Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1867-11-05

fundamental too; and our various opin-
ions result indirectly therefrom. You
think the country already insolvent ]
do not Assuming that the country is
bankrupt-your illustration of my argu-
ment, of the man owing 100000 with
assets of 100000, is partially good
Your illustration carried out would be
This country is $4,000, 100000; its debts
amount to 81, ,5OO,OOO,OOO. Let us, con-
sequently, sell the thing for what it will
bring, pay what we can and start afresh
with clean sheet. In other words
Let us pay the time debt with demand
obligations, and not being able to pay the
latter, take the benefit of what might be
called a national bankrupt act.
Now, this seems to me the veriest alb
surdity. This country cannot be insol-
vent, but quite the reverse. 1t is stated,
on good authority, too, that the produc-
tions annually amount TO over 81, 900, =
000, 900, three-fourths of which amount
will amply provide for the essential
necessaries and comforts of civilization.
Even with what is denominated the
present enormous taxation, the whole
country is paying concern, and is ac
tually richer as the Years pass, You
see, Mr.. Editor, you omit altogether in
your calculations the annual productive
ness of the country. While it might not,
if sold under the hammer, pay seventy
five cents on the dollar, it is not neces-
sarily uusound because of this immense
recuperative power, of this immense
annual gain and addition to actual
values. Whether or not it be insolvent
we can waive, appreciating the fact of
our total inability to arrive at the truth.
We may nevertheless get at some truths
touching what ought to be our present
policy; what we should do to bring the
present currency of the country nearer,
and finally, up to an equality with gold.
fail to perceive, Mr.. Editor, in what
way newspaper essays, which convey the
impression that the country has already
gone to the demnition bow-wows," can
aid in sustaining the credit of the coun-
try. The value of the issues of bank
where no securities are pledged for their
redemption, will depend wholly upon the
credit it has in the community. The
issues of the Government are subject,
measurably, to the same law. And l
think we will best sustain government
credit if we assume, and as our position
permits, encourage such confidence or
such credit in government issues; be-
cause, as you truly say, the value of
currency does not always depend upon
the amount issued; to which l would
add, in time of war" Other things
being equal, the amount of currency
issued controls and regulates its value.
The whole country seems to be well
assured of the ultimate value of the
government currency and government
bonds. Neither eau be otherwise than
good ultimately, for what they pretend
to be-so many dollars in specie. But
there is this diversity Of opinion as to
what course the government shall pursue
that while one class desire the gradual
contraction of the currency, the other
demand an enormous increase.
| think the latter course If followed
will lead to bankruptcy in fact. In the
first place, the greenback issue is four
hundred millions To pay or redeem
which the Treasury holds say eighty
millions in coin, not quite sufficient in
ordinary times, and surely not now, to be
regarded as sound and solvent Let US
suppose the volume of greenbacks in
creased to eight hundred millions during
the next twelve months, is there any one
so crazy as to even dream that the ef
feet could be otherwise than an appre-
citation in the value of gold ? On the
other hand, if the volume of currency be
reduced to two hundred millions, is it
not apparent that the demand liabilities
of the government being so materially
lessened, the currency, instead of coin,
would appreciate in value n Under
gradual contraction of the currency
the government would retain its present
strength, its resources would but slightly
diminish, while the proportion of assets
and liabilities would be very much greater
than now. There cannot be much doubt,it
seems to me- what ought to be done.
HosC, is more troublesome. But surely
the policy, whatever it may be, which
will enable the Treasury to redeem its
issues in coin, is the true one. Can
here be any surer route to that, than the
decreasing of the demand obligations or
the changing of the now
great disproportion between resources
and liabilities, to nearer an equality 2
All other routes have heretofore led 10
activity, plentifulness, extravaganza,
waste and finally bankruptcy, sudden
md terrible There ought not, it seems
o me, to be any diversity of opinion
about this question. If we want real
Ind substantial times, let us advocate
contraction Of the demand obligation
" an increase of the time debt Let US
possess ourselves ofthe ability TO control