New-York tribune., 1868-01-29
OUR FINANCIAL POLICY



measure 10 stop contraction now before the Senate
Notwithstanding Mr. Sherman Is tacctious enough
30 invite public discussion Of the question after tie
subject is disposed of. saying that the reversal Of
the policy Of resumption by tic Government VIII
ollorl a pleasing and ample opportunity Tor The
country to consider the whole subject at It's leisure.
Mr. Sherman knows but too well that If he can get
repeal of the existing policy (which repeal any ono
OF the three branches of the legislative power can
prevcn0 lie will have plain sailing hereafter III
blocking all legislation of tho character, sihce
one branch is ample for an effective negative. lie -
Hius anxious 10 avoid exhaustive investigation VI
the whole question at this period knowing II Wouiu
endanger his scheme. IL was bul!ed through ''e
House with disrcputahlo Iusl ana II seem 70 H"'o
been thought il could be put through INC seha,e'
tn the Same manner The country is indebted to Mr.
Fessendnn Judge Edmunds and hls colleague Sir'
Morrill, for what distinctions the measure Las thus
far met with in that body. These might have been
greater and it is hoped may yet he greater; for il
the country 70 about TO enter upOn long career of
voluntary bankruptcy and financial disgrace, the
event night 10 DC signa!izcd by Congressional dis
cussion and protest worthy the occasion. Ii is absurd
TO talk about roshonng that discussion until after
the passage of a vote which Gov. Morton has pro-
claimed in debate he shall regard as an indefinite and
fnal postponoment of all further contraction OF the
currency. But it has appeared any time the last few
DAYS. rs though Ills result would be accomplished.
We shorld SUPPOSE II Congress gifted with
any powers II retIospection that they might gather
come valuable lessons frCm their own experience OF
the error Of stopping discussion Of important topics
aud rushing through legislative enactmentS without
stopping To hear what could be said against theu
This financial question is mary-sded, and has
bearings which members of Congress- gifted as
they all are with intuitiOns both celestial and mum
danc and filed as they with knowledge upon all
topics, may not yet have reflected upon. AS their
eyes are supposed to have i'll view of the coming |
elections OF the current year. some political obli1ui
ties it ct be well for them to reflect that lniia-
tiOn cuts bCb ways; that in fact, tho back side OF
tho instrument may prove sharper than the edge
As for exam. pie l. has long been current maxim
that no scheme was invented 20 Cectual for the
imroycli. .mout Of the laboriug man; TO make, ina
word the rich rcher and the poor poorer as the cir
cuatOn II iTIcdcemablc paper money. This IS easily
explained. An inflated currency, III the first Instance
enhances the prices Of all commodities not always
or necessarily affecting the wages OF labor The |
labcrer uudcr deprecated currency, pays more for
his living and gcts 10 more for lis work. If it he |
sad tLat tlis is Lot experience Wo may Gcknowi-
edge tho TACT without COntToyeIting tile argument |
Stree our condition exceptional during the war,
when tho demand for mon for consumption was as !
great as for everything else. But this condition be-
ing terminated tho demand for labor falls to lts |
natural level And LOW that the price OF labor
has fallen 10 bow point and the demand is unequal
to its employment, while tie price of living is in 10
way lessencd or at best not lessened in any CORE
spending degree to the falling Oft in the demand FOR
and in the wages for labor This is the simple mat |
ter of fact which has found fG expression the |
door of Congress.
Now what is the philosophy of iti The excessive |
supply OF the clc lating medium stimulates al sorts
of speculation and at The same time enables specua-
tors and operators and capitalists to mOnopoiize and
bold for enhanced prices ell artices of prime neoes-
sty such as breadstus and PROVISIONS of all sorts.
This Is the state ef things to-day The West is tho
great producer end factor of these products Every
article Of food 10 almost, quite, as high as
during the war, enjoying famine prices. and this is
owing to a considerable extent. TO the gigantic spec
ulations in those commodities, through the interven-
tion Of sw olon paper currency. Yet the same West
Is discontented and clamUiS for more paper money
for speculation, and to enable them TO realize yet
higher prices This may DO for Senators Sherman |
and Morton but 1t is grinding the laboing consumer
between the upper and neither milestone.
Ifit be asked why the rule of increased prices un-
der al inflated currency does not apply to labor as
well as to other things, the answer Is plain. Labor
cannot hoard itself in warehouses and gTanaries. 1t
Is compelled to sell itself day by day. 1t is pre-
emipently perishable article. Its whole daily ag-
gregato value is sunk and lost every day is unem-
pl0yed. And as ~ cannot Dc capan1ed, so 10 speak,
and held in mass lcojperatve industry not having
yet reached this pOnt il is in constant and unnGt
ural competition with itself. And herein consists
the essential difference in this respect between labor
and commodities, which can be and seized and
held for high prices by capitalists and spectators
aud which plethora Of the circulating medium is
tho great agent in accomplishing.
The reduction Of the currency uDder tho |
contraction policy, acting with other potent |
causes, such as Over-productlon and the natural |
collapse Of undue expansion, has already re-
duced prices very materially in many i'm.
portant branches of trade. What brought down |
the prices OF many imported and domestic fabrics |
within the reach of thousands of poor consumers |
This fall Of prices has been Of inesmabe benefit to
the country But the policy of Messrs Sherman |
Morton and Company tend directly 10 rise OF prices
again in the articles which have given way in price,
and thus viii operate new burden upon the
masses Of consumers AT the same time it will tend
to advance the already exOrbitant rates of living aud
furnish no demand for labor and increase il its
price.
The great fact projecting itself plain noon-day.
L. that we are in O transitional state which para
yves enterprise and arghts capital and that thus no
tnkering Of the currency stimulate trade pro-
ducton and SO relieve the condition of things far
m labor is concerned Gentlemen may well under
stand then that they thus may fail to get many
votes as they win lose 10y their initiation policy. and
8nd when it Is too late that politics and finance had
batter be kept separate. J. g.
TIE NYW SOUTH AMERICAN ALLIANCE.
- t,o Max;cau Presidenk Jnarez ~ n