The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-16
Financial Tinkering in CoHgressv-The Morrill,
BILL


after July, 1869, or, in other words, 10 compel
the Secretary Of the Treasury 10 redeem the
interest bearing legal tender notes and 10 pay
The bondholders in coin after that date. This
bill provides also for the sale OF gold In the
Treasury at that time, for which the govern
ment is TO receive paper in the shape of the
three per cent interest compound notes. 1t
also requires The national banks 10 redeem in
coin their currency Of five dollars and under,
but permits them 10 redeem bills of higher
denomination in greenbacks.
The government is FIRST to part with all
the gold in the Treasury, and then, after haV-
ing parted with it, is to redeem the legal ten
ders in coin, while the national banks are mol
required to pay in specie their notes over five
dollars. Such is the confused and impracticable
legislation to which Congress is invited by the
Vermont Senator. The mountains of his State
are not as green as Is this scheme for reaching
specie payments. A bill to dry up the Missis-
sippi or to stop tho flow OF Niagara would be
quite as reasonable. 1t ought TO be called .
bill TO bankrupt the Treasury, to add to the
wealth Of the bondholders at the expens, Of
the people, and to turn over to the national
banks all the gold, while It allows thesa favored
institutions to circulate an irredecmable paper
currency. 1t is an insidious measure for the
special benef. Of the national banks and the
bondholders, from which both the government
and the mass Of the people will be the sufferers.
But il is impracticable, and If Congress should
be stupid enough to pass (which, If we may
Judge from the action OF the House lately on
the currency question, it will not-the conse-
quences may BIO serious, while the object will
not be reached.
The British Parliament tried TO force specie
payments after the wars with Napoleon by such
measures as this, but had to undo what was
done several times. From 1916 to 1921 seve-
raj efforts were made to force resumption, but
the government had to abandon its purpose in
consequence ofthe suffering produced and diff
culties in the way. Finally, when resumption
was forced, through the clamor of the bond
holders and capitalists, which was not fully
reached, however, till 1928, the country was
plunged into terrible financial revalsions and
appalling distress Similar results will follow
here II the same disastrous policy be pursued.
If Mr.. Morrill, cannot be taught by such lessons
Of experience, it is TO be hoped the majority
in Congress can, and will reject the impracti
cable and dangerous bill OF that Senator. Lat
the circulation Of the currency remain ~ it Is,
except to make 1t uniform. by substitu ing legal
tenders for national bank notes, and the cOun-
try will roach specie basis gradually, without
serious reyulsions
Another absurd proposition made by the
financial thinkers is to raise another and for
eign loan to pay portion Of ths debt-that is,
to create one debt to pay another-to place
ourselves still more at the mercy of British and
other foreign capitalists, and to make big
job for some Jay Cooke, Robert j. Walker or
other spectators. The British wisely kept as
much Of their debt as possible at home, 80 that
the interest, when paid, should not leave the
country; and Louis Napoleon, whom he raised
large loan, was careful to spread it among
the French people but our sapient hnanciers
want to make us the debtors OF foreigners to
bind us hand and foot, AMI to leave our
finances aud trade under foreign control. The
debtor nation, like the individual debtor, Is
tor, and the foreign creditor from year to year
drains nation in debt OF the specie or money
which il the likelihood OF internal trade.
Suppose, according to the theory Of these
financiers who want foreign loan, that the
whole of our debt could be sold or transferred
to Europe, we should have to send upwards OF
q hundred AMI twenty millions 10 gold abroad
every year to pay the interest The capital on
the purchase money would soon be swallowed
up as in vortex, and after the first stimulat-
ing effect passed away we should be left de-
pendent and helpless. The government wants
no loan, and, leass Of all, foreign one. AS
the debt falls due, II there be not money
enough in the Treasury 10 pay 1t, let Congress
provide for changing one form Of indebted.
ness for another by tho simple process OF sub.
stitution. That IL oil which will be needed,
and we can dispense with foreign loan negoti-
ators or the assistance Of foreign capitalists,
90 far a. the United States Treasury Is con-
cerned. If these inanciers are DESTROYS OF
getting foreign capital, or the foreign capital
ists Of using II here, let them apply II to the
hundreds Of profitable enterprises in the coun-
try--to the development Of our vast unde-
veloped resources aud TO the creation Of
wealth among rs. In this way loans would be
profitable both to the country and foreign
capitalists but II would be better to keep tho
national debt at home among. our own people.
Rather pay of the debt rs fast as possible
than to create new one. We are not among
those who believe national debt national
blessing, and wo are quite sure II would be
anything but that IL held by foreigners.
Cmba sad rsrts RIcs-Whas Does u All
Mean