The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-01-12

In New York for the week snoinK pece" az ua JAZZ
with only si2 SIS. GOO ~ money; - eeocmpiisnea
prompt community vita cashh' TINS was nsss ~
that 50 Immense WEIGHT. -aspend.d upon SO delicate
irreguarty. Wild cb IN erss vsss no., a,n ,hs pnbc
mna ana seekiaa fesson In the Legislation OF the
,ns nj, soca 9afu crg the theories forth in
sns u,' feosny Introduced In the Senate by Senator
nsncn OF veT Ecnt--A DILL bearing upon its evil
nrac Q, Tug cry best Intentions but inwardiy full OF
Prac sc ~ ,urdes which, II undertaken to be pu.
ensc! would involve the question OF the repudia-
4on OF '.ne national debt and the financial ruin OF
thus generation ~ men. That bin, the recon.
u1endptOns Of the Finance Minister and all
the bills so far introduced into this Congress
undertaking TO egsate return to specie payments,
and independently legisats as TO when that period
should occur still preserving the best interests OF the
country He asserted and would movo that Congress
could not independently and alone. a primary and
single act hx any day, DO remote be il this
year or MY years hence, when the country could re-
turn TO The specie standard He asserted that long
as government bonds underie the circulating medium,
az at present. and SO long these bonds viii not sell
price, the country can mover return to specie payment
me House could imagine what il gold and legal tenders
millions OF dollars OF national bank bills which were
issued upon three hundred and hrtyeight millions Of
dollars par value of bonds Tho market price or these
bonds was 72 or total valuation OF two hundred and
rtyfour millions OF dollars. There was an immediate
dehcit OF ffty-slx millions Of doilars not counting
such favorable circumstances. Would not every
dollar OF these bills be presented for gold rapidly
tonY Would mot the answers to these demands be q
crash that would pull down the pillars OF the State in
IunsY tho leg station and efforts Of Congress should be
directed TO enhancing the value OF the bonds When
American bonds advanced TO the same relative price
with English consols and with the Moorish and New
Zealand bonds thercountry would have arrived the
happy state when 1t could not only pay, but demand
specie Tor its obligations. He fully appreciated the
grinding tax which deprecated currency placed upon
laDor-the natural injustice OF paying bondholder In
gold which he could sell ut forty-two cents premium,
while the needy mechanic had TO receive deprecated
a Qunt yhan
he purchased anything Things however, should be
accepted as they were, and not as the country would
have them They had been told that national debt
was national blessing; but thatafnllacy UNDER
stood They had been told That the national banks
we're the sustainers Of the national credit He thought
they would yet Dc hiade 10 see ner error upon that
point Mr.. Barnes then proceeded TO consider the
tobal finances, c0nDning himself to three points
First the amount OF currency second the relation OF the
national banks 10 specie payments; and third, how
overcome existing obstacles TO that end The debt
now one thousand millions Of dollars than 1t
would have been If specie payments had been
pended, and the duty Of Congress was to repair the
damages already done. New York might be tax on as
representative city Of tho United States he would
take the average business of that city for past
eleven years Tie business of tue country last wear
four times in excess of that done Ia the great
speculative year Of 1857 times in OF 1858 aud
i've times Greater than 1861 Il reached the point
III 1862 which 1t occupied 1856 In 1868 1t increased
over one hundred per cent and In 1864 nearly seventy
per cent in 1865 ten per cent In 1866 ten per cent and
IN 1867 there mad been slight falling OIL He admitted
that al redeemable paper currency was great evil
but he denied that there circulation and
that until 1T was curlaed tue specie standard could
be restored. Values and business had accom-
modated themselves to the OF things In fact
great and damaging reaction had already taken place.
