The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-04


let the people have the profits that belong to
them OF circulating medium. There is no
objection to these banks-let them exist II
they will-only let the people and government
not be robbed for their exclusive advantage,
and let us not perpetuste an enormous monopo-
ly that will control the government itself,
rule the markets and swallow up all the profits
of industry. Mr.. McCplloch, throughout the
whole Of his long rigmarole about the national
banking system, has but one idea, and that Is
to favor the banks and banking capital at the
expense of the industrious classes AMI the
government.
1t would be an interminable and proftless
absurdities of this report or to endeavor to
sift out any grain from such mass Of chat.
But some things should be noticed. For ex-
ample, he comedies the general prosperity Of
the country, the extraordinary stimulus that
has been given to production through an
abundant currency and an easy money market
He could not do otherwise; for his enormous
revenue and the condition of the people show
that too plainly Yet at the same time he
calls this an unhealthy state of things, and
urges further contraction Of the currency to
give health. The country is remarkably well,
he says in one breath, and In another he de-
clares there must be some disease not actually
seen. He would bleed the patient for an
imaginary disease, and then, of course, when
the patient dies, he, like all other quacks,
would declare the experiment was a Legitimate
one. We do not want Mr.. McCulloch's expert
mental quackery. The country is very we'll,
and will go on very well If the currency be let
alone. We want no contraction, and only
uniform currency by substituting legal tenders
for the national bank circulation. We shall
grow up 10 specie payments, If that be desir-
able, within few years through the natural
growth of population, business and the
country.
With regard to the payment of the debt in
coin or currency the Secretary makes long
and labored argument for the bondholders.
He quotes the proceedings Of Congress (though,
unfortunately for his object, they are against
him) to show that the principal Of all the debt
the fve-twenties included, should be paid in
coin. He talks great deal about national
honor and all that to sustain his weak argu-
ment The whole truth about the matter is
simply this, that there is no obligation to pay
the principal OF the debt In coin, except where
that is expressly stipulated on the bonds that
whenever paper or specie Is the currency OF
the country it Is perfectly legitimate for the
government to pay the bonds or buy them up
in either that it was so understood in Congress
when the bonds were issued, as Mr.. Stevens
has clearly stated, and that we are not called
upon to force specie payments for the special
benefit Of the bondholders, SO as to pay them
forty or fifty per cent more for their bonds
than they gave for them. There is no fear
about the national honor 80 long as we pay in
the same money in which every one is paid.
One of the most absurd and mischievous
propositions of Mr.. McCulloch in this report
is relative to taxing the bonds for the benefit
of the several States. No doubt this kind Of
property ought to be taxed as well as any
other but for the general government to col
lect the tax and then distribute 1t among the
States is preposterous. The Secretary knows
nothing of history, or he would be warned by
the land and surplus revenue distribution
funds in former times in this country. 1t was,
as history shows, q frightful source Of corrup-
ton and dissension. This proposition is moth
ing more than a gigantic bride offered to the
States and politicians to support Mr.. McCul-
loch's infamous system Of finance.
Mr. McCulloch is not very explicit about the
progress and amount Of contraction Of the cur
rency, nor upon the effect produced. He has
touched this matter very gingerly. He has
utterly failed to propose good system Of
revenue, so as to reduce the burdens Of tax
alton, to prevent the stupendous frauds prac-
tised and to provide for the rapid liquidation
Of the debt On all these important topics he
deals in vague generalities, or says nothing.
In fact, there never came from any Secretary Of
the Treasury such an unsatisfactory mass Of
wordy, meaningless stuff as We find in this
report.
Our NIayoraIfv Election.