The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-21
RESyMPTIOs OF SPECIE PAYMENT.

SIh-fne earnest and ca ibid manner In which you
have discussed this very important matter induces
me to think you will appreciate any FAIR criticisms
on such portions OF your speech Of Wednesday as
may be open to remark and as are opposed to the
usually accepted laws and theories OF currency and
that you will In like manner receive any feasible
suggestions which may seem to aid you in the her.
culean task you have attempted. In tho views you
express respecting the Injurious effect OF q deprc-
ciated currency on the business and industrial
interests OF the country 1 entirely agree with
you. On this subject have before dilated at some
length In q communication which appeared In the
NEW YORK HERALD OF the I'd inst. and shall add no
thing more at present.
The nrSt allegation or assumption IN your speech
that take exception to Is where you say, "As the
value OF our legal tender currency goes up the price
OF our bonds Will 60 up with it, and what Is true Of
government securities is equally true OF the great
mass OF American securities, public and private"
You them as II to support this proposition say that
Estate stocks that were at par In gold before the
war remain at par in greenbacks," ana Immediately
after quote two xceptlons-Massachuset and Cali
fornia-wlich maintain their gold par "because
their interest has always been paid in gold" These
two exceptions are the best possible REPUTATION OF
your propositions that the government bonds would
appreciate to gold standard just In proportion as
exact reason why the other State bonds, which
were at par in gold before we had base currency,
have not maintained their gold standard value the
same as Massachusetts and Cafornia-namely, be-
cause the other States did not continue pay in
terest in gold, and availed themselves of the legal
tender clause Of the Currency act to pay the princ
pal OF such as have fallen due in the deprecated
currency In thus stating your case you
have fallen into the same error which you
afterwards attempt to refute-an error OF
which the New YORK. Tribune Is the chief ex-
ponent. The Tribune proposes TO make the ap-
probation OF the government bonds take precedence
Of specie paynens-that is, all we have to do is
make our bonds worth gold par, and resumption is
effected. Unfortunately neither you nor the Tribune
have particle of evidence to support such an as
sumption. On the contrary, our own experience, as
well as that OF other countries, is Numerically OPP
posed to you. The truth is, you have done what
many less enlightened writer's and speakers have
done in discussing this question. You have con-
founded the principles winch govern an Interest
bearing time debt with those that govern an unre-
deemable debt II the interest
and principal Of the former were payable i'm the de-
precIated currency, then what you assert would fol-
than thiss II you want to bring the government
bonds up to gold par why do you not provide In
bill that they may be converted into perpetual
stock, paying such interest in gold will induce
the present holders to exchange at par? OR II the
idea OF perpetual stock be not acceptable TO the
American people. then provide for q gradual re-
demption OF the bonds, say at the rate OF
five per cent per annum after five or ten years. or
again you might issue terminabe annuities. which
is not bad way TO pay OF national debt. On that
subject, however, have some old fashioned ideas.
don't see any particular necessity OF paying Off the
might make very simple provision on that subject
and leave The next generation TO attend to that mat
ter. There is no danger whatever that the present
generation VIII do so. Therefore provide that the
government may ut any time within fixed period,
long enough to cover the longest outstanding bond,
redeem It's securities In gold at par. II the credit OF
the country snail By that time be so improved by
honest purpose and development OF latent resources
as to enable IL TO borrow on better terms the govern
ment OF that day can then avail itself OF such
provemcnt. SO much on the funding part OF the
subject
The next exception have to take to your line OF
argument Is where you assume In contr0yertinp Mr.
McCulloch's plan of resumption by contraction, that
such contraction will not appreciate the currency to
q gold standard. Your argument on this propos.
ton, must say s a begging OF the whole question
The question Is how 10 provide the means TO re-
deem-thc gold whcrewlth to pay on the grcenback
currency. MIR. McCulloch proposes 10 do so by re-
ducing the volume OF currency within our means.
You propose to increase our means as TO find the
ability In that way. When you come to compare
notes as TO the erect OF the two methods YOU wiz
find you have simply gone round the circle In oppo
ss,e directions and met Just where you started Io
charge Mr.. McCu0cl with plan that VIII rlsin tnt
country. Yon say withdrawal OF even One nun
dred millions Of the currency would produce great
strinvency in the money market innumerable bank
ruptcies," &C. Yet your plan. ii based GA The same
exact time for resumption. would produce exactly
tne same results ~, ~ dia .nls very , same thing IN
OF England In order to obey the mandates OF
act OF Parliament broke theequarters OF The pub
lic and private banks and caused universal
distress to industry and business. These were the
days OF Infatuated mobs OF rick and barn burning in
the United Kingdom. The people were drveli 10
a ap Si %n You unSs ga tb nj g
tnkering with the currency az 1t was and still L.
called ~ England when the Legislature attempts to
VI la In nf
the laws OF currency and trade-is very serious
thing. You had better consider first whether we are
not better or as we are than to run headong into
unknown evils.
But permit me TO poin. out more clearly how YOU
ana the Secretary OF the Treasury are swinging
round the same circle- in opposite directions and
must meet again. You propose 60 hoard gold until
the government has about one gold dollar for three
paper dollars, ana by fixing a day, just as he does
and Just as the government OF England did, 10 force
values gradually down till par arrived OF, on or
before the day named. Then by an Ingenious beg
gng o o. tle question again you assume iaat
boarding process-that the private hoarders
would in fact, shell out enough 20 enable
The merchants TO pay their customs duties and
remit abroad 10 pay balances on trade. Now /
must confess that cannot II in this light. 10
seems TO me that such boarding OF gold would be the
same In effect az Mr.. McCulloch's "hcarding,- or
cancellation Of greenbacks. You propose TO take
out OF the market that which serves two pur-
poses-1rst, that OF a commodity OF which the
United States is a large producer and secondly,
that or currency by which all civilized nations
measure the values OF all other commodities, m
GLIDING irrcueemabie paper money lie proposes 20
withdraw the latter from circulation. But you and
the secretary have not yet got quite round the cir
Gle lie would cancel the groenOacks as fast as
they are called in and thus contract the volume OF
currency. You propose also 10 cancel them as soon
as your Limit OF time for redemption Is reacned but
you say there VIII be no contraction, because the
gold viii take the place OF the paper. But viii this
not be equally true or the Secrctary's mode of re-
defnpfionf Why viii hts gold not 20 as far as
yourss great philosopher has expressed the mat
ter IN homeiy but exact tcrms.-"What ~ sauce for
the goose ~ sauce for the gander.n lou and
the Secretary have now met and 1 hope you VIII
recognize each other by friendly embrace and the
usual exclamation under sucn circumstances. lis
this yous Can believe nv eyes1'
But must correct another piece OF bad reasoning
Of which you are guilty. You say:"The great din-
Guilty generally attending the improvement in the
value OF the currency In the resumption OF specie
payments where they have been suspended Is the
reduction IN the nominal prices OF property and
labor, which operates injurolsy upon the debtor
class IL Is generally true that az The purchasing
power OF the currency IL increased the nominal
prices OF property diminished. But this effect Is
sometimes counteracted BY the Increase In the vol
uIne of the curreucy The imitation the CURRENCY