hU advice.
There is another condition which is essen
tial to tbo salvation of the Republican party
iu Massachusetts. It may bo assumed that
it has purged itsolf of Rutlerism. It must
now purgo itself of Talbotism. Tbo nomi
natiou of Talbot last year upon a prohibi
tion platform cost tho party tbo State. It
was tho principal clement of defeat. If it
renominates Talbot, as now appears not at all
improbable, not even Henry Wilson and bis
platform con save it. Defeated lost year, it
will bo annihilated this year.
The State Board of Equalization of Illinois
is another verification of the axiom that “ the
world is governed too much.” The estab
lished principle of American republican gov
ernment is that the three powers, executive,
legislative, and judicial, are each exclusive in
their appropriate department, and that no
one of these can lawfully exorcise the
authority of the other. This principle is
enacted in the Constitution of this State.
Notwithstanding the Constitution declares
that the legislative power shall be vested in
a General Assembly, and the judicial powers
in the Supremo and other Courts, wo have
another tribunal, which, though created
by the Legislature, exercises both
legislative and judicial powers, and that,
too, absolutely and without nppeaL
The Supremo Court, upon appeal, has de
cided that the judiciary are powerless to cor
rect any official act by the Board of Equal
ization in the way of assessment except on
one or the other of two grounds : 1, Fraud
by the Board; 2. Assessment of property
not taxable. The Supremo Court said, sub
stnutially, if not in terms, that in the exer
cise of its powers the Slate Board was a
court unto itself. When, therefore, it makes
an assessment, no matter how contrary to all
justice and reason, its action is final and
binding. In the act creating this Board, the
Board is authorized to make “rules,” and
under this power it enacts laws, and, claiming
to bo a legislature unto itself, os well as a
court, it overrules aud discards the enact
ments of the General Assembly at its pleas
Tho Revenue law of 1872 was framed un
der tho prejudices, founded upon ignorance,
against whnt is generally known as capital
When half a dozen men combine their means
to carry on a business which bnt few per
sons could do alone, the Revenue low assumes
that those men ore conspirators against tho
welfare of mankind, are enemies of labor,
and schemers who deserve to be punished.
Tho law provides, therefore, that those cor
porations shall bo taxed, not only on all they
own and possess, but shall be taxed thereon
under as many forms as tho ingenuity of tho
State Board can suggest. Tho State Board,
nothing loth, having fortified themselves
with rules having tho force of law, have exer
cised tho authority with vigor. But the Gen
eral Assembly at tbo last session, listening to
a general remonstrance from all parts of tho
Stato, amended the Revenue law, and
in plain and explicit terms required
tho State Board, iu assessing tho
property of manufacturing and two other
classes of corporations, to treat them as indi
viduals, aud to exempt them from the dupli
cate assessment on capital stock. The State
Board, however, resents this interference. It
is claimed that If one class of corporations bo
exempt, then all must be exempt, and the
State Board, acting os a sort of supreme
legislature, proposes to disregard tho act
of the General Assembly of 1875,
and, acting on the advice of the Attor
ney General, to assess them just os If no such
act hod been passed. If the Board shall so
decide,—and it seems probable that it will, —
then wo will have put in auccessful operation
a now tribunal exorcising an appellate Juris
diction, both legislative and judicial, and
uniting supremo power, not only to moke
laws and repeal them, but to expound them
for tbo government of tbe courts.
The mow this whole business of taxing cop. |
Itol stock is considered, the more ludicrous
and at the some lime unjust docs tho whole
proposition appear. Tho attempt was made
iu order to swell the revenue by the double
taxation of one class of property, and Mr.
Dxbioxson admirably illustrated the result
by reciting the story of the dog who, rich in
the possession of one piece of meat equal to
his need, was tempted by the shadow on the
water to grab for another, thereby losing
what he had. The Stole, in its efforts to
double Its revenue by taxing the intangible
shadow of the tangible properly, has lost the
revenue from both. The collection of leva*
nue from corporations has been attended
with costly litigation} the revenue has not
been collected because tied up with injunc
tions, with a certainty that in the end
the whole assessment will be swept away
by tho decrees of courts which do
recognize the ' State Board as
a tribunal of superior authority. After four
or five years of litigation, during which the
productive industry has been harusM.4 by
double taxation, much of it driven away and
capital kept out of the State, the average in
telligence of the legislator and State Assessor
will bo brought to a knowledge that prop
erty baa but one value for taxable purposes,
and that a horse and his shadow are not sepa
rate properties, and that in the value of the
horse is necessarily included the value of tbo
Should the State Hoard follow tbo Attor
ney General, then (ho Stato Hoard will fur
nish the liar of the State with a crop of liti
gation which has been unprecedented,—
ending in the legal defeat of the Stato and
the vindication of o principle of law aud
justice ns old as human governments.
