The New York herald., 1865-02-28

nno. " poseouse the war; II only remained for Con-
gress TO provide the and carrying il on
II manifest now, then urged that ii would have
been better at the s session in 1851 have reduced at
Tue lowest possible standard all expenditures and have
provided system OF internal taxation II Is easy now TO
6es the errors Of the past None Of appreciated
magnituoD OF the contest, the enormous armies
contest still tbihk that with parsimonous
economy and heavy tax6s from the beginning
to have avoided a Suspension of specie payments But
when the war came we wero without currency and
without system Of TAXATION gold disappesfea ana was
stream from country. BY the ub-Treasury act We
could not the irredeemaSe bills Of the State banks
and with the terrible lessons n 1915 and 1887 staring US
in the face, bold CROUCH to advise TO mako
the standard OF value the issues of Thousand five
hundred banks founded upon many banking systems
as there were States Under these we had
but resource. We had to borrow vast sums and
means TO do so we had 70 make currency; This was
done by the issue of United States Subsequently,
70 invite the interests Of private capital with the secu
rty of the government as basis OF banking, esa
currency sdum for collecting taxes and borrowing
money have waged o unexaInpled in
crowned with unconditional success. Such war has
not been conducted without vast expenditures Our
actual expenditure during the fiscal year ending June
for the current fiscal year Is $685. 29 1885, Upon the
basis Of the present laws much more than one-haf Of
this sum has already been expended To this sum you
must add every dollar you provide for by laws and
this grim fact must not be overlooked for single
ment when you are making new appropriations Every
dollar Of this must be paid the form Of taxes And
that is not the worst OF it. It must be paid
now; vi , we mus. get saa, the money BY making
we could postpone the borrowing until the 1t
would be easy But we must have 1t now, and we must
devise the means Of getting before sympahse
with the poor clerk the brave soldier the needy
tractor. Until then your sympathy is mockery. Your
of all whose vehoods depend upon fixed salary I
repeat that there are but three modes Of raising this
money On one Is by printing your notes calling them
Another by issuing bonds and promises to pay In
future And another is to collect tho money the form
Of taxes from the people That all these modes may be
resorted to Is proven from the history of all modern
tions when involved in AS the first is the easiest it
is apt be resorted first; but 1t is a doubtful
and dangerous oxpedient, and soon exhausted II
pressed too far. It destroys laws and taxes,
and, and national 'io bankruptcy is the inexorablo re-
pensabe to us as medium Of exchange. It is like
medicines necessary in certain and In moderate
money issued by government is called a oan but it
has OF the elements Of loan except the promise
to pay. There be no loan without lender and the
act must bo voluntary. In the Middle Ages governments
resorted TO forced loans-a contradiction OF terms
forced loan was merely an unjust and unequal tax
regard the United States legal tender notes not
loan made, but as money lawful money, which
the citizen is compelled to reccive-that which
now fixes the standard Of all values. Whether
the power to issue is derived from the
power TO coin money borrow money whether it is
inherent In every government clothed with the attributes
Of sovereignty questions need not now discuss
We have exercised the power 1t s the currency or
the country-the measure Of vaiue-and we Ca only
regulate its form and amount and provide for s
demption while we can and have made paper money
the standard Of value We cannot fix the price value
OF any other commodity, whether gold, silver food
This attempt has been made In many governments In
different ages and has uniformly failed The standard
Of value may be fixed by the government; but higher
law fixes the relative value of all commodities AS mea
sured by this standard, we may, by tariff law
affect the relative value Of commodities but cannot,
by direct legislation, fix the value of any commodity
either in gold or paper money. When the attempt has
been made the result has been advance rather
crease the value OF the commodity All efforts TO fix the
value Of gold measured by currency have failed
We may make penal the purchase or sale Of gold;
tracts may prohibit the expectation gold we may
deter sales OF gold by heavy taxation yet after all the
price Of gold rises and falls national credits
and fall So far as our legislation promotes reunion in
strengthening our army, Il produces . fall in gold as
measured by our standard SO lar ~ il merely dis.
conrnges trade In gold or any other commodity, In
creases its market value. 1t Is axiom Of political
economy, proven by the experience Of all nations, by
publican-that the relative value Of all commodities
beyond the power OF legislation We may
h %as s 'As Asa a
ally Is this so Of god which in all civilized nations OF
the world, except with nations for time involved in
fest therefore, that the first duty OF Congress
our lawful money standard Of value possible
limiting the amount and by making It valuable 10 pay
taxes loans 1t only be redeemed by the govern
ment BY taxes or duties; and every tax or duty, how
ever oppressive to tho individual which wthdraws for
. time our paper currency, brings il nearer the
by issuing legal tender bills s "~ now '"o.uy az.
hausted. More than enough is now outstanding
to supply currency Tho issue Of one hundred millions
more would not only increase debt to that amount
but would add even quarter TO expenditure by
the Increased price Of commodities consumed by the
war; while the imposition Of equal amount Of taxes
gives value TO currency and this reduces the price
commodities We compelled to buy An increase OF
paper money dement's .ne taxpayer now at the expense
pay Of the soldier whe by debasing the currency it Is
made easier for the taxpayer to pay specific sum. In
the end, however, the tax by the increased
cost OF food and clothing and transportation
OF the army, must finally be paid in gold
assume, then, that while the necessity for raising
these vast sums is still imperative, yet our mode Of
doing 1t and the easiest h exhausted Loans taxes
are our only resource: loan must be voluntary. 1t
may to some extent be induced by patriotism In this
contest thousands Of patriotic people-men woman and
children, rich and poor alike-have loaned their
The admirable system Of distributing this loan by
going out from money centres To remote hamlets
Of the people rather than from the garnercd treasures
Of the rich has proved wonderful Yet after
all TO borrow money you must appeal to the selfncrest
Of the lender great nation borrowing money will be
tried by tho interested tests applied by tho pawnbrokcr
to his shvcrng victim Tho 1t wants borrow the
more IL must pay. The terms upon which
prove have pressed this resource as far az
Is expedent Tested by the present standard OF gold
and twelve per cent afterwards, until the debt paid In
end end of eighty years With interest ss' for @ Ave ave
for three years at seven and three ten,hs in cur
rency and We receive for this promise, which be
70 tue uueruost, dollars IN
rency which will buy soldiers food than
hive hundred dollars in gold But this is not ALL We
stpuate that this property lent shall be exempt from
all burdens which this casts upon all other property
Of State, county and municipality This simple state
ment shows that this Of borrowing s exhaus
tive that dare not extend II except for
the highest object Of national existence When
l see tho money thus borrowed expended in
trivial objects I but look forward 70 the
slow and hard process by which II all be repaid
In gold, with interest accumulated and accommodating
through the agencies Of collections by the nqustora
process Of tins bill and from the labor Of the poor n
you have thought hard and close salaries and
expenditures, think you will do the justice to be.
leve that II Is not from any doubt OF the ability Of
country TO pay favor the selfish and desire for
cheap reputation or from disncnation 10 pay my
share, but because ! see In the dim future OF
our country the same uneasy struggle between
capital and labor; between the rich and the poor;
between fund holders and property haders that has
marked the history OF Great Britain for the last nifty
years do not wish public debt increased one dol
lar beyond the necessity Of the present war; and the only
way TO prevent this increase Is to restrict c1pendi
lures TO the lowest limit consistent with the public
vice. to the