Page:Speeches, correspondence and political papers of Carl Schurz, Volume 2.djvu/505

Rh West and South of the $25,000,000 that were put out by the Treasury in addition to the existing volume of currency. It serves to indicate also what will become of further issues, and how they will be distributed. Senators may figure it out for themselves how much would go to each State at that rate, if one hundred millions were put out, and these three cities are to retain so large a proportion.

No, sir; the cause of the abundance in the money market, especially in the Western business centers, is a different one. First, the crops have been very large, and found a very good and ready market. This resulted in a positive increase of the real wealth of the agricultural States. Secondly, the crisis broke down speculation and gambling, and released large amounts employed in floating that speculation and gambling, and those large amounts are now in the loan market. That is the reason why money is abundant in the Western business centers.

But I am willing to admit that the present abundance of money in the loan market is of a precarious nature. As an irredeemable and redundant currency always begets speculation and gambling, it will do so again in spite of the check that was put upon it by the recent crisis. It is already reviving, although carried on, as I am informed, to a certain extent by a different set of persons and in different ways; but its revival will undoubtedly be quickened, as is always the case, by every addition to our irredeemable currency. It may revive more rapidly even than legitimate business does; and as it grows to greater dimensions, it will draw away from legitimate business and press into the service of speculation as large an amount of currency as it can lay hold of. The expansion of speculation, therefore, is likely, nay, it is certain, to reduce the present abundance of money in the loan market, and again to bring forth here and there a feeling of scarcity. This I think will only be a question of time.