The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-11-05

that their intense antipathy to the General
may be traced to the old proverb that "two Of
trade never agree"
vasarics About Our Financial Condition
and n Revision.
Some OF the newspapers, and those chiefly OF
the radical stripe, seem to delight in showing
their crude and absurd theories about the
financial condition of the country and in pre-
dieting a rcvulsion and all SORTS ofevils. Like
DR.. Sangrado, they have one remedy for all ills,
not knowing whether it will kill or cure. In
fact, in their ignorance and insane desire to be
doctoring, they create imaginary diseases
where there Is perfect health. Immediate re-
sumption Of specie payments is their panacea.
They SEQ the country in the full tide Of pros
perity, legitimate enterprise and business
active and progressing, labor universally en-
ployed and well rewarded, the productions of
the country greatly increasing, the revenue Of
the government immense and yet no ono dis
tressed by the burden of taxation, the reserve
of gold enormous and the national debt being
greatly and rapidly reduced; they see oil this,
and still say we are in ruinous condition, and
that fearful revulsion is coming. They assert
that this Is all artificial, and that we are In q
very unhealthy state, like person in high
fever. Are the railroads which we build, the
mines that are worked the manufactures that
are set going, the lands that are opened
to cultivation, and the general produc-
tive enterprise Of the country artificialf
Are not all these substantial improvements
and an increase Of the national wealth. And
what has produced this result but the abun-
dance Of money! But in order to make Us
more prosperous these crazy theorists would
take away the very means of our prosperity.
They would shut up the manufactures, stop
the construction ofrailroads, arrest the plough
and close up the mines by taking away the
money which sets them all going. They would
reduce our present circulating medium to a
degree that would paralyze all business and
bring about that revulsion which they havs
specie payments.
As to general revulsion under the present
state OF things with an abundant paper money
currency, that cannot take place. Overtrading
or excessive speculations may cause some fail
ures and breaking up of companies and ind-
viduals. These occur in specie paying times
as well as when specie is not the circulating
medium buta general revulsion cannot occur,
because there will be no drain Of the currency
from the country nor boarding oft. This is the
lifeblood OF home trade, and willie it flows
in sufficient volume people will have
means and business in general must be active.
The want Of money creates revulsons, not the
abundance Of il. True, there is healthy
Limit beyond which ii is not safe to 60, and the
volume Of circulation should DO kept steady,
increasing only in proportion with the pro-
gress Of business and national wealth. The
question with us is simply what is th, limit
and how is the circulation to be regulated
according to that If the business OF the
country be conducted upon circula-
ton OF eight or nine hundred millions, and
we reduce that 70 four, five or six hundred
millions, in order to force specie payments,
what would be the consequence Would il not
reduce the means OF all except the very rich
bondholdersS Would it not necessarily para.
lyze Industry Would 1t not create a fearful
revulsions We are not without examples in
history to show that this would be the case
besides, il is so plain matter Thar any man
with ordinary common sense con understand 1t.
We are doing well enough, and there is no fear
OF a reyulsion. We ought to be careful not to
throw away this valuable experience for the
absurd and dangerous theories Of ignorant
writer's and bullion Spectators.
But, strange to say, these same advocates OF
forcing specie payments call upon the govern
ment to part with ils gold, which tends to
inspire confidence in our ability TO pay in
specie. Open your vaults, they say, and let
out this reserve for the benefit OF commerce
and to reduce the premium OF gold. That is
10 say, In reality, for the benefit Of the gold
spectators, the Bank OF England and the
foreign bullion traders. We do not say
that there should mol be some limit
to the amount government should hold:
but II ia wise and hcslthfnl to keep large re-
serve. We have had some experience in the
government parting with its gold and We know
what effect would be produced again. Tempo
rarily gold might decline, but the premium
would soon go mp again. A large stream
would flow to Europe, and we should be left as
poor in the precious metal az ever. The great
mistake made Is in regarding gold az anything
else than an article Of trade. II Ii not our
money, and IL is not necessary for our welfare
or prosperity that it should be. The Bank Of
England and the great foreign capitalists
could draw away the gold, and IL that were
our only money they could bring on q revul-
sion or help TO bring on one at any time
but they will not draw away the currency.
They cannot make this money scarce and hold
us at their mercy. Let us keep the volume Of
our present circulation steady, then we shall
grow nm N tho snncio standard AMI o,x .~.1o