Tbo bank failures during aud since tbo
panic have certainty demonstrated that the
National Ranking system has been a great
blessing to this country. They havo not
proved that system to be perfectly safe? noth
ing of human invention cau attain infallibili
ty. Two or three bad failures among tbo Na
tional Ranks show that, so far as their rela
tions to depositors are concerned, their solv
ency depends upon the integrity and ability
of the bank managers. But the circumstance
that the great majority of the bod failures
have been among the private bankers is an
evidence that the National Ranking act
has acted ns o protection against the
temptations which havo led so many pri
vate bankers to disaster and so many of
their patrons to ruin. Had the Nation
al Banking system not been established,
the number of speculative bankers would
have been tenfold os many, and tbo practice
of issuing bank notes would have added to
their complications and the losses of tbo
business public. The idea wo mean to con
voy is that, without the National Ranking
system, tbo practice of illegitimate bnuking
would have boon much more general, aud tho
inevitable results of bankruptcy and the de
frauding of depositors much moro widespread
and disastrous.
Tbo principles of banking nro simple
enough. There nro a few general rules
which nro universally recognized among
bankers ns essential to a safe business, and
wherover they nro observed had failures are
impossible. The temporary embarrassment
of a general panic may force n sound
bank to close its doors temporarily,
but a banking business may bo so con
ducted as to yield a reasonable profit, and
make a final settlement under any and all cir
cumstancen yield depositors all their inonoy.
Where this proves not to be possible there is
prima facU evidence of fraud. That is, it is
certain that some of the cardinal principles of
banking have boon violated, and that the per
sons responsible for this violation have been
guilty of bad faith toward the public, and es
pecially toward those who have reposed con
fidence in them.
Every one of tbo bad bank failures of the
lost two years may be traced directly to the
grossest illegitimacy in banking. They have
not been the rcsnlt of fortuitous and unavoid
able losses, but of improper diversion of
moneys deposited for safe keeping. Begin
ning with Jat Cooke it Co., there was the
most reckless investment of moneys
in enterprises altogether outside the
pale of legitimate banking. Their assets
showed worthless railroad stocks and bonds,
accommodation paper for the benefit of per
sonal or political friends without security,
and manifold evidences of a speculative use
of moneys which wero not intrusted to them
for such purpose. Bo with Henbt Clews, it
was found that the temptation of large per
sonal gain hod led a man who received de
posits os a banker to use them os a specu
lator. He was one of tbo parties in interest
in the Southern States' debts, and, in the
effort to negotiate worthless bonds and avail
himself of State securities at rates
which swindled the people, ho over
reached himself. Ho, too, hod been
imbued with an ambition to build railroads
with other people's money. B. P. Allen
controlled a National Bank, bnt ho bought it
for personal purposes and used it according
ly. His attitude toward the other stockhold
ers and the depositors was worse than that
of any of the private bankers who have
failed, for ho not only disregarded the com
mon principles of banldng, but violated the
law passed by Congress to insure the observ
ance of these principles in National Banks.
Ho went into railroad speculations, grain
speculations, land speculations, and all sorts
of speculations, as long os he could find peo
ple who would trust him with their money.
Duncan, Soebuan & Co. varied the usual
range of speculations, but their stylo
of banking proves to have been of
the same general character with the
same results. Their business was large
ly with Europe and the South. Had
they confined themselves to the legitimate
practice of advancing on cotton, and of Issu
ing letters of credit, they had enough of the
public confidence and patronage to assure
themselves large private fortunes, and at the
same time absolutely guarantee their deposit
ors. Instead of this, they speculated in cot
ton on their own account, and, after their
capital aud deposits were largely exhausted,
raised money on “accommodation” paper
which defrauded tbo men who accepted it.
