Cleveland daily leader. [volume] ([Cleveland, Ohio]) 1865-1873, 1865-10-16
THE NATIONAL FINANCES.
Views of Secretary MeCulloeh--WE
Must Return TO a Specie Basis.

GA0a Va ~
class of persons who, regarding an exclu-
sive metallic currency as IN impracticable
thing among enterprising and commercial
people, nevertheless looknpon an lrredeem-
able currency as an evil, which circum-
stances may for a time render a necessity,
but which Is never to be sustained as a
policy. By the common consent of
nations, gold and silver are the only true
measures of value. They are the necessa-
ry regulators of trade. l have myself no
more doubt that these metals were pre-
pared by the Almighty for this very pur-
pose than 1 have that iron and coal were
prepared for the purposes in which they
are being used. l favor a well secured
convertible paper currency. No other can
to any extent be a proper substitute for
coin. Of course it is not expected that
there shall be a dollar in coin in reserve
for every dollar in paper in circulation.
This is not necessary. Fol all ordinary
home transactions a paper currency is
sufficient, but there are constantly occur
ring periods when the balances between
countries, and in the United States be-
tween its different sections, must be set
tied in coin. These balances are ~insirnif-
cant in amount in comparison with the
transactions out of which they arise, and
when a vicious system of credit does not
too long postpone settlements, they are
arranged without disturbing the move.
ments of coin, Whenever specie is needed
for this purpose, or for any other purpose
the paper currency of the country should
be convertible into it, and a circulation moi
so convertible will not be, and ought not tC
be, long tolerated,by the people. The pres.
ent inconvertible currency of the UUited
States was a necessity of the war, hut nov
that the war has ceased, and the Govern.
ment ought not to be longer a borrower
this currency should be brought up to thu
specie standard, and / see no way of doine
this but by Withdrawing a portion of i
from circulation | have no faith in a pros
perity which is the effect of a deprecated
currency nor can L see any safe path foI
us to tread but that which leads to specie
payment.
The extreme high prices which now pre-
vail l n the United States are an unerrine
indication that the business of the country
is in an unhealthy condition. We ar
measuring values by a false standard. W.
have a circulating medium altogethe-
Fdarger than is needed forlegitimate business
The excess is used in speculations. TIL
United States are to-day the best marke
in the world for foreigners to sell in, anC
among the poorest to buy in. The conse
quence is that Europe is selling us NOR
than she buys of us, including our securi
ties, which ought not to go abroad; anC
there is a debt rolling up against us tina.
must be settled in part, at least, with coin
The longer the imitation continues, thu
more difficnlt will it be for us to get bacl
to the solid ground of specie payment, Il
which We must return sooner or later.
If Congress shall early in the approach
ing session authorize the funding of thu
legal tenders, and the work of reduction i
commenced and carried on ~resolutely, bu'
carefully and p%rudently, we shall reach i
probably without serious embarrassment
to Legitimate business. If not, we shall
have a brief period of hollow and seduc
tive prosperity, resulting in widespread
bankruptcy and disaster.
There are other objections tothe presen.
imitation. 1t is, I fear, corrupting the pub
lie morals; it is converting the business o
the country into gambling, and seriously
diminishingthe labor ofthe country. Thi
isalways the ~effectof excessive circulation
The kind of gambling which it produces
not confined to the stock and produc,
boards, where the very terms which ar,
used by the operators indicate the nature
of the transactions, but it is spreading
through our towns and into the rural dis
triets. Men are apparently getting rich
while morality languishes, and the pro
dpetive industry of the country is being
diminished. Good moralsi in business, anC
safe, persevering industry, it not at a dis
count, are considered too old fogyish fol
the present times. But I feel that this i:
not the occasion for croaking, and perhaps
fought to apologize for the train of remarks
into which I have been led, but 1 feel anx.
ious about the present imitation and its eff
fects upon the business and morals of the
country. l am hopeful that by wise legis-
lation, we shall escape a financial collapse
and 1 am confident that a grand future i:
before the United States. | am hopeful
that the currency may be brought up to
the specie standard, without those anan-
cial troubles which have, in all countries
followed protracted and expensive wars.
By the experience of the last four years
we are led to the conclusion that our peo-
pie have q latent power that always mani
tests itself when required, and is equal To
any emergency. Ihave faith in that rs We
have, to the establishment of the world,
raised immense armies, largerI a%pprehend
than any single nation ever brought into
the field, and met the enormous expenses
of the wal without borrowing from other
nations, We shall also be able, without q
financial crisis, to fund our surplus cur
rency and interest bearing notes, and place
the credit of the country on the most sat
isfactory basis. If we do this, we shall ac-
complish what the soundest thinkers in
Europe have considered an impossibility,
and what no other people but the free and
enterprising people of the United States,
occupying the grandest country in the
world, could accomplish But should we
be disappointed in these hopeful expecta-
tons, should no early check be put upon
the issues of paper money, should prices
still further advance, aud speculation be
still further stimulated, and the result
thereof be extensive bankruptcy, depres-
sion and hard times, the grand destiny of
this country and this government will not
be affected.
The United States occupy the best por-
ton of the temperate zone of a continent,
stretching out its arms to Europe on the
one side and Asia on the other, and pro-
ducing all articles necessary for the subsis-
tence and comfort of the race. If cotton
be king, he is, thank God, enthroned again.
If bread be king, where should his capital
be but in this great valley of the Mississip-
pi2 This nation has within itself every
thing that is needed to make it the greatest
among the family of nations. Coal and
iron are in juxtaposition and in ~inexhaust-
ible supply; mountains and valleys rich
enough in gold and silver to furnish the
world for all time with what may be need
ed for circulation and other uses copper
and lead, and other material, in no less
abundance a soil of wonderful fertility
climate salubrious and diversified, and
above all, republican institutions, and an
energetic and cultivated people. We have
it is true, difficult questions growing out
the war yet to be settled, but l have an
confidence that they will be settled
they come up for settlement, in such a
as will strengthen the Union and
add to our national renown.
The labor question at the South is one
Of those question, but if there be no outside
Interference it will not, I a~pprehend, be a
very difficult n e On the contrary, it is
quite likely to a selfadiustiDqGnfsr slaves.
needs he. lehE%hich Southern pro,
IaftIfcommand for years to come will
nable him to pay literally for it.