Fortunes had been sunk, and widespread suffer-
ing now prevailed from the effort discount tn
action of tue government In 1860 the country
had $500 000 900 OF currency perform less than one
fourth OF toe service which now due II had now
S7oO,ooo,o 600 OF currency only to do four times tho
amount Of business. But within tho past sixteen
months 800 600 had been rotlred, eighth
the circulating medium. Values had sunk in proper
ton aud speculation, as well as large percentage OF
autS INN h.1yi AoaA haas
OF prop rty all represented by $500 circuia
lug medium three per cent OF money ninety seven
per cent OF confidence and credit The general govern
ment owed 81 $50 OOO the states 1878 0OO
the towns, cities and municipalities be esti-
canals and interpretations at $1,000 ooo 900, and
OF merchants, manufacturers and individuals
TO each other at 81 600 600 ooo Hore total in
debtedness OF $6,2llOOo,000 To contract tho cur.
rency another hundred mions would lessen the value
Of property $4,000. 100000, and leave tho debts IN
affected To contract $500 600 900 would extnguish the
value OF the property of the country one-ha and yet
the debts remain before. That was the reason why
when they had committed the er OF undue ex pansion
they could not reract as they had expanded Further
contraction he repeated, WAS unnecessary, was nexpe
dent, was ruinous aud tho country should wait for
natural causes and for legislation to develop and
and quicken the industries Of the people, bring
ADOPT a restoration 10 the specie standard Another
reason why contraction should cease the large
amount OF the debt which had been suddenly created,
and bonds Of which cost the holders but small
price, and which could at any day DO turned back upon
Tho country at profit TO the holders. Every one per
cent decline in gold bore was per profit added
10 the several hundred millions Of these bonds held
abroad The country desired no moro expansion TO be
followed by cry for contraction. II bad already sus
tanned the losses on sbunkage; let them repeat the
unnecessary torture--et the currency amount
whore 1t Is AT present IL IL ,ty millions more or
less he should the thing stability more than
amount was the Requirement. OF commerce. Let Con-
gress give the country liked policy, certain
upon which merchants, manufacturers, planters and
business men could rely. Low prices did
running on half time or not Al all. They refused
TO take the farmers woods at prices lower
than had been known for fy years Merchants bough,
from hand 10 mouth only. The money ordinarily
gagged in egtmate business present based upon
call at low rates and again reoaned Those who bucd
gold and spccaated In stocks by hxng the standard
this money would again return to its proper channels
II would again harness tho water power and put the
spindles in motion. II would give employment the
needy and bread to the hungry II would create rapid
Interchange Of commodities aud tighten the burdens or
taxation IL would enhance the value OF our bonds asI
remove one OF the props iron the gold market II
law we're passed designating the day when The govern.
ment aud banking Institutions should be compelled 10 |
pay gold universal scramble for gold would com.
mence which would sacrifice everything and everybody
to that ono object Another insurmountable obsa- |
tie position OF the so-caIed national banks.
The Interest OF these banks was adverse |
presidents and cashiers should say they individ-
ualy willing TO DO Their dividends and profits would
be reduced whom they compelled deal in coin,
and iSo other men, they would defend their interests
On 500 600 worth OF bonds thew drew at present and
the people paid $4,000 gold interest They sold this
gold for say forty cent PREMIUM which S. 400
added to every $4,000 received from that source Tue
owners OF these institutions realized the extraor
binary powers possessed by them and ony Obtained by
an admxture of large show Of patriotism aud very
little cash, IN time OF nationai Distress would be
lost as soon rs the country again upon foundation
OF equality and strength From October 1864 October
1867, these Institutions had made annually from to
twenty per cont fviaends built marble palaces every
city, paid Tor tho most valuable corner lots, and yet
had accumulated a sinking fund of So, 0s5, 50l |
an extra dividend upon tho whole capital |
The political power Of tho country gravtatlng into
the hands Of sixteen hundred and nfty banks They
could today spend f50,0J0000 in printing papers, in
aubornn' pubic sentiment and In ccrrupting egisa.
turss to carry through and perpetuatc their schemes
They held a. vice the political support OF their Gus.
toners. II was within theit power 20 ruin and turn |
upon the empty curb5ono those would not defend
their measures. That was not G they wore dong or |
could do Tney lay directly the door 10 specie
payments, which could never DO reached until their |
franchises were charged. Although national In name,
they were MOI so IN reality They were unequally dis
trb1ted IS TO locality. They did not protect |
deposiiors and IN ordinary times they could not |
protect bilholders Although under the fostering hands
of the government and recently life ten OF
these institutions had failed, and the Comptroller OF The