The Bank of California is the latest, and
In some respects the moat notable, sample of
illegitimate banking. Its practices wore
wildly at variance with the principles of con
ducting a bank. For some years the un
fortunate Ralston bos been the Bonk of
California in his own person. The manage
raont was left entirely to him, and of late a
large proportion of the stock has passed into
his bonds, thus relieving from all responsi
bility some of the largest capitallsts formerly
interested. Mr. Ralston's bank has bad an
enormous line of deposits, which have been
used in carrying acertain “crowd ” (of whom
Mr. Ralston was the head and front) in all
sortaof speculations. This “crowd" dealt
in mines aud mining stocks, in manufactur
ing establishments, la projects of every con
ceivable description for the “development of
the country,” in patronizing music, art, and
the drama, la entertaining the constant rush
of visitors to the Pacific coast, in maintain
ing extravagant personal establishments, and
in high living. For all this the Bank of Cali
fornia furnished the money, and all this was
entirely foreign to the legitimate pur
poses of banking. It was done openly,
and intelligent people could not fall to fore
see that the crash must come some time.
Yet the laUtn-faire disposition of so much
of our human nature enabled Mr. Ralston to
keep up the magnificent establishment for a
great many years, and dazzle the public with
glittering fraud.
A bank io its relations to (he pnbllo Is a
place for the sufe*keeping of money. The
first guarantee of this is a sound capita), in
vested partly for loanable purposes and portly
os an assurance of the return of money de
posited. The bueiaess of a bank is to loan
money on shuxl time, upon uonveiUUe se*
curiticß, nml at tho lowest prevailing rnto of
interest, Every banker pledges his faith to
this when ho goes into business, for ho is
handling money which belongs to other people.
Every banker understands that it is unsafe
to accept a lino of deposits grossly dispro
portionate to his capital, because it is a temp
tation to nsn tho money injudiciously, Eve
ry banker understands that it is unsafe to pay
interest on any except time deposits, and
then only at tho rate of not mare than one
third the interest ho charges. Every banker
knows that bo has no right to give away the
money intrusted to him, and therefore loans
only on security which ho honestly believes
to bo readily convertible when his depositors
demand their money. Every banker knows
the necessity for koepingaproper cash reserve.
Every banker feels it to bo his duty to his
depositors as well as himself to avoid exlrsv
agant expenses. Every. honest banker de
clines seeking rates of interest higher than
those established in (ho market, because he
knows it attracts unsafe loans. And,
Anally, every banker knows (bat bo is swin
dling his depositors when ho goes into specu
lations with their money on his own account
or by proxy. A violation of any of these
principles is fraud, and ought to bo punished
ns such by law. We know of no other way
to protect honest bankers and put a slop to
dishonest banking.
Tho attention of students has been called
of late years to a rising school of political
economists in Germany, Italy, Denmark, and
England. The now school in tbo latter coun
try is represented by such men as Thornton
and Cliffe Leslie. Its adherents in Gor-
many are known os the Kathedcr-SodalUUn,
or “ Chair-Socialists," from tho fact that most
of them fill important positions in education
al establishments. These political econo
mists have cut loose from the traditions of
Adam Smith, Hicardo, and Say. They en
tertain views ns to tho foundation, method,
and aims of political economy different from
those of the orthodox school, so called. A
word os to tho differences between tho now
school and the old.
The old school followed tho deductive
method. Starting out with ccrtoin views of
man and nature, tbo adherents of this school
drew whatever conclusions they might from
these views, and accepted them os true.
Thus man was considered by them as a being
who always and everywhere pursued his own
private interest, and sought after that which
was useful. Hence it was inferred that, if
left to himself, free to work out his hap
piness, ho could not fail to attain it. Tho
logical development of these views was the
assertion of the complotest freedom, the doc
trine of laissez-faire and laissa-passer , ond
tho curtailment of the power of the Stale
within the narrowest possible limits.
Tho new economists accuse tho old of tak
ing a one-sided view of things. Man, they
insist, is not guided solely by self-interest.
Side by side with his love of self- is his love
for his family, his municipality, his country.
Nor is man intent only on tho satisfaction of
his animal wants. Ho is a moral being. He
recognizes tbo dictates of duty, and under
tho influence of religion or philosophy may
sacrifice his own individual interests, and
oven his life, for his country, for truth, or
for humanity. Tho conception of man enter
tained by tho orthodox economists is there
fore racially wrong, and must lead to wrong
conclusions. Tho man of Adam Surra and
John Stuart Mill is not tho man we meet
every day in tho streets, norovon in tbowork
Tho Kathcder-Socialisten differ from the
old economists also in thoir method. They
reject tho deductive for the historical method.
