Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1868-02-09
THE FINANCIAL. ECONOMY OF THE
UNITED STATES.
Mr.. GALLAT1N concludes his letter to

/ UNITED STATES.
NO. 4.
Mr.. GALLATIN concludes his letter tC
the President, as follows:
OPINIONS AND SUGGESTIONS OF THI
wRITER-LEGIsLATE AS LITTLE As
POssIBLE-THE NATURAL LAWS OF
TRADE THE BEST LAwS-PREsERYE
THE PUBLIC FAITH ECoNOMY-RE
TRENCHMENT, ETC.
My own opinion is that we have more
70 undo than to do in legislation upon
our economical affairs. Our true policy
is to legislate ss little as possible and q
reIv on the natural laws OF trade and 3
firm support Of the public faith, viii
economy aud retrenu ilment, and con.
eiliatory policy in restoring peace, and
encouraging industrial habits through
out the country. We are suffering from
our mast errors as well as from ealan1
itous war, and from great revulsion
4 which has spread throughout the com.
! mercjal world; and we should be careful
in our legislation not 70 attempt tOl
nuch. for if Ruy one truth has been
more triumphantly established than
another by the experience Of moaern
| society. il is that the GOyernment which
4 GOVERNS least is the best. Loisse= tdtTe,
should be our motto a people taught
TO look To their Government, in manag-
ing economical affairs, can never be con-
tented or happy. such GOverhmen
undertakes too much. IL exposes ltseil
t. cersure for misfOrtunes incident "a
natural laws, which il cannot control.
/ It exposes itself to blaneI also, ior ms
fortunes which fall upon individuals
frcn their own errors Of judgment or
/ uncomfortable passions
Every element Ofnature Is working 10
( cor favor, aud nothing but persistent ad-
| hersncs to the great error OF attempting
To force the laws Of nature to become sub
/ ssrvient to the laws of Congress can re-
I press our recuBerative energies, with the
I bIas-ing of Providence. The natural re-
/ sourras Cf the country will best be devel-
! orp5 by leaving the people az free as PISS
/ -fhta ~ aruEv their own skill and indus
] trv i, hat work. Il Is the uncertainty
! Of the future, when Government under
/ takes TO regulate everything, that unset
/ tIesindustry trade, commerce and tiuGnce.
As TO the basis OF our currency, we are
/ producers OF the precious metals. One
I or two vears' product OF our mines alone
would be q sufficient bssis, with the coin
! suore-ei % be already in the hands Of
/ tba-re8l.a OF il the Treasury, to place
our finances at par with the worlds cur
/ rancv Aud while it is universally ad-
,nilted that il is q wsste Of capital 60
| teaD on hand more OF the precious met
/ as than enough t5 form that basis, it Is
I moved bv ell experience that is the high
/ est economy thst nation can adopt TO
/ Keen a sufficient amount of these metals
! 10 constitute that basis, which is the
F foundation OF & nations economical sys-
tenn as well IS the measure Of its credit.
/ Ogr increase in Eum beT5 and wealth will
T Gradually restore our currency to par, If
freed from Govern ment interference. II
the existing depreciation or discount
twenty i've per cent on our psPsr
/ money be accurately measured by the
.rrrgut premium ithirry-thTee per cent
on gold. the progress Of OuF. pOBglatian,
l.-f1g at an increase corresponding
varv nearly 10 three per cent.
-a- arrtIm, compounded annually,
wfG in comparatively few years work up
The paper money TO par with coined
7aonev: aud the increase Of gold through
out the commercial world is powerful
element in our favor, prices of eommOdi-
tiss ald property in real money being
v-a6uzlly fUrced up IN every civlhzsd
nation uv this Increase Of gold toward
!rbfzh Dsper money prices. 1t has been
y
bosr3ei within our own borders two hun
dTed millions in gold and silver, but this
estimate Is probably too high. Even If
we have only a hundred millions thus
h0arGsd, with hHP6red millions in the
Treasury and tlif banks, We are much
nearer cash rear puOn than is generally
supDcsed. To get out mis- Eoarded gold,
the Jcaiu thing wantCa e confidence 10
speedy resumption anu III the credit of
Tie G1ver8neut. Hence every political
measure, as well as every economical
and duancial measure, that Congress can
pass TO inspire confidence is an addition
10 lie resources of the country. The
country needs rgs5. We have pass=d
through trials aud affections Utmost IN
parai.5 j. Let Us hope that brighter
dsys are downing Up1n u5.
