Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1868-01-15
I0biloJ Stl.;atesl11la:lll1l, ! i
lFrom the National Intellieencer.l Iis
THE FINANCES.
Letter LttIs K Of Hon. Thomas ina : Ewing.
ITO the Public. Il.

= aIis isi IhIExi,l
r. yriwo!ietTo the Public. III ~
The questions properly termed finan-
|cial now pending, in Congress areI Of
great Importance to the nation-its
credit, its industry, and its general pros
perity depending on their wise and Just
solution. d T., deem it, therefore, .es-
pecially fortunate, that while different
opinions prevail on the several objects
involved in this general group, they have
none of them yet become party ques-
tions.4 Every one is, therefore, free to
speak and to act on them without vio.
lating party allegiance; and there, is
nothing to prevent the adoption of such
measures as reason and sound argu-
ment may point out as safest and best
| 1t were certainly wise in Congress
| to, determine at once what shall ibe
done with the public debt--how il
Shall be settled or funded and to de.
fine. distinctly the mode in which their
resolves shall: be carried into execu-
tion.e AT the same time care should
Ibe taken not to 1egislate too much. OF
disturb BY law those elements Of ma
fion's wealth of which business and
commerce are the proper controlling
powers. - y, So, -. -
An attempt by law, or by Executive
action, to hastenthe resumption of specie
payments were, in my opinion, a very
grave error. Gold is now with us an ar
ticle of merchandise which has its price
in market, where the course of trade and
business will regulate it, if they are let
alone, in manner to produce the least
possible mischief; and whenever ourle-
gal tender currency shall be worth as
much as gold, specie payments will be
resumed, either with or without the. aid
of an act of Congress, and without a
shock to business. 1t may we'll be has
tened by legislativei acts which tend to
promote the general productive industry
of the country, and thus increase its
wealth, but not otherwise, One appro-
pirate step is, I hope, about to be taken,
namely, the repeal of the tax on cotton
grown in the United States. This will
probably enable our producers to COM
pete in the markets of Europe, with the
cotton growers of Algeria, Greece, Egypt
and Hindostan, which, in the changed
condition of things, they cannot do while
subject to the tax. sai z1sgnll .sFHh4s
But suppose no public debt stood in
the way, and Congress and the Secretary
of the Treasury should force resump-
tion of, specie payments on the 1st of
January. or the lst of May, 1869, as has
been proposed by the Secretary, what
would be its effect on the business of the
country2 Certainly most disastrous.
Take the case of the cotton planter. AS
a general fact he is without capital. On
the a1st day Of March, 1868, he borrows
100000 in currency, to put his lands
and buildings in order, and to provision
his hands, and agrees to pay the mod
crate interest Of seven per cent. This
100000 in currency, costs, when. he
borrows it, $4,000 in gold, and it is
worth SO much, and no more When he
comes to.pay it,speciee payments will
have been resumed, and lie must pay
$4,000 in gold for years use Of $72,-
i000-equal to 35 per cent. per annnm.
The relief YOU viii have given him by
the repeal of the tax on his cotton will
be unavailing, if you accompany it with
a crushing burden such as this. His
cotton, like. every other article o com
merce or industrial product, must fall in
price, in pre- portion as the standard value
of currency rises: SO he is simply ruined
by q mistaken financial measure. 80
It will be the same in every branch of
business carried on, in whole OF in part,
with borrowed capital. The forced re-
of specie payments contenipla-
ted by the Secretary would bring bank
ruptcy and ruin upon hundreds of thou
sands of our most industrious and valu-
able citizens. and destroy, or seriously
the various branches of busi-
ness on which millions of our people de-
pend fortheir support. Il am well aware
that it is not the purpose of the Score
tary, and of the many public. men who
support his policy, to enrich the creditor
at the expense of the debtor; butfsach
would be its effect. except in cases where
it will drive the debtor to insolvency,and
thus ininre also the creditor Take the
whole amount of private debts in the
United States, which probably. rise to
billions. and the debtor who owes $720
in gold to-day, would after the proposed
in 1863, owe ST 900. aa IF the
aggregate of private debts be three bill
lions, it would be increased by the hasty
of specie payments $40, ,000,-
O0O-an enormous sum-, which, by this
sing.e act, would be taken from the debtor
class, who are generally the active busi-
ness men, on whom the nation depends
for its productive wealth, and given to
the creditor class, generally capital
lists, whose vocation is to lend money,
and live upon the Interest," highly use
full class of men, especially in time of
nations necessity and peril, but, as
class, quite competent to take care of
their own interests without Legislative
aid. This matter requires not Congress
sional action, but merely, for the present.
mastery inactivity"
1t has not been found practicable and
prudent to make these great financial
and monetary changes suddenly. The
Bank of England suspended specie pay
ments in 1896, under an order of Coun-
Gil, which was afterwards confirmed by
act of Parliament. In 1919, PEEPS bill,
requiring the resumption Of, specie pay
ments in. 1928, became. law. It had
the effect of reducing very suddenly
the price Of gold, or, which is the same
thing, raising the value Of currency
about 20 per cent; and it produced much
suffering and ruin in the manufacturing,
laboring, and generally the debtor class
es, and was followed by. riots, gmobs, and
crimes against property, especially, in
the manufacturing cities. The resump-
tion of specie payments finally took
place in 1921, after a suspension of twen-
ty-fve years. -e"i'is
In my opinion, the business of this
country esnaciallY that of the mani1fa g.