Man in different stages of civilization has dif
ferent wants, different methods of producing
and distributing wealth. Hence economical
problems do not admit of the general a priori
solutions, which it has been tho fashion to
give them. Eench question has to bo solved
with reference to a given country, and tho
answer based on statistics and historical data.
Many of tho older economists insist that
the general order of society results from the
free play of individual egoism, and that all
that is necessary to insure well-being to each
one in proportion to his labor is to remove
every barrier to individual activity raised by
society itself, or by tho State. This view tho
now economists reject altogether, insisting that
egoism loads to iniquity and spoliation ; that
to allow full play to egoism is tho denial of
tho moral law. Hence they advocate the in
terference of tho State where the old econo
mists rigidly exclude it. They consider the
State not a necessary evil, but a thing good
in itself, tho chief agent of progress and civ
The now economists Insist that hitherto
the science of political economy has been
confined too exclusively to the discussion of
the production of wealth, and that enough
attention has not been paid to questions re
lating to its distribution ; that man has been
considered only as a productive force, and
that it has been almost entirely ignored that
he Is an intelligent and moral being. The
distribution of wealth among the different
classes of the community la governed by law
and by morals as well as by contract.
The old school of economists gave to all
: important economical questions an absolute
answer. The new school say that only a
relative answer can be given,—an answer
true now and here, not necessarily true at
another time end place. The old considered
tho object of (he science to be to tell how
wealth was produced, distributed, and con.
sumed., The new insists that its object is to
teach bow wealth should be produced, dis
tributed, and consumed; that political econ
omy is not merely descriptive, but that it Is
at once the physiology and therapeutics of
the body social.
Nowhere do tbo Katheder-Sociali*ten differ
more emphatically from the old school
than in their opposition to the doctrine of
unlimited competition. The assertion of
this doctrine, they say, Is to advocate that
might makes right. Unlimited competition
is the war of all against all, a species of ©an
uihalism, a disguised barbarism.
They do not believe in leaving things to
their natural course. The laws of nature eo
frequently appealed to in political economy
they ignore entirely, maintaining that in the
whole science there is but one natural law,
viz. i thet to live man must have food, that
all the rsst is regulated by custom, law, man
ners, etc., etc., which are being continually
These are the main differences between the
new school and the old. They are simple
enough in the statement, but they are far.
' reaching in the conclusions that may be
drawn from them. They centre principally
upon the role of the State { the KaVudtr-So
cialUUn insisting that it should pass snob laws
os favor the more equitable distribution of
This were well enough were the State om
nisuisul aad infallible) hut, as the wisdom ol
the Stale means only the wisdom of those
temporarily at tho head of affairs, it may bo
doubted whether anything would bo gained
by its increased interference with tho freedom
of production and distribution. Unlimited
competition has, doubtless, its dark side; but
is it not, on the whole, preferable to tho
opposite policy?
There is nothing new under tho sun. In
years gone by, American vessel-owners sunk
their ships for (ho sake of tho insurance, and
sent the crows to Davy Jones’ looker for the
sake of their own pockets with the same hate
ful callousness of conscience that English
ship-owners show now. And the pressing
need of the time brought forth In America,
as it has in England, a Plimsoll. Ho carried
through his reform, as the Englishmen htfa
carried his.
Our Plimsoll was named Sidney S. Ban
ton. Ha lived iu Cleveland, O. Like all in
telligent persons, ho read tho doily papers.
Ho noticed a striking similarity in the details
of steamboat accidents on tho Mississippi and
Ohio, One boat might be burned, and another
snagged, nndanoihoretploded, but the disaster
always happened in some lonely spot, the
shattered hull always sank iu deep water,—
and tho missing boot was always heavily in
sured. Burton road this and pondered upon
it. lie decided that hero was an abuse to
right, but bo did not see his way clear to the
righting of it He was only a private citizen,
without any influence beyond that possessed
by every honest man. While ho was hesitat
ing, the famous boat, Martha Washington,
burned. Tho spark that fired her kindled
Burton’s wrath to a white heat Thence
forth he was n man of one idea, and so a man
of tremendous power. Tho Martha Wash
ington went down at midnight, carrying with
her some shriveled corpses, and a vast lot of
costly merchandise—according to tho bills of
lading, not according to the truth. And the
truth prevailed. For Burton hurried down
to Cincinnati, whispered his suspicions to
the insurance agents, and then, having start
ed them on a mission of discovery, shouted
his beliefs to the public. There was intense
excitement, tempered only by tho possibility
that investigation might reveal nothing.
