The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-31

| would be repealed Ia one to which all the Legislation
or Congress Is liable. The contraction OF $4,000 00
OF greenbacks per month IL not case in point, bu
does 20 TO prove that you cannot bring about re
going on the currency grew worse 1t seems dilfculi
TO make many people understand the simple truti
that the way to bring the greenbacks up to par Ii
by preparing TO redeem or pay them according to
the promise on their face They insist on climbing
Now, sir, in contrast TO your plau which would be
SO merciless II 1t were possible, VIII present you
with another
first OF July, 1871 10 begin the redemption OF the
greenback notes. BY fixing time SO lar In the
their business and make their contracts accordingly
Before that time nearly all the existing indebted
By an eate Which has been approved by some
who wei veIsed IN the business OF the country
threefourths Of the exi sting Indebtedness among
from the lst OF January 1867 or the re-
naming one-fourth will be discharged within the
next twelve months and that by the 1st OF July,
1871 there will not be existence and unpaid to eX-
coed four per cent OF the existing Indebtedness, and
thus the debtor class Will almost entirely escape
from the oppression and disasters with which your
| plan would Overwhelm them, arising from the
sudden decline in the prices OF all kinds Of property.
| ,Secoad-By fixing a definite period when the
greenback note viii be redeemed fixed value VIII
be given to II, which VIII constantly appreciate as
the period fixed for redemption approacnes and 1t
VIII be at par at or before tnat time, provided the
| government is making the necessary preparations
for It's redemption. 1t will be much better for the
business OF the country for to reach gradual
appreciation than to come up TO II by sudden Jerk
|
so that the transition which the country must make
| from one condition to the other shall be made with
| as little disturbance as possible.
Inird-By fixing a time for redemption lar in
| the future government can, without sudden strain
and without great sacritice, get ready for it. TO
bring about the gradual appreciation or the green
back notes the gold must visibly accumulate in the
| Treasury as the time goes on. The Hon. John j.
Cisco said in letter some two years ago that the
presence In the Treasury OF gold surplus of seventy
eighty millions gave strength TO the currency, al
| though not set apart by law for ITS redemption,
N hA On
appropriated IN the future. Should Congress refuse
to reserve the present surplus gold in the Treasury
and that which is to accrue for the redemption OF
the currency, but empower the Secretary OF the Urea
sury, before the time arrives for redemption, to OBJ
would probably bring up the notes to par at that
time, II he was known to have made the preparations
but their appreciation would not be SO gradual or so
certain as II the gold was visibly accommodating while
the intermediate time was passing
That 1t would be necessary TO nave in the Treasury
an amount equal to the greenback currency to begin
| redemption, l do not believe Redemption could
safely begin with $500 OF gold in the Treasury
with s7O,Ooo,OOo In this work confidence is every
thing, and is plant Of slow growth and only be
produced by the obvious employment OF the neces-
sary measures OF preparation. II the people sat
s1ed that the Treasury has gold enough TO redeem
all the notes that will probably be presented, but few
rush for the gold to sell it in the market again at
profit and thus is the precise principle upon wnicn
specie paying banks have been sustained.
Fixing resumption at reasonable time In the
future which the government and the people may
work to- and the making OF needful preparations TO
be known and understood by all, are indispensable
TO any plan of resumption which would avoid the
hardships which you admit would attend the adop-
ton OF yours. BY the method l have suggested
there will be an actual imitation OF the currency at
the time OF resumption to the extent that the whole
amount OF gold and silver In the country that would
enter INTO the circulation would exceed the amount
OF greenbacks that would be presented for redemp-
lion, and this would do much TO prevent the hard
ships that might otherwise occur
am sorry that in the conclusion Of your letter
you thought 1t necessary to Introduce matter
which is foreign 10 the subject III controversy and
seems to be Intended to be personal and severe
That may not appear to misrepresent you quote
what you say
But the nfamously dishonest proposition that the
powerful names whereby that vilany was upheld,
twenties at lower interest long ago 1t does not
70 nnae Gu y Sincerity ihns
urging speedy rssumpton nor to talk Of my suggesting show
and much farther from perfect sovency OF that
seo and the By
patriotism and sense of obligation to The RaSns creditors
az no, suffice When n this @ sAS have
10 resumption. I am, respectfully, yours, ~ nrrr
NEW YORK, December 81, 1863
In q speech in the Senate last summer argued
that under the statutes creating the legal tender
notes and hye-twenty bonds the government had
or those bonds. This argument preiaced with the
declaration that the first duty OF the government
to return to specie payments, which would
render this question unimportant and denying the
right Of the government to issue new notes with
which to pay those bonds. What was called the
Pendeton theory, that the government has the
right TO print notes with which to pay the FIVE
twenty bonds, have always condemned. II this
position ID what you call the sgreenbacK theoryu
the UNANIMOUSLY dishonest proposition" the '.crin-
nal blunder" you need not put me down a. repent
ant supporter. You have no evidence OF my re-
pentance.
Your statement that but for the talk OF paying the
flvetwenties IN greenbacks the government would
have resumed specie payments and commenced
funding our hve-twenties at lower rate OF interest
long ago is absurd 1t Is absolutely refutcd by the
quotat ons OF stocks, both at home and abroad
The six per cents OF 1881, as they are Called that
were issued and sold before the passage OF the
statutes creating the legal tender notes. and which
nobody pretended should be paid in anything
but coin, and about which there has never been "a
question, have never been rated more than four
cents higher than the Hve-twenieS; and this
because the law creating them reserved no right on
the part OF the government to pay tne before they
fail due in 1881 aud cannot be funded AZ the others
may. The fact is our bondhoders understand per-
fectly well that, whatever may be the law of the
question, the bonds or any considerable part OF them
/ cannot be paid ia coin while the currency remains
deprecated; that II is folly 10 talk about paying the
bonds in gold n the government cannot procure
| gold enough wherewith to redeem the green
backs: that the redemption OF the notes and re-
turn 10 specie payments Is necessary condition
| precedent 10 the payment OF the bonds in god
and they look rnucn more to the return to specie
payments anu the establishment OF our finances upon
solid basis than TO the mere form OF the contract as
| To- how they shall be paid. Gold payments should
begin with the debt that Is due, which Is the cur
rency, and not by shaving bonds that will not be due
ton OF the whole financial structure, ana II II be
sound the structure above must be insecure aud
dangerous. When II becomes good by being made
convertible into gold the national debt may be
funded, by which onehird OF the present volume Of
interest can be saved aud the nation will carry the
burden with an evcr-increasing ease until Its final
discharge shall come. am very respectfully yours,
q. p. MORTON.
Resumption Of Specie Psymcnt-Lctters from
MIR. David Wilder and Treasurer spinner.
me following letter to the editor OF the Boston
Transcript explains ITSELF
STATE HOUSE,, BosToN. Dec. %, 1865
To rBx EDITOR or THE BosrON TRaNsCgIPT:-
md In your paper this evening letter upon The
subject OF resumption OF specie payments addressed
to me by Hon. r. T.. Spinner, United states Treas
urcr, IN which am credited with having been for
many years Treasurer OF this commonwealth. My
father whose name bear, was Treasurer rom 1887
to lS42 AMI II was during that period that
my connection with the department commenced.
This continued until lsle. when the Office or state
Auditor was created. took charge OF this and re-