The New York herald., 1868-05-16

months had been remarkable for great distress in
the commercial and Industrial intere Is OF half the
civilized world. There had been more suffering and
starvation IN England the past winter than any time
before tor quarter OF century. memorial Is now
people OF Sweden and Norway. The inhabitants OF
Eastern Prussia have been for months appealing to
their German brethren here for relief In Finland
and and IN Agiers thousands are dying OF starvation.
Inc United states Consul ut Tuns writes the 9th
OF pecember last 1000 people starved to death in the
streets OF mat city, and 5000 had perlshed In two
months. In the midst OF all this suffering the eight
Leading nations OF Europe keep their peace estab-
ishmeht three millions Of men under arms, at q cost
OF one billion per annum which would in twenty
en ears pay every national dept in Christendon. We
Tn;teH eso a 10 pe thankful that the suffering In the
Gu states Is less than In any other country, but
our @ distress Is unusual for During the past win
Snu Sr unere mas been great depression of business
"us vi iaDorers out OF employment and In some
paces the cry OF hunger has been heard. Can Con-
AM, ,s no awning to remedy these evsP Our first
Inc subject Is many sided and fun of dificulties
ne ne snouiu az THIS time discuss the currency and its
1861 there began an industrial revolution. not VET
ended US gigantic IN It's proportions as the pOtc'
passed. In the year 1860 In all branches or businc
the annual expenses of the general government W.
but $e4 900 DO ooo and the CUSTOMS alone produced s
sevenths OF that amount. The value OF our agric
tural products for that year was 81, ,625, 900 ooo
cotton crop amounted to ,, 1855 Ooo, 900 of pounds
we supplied to the markets OF the world scy
eighthS Of the cotton consumed He called attent
to the effect of passing from peace to war. Eicv,
States were at once commercially and industr =,
separated from the Union. Two million
ducers of wealth became only consumers.
government became an Unsuitable devOurer. In
four years ending June 81, 1857, So $40 996, ,2l1
paid out Of the national Treasury. This exceeds
eleven millions that paid from the beginning OF
lion, and almost equals the amount by VIII
England increased her debt In hundred an
counties, towns and individllis in support of tn,
war Kept pace with those OF the nation. The enOr
nous demand thus created called into unusual ac-
uVlty under the depression OF business prices rose
ana large profits resulted TO transact the enormous
business thus created more than the al amount of
currency was needed but no one Will deny that the
deuge OF the Treasury cs poured upon the cOun-
try was out or all proportions even to the great de-
mands of business. Let 1t be remembered that they
were not issued to furnish currency but to supply
the wants of the Treasury. They were forced loans
made under the pressure OF overwhelming necessity.
The law which made them legal tender operated as
an act OF general bankruptcy. The man who loaned
$1,000 in gold in July 1861, payable n three years. was
compelled to accept at maturity amount of cur
rency worth but $3.50 In gold full scarge of the
debt Private Indebtedness was everywhere can
were accumulated But let us not be led into Ihe
fatal error OF supposng that paper money created
the business or produced The wealth; as well might
II be said that our rivers and canals produce the
grain they Goat to market. by the return from
war to peace all the conditions were reversed
Two millions Of men VINO had been only
consumers returned to the rank of producers
The expenditures Of the govern uent were reduced
from 81 29o 0OJ 600 in 1855 to 5 100000 in 1866, and
have produced great disaster in ,66 but for the fact
that there was still open to industry The work OF
usually sufficient for two years. The effect there
fore distributed, but could not be averted In 1866
cent and in 1867 of ten per cent more. One by one
the departments OF industry produced supply equal
to the demand. Then followed a .glitted market
a fall in prices and stagnatiOn OF business These
re ;uts have been aggravated by drought at
home and famine abroad; but they have been
produced by the inexrable law Of demand and
supply, which was beyond the reach of lie. .islation.
