The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-02
FINANCIAL.

iivAlJOIAl-
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How TO Diminish the Fluctuations In Cold
md Get Back to Specie Payments Without
Contraction.
New YORK, Nov. so, 1868
Hon. JOHN A. GRIswoLD, NJ. o.
As the representative OF this State, with all its
immense moneyed interests, in the House Commit
tee OF Ways and Means take the liberty OF ad-
dressing you on the al-important subject Of the cur
rency and the financial condition OF the country
You are doubtless aware OF the rapidly growing pub
lie sentiment In favor OF an early return 10 specie
payments. Il will not be making too broad an as
serti0n to say the entire community, excepting only
q few hundred gold and stock spectators, most
earnestly desire that Congress should, without fur
Their delay, adopt some well considered plan that
shall lead to that much coveted goal. Any plan,
however, TO be permanently successful must also
embrace scheme for funding the debt II the
short period that remains to the present Congress
shall not AFFORD the necessary time TO ma
ture full measure Of financial relief the
experience Of your colleagues and yourself
can no doubt be turned to much public advantage
by agreeing some method that shall diminish the
constant and often violent fluctuations I'm g0d-Or,
to speak more scientifically, in the value OF paper
currency. The public at large are daily becoming
more and more impatient OF system that leaves
the measure Of oil other values at the mercy OF q
few score spectators and gold gamblers. The nuc-
tuations arising therefrom have long kept the legt
mate business in chronic state OF decentralization,
and all Ind ustral pursuits are most injurf0usly ar
fected thereby. Everybody Is beginning to ask how
long Ia this great evil to last. There now, as
there ever have been In this and other countries,
under similar circumstances, many persons UNI
learned In the science OF money and currency who
denoupce the gold spectators as the cause nste ad
or regarding them as the creatures OF bad system.
Those, however. who comprehend the true character
OF the system and measure Its probable Duration
by the light OF history win look to other remedies
than laws to punish abolish the gold spectators.
Although the suggestions have to make may not
possess the merit OF novelty they will, think, be
found to be consistent with sound policy and the
laws OF currency.
Before presenting my views on this most import
ant subject must allude TO two classes Of writer's
Numerically opposed to each other who will by
much noisy defamation endeay0r to engross the
time and attention OF Congress-. The first ia repre-
sented by leading journal in this city which clamors
for immediate specie payments, and the second is
composed OF the in1atonists, o comparatively small
NUMBER OF menOho profit by imitation and conse
quently raise hue and cry at every measure that
contempates contraction.
To those familiar with the history OF paper cur
rency and it'd abuses 1t must seem incredible that
any class OF men OF intelligence and education, ex-
cept such as are by nature demagogues should be
found at the present time and under existing cir,
immediate cash payments. Sucn proposition Is on
the face OF II simply absurd. In view Of the fact
have kept our paper promises, as nearly lsaiiy
as we can Judge amid the fluctuations pro-
duced BY combinations OF spectators, during
the last three and half years. peace at an average
discount OF about thirtythree per cent, such pro-
position Is unworthy Of serious notice. We need but
compare the available cash resources Of the govern
ment and the banks and taking into the account the
continual drain OF specie for export with the whole
volume or national aud bank paper, TO see that such
proposal ID impossible. But, admitting its posi-
billy t will be apparent to you that its effect would
be most disastrous to the business aud property in
terest5 OF the entire community That effect would
be the immediate shrinkage OF the value OF real es
tate, merchandise aud the wages OF labor IN n de-
gree corresponding with the contraction OF the cur
rency. IL would, in fact, wipe out the greater part
OF the trading capital OF the country, which probably
does not exceed on an average twenty per cent or
merchant with $4,000 OF capital may be assumed
doing q business or 500, 900 year. Having always
the value Of At least sixty per cent OF his bust
ness equal In gross to 100000 IL Is evident that any
sudden reduction In values OF thlrty-three and
one-third per cent would extingush his entire trad
ing capital and send him into the Court OF Bank
rnptcy. 1t will, therefore, be that OF the two
classes the ION TO Richmondu class il the most to
be dreaded, inasmuch as the lnGatonists only pro-
pose 10 continue an evil 10 Which we have become
accustomed which is better than certain to lead
In dealing with the subject Of currency 1t Is desira-
bic TO keep steadily In mind the twofod character OF
gold First, that 1t Is a commodity, and, ike all
other commodities, subject TO the laws OF supply
and demand and. secondly, that IL has an ONCE
sent Of Observation-Disclosures Of being the measure Of the
values OF all other commodities. Though the pur-
chasing power OF gold has varied considerably
variable supply and demand, 1t has, nevertheless,
from the earliest periods OF which we have any
authentic records, maintained closer approxima-
ton TO fixed standard OF value than any other
commodity. Therefore, Tor the purposes of legisla-
tion, II may be considered as having q nxed value
established by universal assent--which Is law that
no legislature can contrayene.
But do nos propose To enter into exposition OF
the science OF money, but simply 70 apply wen
established principles to our present necessities.
From what has been said 10 VIII appear that the
Scyla and Charyodis between which the shp OF state
must be steered, with q Arm hand aud thorough
knowledge of the channel, are, the one hand tac
theory or immediate cash payments, and, on tho
other that Of ination on the side OF the former ia
arrayed the great mass Of the community, who pos
sess but hltle knowledge OF the subject and whose
industrial pursuits are inJuriously affected Dy a
nuctuatnl currency. On tue side OF the latter are
the rich few, who seek only how they can best make
'hewers OF wood and drawers OF waterv OF the
rest OF mankind. Not a month has passed by dur
Ing the last three years that has not afforded striking
evidences OF the enormous abuses resulting from
conn, 81 men, IN various ways to cheat the
tons against public interests and public policy arc
rendered easy and profitable by the existence OF a
vicious currency which always exercises corrupt
Ing and demorazlng influence society. II a man
steals horse or suit OF clothes TO protect him from
the cold he Is sent to the Penitcntiary for term OF
millions VI trust money In times OF imitation he can
appropriate the whole " his own uses and 60 'ua-
What, then Is best to be done 70 cure these great
national and commercial evils answer, there Is q
middle course open FOR the consideration OF Con-
gress IL is the course am about TO suggest and IL
Is founded on the class principles that guide
all eminent and experienced physicians when they
undertake. great and dicult cures namely. TO
sist the natural laws In the case OF our redundant
currency and the chronic evis that have grown up
under IT, II we cannot get rid Of II by nstaniane-
surgical operation the next best thing for TO
do Ia 10 prevent rs spread. II we cannot prevent
speculation In gold we can dam up the evil Ia one
direction at least and leave the laws OF nature cur-
rcncy and trsde) to cxpel 1t in tho other.
The plan have TO suggest Tor the accomplishment
OF this object II thsLet the Secretary OF the Trea-
sury bo authorized and required 10 hold the surplus
gold In the Treasury amer paying the gold interest
the debt for the purpose OF edceming the govern
ment currency at certain rates, 10 be from time to
time determined by the average price OF gold Tho
first average might be taken on the last year,
and thereafter on each quarter. II the average OF
l40 then that wond be the limit at which
redemption would commence, and no combination
OF SPECTATORS would have the audaciy to attempt to
break tho Treasury Of United states by creating
thu. nrIcn arch aitau,l.t NC n