Meanwhile Burton was threatened, as Pliu
boll has been, with libel-suits, arrest, ond
murder. Cut tho insurance men wont to tho
scene of the wreck. Their grappling irons
soon located the site of tho halHmrncd hull.
Down went tho divers, and up came tho boxes
of silks, and laces, and wines, and other costly
things, wblch hadbooninsurod at Cincinnati.
When they wore opened, tho silks were saw
dust, tho old laces were old leather, and tho
wine-bottles were filled with water. The load
of tho Martha Washington really consisted of
the street-sweepings of a city ; it had been
insured ns a collection of the costliest goods.
When this tell-tale story reached Cincinnati,
the murderous merchants implicated gladly
gave themselves into the hands of tho police
in order to escape those of tho mob. A long
trial followed. Tho man supposed to bo ibo
chief culprit, Lyman Cole, escaped legal
punishment, but he slunk into shomofnl ob
scurity, like Terry after Broderick's mar
dor, liko tho outcast thieves of the Now York
Bing, liko the predestined victims of Plim
boll's crusade. The trial stopped the system
of murder, and Burton, having done his
work, stepped quietly back into oblivion.
His namo lingers only in tho memories of a
few, while Plimboll’b has been on every
tongue; but the task undertaken by the
American was as difficult, ns dangerous, and
os worthily done as that by which tho En
glishman now gains the admiration of a
One of the most popular fallacies of the
day is that the stagnation in business is owing
to a lack of sufficient currency. Every man
who finds it difficult to borrow money for
speculative purposes without security; every
retail dealer who observes a tendency among
his customers to buy sparingly and cheaply;
every real-estate bolder who cannot sell prop,
erty to-day at an advance over the price he
gave for It before the panic,—each and every
ond of these immediately jumps at tho con
clusion that there isn't money enough iu
circulation, and traces ail his woes to that
cause. In spite of repeated demonstration,
it is tho most difficult thing, appar
ently, lor people to comprehend that in
flation leads to commercial panics, and
panics to tho stringency which is felt
for years after. Yet this has been demon
strated within the last throe years in throe
different countries, —England, Germany, and
the United States. In the United States tho
panic of 1873 come from the inflation of a
paper currency, with corresponding inflation
ia prices and speculation- In Germany there
was an inflation of specie, resulting from the
enormous war-fine paid by France, and It
brought financial disturbance with it. In
England there has been an inflation of
capital which betrayed tho people into un
profitable investments, and a panic was
recently averted mainly by the solidity and
limitation of the currency. If an inflation of
real money may produce financial disturb
ance and commercial disaster, how much
more tho Inflation of worthless imitation
money ?
One of (ho dearest and most intelligible
answers to the assertion (hat there is not suf
ficient ourtencoy in this country to transact its
business is the fact that the actual circulation
pot capitals much larger than in Great Britain,
where the actual capital, wealth, and produc
tion are perhaps three times os great. Mr.
Oeobox Walker, of Massachusetts, made an
estimate of the comparative circulation in
France, Great Britain, and America in 1808,
which ia the latest trustworthy data we have
on tho subject. There has been a consider
able inflation in France since that time, grow
iug out of the war with Germany, bat not in
Great Britain. The circulation of the United
States in bank notes, legal-tenders, and frac
tional currency, Is, according to the last Treas
ury statement, as follows t
LsgtMeoder note*.
Irucdouil 501e*...,
N»Uuu»i fi*uk note*..
This is a paper circulation, on a population
of forty millions, of $10.12 per capita. The
total note circulation of Great Britain, accord
ing toMr. Waxjub's estimate, is $100,170,020,
or $0.61 per capita, and that of France in
18C8 was $251,783,760, or $0.03 per capita.
Thus it will be seen that the paper circulation
of the United States is three times larger
than the standard paper circulation of Great
Britain or France. If we add in the circulat
ing coin of Great Britain, which is estimated
at $400,000,000, it gives a total circulation of
$16.60 per capita in that country. Adding
the coin in the United Slates, which is
about $160,000,000, U gives a total
circulation in this country of $24.05
psr capita, or about one-third more than the
circulation psr capita In Great Britain, not
withstanding ihs Uttar has mors than double
tho capital amt business, and should, accord*
to the popular superstition, have more
Umn double tho circulation for the transac
tion of Ur business.
