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


certainly grow up 70 tho at present superaDundant
volume OF currency. We shall thus In q few years
Of the currency, which, In half dozen years more
will not he In excess OF the business wants OF the
nation, ana without any shrinkage IN values, save
such may be the result OF the action or the laws OF
supply and demand.
II Is hardly necessary to elaborate the arguments
payments They are 80 many and so obvious that
every person OF ordinary reasoning powers and Tree
ro es can supply them Those wa1 haSs
English history cannot fail to zee the danger OF rash
and unwlse legislation thereon. The commercial
OF the people are 60 complex and have
become 20 nicely adjusted to each other in all their
Industry that they REQUIRE the most careful consld
Grafton ut the hands or the Legislature The great
and leading object OF statesmen should be to estab
lsh AZ nearly ~ may be, fixed standard Tor the
currency, and leave all kinds OF industry be regu-
lated by those natural laws, recognized by eminent
writer's on political economy.
1t VIII not however, be out OF place to state that
the rapid development Of our national resources,
means ny ss raEk lines OF rwsy across se &
tinent, will materially aid the Legislature In its
efforts to restore sound currency. The expendi-
ways through our vast mineral and fertile regions
and in grasping the enormous and rapidly tncreas-
adding largely to our own foreign trade WIN be
found to be a measure OF wise economy. Such an
outlay will certainly be productive OF many fold re-
turn by an immediate influx OF foreign emigrants OF
the better class who viii bring with them many mil
lions OF their boarded wealth and their labor thereby
diminishing taxation In the Old States.
am sorry to observe cry Is being raised by n
class OF man who have sought and obtained from
Congress privileges denied to the rest OF the commu
nifty against further government aid 10 railways |
do not propose here to enter into any lengthy argu
ment to show how the financial condition or the
country may be improved and the national burdens
mitigated by adherlng to the past railway policy OF
Congress. merely have to say that opposition TO
that policy comes with the worst possible grace from
those who have enjoyed almost exclusive privileges
by reason OF class legislation unduly obtained. IL
this opposition should be persisted in the current OF
public opinion may set in different direction from
that anticipated by q combination formed to build
up great moneyed arlstocracy under the alluring
claims set up for protection to domestic industry.
The trunk lines OF lnterOceanic railway are essen
TALLY national In character. They are the peoples
property and will do for the country In dozen years
more than protection ever has or ever can do for It,
l am not opposed to moderate protection wisely APP
portioned to useful domestic manufactures, but
see great Injustice In cOnfning 1t to some branches
OF industry and denying 1t To- others. rake, lor In
stance, shlpbuiding, and we shall lind nearly all the
raw materials used in construction taxed so heavily
as to have destroyed 1t, ia great measure, as
branch OF national industry.
1t win be probably urged against the adoption Of
the proposed plan that it fixes no date at which
specie payments shall certainly be resumed. This
claim 10 be one OF its leading advantages. Nuner-
GUS attempts were made by the British government
to Tx day when the Bank OF England should be
obliged to resume, after It's long suspension, during
and subsequent to the Napoeouic wars But year
after year wore away without naming the day.
When 1t was at length set ample time was gwen 10
enable the banks ana merchants to provide for the
contingency. Nevertheless great disturbances OF
business were the fruitful results. To instance
again the Illustration OF skiul physicians 1t would
be about wise for them to name the day and hour
when their patients shall be able Ito take up their
beds and walk'' as to Tx day for resum1ng specie
payments. When we shall, little by little, have
.'corneredr gold below Ave SIX per cent premium
1t will be time enough to name day for making 1t
II we egislate in aid Of, or to give freedom to the
laws OF trade and currency instead OF attempting
glazing blunders committed by England. under SINH
lar circumstances, which greatly aggravated the
evils complained Of 1t will take very little to create
all the banks and merchants In England, shortly
after the resumption OF specie payments. Let US,
therefore, get back to the golden path by slow aud
easy stages, and avert such widespread ruin by CIV
ing time for society to adjust Itself TO the changes
Meanwhile we should 60 on developing our latent
resources OF wealth by encouraging pubic under
takngs OF strictly national character as an AID TO
the cure we are endeavoring TO effect. We must no
longer regard our country az congomeration OF
petty States, but az great empire The blood OF
millions has cemented the whole together and made
OF nation de Jdcto well as in name. Section
alsm must hereafter be discarded by those who
aspire to the high and difficult position OF states
men. Great national objects must not be lost sight
OF because they seem 10 benefit one locality little
Such are few OF the considerations that ough, to
govern those who are now called on TO legsla,e on
tho grave financial questions to which l have
directed your attention. The question OF funding
the debt WILL under sucn enlarged views OF pubic
policy, become comparatively easy. Provision
should be made Tor the gradual retirement or the at
present numerous descriptions OF pubic securities
by the issue OF 'socs" bearing gold interest, not
exceeding five per cent reieemable at the pleasure
or the government at come liked minimum rate;
such rate would require 10 be fixed high enough 10
enable the government TO eject an exchange OF the
new for the cid securities without damage 10 the
public credit. The whole conversion might thus be
effected during the Ave or SIX years contemplated
for return 70 specie payments at such times as the
government bonds should rise to the points fixed Tor
their redemption.
Looking sim further forward 70 the time when the
country may be able and ~ desire 10 llquldate the
whole debt. provision woh.d have to be made %
change the national bank system. This might
be done by Ike gradual process. As
the government, bonds deposited with the
the bank circulation were retired by the new
stock the notes issued therefor should be called in
and government notes be issued IN their stead. II
Is right ana proper that the public should have the
advantage OF such circulation instead OF the banks
and II the change ia effected BY gradual and easy
process and is spread over several years. the banks
would have no Just reason TO complain.
The public, Ii VIII be seen, VIII be the gamers by
substituting the government currency for the pres
terest on $500, 100000 Of bonds gwen as security
The governments would OF course receive par value
Tor all Its notes, either 10 current money or by a
return OF Its securities pledged for the present
bank circulation. This In the position held by the
Bank or England, whose notes are purchased by the
Joint stock banks for banking purposes There Il no
reason why our banks should be placed on u more
favored footing. nor viii It be permitted when the
os,sn s Large PFG ,Rs Sus.on their interests
When this point Is reached-that Is, when the gov
eminent shall have become the sole issuer OF cur
rency notes.-the step will have q very important
bearing the future financial affairs OF the country
This step will create for Us sinking fund that VIII
OF itself, and without dollar Of taxation, extin
guish during the next twenty-five years fully one
tnird Of the debt simply by the increased demands
for currency 10 meet the wants OF business.
To make this clear. let US suppose that VIC shall
reach cash basis by the gradual process ] have
foreshadowed by the year 1873 1--we years henceh
without any actual contraction, but BY growing up
TO present volume OF currency, and assume that
the currency, then redeemable In gold &C par
amounts TO 800, 900, ooogrcenbacks and bank notes
together. The fact OF tho government being then
able to redeem at par will DO proof that that
amount will be enough to satisfy the legitimate de-
mands OF commerce at that period. But let us look
forward. say fifteen years further, to 1888 and we
shall nnd the population, which In 1873 only number.
cd ortynve millions has risen 20 about seventy mil
lions and that the business OF the country has more
than kept pace with the increase OF population. ny
the year 1858 twenty years from now shall there
fore need volume or currency equal 90 Mt least
Aa lQa4 N III mad al h.. IN. . - Tor