Ia veuturinS 10 so ait The following
sugz estioDs 10 yourself 1Hd Congress, as l
have been urgently requested to do by
members Of Goth houses, permit ME
again 10 refer aPproviBgly 10 those meas
ures y hieh you have proposed, numbered
one b five inclusive, In the foregoing
rseantulatlOu. From these, with such
notifications IS experience has dictated,
I have drawn the following ss substitutes
for, II not embracing, ali the other meas
ures TO which l have alluded in that re-
CSpitulatiOu.
/. Maintain the highest standard OF
value possible in the GOyernmen ent paper
money by permitting it to be funded. In
other words II the fOrcibie contraction
must be repealed, then repeal the law
prohibiting the funding Of the legal ten
der paper money permit the funding Of
It ii the natural way, in some interest
bearing stock.
In all the funding operations Of the
Government, when any loan is to be
negotiated, good faith would seem to
require that publicity which accompanies
lhe receiving Of bids for the loan. This
was the custom prevailing Gll through
our history until the breaking out Of the
late rebellion. The sum Of twenty mil
lions is proposed 10 be paid by Senate
bill Nc. 207 for the expense of negotis-
tiug aad printing. 1t seems waste Of
mouFy to pay for negotiating loans
which could be disposed of by public
bids The policy Of private neg citation
slWavs exposes government and its
officers to charges Of fsvoritism.
AS to any alteration In our coined
money. to assimilate 1t 10 other paIons,
/ the gcg making such alteration should
provide that ii shall apply only TO con-
I tracts made or entered into after the pas
sage of the act and that contracts may
I be made in such new coinage, nOtwith-
/ standing the legal tender paper money
act
I . Instead of a two thousand million
| consolidated loan, as proposed in Senate
/ bill No. eOT, which AppropTiates ta0entg
/ millions for negotiating and the expense
| Of Issuing the bonds, l would yindicste
| the public faith by correcting the error
/ made in the unfortunate phraseology Ci
/ the five-twenty bonds, exchanging new
| bonds exactly the same in all respects
l5qfiable in coin, for the old AmbieuOusly
/ Worded bonds, precisely as sn honesl
man would correct an error, made in the
| wording Of his note, and at the same
time authorize "a SPECIE RESUMPTION
loan" at such rate of interest, and suei
number of years to run, as the Secretary
! could dispose Of for gold, st not less thar
Dar. with the view Of drawing out th(
I hosrds Of gold 10 the country into the
! Treasury, without fixing any limit as tC
the time when specie payments shall bt
resumed, excepting when the gold in the
] Treasury equals in amount the D9te'
! outstanding. My hope is that such s
loan would be readily taken, slowly, pei
! haps, at first, but with very great TRpidity
as the opportunity approached its close
| The gold going into the Treasury would
not, spprehend, remain long before re
! sumption became practicable, easy apd
/ beneficial to all interests. The bank
ans the people would send to the Treas
ury to get gold for the legal tenders the J
might h0lu, and these latter, as they
went into the Treasury, would be de
stroyed, the banks resuming, and Gov
ernment having paid for its notes il
coin would thereafter cease to interfer'
with the currency, anf as freed from tht
most dangerous and seductive power snG
! Influence OF paper money. Our currency
thus resuming its specie basis, the baul
reserves would be in coin, and no NOR
legal tender paper money would exist
and, although the legal tender paper lay
might remain UDrepealed upon tn
statute book, it would have been prscti