The New York herald., 1866-09-17
Tho IyOnaIhOldern.

pursuing the same course that the fundholders
BILE and prolonged war with Napoleon l., in
1916. Taking advantage Of the necessities
Of the government during the unparalleled
costly civil war we have just passed through,
they obtained its bonds at high rate of inter-
est six and seven per cent, and in some cases,
at not much over fifty per cent of the NOM
inal value. Following the example of the
British fundholders, they now urgently demand
an immediate return to specie payments, with
view to increase enormously the value of this
property. The national banks, which hold
upwards of three hundred millions; the foreign
bOndholders, who have in their hands, per-
haps, five or six hundred millions, and the rich
bankers and capitalists at home, who hold the
balance, naturally cry out for the immediate
resumption OF specie payments, because that
would add nearly hun red per cent to the
value of their purchase, and fully thirty-three
per cent TO the present market value Of their
property in bonds. We see, then, what an i'm
mcnse power there is pressing upon the govern
ment, acting upon Congress, and working upon
public opinion to bring about this result.
The fundholders in England commenced to
operate in the same way directly after peace
was established in 1915. They met with pow
erf,il resistance in the Bank Of England and the
business community, but all that had to yield
in the course Of Few years to their superior
power. The question was not understood as
well then az il is now. No country had over
been placed in similar condition previously.
France, it is true, had accumulated several
enormous debts, and had at one time foods Of
almost worthless paper money, but the two
countries were not alike nor their cases anal0-
gous. In France they changed everything by
violent and sudden revolutions and by the use Of
tho sponge. England, as o conservative and great
commercial! country, cndcavored TO preserve
the established order of things aud its credit
when overwhelmed with debt. Our situation at
present is more like that Of England at the pc
riod referred 10, though not exactly the same
but we have tho benefit OF her experience to
guide and warn u.s. Besides, the world gene
rally IS more enlightened on the questions OF
n,tionAl finance and currency. The British
fundholders succeeded after q few years in
forcing specie payments. By She power Of their
money and through spccious arguments, they
got the parliament with them. A large portion
Of the landed interest gave them its support.
Many of the rich landed aristocracy were fund
holders too I; and although as proprietors OF
the soil they might not have expected to be
benefited as much rs those whose sole pro-
perty was in the funds. they believed they
were promoting their own interests. In 1919
o bill was passed providing for return to
specie payments; and 10 1S23--that Ii in eight
years after the close OF the war-this was ac-
complished. Tho agitation Of the question aud
the efforts made to force specie payments
kept the business affairs OF the country 10
a constantly disturbed and an unhealthy
slate. Panics, revalsions, wild specula-
tions and great distress were the conse-
quences both then and aftcr resumption.
Everything was in n disturbed condition.
Political agitations followed, which culmina led
in the reform bill OF 1882. The most serious
aud enduring effect OF all these financial and
commercial disturbances was the enormous en-
rlchment OF the fundholding class at the expense
Of the rest Of the community, the creation Of
millions OF paupcrs. and placing the govern
! mcns OF the country permanently In the hands
Of moneyed power. These evils could have
been avoided. and England would have reached
specie basis without disturbances. revalsions
or great distress had she permitted healthy
and gradual approximation 10 specie payments
10 have taken place through the natural opera
tons OF the laws Of trade and growth 81 the
country.
Thc-. facts 10 English history are lull ~ IN
sruclion 10 as. The inevitable conscqucpce Of
forcing specie payments Il 10 impovcrisb She
masses of the community, 10 bankrupt debtors
and all with small means, and, ~ the same
time. 70 increase the wealth ~ those already
bloated with riches n this country shouId,
NOT under such circumstances, ne reduced 20 ~
frighiG,l state Of pauperism as England is. our
boundlcs. resources and vast public domain,
with the low price cf the public lands, would
alone prevent II. Hut The tendency would be
that way-thc poor would become poorer.
our bullionists, like ihoec of Englsnd, clamor
ror contraction Of the currency; yet zone of
them can tell US what should he the limit ~
| actually needed for the business Of the country
At the present time. The circulation previous
I 20 the war would certainly be very inadequate.
I W. have made immense strides since 'hen.
! An tuorm5U amount 81 wealth has been capi-
tsts.d within icw yrsrs. 1r. Alison, ins
historian. -ays -. IN every country the agere-
gaic yalne of the currency must evidently de-
pend on the business Il hS 10 periorm.' No
one can deny tina. The present vast business
operations of this great country require cor
responding amount or currency.
The oniv irvi'ims,c md ssi- v.v tc rctura