The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-12-10
SPIRIT OF THE PRESS.
HDIroRIAL OPINIONS oP THs LEADING JOURNALS
UPOp CuRRESr ToPICs-CoAPILED EVERY
DAT ron FHs RvBSIss TELBeRAPH.
fJontractlng tire eCurrsBcy-- Congress ana
the Secretary.


NOainst Mr.. McCulloch and his policy Of con-
hacting the currency. Without debate or
Telay. and by vote of 127 to "a, it has sus-
Isined the measure of the Ways and Means
Committee, suspending the authority by
which the Secretary of the Treasury is EN-
powered to reduce the volume Of currency.
Nor does there seem any reason to doubt that
the same view will prevail In the Senate, with
force enough to render nugatory the antici-
pated veto.
When Mr.. McCulloch wrote, the other day,
that ethe public mind is too sensitive, bust
ness is too unsteady, and the political future
is too uncertain, to warrant any financial ex-
periments," f" he passed the severest oensure
upon the policy to which Congress is applying
a partial check. That policy has been alto
gether experimental, and its results have been
singularly at variance with the conservative
legislation of which in his recent report he
speaks as ''now Indispensable" The attempt
to regulate the gold market by sales of the
gold which should have been boarded as a re-
serve preparatory to specie payments, has
been confessedly failure, since it has neither
diminished the premium nor crushed specula-
tion, while it has weakened the Treasury and
postponed resumption. Equally mistaken has
been the conversion of currency obligations
the redemption Of which formed the proper
use of every spare greenback-into gold bonds,
entailing an enormous yearly addition to the
gold interest, and consequently to the load OF
taxation. And the immediate effect OF con-
traction has been to augment the uncertain
ties of business, and to multiply the causes of
difficulty and depression. Every step he has
taken has been in its nature Financial ex-
pertinent" for which Justification will be
vainly sought in the circumstances that make
necessary the Intervention of Congress.
That a reduction of the currency must
eventually precede a return to specie pay
ments, is as certain as that imitation now
exists. By no other process known to none
tary science may the evils incident to imitation
be removed. The fundamental blunder of the
Treasury has been the supposition that over
issues Of legal-tender paper might be sum-
marily ended, and specie payments as sum-
marily resumed, by the exercise of a disere-
tionary authority vested in the Secretary.
The condition of the country was not con-
sidered in the calculation. The fact that a
reaction from the excitement of the war had
set in strongly was overlooked. No notice
was taken of the paralysis through which
trade and industry must pass before escap-
ing from the effects of the prolonged and ex-
oessive strain to which both had been sub
jected. The necessity of allowing time for
the recovery of health by the body polite
for the restoration of vigor to industry and
life to trade-was utterly ignored. These
errors in the diagnosis of the disease led tC
the disasters which have characterized its
treatment. Principles, in themselves sound
have been so injudiciously applied that insteaG
of mending matters they have made then
worse. The country has endured the pains o
harsh treatment without any corresponding
advantage. Nay, the precautions provided
for its protection have been systematically
disregarded. The provisions Of the law re
lating to sinking fund have been violated
Gold bonds, carrying interest equal in cul
rency to more than eight per cent, have bee
issued in redemption of compound interes
notes, instead of the three per cent. certif
Gates which were authorized for this specis
purpose The financial difficulties of th
country have therefore been aggravated
ssfnanoial experiments" which would be su
fciently trying at any time, but which frol
their unskilful application have produce
widespread and unnecessary distress.
Mr.. McCulloch errs in supposing that 'lt
gitimate business has not suffered by the cul
tailment which has taken place within the las
two years." Credit enters more or less into a
business, and as the tendency of contraction
to lower prices, it necessarily inficts loss upO
the debtor interest. Some loss is inevitable
we would regain specie basis Fortune
will be reduced, and many who esteem then
selves rich will find themselves poor. Sue
being the result of contraction, come when
may, its application should be gradual an
judicious. The losses should be distribute
over series of years, partly as measure
equity between debtors and creditors, part
in order that commerce and productio
may acquire strength to sustain I'll
certain shock. II Is idle to say, then, th
Legitimate business has not suffered fro
the curtailment which has taken place. Specl
lation may have suffered most, but ''legii
mate business has also experienced tria
which have strained TO the utmost its pow
of endurance. Contraction has undoubted
not been the sole cause of these embarras
ments. General depression, here and abroa
contributed somewhat to their intensity, an
perhaps, the uncertainty attaching to imam
in consequence of the vast discretiOnal
power welded by the Secretary, has cont
buted still more. These considerations, hO'
ever, Vindicate the action now taken by Il
House. For as trade suffers from causes b
yond the control of legislation, it is entitled
ask that legislation shall not multiply al
aggraVate them. And If the interference
the treasury is one of these avoidable cause
!he !ir nOose takes proper step in preventiI
Here lts action in regard to the ourren
should Ior the present terminate. IL W
blunder even more egrepiousIv tban the Sec,
tary if 1t listen to Mr.. Inesrsolps nroNosit;I
to restore TO circulation the anooIrrt - ~
rency retired since April, 1866. To do n
would be TO bring back the days wbsn ,na
tiOn being in progress, unsettled valnas a,
converted business into gambling. Its
newal now would entail mischief in eve
branch of trade, and shake ones faith in /
redemption Of the national obligations. Tn,
-. ofraiF NJ rUa