The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-17

greenoacks currency and the like amount OF gold,
debt and two billion in gold Even IL the credit
OF the government was so greatly deprecated
as that her bonds were not worth twenty-five cents
the dollar still 1t would not be impossible To make
the currency good and keep at par II the govern
ment aid not owe single bond the value OF our
currency would not be improved, except by making
arrangements to redeem 1t. The existence OF the
bonded debt win not prevent the Improvement in
its value. II we should take the surplus gold In the
Treasury and that which IL TO accrue and use Ii ia
the purchase OF bonds In the market, to be can
eeed as p we snoaa inevitably farne
nation OF this effect is simplicity taking the gold
which is the only means by which the greenbacks
bonds, 1t puts the redemption OF the greenbacks ont
or the power OF the government ana proclalms
70 tse word that 1t does mol INTEND 70 reoa
our currency by taking our surplus gold and invest
ing It IN bonds would be regarded by capitalists as
absurd The gold thus paid out would not enter
into the circulation, but would sink back into an
article or merchandise to be gambled for as II now Is
in Wall street. What won,d the world think OF the
morality OF such operation We have $3.50 100000
OF the public debt overdue and drawing no interest,
ana we take the only means OF paying this debt and
when VIII not be due under foureten years. What
would be said OF the integrity OF man who should
creditors to suffer great loss and should employ his
money to buy up at heavy shave his debts that viii
not be due under ten or fifteen years. Plain people
would call such man a rascal and swindler, and
they would speak OF the government in the same
terms under the same circumstances. The
pretence that 1t was done to improve the value OF
the currency would deceive nobody. Such plan Of
returning to specie payments Is worthy OF the cir
cumlocntion Once" and should be labelled 'How
not to do t.n The greenback currency Is part OF
the public debt, for the redemption OF which the
faith OF the nation is solemnly pledged. The re-
every principle OF national honor. but is mpera-
lively demanded by the interests OF the people, col
es at ad 19e aa
vitality affects the interest OF every class and condi
ton OF people; and II the government, overlooking
Its honor and its duty, should take the only means
by which it can be improved and apply 1t TO the pur
chase OF bonds which will not be due for many
years 1t would merit and receive the indignation
and contempt OF honest men everywhere. But 1t
Is said that II the government and holds the
surplus gold In the Treasury to be applied to the re-
time to be fixed by law 1t will suffer great loss in the
interest on the gold thus held in reserve. In one
point OF view this objection is well taken. But what
else can we dor Is 1t not difficulty to be encoun-
tered by every debtor who collects and holds the
money wherewith to finally pay his debtsf II q man
owed one thousand dollars can he pay it any other
way than by collecting the money for that purpose
and holding 1t until he gets enough to meet his debt9
the government owes debt which can only be paid
IN gold, and 1t must, II 1t intends to pay 1t, collect
the necessary amount in gold II the debt was of
that nature tnat the gold could be paid out on It as
soon as collected OF course 1t should be d0ne but the
debt Is not OF that nature II the government should
pay out the gold as fast as it is received
would fail to bring the remainder Of the currency up
to par and the gold thus paid out would sink back
into an article OF merchandise such as 1t now Is.
The redemption OF the greenback currency should
not begin until the government Is prepared to
deem all that may be presented, for this would at
and the gold paid out would 90 into the circulation
and take the place OF the paper money redeemed;
but IL paid out by piecemea In advance 1t would not
60 into circulation or bring up the balance or the
currency to par. But what will be the actual loss Of
interest on the gold held In reserve compared with
the loss sustained by the great mass OF people in
their labor, trade and property to be suffered by
the continuance OF the present condition of the cur
rency2 Scarcely as one dollar Is to the hundred. The
losses by the failure TO employ labor, by the stagna
ton Of business, by the paralysis OF trade by the
delay In general progress and development brought
about by a deprecating and fluctuating currency,
when estimated in dollars, would form vast sum,
compared with which the loss OF interest on the
reserved gold would be mere bagatelle.
But II we do not obtain the gold to redeem the
greenback currency In the manner proposed In what
other way, or at what time shall it be obtained
like the Importer or the gamblers or shall we
sell new bonds in Europe at seventy or seventytwO
cents on the dollar and obtain IL in that
wayS Win it be easier to begin the process at the
end Of five years, the nation suffering in the
time all the evils OF depreciation Shall the nation
and then make the plunge when the waters are are
deeper, swifter and colder than now ? Such is not
the part OF wisdom patriotic craftsmanship. II an
individual fails to pay his debts payment may be
enforced by the law against his property but against
the government there Is no such remedy. What
would be mere neglect or failure, therefore, on the
part OF an individual would be reputation by gov
ernment II the greenback note Is to be regarded as
an obligation, for the payment Of which the govern
Ii pledged the continued failure OF the govern
ment to make any provision for IT'S redemption can
not be regarded In any other light than repudia-
1t provided that they might be funded into five
twenty bonds; but that provision was shortly after
rTepeaed ana they now stand ,a 10 the nature 81
appears to ne left to perish In the hands Of the
people. II when the fve-twenty bonds fall due the
satisfactory provision for funding them into new
bonds the cry OF reputation would at once be
raised and yet It cannot be shown that the legal and
moral obligation to pay these bonds at maturity Is
greater than that resting on the government to
make prompt provision for the redemption OF the
greenback currency. The legal obligation Is no
greater and the moral obligation hardly SO strong;
for the greenback notes are, in fact, the peo-
ple's bonds-the bonds OF the millions, IN which
invested the laborers toll and the mcagre profits
OF the humble occupations In life, which more than
any Others demand the fostering and protecting
OF the government. But while 10 IL true that the dis
count on bonds has little II anything to do with
the depreciation OF our currency IL Is also true that
the depreciation OF the currency has much to do
that our bonds viii ever reach par or approach 1t
nearly until the currency Is made good. The legal
tender currency OF country bears an intimate and
perhaps a mysterious relation to every form or
credit and security both public and private, and II
1t Is deprecated inevitably drags them down to its
own level. This state as general proposition, to
which there may be few exceptions dependent
upon grounds that can be readily explained.
contem piaiion OF law and in the payment
OF debts, though Il may not be worth six cents on
the d0ar IL Is Tie par" ana measure OF price
and value recognized In all the ordinary business or
the country. The prices OF property and all articles
OF trade are not given at so much In gold, but IN
greenbacks and the legal tender value OF the green
back Is so Identified In the public mind with the
measurepent in price Of every species OF property
merchandise and labor that II assimiates to Itself
~ well a. the price OF securities, even though by
their terms they may be made expressly payable IN
gold. w nnd full Illustration OF the operation OF
this principe ia the history OF the nvo-twenty and
ten-lorty bonds. These bonds were sold AT par by
the government Tor greenbacks when the green
backs ranged IN value at different times from
ninety 10 thrty-four cents tie dollar.
whatever might be the vaiIs OF the green
back dollar the bonds were sim sold at
par for that dollar; and such y tue measure Of value
to-day In the markets Of the world. The ivetwenty
bond is sold az 81 TO- 81 H. 81 IL and 81 10 In
backs In New YORK. The premium grows out OF the
semiannual payment OF large interest, and IL IL
hardly large as the premium which was paid on
United states six per cent stocks before the war In
Rod so that In point OF fact the par value OF these
bonds In New York Is measured by the legal par"
OF the greenback currency. The value OF the ten
forty bonds In the Market although by then express
terms payable In gold is governed byte Same legal
phufu az ~