Tho difference between the circulating me
dium of Franco and tho United States is not
so great, but tho reason for this is readily
explained. Franco bos a total coin and paper
circulation, after deducting the amount of
flpccio in hank vaults, of $18.34 per capita,
and including tho Kpcoie permanently lockod
up In banks and kept as security, of $2.».0"»,
or about the Rnmo an ours. Put one reason
why Franco has and requires so largo a pro
portion of circulating money is on oc
count of tho national tendency of
tho French people to hoard money. Tho
French people have not yet attained
the high business civilization of savings
banks. Every dollar deposited in bank vir
tually increases the circulating medium of
the country. Thus wo showed by a recent
table, which we reproduce below, that, though
the total circulating medium of this country
is less than ‘5800,000,000, there are really
about $2,402,831,117 in practical circulation
through the medium of bank loons. Wo
have estimated these os follows:
Ko. t\f montth
Irndn i.
2,B ilspniltora in lavtnjrs basks jl,ooo 000,0 0
100.000 stockholders In naTinirs banks... 100,<-00,100
100.000 depositors la SUls and private
banks 160,000,000
60,C00 stockholders in State and pri
vate banka 80,0 n O,OOO
070.000 depositors In National Banks.... Cfl <,ofiß,o.tfl
260.000 stockholder! Id National Banks., 49J,700,1.1
i,01T ( 383 depoßlton and itockliolder* own*
Tho necessity of Franco for a larger pro*
portionato circulation than that of Great
Britain is mainly owing to tbo fact that tbo
mechanics, fanners, and laborers of tbo conn*
try do not deposit tboir savings, bnt board
iboir gold Napoleons and silver francs. They
put their money away in old stockings, or
tuck it in between mattresses, or bury it in
the ground, till it comes ont in some ocoumn*
lotion for investment. The French, in this
respect, cling to tho primitive practices of
India and China, where gold and silver actu
ally disappear in enormous quantities. In
this manner millions of dollars are practically
withdrawn from active circulation in Franco.
Vet notwithstanding this custom, and tbo
fact that tbo bnsinoss and capital of
Franco are largely in excess—perhaps nearly
double—those of tho United States, where
the circulating medium is more than doubled
by its constant use, the amount of currency
per capita in Franco is aboat the same as in
tho United States.
Tho fact is that tho persons who talk about
a doScioncy of currency utterly ignore the
progress of business through tho oxtraordi
nary facilities furnished by tho banking sys
tem. Deposits, checks, nnd clearing-houses
in tho city, and drafts, bills of exchange, nnd
even tho use of the telegraph for intercom
munication between different cities and dif
ferent countries, are ogoncies which have
largely supplanted the use of money
ns a circulating medium, nnd hove
reduced its balk la proportion to
population and business. In England,
where trade has advanced to tho highest con
dition of success and stability, tho amount of
what we coll the circulating medium is tho
smallest in proportion both to the population
and the amount of business transacted. Tho
demand for more currency in this country as
o relief to business is ridiculous In view of
the fact that not only are (bo resources of
bank exchanges far from being exhausted,
but even the circulating medium in bank
notes lies unused in the bank vaults. The
demand is abnormal simply because tho
money is fictitious; nnd the greater the
qnantity of the latter, the more morbid will
the demand become.
Tho Louisville Cou rier~Jo umo I takes excep
tions to a recent article in The Chicago Tom.
one, and contends that tho institution of the
comparison between Jar Davis and Ben
Bun.cn, with reference to the Winnebago
County invitation, was on unfair one. Wo
will therefore state tbo comparison in another
way. Suppose that tho Secretary of the Jef
ferson County (Ky.) Agricultural Society—if
there bo one there—had invited Ben Butleb,
upon his own motion, and entirely unauthor
ized by any member of tbo Society, to ad
dress them, and that Ben Butler were dis
tasteful to tho members, would they not have
tho right, and would they not exorcise that
right, to demand that tho invitation shoald
be peremptorily canceled ? That is all there
is to the Jefferson Davis imbroglio. But
says tho Courier-Journal:
Two yean ago Odd. Outlks appeared tn Loolsvllls.
lie was received by our local atilbnrltiM and our prin
cipal citizens, and was escorted by tnem through our
crowded Exposition Building. Ho experienced noth
ing but courteayand hospitality, and want from our
initial carrylnjfcwllh him, as our gueat, words of wel
come and good will which, not very unreasonably we
venture to thick, we have denied him as a politician.