Nothing can be more absurd than to suppose that
abundance OF currency caused the prosperity of 1853
III.
nation. The speaker then discussed at length the
q Of Ss ho OF a. and an
dollar OF our paper depends upon the amount In cir
culation that the amount needed varied IN different
currency based on specie Will adapt itself to these
fluctuations by going abroad orreturnng, but an in-
wise enough to adjust 1t to the wants of the country:
that an increase OF currency Is an increase OF prices
and operates as tax on every holder OF
tax, the chief burden OF which fails at
last upon the laborer whose wages are the last
to rse and who is at the mercy of the Market that
an increase Of currency reduces the value Of all
fixed salaries and the country wrongs the 15 900 pen
sioners-s sufferers from the late war-and that the
government would not gain what the people lose;
for at last all the Ireenbacks must DC paid In gold
dollar for dollar. Such an Increase vi the currency
st mulates overtrading ana specuiat!On maKes our
imports larger than our exports. and sends our
bonds abroad, when they mag be thrown back sud
denly on our market any day. lie then presented
table showing the amount of paper money In the
country each year since 1888. kesumlng, he said:-
ing in money in all the States, the total currency
(gOd and paper never amounted 10 S40O, 100000,
and nd that we we now have slooo'oooooo: or more than
bank reserves 1t shows also, that every great Imam
cal crisis has been preceded by great increase and
followed by great and sudden decrease In the vol
ume OF paper money. In answer to the argument
that the high rate OF interest proves that have not
enough currency In circulation, he called attention 20
the fact that in nine kin sdos OF Europe the average
decline In the rate OF interest has been ty per Cent
during the past year. and Is now lover than It has
ness Is very great. The cause Of distress there, as
here, is overtrading and speculation, AS ap
The scarcity OF money in the Western States
is mainly caused by The fact that the country
in the large cities, and the money goes then TO eet
the demands Of stock and gold sanDicrs There Is u
plethora OF money In New ly.K and other Eastern
Cities and relative scarcity In The country. II tue
banks were required to redeem their NOES, money
would be kept nearer nome. and would be more
fixed value. II a SNOWFALL, SUBJECT to snowfall and
rainfall, freezing and thawlng, were 10 DC our stan
dard pound avoirdupoise, 1t would greatly disturb
all transactions depending upon weight; but u
changeabe money standard reaches MI traISactOns
changes all contracts destroys al certainty. Ia
the days of William and Mary bad c.OGns and
shillings brought England to the verge or revo-
luton, aud the services OF Locke aai Newton
were called TO aid the Parliament IN restoring the
money standard. The value OF one ioiar mas cnang-
ed thousand times during the last six years. and
ness - me men are afraid OF Congress Monday is dan
gerous day for this country. The Hood OF financial
resolutions poured ont rom the House disturDs con-
ndence and unsettcs values. lhe change oi opinion
in TINS House n the last year on the subject Of the
currency had greatly added 10 the leeiinx OF inse-
cnrity BY the act Of June 20, lsGl, Congress SOL
cmnly pledged the country that there never should
be issued more than Ssj0,000, 900 IN green,acks but
a new bll Is now pending TO make a new issue Of
$1l0 900. The gentleman froia ILLINOIS, lMr. Ross
wants 500 000,O more others want - abolish the
national banks and issue s5o0,OJoOy) In gre n,acEs
In place Of the national currency, and q
effort Is being nlale to take
up $500, 900 In bonds with greenDacks.
1862 denounced the le gal tender law as unconsti-
tlona and unjust. This change of opinior - mainly
due to the hard times and q mistaken notion tnat
they have been caused by reduction Of the cur
rency. IL was his conviction that the most formda-
BILE danger which now threatens Us Is large IN
crease OF paper money. lie then reviewed the his.
tory OF colonial paper Continental! currency and OF
State currency before the constitution was adopted,
and quoted tue opinion OF Daniel webster that our
fathers suffered more from hs cause, except IRON