The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-08-28

The stock market was dun and variable yesterday
Government securities were strong and active and
closed with an upward tendency. Gold closed at
1853. 145k
The Letter of Treasurer Spinner on tho
National Finances.
Mr.. Treasurer Spinner never fails to mount
his financial hobby whenever an opportunity is
afforded We naturally expect, therefore,
every month or two an exposition of his views.
The last ''letter" which is going the round of
the papers is in reply to citizen of Boston
who had sent The Treasurer ten dollar green
back note and demanded payment for it in
specie. OF course this little piece of innocent
acting was well understood by both the
'citizen' and Mr.. Spinner, and was intended
to give the latter the opportunity he desired to
spread himself before the public. The United
States Treasurer is very respectable old fogy
of the red tape order and great friend Of the
bondholders. However, he is not quite as
| ignorant or impenetrable to light as Mr..
McCulloch, and he shows some CLEANS Of intel
ligence on the subject Of our finances and the
national bank system.
OF course Mr.. Spinner refused the demand
of the Boston citizen for gold, though on the
face Of the greenback ten dollar note sent was
stamped ''Ihe United States promise to pay
to the bearer ten dollars, because, as he says,
his ''office is simply executive" and he has
emo power save to carry out the mandates Of
law as passed by Congress" He adds that
'by the acts Of February 25 and July II, 1868,
! the note on which you demand payment in
gold is made lawful money and legal tender
| in payment Of all debts, public and private,
within the United States, except duties on i'm
ports and interest upon bonds" He then says
that Gin the absence of judicial decisions
against the constitutionality Of these laws
am constrained to obey them in their letter and
spirit"
The Treasurer could not decide otherwise,
and he ought to have left the matter just there.
But in this reference to judicial decisions
against the constitutionality of the Legal Ten
der acts and in his voluntary assertion that the
giving Of one irredeemabe obligation for an
other, as has been proposed for the redemp-
ton OF the public debt, is no payment ut all,
he has stepped further than he had any right
u
which public sentiment as well as the ablest
constitutional lawyers are against him. He
has very narrow view of the question, and as
the Treasurer of the United States he should not
have touched it, He evidently implies that
nothing but specie can be the constitutional
money of the country. His views tend to
disturb our existing monetary system and the
credit of the government. If it were possible
to carry them out by the judiciary declaring
the Legal Tender acts unconstitutional, or by
any other MEANS that would cause such uni
versal CONSERVATION, embarrassment and re-
vulsion as was never known before. How
ever, that is not possible.
If these acts were of doubtful constitution
alty their validity could not now be disturbed.
The Supreme Court could never be brought to
such decision. But there is nothing in the
constitution forbidding Congress from emitting
bills of credit or from making anything money
or a legal TENDER be it gold, silver, iron,
nickel or paper. Congress is simply author
lied ''to coin money, regulate the value
thereof, and Of foreign coin" The several
States arc prohibited, in section ten, article
one, from emitting bills of credit or from
making anything but gold and silver coin a
payment in tender Of debts, but nowhere is
the federal government prohibited. Congress
has just as much power to make money out Of
paper as it has out of metal, or as it has to
declare how much the metals shall be mixed
or alleged in certain coins The laws Of Con-
gress and the stamp Of the government make
anything money and legal tender. If Mr..
Spnner's theory were admitted 1t would be
taatamount to declaring the government and
republic insolvent, and that might lead the
people to take advantage of an insolvents con-
dition and settle with the public creditor by
compromise. Does Mr.. Spinner understand
this? Does he know where he is driving to?
Do the bondholders, whose advocate he is,
comprehend the tendency Of such a theory9
AS might have been expected Mr.. Spinner
urges the immediate resumption Of specie pay
ments for that would add to the wealth Of the
bondhoders and to the burdens Of the people
thirty to forty per cent. He thinks the credit
| of the government would be vastly improved
| by that II might be abroad, and our bonds
might 90 over 'ne huaut'V III SUN quantities
that we should have TO find hundred millions
or more in gold every year to pay interest to
foreign bondholders. But would not the enor-
nous taxation, with less means to pay il under
restricted specie currency, and this vast
drain of the precious metals abroad break
down the industry and taxpayers Of the coun-
! tryS He, like all the school of resumptionists,
begins at the wrong end. The way to reach
specie payments is to get rid Of as much Of the
debt as possible while money is easy and the
currency deprecated. II economy in the gov
| n J,I, In L.