The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-03-27
The Financial Problem How Can it be
Solved:
From the Herald.

From the Herald.
The question of finance is one Of the most diff
cult subjects which our public men have to
grapple with at this time. Next to the restoTa-
tion of the Southern States it is the most i'm
portant problem that is to be solved at present.
Its final solution hinges, TO a great extent,
upon that of reconstruction and depends,
in great measure, on the action of Congress
in regard TO the latter. But, with all the diff
culties surrounding it, with all the obstacles
which now seem to lie in the way, all that is
necessary to enable the country to steer clear
of breakers and secure an early return TO a
specie basis is for those who are called upon
to legislate upon the question to exercise a
little common sense. Gold is now rapidly de-
Clnlng, and 9reenbacks approaching in value,
from the natural results OF the laws of trade,
ana any attempt TO hasten them, either by legis-
lation in Congress or contraction by the Secre-
tary OF the Treasury, will, in the end, delay,
rather than hasten the return to specie pay
ments. Nor will the plan of forcing resumption
of specie payments by withdrawing the green
backs and funding them into bonds accomplish
the object. 1t will interfere and clog the busI-
ness ofthe country without securing the object
aimed at. We cannot resume specie payments
as long as our purchases abroad exceed our eX.
ports 10 the extent that they have Tor the last
three years. One great cause tor the fall of gold
at this time is the large amount of cotton which
is being shipped, which reduces the demand Tor
gold to pay our foreign Indebtedness.
The legislation at Washington may bring
about tall in the metal now and then, through
the simple fact that the brokers In Wall street,
acting upon the belief that 1t must 90 down,
manage TO lower the quotations, but this is only
temporary and is liable to a reaction the moment
that the furry is over. But let the country raise
and send to Europe sufficient cotton, or any
other product, to more than pay for our pur-
Chases abroad and there will be no longer q
foreign demand for gold, and specie payments
will come in spite OF legislation.
W Is q V
the solution OF our present financial problem. IL
the members Of Congress can tell when we shall
export cotton and other products sufficient 70
pay our debts and our purchases abroad, they
can then fix the day when we can resume specie
payments, and all attempts to force il sooner
than that will only bring upon us disaster as
punishment for our folly. The restoration
OF the South, in order that capital may be
invested for the development Of that section,
and to Increase the supply of the great staple,
cotton is, therefore, one Of the most important
steps towards resumption of specie payments.
Instead OF withdrawing the greenbacks and
forcing specie payments against the natural
laws of trade, all legislation on this
subject should be based on the laws of com.
merce. 1t was this course that enabled England
to resume specie payments after the war with
Napoleon. Ii took that nation several years to
reach specie basis, but If the radicals in
Congress will only permit the country tC
specie payments in one or two years. without
any contraction OF the non-interest bearinl
notes. All that Is necessary Tor Congress to de
on this question is to decide when IT is probable
that the exports of products will be equal il
value to our imports, and fix that as the tim
when specie payments shall be resumed The
make the greenbacks redeemable in coin on dc
Inand at the treasury ana sub-treasuries through
out the country. in addition TO this enact
law compelling the National banks to redeer
their currency in greenbacks, ana you have
complete system, which will adapt itself to th
demands Of trade and commerce. and prevent
rapid imitation OF currency or sudden depreci
ton Of values. The greenbacks win then be
this country what the notes OF the Bank OF En-