Undoubtedly, and so could Jefferson Da
vis go to Now York City, and scores of other
places in the North, and experience nothing
but courtesy and hospitality. It must be re
themborod, however, that this invitation to
Jefferson Davis emanated from one man
in the strongest Republican County In
the United States, and in a county
which probably Buffered more during
tho War In loss of men than
any other Northern county. Now, sup
pose Ben Buxlku bad been invited by
one Bepublican in tho strongest Confederate
county in the South, and the connty which
hod lost more men in the Wor than any other
in tho South, would Gen. Butler have been
leoeived with courtesy and hospitality f On
the other hand, the engagement would have
been speedily canceled, and the party who
issued It would haye hod an Invitation to
leave by the first train, or, if he remained,
would have received an early visit from some
Ku-Klux organization. If the Invitation were
not canceled, and Ben Butler had pat In an
oppeoranee, it would have been at the risk of
his life. How long would the New Orleans
banditti, for instance, tolerate him?
Tbo demoralizing Influence of the Boston
“ boy-fiend,” and the uncertainty that he will
be punished with death, is developing other
“ boy-fiends” with startling rapidity. He
now finds a rival In Ban Francisco In a boy
named Ha»QT Hookas, only 10 years of age,
who has recently been committed to the In
dustrial School for torturing a playmate.
Concerning his outrages, the California pa
pers say that be began when only 3 yean of
age torturing animals, by catting them with
glass and sharp instruments, “ Boon after
he manifested a disposition to bite and pinch
children, and he was sent home from school
after school because he hart his playmates.
Finally, after two yean of trouble, his moth
er, who'is an invalid, got him board with a
family in the country, and here he wont from
bad to worse, till, the other day, he shocking
ly mutilated a child of the family leas than
8 yean old. Having Inveigled It Into
tbs bam, and partially covered It with sacks,
Ls pxocsedsd tb out ths child's hips with a
. U.143.3J3
, 9ia,'J37,U3S
piece of bona which had been brokei no m
to have a very sharp edge, inflicting no le-13
than niuotonn wounds, and finishing by j OIN
ly Revering its right oar from its h ad. Young
lloortib was instantly sent homo to his moth*
or, signaling his arrival by Belling ftro to the
curtains, and nearly destroying Uic'lioiiho.*'
Ills mother declares that tho mania is of re.
cent development, and that when bo is ro,
monstrnled with ho declares, like Jkbsp. Vo«.
erot, that bo cannot help it This is tho
fourth or fifth case which has
turned np since the operations of
Fomerot wore made public. How many
more will develop will depend very largely
upon tho punishment of some of tho tortur.
ers. All sorts of experiments hnvo been
made upon Pomeroy by tho doctors and
Bavants, Would it not be well now to nmV«
tho experiment of banging the young brute,
and seo if it will have the effect of shaping
tho moral epidemic started by him ?
Tho Now York Herald contains an inlima.
tion that tho Hon. John Morrissey is not
practicing what ho preaches, and that, while
he preaches as a Short-Hair, ho practices as a
Swallow-Tail. While ho is denouncing the
leaders of tho Tammany Democracy because
tnoy have reducedlaborers’wagcs, or, to put it
more exactly, because they will not pay Is.
borers more thou the market value of their
work, ho is paying his own laborers in Sara
toga CO cents a day lees than what is given
by tho authorities in Now York I Tho Her .
aUCi comment is a pertinent one : “ How
can ho come to Now York and champion tho
woes of these unfortunate citizens from Mul
lingar and Tipperary, who build onr uptown
improvements, when In his own business and
in tho disbursement of bis own funds he
limits the wages of their fellow-countrymen?
What Is fish in Saratoga cannot bo flesh ia
Now York.”
Amount of tMn,
Tho average watering-place hotel furnishes,
usnolly, & very miscellaneous crowd, and tbs
dining-room thereof must relievo (ho noossHitiei
of a very mixed assortment of stomachs.
Thieves, politicians, misers, and business mon
eat at the eamo (ablo. On ono occasion only
waa there absolute unanimity of sentiment In %
Long Branch diolng-room, and that waa when a
guoat rose and knocked tho head waiter down,
repeating the dose when tho latter roue to ie*
monslrato. Tho waiter’s offense was Impudence,
and the rebuke thereof full of auetoro dignity.
It must bare deeply impressed tho vulgar hire
lings of the institution.
Tho old fable of tho man who carried his
jackass to market and varied the performance
to suit bis friends, la retold In Paris in another
shape. A man was observed running rapidly
down a principal street pursued by a woman who
brandished a long knife. Tho populace lauehcd,
called him a coward, and told him to wait for ibs
woman. Ho did so, and tho kmfe was plunged
into bis tbroat, killing him in loss than a minute.
