The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1867-10-17
Rspubiican Financial Policy.

Cincinnati Daily azette OF Saturday last, head
ed "a above. and commend them to the serious
consideration Of the financial men o!the Repub-
lican party:
Whether justly or unjustly, the Republican
party has had to bear the responsibility Of all
this, and to suffer the natural consequences 10
the election, and it has now to meet tbs ques-
ton whether it viii! longer be responsible for
the present financial and . monetary policy Of
Nr. Mccullough, or whether i, can devise
better one. Our own views Of the financial pol
icy that should have succeeded tho war, are well
known; but although they had general appro-
val within the extended circuit of our circula-
ton, the policy of Mr.. McCulloch, which was
adopted by Congress. was the reverse. We
advocated that the currency should be kept out
till all the debt that was honestly payable in
currency should be taken in. and that none OF
this should be funded in gold bonds. Expert
ence showed that upon the inflated currency we
could pay 200 millions Of the currency debt, a
year. We argued that our revenues would d.
Ininish with the contraction OF the currency and
that the funding Of deprecated currency obi
cations into gold bonds, the contraction of the
deprecated medium Of payment to specie, would
actually add from thirty to fifty per cent. to
the debt. And we declared grave apprehen-
sion that the pressure Of contraction and the
srnaitaneons creation Of an obligation to pay
I6o or 1870 millions of gold interest year,
most OF which would have to 90 abroad, would
utterly break down and end in private and pub
lie bankruptcy.
But this vast project has been attempted. At
the time when we began to urge our scheme,
the debt bearing interest in currency was about
100 millions, besides 460 millions ofdebt that
bore interest-grcenbacks and fractional cur
rancy--making 160 millions Of currency debt,
not a dollar Of which need t. have been funded
if as much ability had been directed to schemes
FOR floating it as there has been to consolidate it.
The debt then bearing coin interest was !, 167
millions. But under the policy which made the
speedy return to specie payment paramount,
and which made it necessary to first get these
maturing currency obligations out Of the way,
October statement showed Coin interest debt
of 1,745 millions, while the debt bearing cur
.rehcy interest was reduced to 46l millions, and
the greenbacks and fractional currency to 800
millions. But still there are 85l millions OF
currency interest debt and currency to deal with,
and the financial question is whether the con-
version of this to gold debt, and the legal con-
traction Of four millions month shall go on.
"a Whatever the depression from the currency
disturbances and from all other causes may be
now, it is but the foretaste of what is to come
with the contraction Of the currency to specie
payment. Unless the issue Of paper money on
suspended specie payments, creates in itself the
ability to stand alone when specie payment
comes, the country cannot carry any more cur
rency upon specie payment now than it could
before the wssA 1t never carried two hundred
millions of bank notes long at a time. That was
about the maximum that could be carried du-
ring state ofconfdenge which did not demand
payment. 1t is true that we have now a credit
currency that passes abroad to pay foreign bal
ances and that in this way we overtrading
with Europe 100 millions year (coin value),
and squaring it with Government bonds. It is
impossible to calculate what effect this Will have
in supporting specie payment upon our expan
ded currency; but this demand is liable to such
contingencies; ard q return of any considerable
portion Of the bonds to market in case OF
specie payment upon cur expanded currency,
would SO quickly bring a crisis, that it would
not be safe to base specie payment on such re-
lIances.
There is no way to specie payment but by
tie rugged road of contracting the currency and
this must bring corresponding reduction in
prices. Ia the course Of this we shall reduce
imports 100 millions year, or to what our
exports of produce ard gold can pay for. We
are aware that Mr.. McCuoch thinks he can
bring in specie payment without much reduce
ton Of the currency, but it is a wild experiment
and wilt break down. Mr.. Harace Greeley also
says that the way to come to a resumption of
{ specie payments is to resume at once Yet he
deplores the evil of over mporta,ion which is
caused by An inflated currency, happily uncon-
scious that this importation would be greatly
= stimulated by this cheapening of gold upon an
! expanded currency. and that thus the gold
n would speed abroad. And there are Some 9TH
ers equally simple in heart, who tell Congress
that 1.-The thing to do is to make the greenback
dollar as good as gold;' which is like the be-
nevolent man in Scripture who said to the poor,
BE ye warmed and fed and clothed" while he
u: Il 81 - A.
stamp. Advice to Congress as to the economies
is good, but while there are four, five or six
hundred millions Of currency dollars out, not
Sampson himself, who was very strong man ,
and was famous for pulling mp gate-posts, could
make the paper dollar as good as gold.
We still believe that the pubic debt is 50 large
that it is q hazardous experiment to increase il
by changing the currency obligations into gold
bonds, or what has the same effect, by contrac-
ting the currency of payment. Great depres.
sion and distress is unavoidable from contrac-
ton Of the currency, whenever that shall come.
The creation Of necessity to pay $50 or 10
millions Of gold interest year, while the coun-
try is going through the tightness of steady
contraction of the currency, and perhaps . COM
pete revulsion and prostraton of business, is .
dangerous trial OF its capabilities. And if the
usaul tendency were not sufficient, the moneta-
ry stringency of such time will force nearly
all Of the bonds to Europe and thus make Il
necessary to send abroad each year this amount
of coin, which exceeds the whole amount on
hand in tho country. We believe that the poll
icy will break down, and, in so doing, will re-
duce people and Government to bankruptcy
And We think public financier should not pre-
sumo on SUCCESS so far, when but little contrac-
ting has been done. and yet that little has caus-
cd great depression: when his system causes
the export of 100 millions of bonds year, not
to bring gold, but goods that we need not; and
when the very handsome payments that have
been made Oh the principal Of the debt, were
made upon the conditions which his policy is to
destroy.
We still believe that the only safe policy il
TO stop the conversion of currency debt into
gold bonds, and to offer inducements that
would float them, or something in exchange for