purchase of specie had been set on foot with a view to redemption. From 1869 to 1873 the volume of the currency was expanded from $693,946,056.61 to $750,062,368.98, including demand notes and compound interest rates. And yet the collapse came. From 1873 to 1874 the currency was further expanded from $750,062,368.98 to $781,490,916.17, and yet the depression continued, which proves most conclusively the crisis was not caused by contraction, and that it would neither be prevented nor removed by expansion. But in this way speculative business collapsed, the bubble of fictitious values burst and those values gradually adjusted themselves again to the specie basis without any interference on the part of the Government in the way of preparing for resumption. Meanwhile the banks were and remained full of money, but that money found little or no employment. It became evident, not that we had not money enough for the business of the country, but that we had not business enough for the money in the country. Then a reduction of the currency set in, also by the operation of a natural development. Congress, at the instance of the very men who insisted that the business of the country demanded more currency, gave greater facilities for the emission of national-bank notes. But instead of increasing the volume of the currency as had been predicted would be eagerly done, a considerable number of banks withdrew their notes, simply because they could find no profitable employment for them. Thus a considerable reduction of the currency was effected by natural process, and the notorious fact that in spite of that reduction all the banks remained full of money, without adequate use, was a new proof that our trouble had not been for want of nourishment, but was a clear case of indigestion.
In the meantime, business men had brought their operations within prudent limits. Retrenchment and wise
