MONOPOLY OF EXCHANGE. 



435 



It will be seen by reference to the above tables that 

 for the years 1862 to 1865 inclusive, during which time 

 the volume of money was greatly increased, that there 

 were but few business failures in the United States. The 

 period of loss and u financial disaster" dates with the 

 beginning of the process of contraction. 



The following table shows the purchasing value of a 

 dollar at different periods. In 1866 money was plenty, the 

 per capita circulation being $50.76. The year 1879 was 

 the date set to resume specie payments, for which it was 

 thought necessary to contract the currency. The per 

 capita circulation had been reduced to $14. One dollar 

 would purchase: 



It will be seen by the above table that the fanner, in 

 order to procure one dollar with which to pay his debts, 

 taxes, etc. , was compelled, at the time of specie resumption 

 in 1879, to part with more than three times as much butter, 

 nearly twice as much corn, almost four times as much 

 cotton and fifty per cent, more wheat and oats. In other 

 words, debts contracted and existing in 1866, would in 

 1879 require, on an average, about double the amount ol 

 the products of the farm to pay. In 1866, the average 

 price of cotton in the New York market was forty- two 

 cents. At that time the entire public debt of the United 

 States amounted to $2,800,000,000. To have paid this 

 debt at that time with money obtained for cotton, at the 

 prices then ruling for that staple, would have required 



