The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-05-30

claim for return Of bullion instead OF goods to pay
inc
the suffering State has put into thor hands This was
the case with the United States in The years 1885 and
1883, as Nc will ondoavor 20 show.
Generally speaking the United States received In re-
turn FOR her exports value In imports estimated at
difference greatly increased Iu that year tho i'm
ports were $lS9, 960,035 and the exports were sl2S
nsr cant Tns .o o. a ohsag owna 20
Great Britain and ought TO have been liquidated by
Their taking goods TO the same amount In return as
soon the state OF the account became known or by
their receiving bills from merchants TIL We could
have time 10 effect corresponding sales with England
II was, Of course, the legitimate business Of tho Bank OF
England 70 discount such bills with its paper, that
the English merchants might In the interim have tho
reaay money wherewth TO carry on their business.
1885 and 1887 and sent them 70 the banks TO be DIS
couned but the directors Of the Bank OF England early
any oils drawn for the supposed purpose OF being
discounted" Our bills were consequently OF no
TO meet them az they became due since England did rot
enlarge her dealings with us as TO give US the oppor
tan,y o. drawing on them and after 'he most ssraor
tuition was compelled % stop payment in specie. limo
reduction further orders Till in 1887 twenty per cent
and In 1888 only Ave per OF imports beyond ex-
ports, restored the accustomed relation Of each to the
0ther For short period after this the banks OF the
United States resumed specie payments.
cAW PAYMENTS SUSPENDED AGAIN IN 1889.
removed for a further balance duo TO II in gold. In
tina. year our imports were SYST 500 and our ex-
ports were slls. $50 oo4, being surplus Of imports
over exports Of $50 600 000 SO per cent. The
cessites OF the Bank Of England prevented their watt
ing for the due return OF these thirty nine millions
discount Of our bills and thus we were reduced to
second stoppage. Had England been able to let pay
both nations; but unfortunately tho interests Of this
country were sacrificed to the power which doatry
for gold places In the hands OF the bullioniss We
hat onpr,a will M uups h ho
symbolic currency which thoy possess and we may
6y our example help TO rescue the people or Europe
from the power still welded by the moneyed capitalists.
To resume, President Van Buren, attributed the calam
y 70 false causes when he sad in his Message to Con-
redundancy OF credit and Of the Shirt Of reckless specu
ation engendered BY II, werc foreign debt contracted
by our citizens, estimated in harcn last at moro
greatly misook the way in which It should have
been met when he adds, "Of my duties under tho
existing laws could not DOUBT Directions i'm
medately given prevent tho reception into the Tra
sury Of anything but gold silver its equivalent
Tho receipts the Treasury of bank notes not redeem
able In specie on demand will moi, presume be
toned -
BY these proceedings at homo wo were no less injured
than BY those which had their origin in England. The
President also hnzarded the following reason as the
cause Of the abstraction of specie He sad Amidst
precious metals will invariably disappear when there
ceases to be necessity for their circulating
medium; It was IN strict accordance with this truth
that while In the month Of May last, they every
where SEEM and were current for all ordinary pur-
poses, they disappeared from circulation tho mo-
mont the payment OF specie was refused BY the
banks, and the community tacitly agreed to dis
pense with Its employment Now the shortsght-
edness OF this view is at once apparent that when
banks any longer pay in specie that specie dis
appears from circulation because It s longer needed
HAD there been no previous demand and It had dis,
for Mr. Van Burcns observation but In the way
10 which he states It "undeniabfe position" the
third Message December 1891 tho Presden. refers
again TO the subject OF the disappearance OF specie and
Of the o aSe e N ms IN o
monetary assures adopted In country have thor
influence in another, he says-This chain Of depend
cuce docs not stop here does not terminate al Pha-
delphia New York II reaches across the ocean ana
ends In London the centre Of the credit system. Tho
cipai cities power the whole banking system Of
United States subject the former IN their TO tho
money power a Great Britain. b NOS denied that
the suspension Of the New York banks in 1887 which
was followed In quick succession throughout tho Union
nox oy 20 on q that ana ~
30 large portion OF our banks that their embsrrass
ments have arisen from the same From this in
huence thes cannot now entirely escape for has its
origin in the credit currency Of the two COUNTRIES II
strengthened by tho current Of trade and exchange
which contres In London and Is rendered almost ire
ssble by the large debts contracted there BY
chants our banks and our states" This description Of
different countries are adjusted in some common centre
BY sort OF national clearing house arrangement il
o. ~ S .h e rs y om'sa 20 De uIa~n .ns.
than others have TO receive from u, . debt Is In
me ,e END recorded against = which must DO pro;
i cannot be paid at the moment In this pro-
dcamsnt We found ourselves in 1887 and 1889; and
instant DISCHARGE they gave bills which when they came
10 maturity might have been expected they world be
have been adjusted In the interim Il This scc,den,a
but by no means improper condition Of things II DO
duly considered, which the Presidents Message
ceives to have becn created by the money power of
Great Britain TO which no attributes an improper niiu-
ence over the banking affairs OF the United States where
~ the real cause IS altog overlooked and the eject
alone stated Had our bills In the hands OF British mer-
chants boon discounted as usual tho money power OF
US, under the guarantee British merchants tin such
time these British merchants could cquazc by pur
c.ases from this country the amount OF their sales
The quantity Of specie drawn from Great Britain IN
ten months whle banks attempted this second tno
TO pay their notes on demand Is stated 10 the London
Imss OF October H. 1889 to have been $40 o00, ooo
and this drain tended doubtcssy TO brng on the Eng
lish panic OF that year.
GENERAL HARRIscs or A xErAIMc cuRREScY
President Van Burcn Was succeeded IN his Office by
General Harrison. In his inaugural address December
1871 speaking OF the currency no observes Tho
aea q making exclusively metallic however well in
qaenccs than any other scheme having relation to the
personal rights Of tho citizens than has been de-
arrestng At once that mutation OF condition by which
thousands OF most INDECENT fellow citizens by their
II there measure better calculated than an
other produce tina, state Of things 80 much derrocaioi
daily adan 70 phsr snS p. The p sa %
y
deeper into penury II Ia exclusive metallic currency
Or there Is process BY which the character of the
country for generosity aud nobleness OF feeling may bs
be destroyed By the great increase and necessary oera
ton Of usury II 10 an exclusive metallic curren-yu
These sentiments reflect honor tho head and hear q,
General HARRISON and NO rust that they may have their
influence tho minds OF people ut this important
uncture. and that they viii not be led away by the cry
OF the resumpt onsta bat will steadily adhere to the
present system Of papsr money.
ADVANTAGES or PAPER MONEY.
must not be forgotten that paper money has enabled
~ TO carry on the most costly and tremendous that
the world has ever known. Our metallic money was
largely exported TO pay foreigners for the munitions Of
war; but the natonss real wealth. the land the IRON
the manufactures, the mines and above ALL the indus
rous and energetic people, remained This paper cur
rcncy based on the whole wealth OF the nation and for
which the faith or the nation pledged was q first
mortgage on the land and property OF The !
country Our people readily and gladly accepted IL In
this money wc carried the transactions OF trade II
was the medium In which We bartsred our commodities
with one another; with commodities We bought this
paper money and With we paid taxes 70 govern
mcnt IL has doubtless tended greatly to develop the
OF the country aud during the four years Of