The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-09-10
Tho Way to Make the Rich Richer and ihs
Poor Poorer.

these institutions.
This Way 20 Make the Rich Richer and the
Poor Poorer.
We wonder If Mr.. Secretary McCulloch OF
any Of the other specie-paying theorists who
talk SO glbly Of returning forthwith or within
short time to metallic currency ever
thought Of tho effect that forced resumption
must have upon the country We suspect
they have given the subject little thought and
know little about 1t. They take up and reitc-
rate the old idea of the English bullionists-
paper dollar should be made worth gold
dollar by forced process Of Legislation or By
the action Of the government, without any re-
gard 10 existing values or the laws of nature
and trade. TLey are visionary men, upon
whom the teachings OF history are lost and
who are incapable Of grasping the questions of
economy and finance in national point of
Wow. The Secretary Of the Treasury, even,
has no ideas that reach above small banking
operations in country town. He is undonb-
cdly respectable business man in such q
limited sphere; but he has none Of those com
prehensiye, sta!esmanlike views required in the
finance minister OF great country.
Lot us sec what would be the effect Of q
forced resumption Of specie payments. II is
known that all values arc based upon our
present currency. All real estate and property
OF every kind, all government stocks, all debts
and obligations, the wages Of labor and bust
ness transactions of every description are
based upon it. The relative value Of gold TO
tie currency or paper money in the market il
in the proportion of three to two--ihat is, il
takes three dollars Of currency 10 buy two
in gold. Now, If we were to return at
once to specie payments, The value Of all
property would be reduced in that PRO-
portion, because IL ia estimated on
our prescnt currency. Ticking TIE entire pro-
perty in the country in Ionnd numbers at
fifteen thousand millions, /. would be reduced
in effect TO ten thousand millions. A man
whose houses, lands or stocks of goods arc
worti, three hundred thousand dollars would
find that by being reduced TO tie specie value
through resumption they would only be worth
Two Hundred thousand dollars. But suppose
Ibis same individual should owe debts on mort
cages or otherwise or have business obligations
10 nearly the extent of lis estimated property
OF three hundred thousand dollars, would he
not necessarily become q bankrupt? His debts
or obligations would not BE- reduced by the
reduction in the value OF currency. He would
have to pay three hundred thousand in gold
FOR what was worth only two hundred thousand
In gold at the time he contracted these
debts. This would be the case through
out tho whole community, and the newt
able consequence must be general bank
rup.cy. The poor would become poorer. On
the other hand the findhoidcrs and the
rich would be made richer. The property OF
both Americans and foreigners who hold
United States securities would be raised In
value thirty three per ccnt-would be appre-
ca.cd on the whole debt q sum approaching
eight hundred millions. In word, then,
iandholders would get hundred in gold
for what many Of them did not pay more
than fifty and hardly any more than sixty to
seventy. The national banks, The rich and
The large holders Of United States securities,
both at home and abroad, may well ciamor for
resumption OF specie pay ments--inay wen re-
gard the national debt as blessing TO them,
for resumption would increase their wealth
lmmcnscly--would make The rich richer, while
the rest OF the community would be plunged
into bankruptcy and ruin.
Every ore who will exercise little columop
sense on the subject and who Is not blinded
by selfinierest must sec The truth of
this argument. But VIC have Also striking
examples in history TO guide and warn
US. especially in the history Of England
After the close of the long and exhaustirg wars
Of that country against the FIRST Napoleon q
similar state OF things existed then to what we
experience now. There was constant and
fierce struggle on The part Of the iundhoders
aud tie rich 10 force specie payments. These
British hullionisis carried their point finally,
for they had control OF Parliament, the mass OF
the people net being represented in England
cnd acis were passed 10 compel resumption
Of specie payments. Those acquainted with
the history OF tho time referred to ara aware
,hat The consequences were most disastrous
Perhaps IN no period Of British history did that
country pals through such crisis Of bank
rup'cy, distress Hnl general suffering as in
those years from 1917 and onward, when specie
payments were forced and the dircfnl effects
were fc.;. The rich became very rich end the
mass Il the people we're reduced 10 Tie lowest
state Of poverty. The spectacle which We VIZ
nc-s 10 that country now Of moncyed @is-
'ocTacy side W side with the most frighih,l
and wide. prcad psuperism Is the result.
Why, then. shorld we, in The face Of these
instructive facts, commit The some blunder tho
English committed and TO which our own hull
licnisis are urging us! Why should we benefit
few fnndholdcrs and rich men oil the cost OF
the Industrious millions? We arc doing well
enough. the country Is prosperous snd will
continue 10 be so II we have domestic peace
Why shonld We distlrh this state OF thingss