The New York herald., 1868-03-02

cOlumn from our correspondent AZ Cnester,
Pa, detailing the extent Of the works there
| devoted to the construction Of iron steamships
and marine engines Its perusal should hasten
the Inauguration of the proposed remedial
action to soon again place the United States
on a respectable footing among the marine
nations of the globe.
| Tho Currency Question -AnalOgies, PROPOSE.
tions and Suggestions.
| Granting the desirableness of convertibility
as an element of financial philosophy, there is
| no better way than to introduce it at once
and under the present circumstances. One Of
the causes which contributes to keep gold at
premium has been the absurd hedging about
Of the gold value by the government Gold
has been set up as an ideal measure of all
values and the something without which there
could be no value and thus gold speculation
has been encouraged and rendered lucrative,
while seventeen hundred national banks have
been interposed between the government
and the people, preventing the possibility
of direct convertbility. There is but one way,
in fact, by which currency can be made prac-
tically convertble-upon presentation the
government must pay for it in gold, at gold
prices. For instance, when gold is at one
hundred and forty, one dollar in currency
is actually worth seventy-one and three
seven.hs cents In gold; and, for pur-
poses of convertibility, let the government
value, and certain freedom in gold move
ment Is at once introduced as q financial ele
ment. The effect Of measure of this sort
would be practical convertibility, and practi-
cal convertibility is always essential to sound
financial condition of the body polite. Not
that it is at all necessary to force gold upon
the presenter of the currency. BY no means.
Let the presenter have his own way, and if
the gold is demanded let 1t be rendered at its
premium value. II not, let the currency be
replaced by currency, and one element II
introduced the effect Of which will be to reduce
the value Of gold, or rather to reduce its pre-
MUM; for the Introduction of perfect free
dom Of convertibility, value for value, cannot
but have some effect In reducing this fictitious
premium, before which our financiers tremble
like Hottentots in the presence Of . lion.
In certain respects, In fact, our present
financial system is q mistake based upon
mistaken English precedent-a precedent
which has impoverished tho working classes
of England, beggared thousands of able-bodied
Englishmen and nourished moneyed aris-
tocracy upon diet Of bonds and taxation
intolerable to the people. 1t is not even sup
possible that Englishmen, with the ballot in
their hands, will long submit to this beggaring
process which is the main principle of English
finance; and that there will be financial
tribulation in England within the next half
century may be confidently predicted.
Democracy and liberalism have, to q certain
extent, their own political economies, and
cannot be limited to precedent in the solution
| of financial problems The Bank of England
has beensthe vampire of the English body
polite, and has sucked 1t nearly bloodless the
national banking system Of the United States is
similar In its workings, and tends directly to
the creation Of vast moncyed aristocracy in
this country. The principle upon which this
financial system Is based-for the principle Is
the same in both cases-is essentially undemo-
cratic in Its workings, and has no affinity for
republican institutions. 1t is the basis of oil
financial precedent, to be sure but all fnan-
cial precedent, with triaing exceptions is
founded upon the necessity Of supporting q
royalty and aristocracy in comparative idle
ness upon the legitimate earnings Of the
people; and thus it happens that while the
aristocratic classes Of England govern, they
compel the muscle and labor Of the
land to pay literally for the privi-
lege Of being governed. The essential
principle Of English finance, in fact, is the
support Of a moneyed aristocracy, also titled,
at the expense Of the laboring classes and
this is the principle Qess the titular dignity
upon which the financial system Of the United
States Is at present organized. Gold has been
created q god-the absolute metre of all values
monetary as well as commercial; and yet, In
any sound financial philosophy, gold is simply
thing of straw, having no absolutsness o
value about it; while, practically, IL is nothing
moro nor less than commercial commodity
to be bought and sold at its market price. We
say practically, for We presume that It's practi
cal position in the market as . commercial
commodity and nothing more Is quite undoni.
able; nor can any reason be assigned why the
government should not treat specie as Wall
street treats it--viz, as q commodity Of com
merce.
The introduction Of the principle proposed
viz, to pay out the value Of currency in gold
or paper at the option Of the presenter for
redemption--would have this practical effec
upon the gold market Gold would be In a
measure disabused Of tho ideal value set upor
II, and the consequence would be the libera
tion Of large quantities Of coin. The liberia
ton or any large quantity Of coin would AGAR
have the reactionsry effect TO reduce the pre-
MUM on gold, and thus . return TO specie