The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1868-12-30
NATIONAL FINANCES.
Senator MOrtOn's Able Reply TO Horace
6reeIey-0ptniOns ON Specie Payment.

In letter Just issued from Washington
Senator orton replies to Horace Greeley, in
the following vein, on the financial question of
the day:-
In your letter addressed to me, in the Tribune
of the 2lst instant, you undertake to answer
several positions taken by me in my late speech
in the Senate on the currency but devote your
self chiefly to the establishment OF the propos
ton that the Government can and should at
once resume specie payments, with only
$7O COO 600 OF gold in the Treasury, and that the
declaration of resumption would have the effect
to bring the greenback currency TO par Aud,
to rel but the idea that more than seventy mil
lions would be required with which 10 begin
resumption, you say
You assume that If we resume the Govern
ment must redeem the greenback currency |
think not. Our banks have repeatedly resumed
after months and even years Of suspension, and
have never been required thereon to redeem
their outstanding issues. On the contrary, the
fact of their resumption has uniformly precluded
all desire OF disposition to exact such redemp-
tion. Yet their notes were not legal tender,
had not the Federal Government behind
the long falsi6ed promises-Ot private cor
porations, Yet we all went on receiving them
and paying them out, without asking for specie
TO the extent of one dollar in twenty OF the
notes thus suddenly made redeemable in coin.
If you think the people, who have so often
shown faith in and forbearance towards private
moneyed corporations, would not now evince at
least equal faith in the vernment-that is, in
themselves-you have given me no reasons tor
sharing your distrust.
You then enter into an argument OF some
length to show the superior convenience of the
greenback currency over com. You show very
clearly how business would be impeded by
mere metallic currency; that the business OF the
country can be better developed and extended
by redeemabe or convertible paper currency,
and that The people could not do without the
greenback currency long enough to have it run
into the Treasury for redemption in gold.
Your argument is excellent to prove that
after the greenback currency has been brought
to par it would be preferable to gold, aud but
little Of 1t would be brought to the Government
for redemption; bat as long as the greenback
currency is three cents under par that margin
would make it profitable to brokers to run it
into the Treasury from every part ef the United
States.
Your first argument was that greeubacks
were so much more convenient aud desirable
than gold that they would not be presented for
redemption. But here you state that we cannot
safely resume even with S2OJ, ,OOJ coo OF gold in
the Treasury, and that the one thing needtul for
resumption is to provide a new bond, which
the holders OF greenbacks would prefer to coin,
par, and that when we have got such
a bond we can sa'ely resume with ten
millions OF gold in the Treasury. Here you
would seem to make resumption Impossible by
requiring in advance national security which
will largely sell at some rate above specie par
which the holders of greenbacks will prefer to
coin, and which you have before said should
bear interest at the rate of four or five per
| cent. Such a bond could not be sold even at
par until after resumption is firmly established,
much less IN advance, as means or bringing
| 1t about.
With such bond, which the holders of
greenbacks would prefer to coin, the green
backs would be funded, and it would result in
large and sudden contraction, which would be
| in hostility TO your first proposition that the
| people need the greenbacks and will keep them.
| Your policy, like that OF the Secretary OF the
Treasury, resolves itself finally INTO con'rac-
| tion, and If TO the evils of immediate resump.
| tion you add the calamities OF large contracIon
| you will make short work OF the business of the
country.
decline IN prices which you say it will, it would
| be vast calamity to the majority OF the people
| OF the United States. 1t would certainly bank
rupt or suspend three-fourths of the business
men Of the country at once. 1t would produce
suffering and desolatlon OF which we have no
| record IN this or any other country. Hundreds
of thousands now living in comfort would be
| reduced TO poverty. Business would be de-
| stroyed; the poor left without employment;
| the people unable to pay their taxes, and
| the Government Itself threatened with bank
| 1uptcy and dishonor and yet you say you want
| TO make the plunge at once. If the private
| Indebtedness of the people to each other on the
| lst OF February, 1869, amOunt to SS 900 000 900,
the capacity of the debtors to pay, by your
lowest estimate, would be diminished to the
extent of S2000000 600. You may be ready 10
make the plunge, but the great body of the people
are not. Your plan would suit admirably that
| class OF peoUle who are not in debt and have
| plenty OF capital, or who have fixed incomes
| which would be greatly improved in value by
| the large decline in prices of every other kind
| of property. Your plan would enrich the cre-
! ditors by the destruction of the debtors; for as
| you say, the sheriff and constable would be
| after many OF uS )" our property would be sold
! for song, and i large balance of debt be left
! against our future earnings. And all this suf-
| tering and deStltutiOn | pat according to your
! own statement of what would be the effect OF
| immediate resumption.
! Now, sir, in contrast to your plan, which
would be so merCless, if it were possible, | will
present Ou with another:-
| First. That Congress shall by law fix time
! say 1st OF July, lS7l-to begin the redemption
| of the greenback notes. BY liking time 80 far
| in the future people wopld be advised of the
! change, adjust their business, and make theic
! contracts accordingly. Before that time nearly
| all the existing indeb edness among the people
! will have been paid. BY au estimate which
has been approved by some who are we'll
| versed in the business OF the country
| threeLourths of the existing Indebtedness
! among the people VIII be discharged within
! twelve months IRON lst OF January, l869 three
| fourths OF the remaining one-fOurth will be dis.
| charged within the next twelve months, and
that by the lst July, 1871, there will not be ia
existence aud unpaid to exceed four per cent.
of the existing indebtedness, and thus the debtor
| class will almost entirely escape from the
oppression and disasters with which your plau
| would overWhelm them, arising from the sndden
decline in the prices of all kinds OF property,
Second. BY fixing a definite period when the
! green back note will be redeemed, fixed value
will be given TO it, which will constantly appre-
ciate as the period fixed for redemption ap.
proaches, and it will be at par at or before that
| time, provided the Government is making the
necessary preparations for its redemption. 1t
| Will be much better tor the business Of the
! country for it TO reach par by gradual anpreca-
| ton. than TO come up to it by q sudden Jerk as