The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-02-18
Currency and Specio-A Sound NIonetar
System Want ed.

pOlltlcal ones.
| Currency and Specio-A Sound Monetary
| System Want ed.
| II il evident now from the movements OF
Western politicians and from the tone of the
Western press that questions pertaining to the
national finances and currency will have con-
siderable influence in the approaching Presi-
Dental campaign throughout the West. We
say Presidential campaign, but perhaps 1t
would be more correct to say political cam
paign, because these questions will be brought
out more prominently in the election Of Con-
gressmen than in that for the President though
they will enter into the Presidential contest to
some extent While the main issue will be
upon the radical Congressional reconstruction
and negro policy, other issues with regard to
the finances and currency will have an i'm
portant bearing on the contest
The interests and necessities Of communities
govern them in their financial policy as far as
they understand the difficult subject of national
finance. Hence we see large ma
jority Of the Western people Of all
parties in favor OF liberal and
expanded currency, and the Eastern people
for the most part In favor Of contraction and
forcing specie payments The people of the West
are poor, eomparatively-th is, they have
little realized or accumulated capital, and they
require an abundant currency and easy money
market to develop the resources OF their SEQ
ton Of the country and to aid them in nume-
rous enterprises. Besides, being largely in
debted to the capitalists of the East contrac-
ton Of the currency would increase the weight
Of their debts and throw great many Of them
into bankruptcy. 1t is easy to see, therefore,
why they are opposed TO contraction, and why
they demand an ample currency. In the East,
on the other hand, the people have great
deal Of realized or accumulated capital and
are large holders Of government bonds. A
contraction Of the currency and forcing specie
payments would increase their wealth, would
add TO the value Of their bonds, and, Shylock
like, would enable them to put the screws to
their debtors. 1t would increase the wealth
of the rich and the poverty of the poor. Herein
lies the real motive for the difference of views
and policy in the two sections Of the republic.
Under these conflicting opinions and interests,
and looking TO the general welfare only, the
question arises, what should the government
do? What is the duty Of Congress with
regard TO contraction or expansion Of
the currency, Undoubtedly the wisest course
is to let the currency alone. by neither con-
tracing nor expanding all existing values will
remain undisturbed, all debtors will be able
to pay their obligations in the same substantial
rs well as nominal amount in which they were
contracted, and creditors will not DO unduly
enriched at the expense and to the ruin of
their debtors. This just measure for measure
would be carried out both between individual
creditors and debtors and between the bond
holders and the public. And what more just?
Why should we disturb existing values and
obligations by contracting the currency and
forcing specie paymentsY
What we want Is sound monetary system
adapted to our own peculiar circumstances
system both simple and natural, which will
give stability and promote the Industrial in
teresx Of the country. The currency, ~ we
said should be left as it is-that is TO say, In
the amount, or volume, In circulstion--though
1t would be better to make il q uniform legal
tender currency. Congress should pass an act
legalizing contracts for specie payments for
those who choose to make them, and to author
ize the Treasury to pay specie to all its cred
itors wb0 wish to be so paid at the market
value Of gold at the time Of payment For
example, say the government Is indebted to
an individual fourteen hundred dollars and he
wants payment when gold is at hundred and
forty, let him take thousand in gold or four
teen hundred in legal tenders az he may choose.
So in the same way, when gold il Q hundred
and thirty or . hundred and ten, lot him take
gold always at its market value The legal
tender would be in all cases the lawful money,
as its name indicates, and the relative value Of
gold with that might Huctuate according to the
supply from the gold fields or the demand
from abroad. There would be sort Of sliding
scale between the two, and they would adjust
themselves according to circumstances, while
all values Of property and In trade would re-
main undisturbed. This would be immediate
specie payments in certain form and In the
only form in which II is practicable or may be
desirable ct present II would have tendency
70 bring about, 10 the course Of time, the equal
ization Of paper and gold
The diniculty In the way Of coming to such
. sound monetary system is that our iinanciers,
capitalists and public men are welded to tho
| old British buIionist theory. They seem In
capable Of thinking for themselves or OF divest-
ing their minds Of prsconceived ideas. They
must initiate England. The Bank OF England
is, in their opinion, the perfection Of a great
moneyed institution. Well, wnat has the bull
ZIONIST theory done for England, And does