This true story shows how deaooravo a thing it
is to disregard public sautiment In private
11 Momentary Indiscretion,” as Mr. Bn,t Kmo'i
newspaper calls the offense of Col. Valbmtiss
Bakba, waa apparently chronic with that distin
guished ofllcor. Ho was subject to attacks of Ik.
Ho was arrested in Ceylon some years ago for be
ing In a gentleman's house 11 for sn unlawful par
pose," convicted by a police magistrate, sod sen
tence of imprisonment passed but suspended on
a promise of good behavior. People subject to
these •' momentary Indiscretions" are as safe ia
jail as elsewhere.
Under the caption, “Very Silty,” SasAif B.
Astuorv, la the Leavenworth Times, says:
The latent tyrannical decree of fublon le that cop.
icts shall conceal nud flatten the feminine breast by »
system of whalebones. Opeo war. for some reason,
lias been declared against prominent busts, and the
flatter the latter are. the more a i*lina*u are they cou
Wo call ibis true heroism, worthy of the lady.
She deliberately denounces a fashion which
would make her tbo most distingue member of
her box—bo far «s heard from.
Since 18fi7 tho heathen In California has cod
earned 5,890 boxes of opium, at a cost of
$2,421,739. Daring the years between 1807 and
1870 tbo amount fell off steadily, but since the
latter date it has grown to an enormous figure.
Opium la the Chinese substitute for rum, and, if
the charge of certain physicians is true, tbs
prohibitory legislation of New England intro*
duced and extended its use into the Eastern u
well as Western mates.
One of tho street-railroad companies in Phil
adelphia has subscribed SIO,OOO to the stock of
tho Cootouufal Exposition. What au extraordi
nary thing for a street-railroad company to do I
Tbo practice of aucli organizations in the Weal
le widely different. Here In Chicago the compa
nies tako stock in nothing loss than an Alderman.
A young Porialeone has Just advertised io
Figaro for a husband, wishing U to be under
stood: 11 1 had rather bo tho wife of a Joiner
than tbo slave of a Prinoo." Quite right. Out
she might become tbo elavo of the Joiner, A
wife in Brooklyn did, and it made it a very un
pleasant scandal.
Mr. James Russell Lowell is writing cynical
hUs of poetry for the newspapers, In which be
takas a mournful view of the degeneracy of tbe
times. We should not like to have him earn tbs
tohriquet of Dismal James { but he Is in a fair
way of doing so.
News reached New York on Thursday last of
the death of William Cbaio, the eminent water
color artist, by drowoing in lake George. Hs
waa bom in Dahlia, Ireland, Deo. 11, 1829, and
was consequently In tbo forty-sixth year of bin
age. He displayed a talent for painting at a
very early age, and had executed very creditable
pictures when hut 8 years of ago. Up to
the aga of 11 hs received thorough train
ing In the fundamental branches of tho Academy,
but after that time bo devoted himself exclu
sively to his art. His first exhibition of a
water-color sketch, which he had sent to
the Royal Dublin Society, gained him
a prize. At the age of 10 hs
gained a second preduum. At the age
of 17 the Lord Lieutenant gave him the highest
certificate of merit, aod then Informed him he
was so far advanced he could no longer compete
Icr prizes. In consequence he went to England,
where be bad the instruction of the beat masters.
After leaving England he traveled through Boot
land, Ireland, and Wales, and in 1803 came to
this country for permanent settlement. After
arriving here, he, with four other artists, founded
the American Water-Color Society. Ho has
painted many picture*, being a rapid worker,
which have brought him both name and fame,
and, whan he died, was fulfilling a large commie*
•lon for some gentlemen who tent him to Lake
Mr. J. O. WmiKßßts, the wtll-known Iron*
master of Northern New York, died of apoplexy
receotl.v si bis homo in Pert Henry. At the tine
of his death be was President of the Cedar Point
Iron Company and the First National Bank of
Port Henry, and was also a Director and largely
loteraated to tbs Port Henry Iron-Ore Oompsofi
betides being prominently identified with all tbs
leading boaiaeaa laureate of Northern Me*
Tbe New York JJeraiU of Friday says i '“ft*
wife of Qabiuilui died at Home yesterday. Bb#
was tbe second wife of tbe General, and a native
of Italy. His first »Us was t BHtailUa, 4ad *

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