The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-10-09

D, 1000. MI J.
Crudities Of Financial and Currency Quacks.
A moneyed oligarchy which has grown up
since the war and the establishment Of the ma
tional banks is continually urging through the
press in its interest forced resumption Of
specie payments and depletion of the gold
reserve in the hands Of the Treasury. The
object of the fallacious arguments used for tins
purpose cannot mislead any but those igno-
rant on the subject But, as this subject il
much confused by the fallacies OF interested
parties and the crude notions OF mere tneo-
rists, we have few words to say upon 1t.
First OF all, 1t IL urged that we ought 70
force specie payments by Immediately con-
tracing the currency, and secondly, that 10
facilitate this the Secretary of the Treasury
ought to part with the gold in his hands. We
are promised al sorts of good If this should
be done, but, unfortunately for these specula-
tors and theorists, we are furnished with no
arguments or reasons why and how this is TO
be accomplished. They make nero assertions,
unsupported by reason or the facts OF history.
On the other hand, we have the experience
Of history, the actual prosperity Of the country
and the soundest arguments to show why we
ought not to attempt to force immediate specie
payments and to deplete the Treasury Of its
gold. We have over and over again shown the
disastrous consequences in England OF forced
resumption after the great European wars were
ended in 1915, and that our condition Ii some
what similar to the condition Of that country
then. The same disarrangement Of values, the
same general bankruptcy and something like
the same widespread distress must be the con-
sequence here of suddenly reducing the means
thirty-three per cent Of every debtor in the
country. The bondholders and the very rich
alone would be benefited. They would be
made richer and the poor poorer. The finan-
cial history Of England shows this very fully.
But why, in the name of common sense,
should we disturb the present state Of things!
Is not the country prosperous beyond all pre-
cedents? II is not an artificial prosperity. Ag-
riculture, manufactures, legitimate enterprises
of every kind are stimulated; work for the
laborer is abundant and well paid the reve-
nue. of the government is something extraordi.
nary the national debt is being paid off at the
rate Of twenty millions month, and scarcely
any one feels the taxes onerous. The constant
accumulation Of gold in the Treasury and the
large surplus fund there of eighty millions,
taken in connection with the general prosperi-
ty, ought to satisfy every one Of the ability OF
the country both to pay Its debt and to return
to specie payments within q reasonable time,
and as soon as it may be safe to do so. Why
then, we repeat, shall we disturb this state Of
things?
With our immense resources md the rapid
development of tire country we shall grow up
to specie basis within a comparatively short
time. In fact we doubt whether the present
volume Of currency would be too much for the
necessities Of the country seven or ten years
hence.
As to selling the gold in the Treasury for the
benefit Of spectators, we have had sufficient
experience about that Mr.. McCulloch sold a
large amount some time ago, and the conse-
quence was that 1t produced extraordinary
gambling in Wall street for a time, and finally
1t went to Europe. Gold, instead of going
down, as the spectators predicted, went up
soon after. That was the natural consequence
of depicting the reserve, which Mr.. McCulloch
did not see at the time, but about which, per-
haps, be has learned better SINCE, The reserve
u EXd IN IT, TreaSry operates like the re-
serve in the Bank Of England; it inspires con-
adence in the ability Of the government to
bring about specie payments at the proper
tme A deficiency, on the other hand, de-
strcys conhoence. Let the government, then.
hold It's specie, however urged to part with Il
by the spectators and moncyed oligarchy.
but, az we have repeatedly urged, one of
the most effectual methods to return to specie
payments and TO reduce the national debt Il to
break up the national banks under their pre-
sent organization. Instead of the circulation
Of three hundred millions Of their notes let the
government substitute legal tenders-a much
better currency-and with that three hundred
millions Of legal tenders buy up the interest
bearing bonds which are now the basis Of the
circulation Of the banks. In that way we
should save twenty millions or upwards year
to the country, which would be applied as
sinking fund to liquidate the national debt.
This, and this only, is the sound system Of
finance and currency which we hope Congress
at the next session will have the good sense to
adopt
THE New ENGLAND RADICALS ON ANOTHER
HoBnr.-New England is inhabited by set of
people who are never happy except when in
terfering in other peoples affairs. Directly or
indirectly they have caused all the troubles In
which this country has been involved. When
the Couth becou,ao ua0iciontIv rarartark "a