The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-11-09
OUR NATIONAL FINANCES.
lnlpOrtant Letter from Hon.
Thad Stevens.
Paying the National Debt in
Greenbacks.
lie Den0unces the National Banking
System.
LAxcAsrBR. Pa, Oct. 81, 1861.

LANCASTER. Pa, Oct. 81, 1867.
Hon. TnADDEus SrFvrNs:-
DEAR SIR-As usual. when in toubt upon any
subject which suppose you 20 understand better
than do never feel tie least difficulty IN asking
your opinion upon the subject; because have
ever found you willine % answer an old nelghbor
90 far as you find yourself able. see an angry
eo,troyersy bas sprupg % between two gentlemen
as to what kind OF money the national debt shall
be paid H. One gentleman argues from what he
supposes TO be the law of the question and the
duty or tho government under its legal
obligations TO those who hold its liabilities:
the other seems to deal principally in what he
considers ought to have been the duty OF govern.
ment in the discharge Of its debts 20 those who
hold them, at whatever price they may have been
purchased, ani to deal in strong vituperation
against those who would nay according 10 law. if
that law contradcts his ilea OF equity without any
regard 10 tho letter or the spirit OF the contract
between the government and the holder and to
denounce immoral The payment OF its debts &C
cordng to contract, because at other times. other
nations have paid more. and because portion OF
that present debt is also paid at higher rate
Now, I am banker desrous TO do business
upon legal principles aud at the same time to deal
away ~ I soon shall. may not be represented as
svinder, rohhcr unjust man, whose
memory should be- held in execration for my deal
ings with my fellow ,rca. While I am unwilling
to wantonly sacrifice NV estate, shall not hcsi-
tate to aid in paving any portion Of the half a bill
lion OF money necessary, il necessary to support
q good character. although the Same should
come oat Of the tases and hard earnings Of our
labor
Will yon also IL yau have time add a word as
10 your idea of the wisdam Of the management of
our finances and OF our financial system generally,
remember yon. at time, did not quite agree
with the then Secrctary OF the Treasury. Yours,
very truly, JOHN GYGER
LANc} srsR Pa. Nov. A. 1867.
DEAR GY0ER-I shall lot hesitate to answer the
questions which You have proposed to me
according TO my peor ability. although know
that thereby incur tha risk of sharp and frvo-
lous criticism by aide View York editors, whose
age is scarcely more man eighty years, and who
will probably discover in ny answer evidence of
old age and Of dccayng intellectual powers. OF
all this am myself conscions and only regret the
pain which it gives iaase Youthful gentlemen to
make such delicate uegestions. But as literary
pride has never been among my aspirations will
my neighbors in advanced life.
They need hardly tell vou who reside my near
neighbors. what doubt not is apparent in the in.
trinsic evidence OF nv poor productions, that
these things which am too often giving to the
public are dictated from sick bed in the in.
tefvals Of pain which Providence INDUCES me
with and to which those gentlemen abroad so
kindly refer. But | may print not print as
suits my discretion. have right 10 complain of
the criticism rlicue rhch gentlemen in vigor- |
Gus health see proper 10 bestow upon our pro. |
auctions.
SO far as the financial condition OF this republic |
il concerned, it is not and can, be in doubt
or peril. With the products which We can readily
dispose OF to supply lAe demand ef every kind
there never can b. a time when, with honest deal
ings this republic will be unable TO pay all her
just liabilities.
The best mode or managing her finances, OF
which you inquire. and which you much more
capable Of determining than am, and least Of
all. il a much more difficult question. and one
which has puzzled abstractonists long before
Adam Smith have not approved and do not
now approve OF the financial policy pursued by
our government for tho asst six years. think we
have thrown awav our billions, aud are still throw
lug away our millions, by Encouragement
You are a banker. and a sound one; but you are
making Of the United States through the
national banking system, as is every other man
who has adopted IT, than you ought TO make.
This may appear dogmatical: but am only
swerng the question which you have asked me.
In all financial questions he who makes an honest
bargain and pays dollar for dollar, every cent he
contracted for. is not dishonest man, and does
not deserve TO be denounced swndler or o
cheat whatever may be his prosperity in life.
Let us come 10 a brief and true history Of the
present finances Of our country, and see whether
you have anything TO reproach yourself with in
dealing with your fellow citizens in the exchange
OF those finances. Every nation OF any ma gnitude
ia the present stage OF civilization and with any
considerable business and commerce, must and
win gse some kind OF paper medium to carry
on its business. None but the Choctaws,
Chickasaws and their kindred tribes now doubt or
deny thia.l In framing our constitution II was not
doubted that this medium must be used, redeem
able by its equivalent in whatever should be the
money OF the country. That instrument provides
that the general government shall coin money and
regulate its value. Under that clause | have
never doubted that the general government alone
wac competent TO issue bills OF credit. or. in other
words to establish banks of issue. and TO declare
what should be the money Of the country and its
value. We have fallen, | am sorry TO say, into
different practice. and States do that which, for
the sake OF uniformity. the general government
alone ought to control
THE certain result Of oil large commercial
transactions under any system Is, that sometimes
the currency Of country will be expanded and
sometimes contracted according to the supply and
the business and the prudence Of the people,
This is what Is called the expansion and contrac-
ton Of the currency, and denounced Is thing
which might have been avoided. That expansion
or contraction is in wise effected BY the kind of
money which ia used. II IL be too abundant or