The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1867-02-20
H... n. Pr,e. o. the Fi..nei.l Question.

Hes. n. Price On the Financ ial Question.
From the Davenport Democrat
In private letter recently written to Hon.
J. L. Davies, Mayor of this city, Hon. II.
Price, member of Congress from this
district, fully expresses his views onthe imam
cial question as now pressing upon our no
tional Legislature for its decision. The i'm.
portance of the question involved lustihes
the publication of this part of Mr.. Price's
letter. 1t will be read With interest by all
who are at all concerned in the question it
discusses. Mr.. Price says:
On the currency have just this to say:
For four weeks have been trying to get an
opportunity to offer my resolutions, so that
the country might form some calculation as to
what the financial policy of the Government
would be. u
As the law now stands the Secretary of the
Treasury has authority to retire and cancel
$4,000, 900 of currency per month this was
the plan adopted at the last session of Con
gress. and under which We have been operat.
ing for the last six months. In addition to
this he has authority to fund in interest pay
ing bonds the compound interest notes now
due. and which amount to some Sl40, 600, 900,
most of which become due within the year.
About 500, 100000 of these compound in>
terest notes are held by the banks as reserve
fund. When the banks take out OF their
vaults 500, ,OO0, 900 of compound interest
notes they will be compelled to put in their
stead the same amount of legal tenters,
which will reduce the volume of currency
just that much, to which add the S4S, 900, 900
authorized by law, and you have contracted
the currency 5000, 600 in one year.
This, in my opinion, is too rapid contrac-
ton for the welfare of the country, and con-
slider it calculated to produce sudden and
4. IL - 80 ~~k. .~Et H.
whole country that should be guarded against
and prevented. The volume of our paper
money now reaches near 5000, 900, 900. More
than four times as much as at any period in
the history Of our country prior to the war;
This is more currency than we can safely car
~, and as long we attempt to do so, we
must expect exorbitant prices for all the me-
cessaries and conyeniences of life, violent
fluctuations in values, and the laboring oar in
the commerce of the world, as against those
nations whose coin and currency are more
nearly balanced. There can be no mistake
in saving that we have reached an attitude IN
nominal values, from which, sooner or later,
safely or uusaiely, We must descend. AS
people and nation we were forced TO the
point and position we now occupy by inex>
orabIe necessity. The life of the nation was
at stake, and any and all means were )ust-
fable for its salvation. The question that
now presents itself for solution is, how shall
we get safely back. Some say we must re-
turn by one violent effort. Others say wait
until the coin money of the country reaches
point where it will be equal with the paper.
The last is simply, in my judgment, chin
erical and utopian and therefore not worthy
Of serious consideration. The first would
produce such crash as to make those Of
1887 and 1857 sink into utter significance,
The true policy. ii seems to me, Is to reach
the specie paying point, by safe and easy ap-
proaches, SO as to create noshock to business.
no violent unsettling OF values. This.
think. can be done by leaving the law OF last
session as il is, and requiring the Secretary OF
the Treasury, as be takes up the compound
interest notes, to supply their place with legal
tenders bearing no interest. his wll be an
almost imperceptible reduction of the evolnme
of the currency, and at the same time, relieve
the nation OF IS, 400, 900 interest per snnum,
and a consequent reductiono of that amount OF
tax upon the people. The resolutions which
j introduced cover this ground, and II they
had been understood would have passed, TOR
they were voted against by many who are OPP
posed to any contraction, and who did not
consider that the effect of them would be TO
prevent contraction of at least 500, ,ooo,-
600 this year, which must take place It the
Secretary is allowed to do what he now in
tends to- wit issue long bonds, bearing gold
interest, in ther stead. Ks ii was, the vote
was SO to 60 still believe tha. the only al
teration that will be made in the law, will be
in accordance with the spirit and intent OF
those resolutions, / am, very truly yours,
II. PRlcE.