The New York herald., 1868-11-08
OUR FINANCIAL POLICY.

WASHINGTON, Nov. g. 1868.
The course pursued by Boston and New York con-
tractors In their dealings with the government here
presents Q remarkable, characteristic and instruc-
tive contrast between the business men OF the two
cities. The New York contractor makes all reasona-
BILE haste to fulfil his contract with the government
makes or loses as the case may be, and hurries on
to other business transactions. With the Bostonan,
on the contrary, government contract Is an era,
the event Of his lifetime to be nursed into shape
that win bring its envied possessor the largest posi-
BILE profit. Accordingly, while the New Yorker s at
home attending to business you lind his Boston
competitor here In the lobby Of Congress with his
entire Congressional delegation 'bullingn or shear
ing the Market as best suits his purpose, deprecat
ing the currency when he sells and apprecatng it
when his pay day comes.
Mr.. Atkinson, in his celebrated financial state
ment unwlttngly furnishes key to certain strange
transactions OF the Massachusetts, Congressional
delegation during the session Of 1866. He says
/ long since perceived that the statement COM
monty accepted a. that Of the maximum debt OF the
United States was not one which covered the liabl-
iy OF the government on the 1st OF August 1865 by
many millions OF dollars. kaec this soal the Jdct
that The MANUFACTURING corporations soth aohicb
am nluSeT connected held at that date several mil
lions or dollars ar claims upon me 0oueya,nens
through the contractors to whom we had sold ma.
teral Tor the tents and clothing for the army, for
accounts were afterwards allowed, and we took our
pay In seven-thirty notes.
Mr.. Atkinson further informs us that at about the
same peri0d:-
The Treasury found itself in position OF embarrass
ment and danger which few either knew or appre-
ciated. The credit OF the government had become
greatly impaired, the seven-thrty loan selling at
less than par even In currency, and all other means
adopted for raising money during the preceding year
had proved or were then proving comparative fail
ures. There were In April 1885, accounts passed for
ant and 1pn IN thn Avfan nfafV
$l2 100000, while all the available cash funds, coin
and currency, which the government could then
In short, the Treasury was SO near to absolute
bankruptcy that the old officials, to whom almost
alone these facts were Known dreaded collapse
which they feared might come at any day.
According, then, to Mr.. Atkinson's statement the
government was In 1856 owing him and associates
several millions OF dollars for snpplies sold on
greenback basis when gold ranged from 200 to 2so-
else they would have been settled for before-the
Treasury almost empty and the nation nearly bank
fupt
Now let us call public attention to the course pur
sued at that time by the Massachusetts Congress
sional delegation In the face Of the now ac-
nowledged facts. They originated, sprung upon
Congress and carried out the plan Of contraction
that nearly doubled the value Of contractors claims,
increased threefold the taxpayers burdens, depre-
ciated fifty per cent the value OF nearly every species
OF property In the United States other than that
held by government contractors, national banks and
bondholders and gave no relief whatever to the
tiona Treasury but, the contrary, added greatly
TO Its embarrassment.
On the 18th day Of December, 1888, Hon. John B.
Alley, Representative in Congress from the Fifth
district OF Massachusetts,, introduced under, the
operation Of the previous question gag rule the fol
lowing reaolution:-
Resolved Tha. this House cordially in the views
of tna nf
OF contraction OF the currency with view TO early
so @ a ws s i've
action 70 this end speedily as practicable.
No debate being allowed under the previous ques-
tton gag rule and as the subject was then entirely
new to Congress. the resolution rushed through
by the decisive vote OF la to O. absent and not voting
The six who stood up for the interests Of the
people on that occasion were:-Messrs. Jehu Baker,
Eckley. OF Ohio; BENJAMIN Harris, OF Maryland.
Green Clay smith, q Kentucky, and Russell NJ.
Thayer, OF pennsylvania.
without discussion, became, by dn OF vocierous dt-
hhnciation OF every expression In favor OF the
peoples interest by paid organs and serve satellites
OF the Treasury ring. the permanent policy OF the
nation. The "severa million dollars" OF Mr.. At
kinson's claims were nearly or quite doubled in
value. and nearly all other property In the country
Congress having been thus early committed to the
able to emancipate itself. The Treasury ring, which
includes 1.-THE Boston clique,' has 10 certain ex-
tent managed to make its Internal policy party
brings the democracy In solid but impotent opposi-
tion TO It, Accordingly the per capita circulation Of
dollars in 1865 twelve dollars at the present time
Massachusetts has, however, managed by grossly
partial rsa ol ms'onar a oann prs c,r
culation OF not less than ffty-eght dollars
but the average per capita circulation throughout
twelve dollars. Consequently we now ind the rate
OF interest varying from fifteen to TWENTY-FIVE per
cent PER aann ar e tne IN wes, anu p r
annum In Wal street. Hard times confront US In
every quarter, with prospect OF financial crash
compared 10 which that OF 1857 Is mere bagatelic
II there were no interests In the country to be re-
garded other than the national banks note shayefs
ana government contractors the condition OF affairs
would certainly be altogether satisfactory, otherwise
not
bers Of the Treasury ring certainly knew, when they
sprung The contraction policy upon the country
without warning, under the pictencc OF pre-
for the ssev resumption wese Su& % specie
very like fraud. Resumption of specie
payment, indeed Why, there Was nos at that time,
any time since, s25o ,00) In gold IN the United
States while the national government alone was and
has been since drawing from the people In shape or
p"ndtarcs tney amounted in April alone. according
10 Mr. Aklnson's own statement, to si20,00o 900.
Resumption Of specie payments Why there was
the United states to pay the national tax, to say
nothing OF state and municipal taxes. together with
the business @ % q hesTpe pop
people for the purpose OF covering the treasury
ring transactions, so often exposed In
the HrRALD. In fact specie payments are
utterly impossible with us for years to come;
neither do we need them, Senator Sumner
and the Treasury ring TO the contrary notwithsand
ing. The bullion policy OF Great Britain has not
been so em;nently successful that we can afford 70
copy II. II has been productive OF crises again
and again, owing to the Capitalization OF specie In
| the great financial centres OF Europe ut the very
tlme commerce most needed pecuniary assistance.
We have now here In the United states q similar
condition OF auaira For stock transactions money
has been moderately easy until very recently. Fol
commercial and other legitimate transactions money
has been very tight-amost impossible to obtain II
any rate--and daily growing worse.
The responsibility for this terrible condition o.
AFFAIRS rests upon secretary McCuoch and his Trea
sury ring cooperators who originated the Sangrado
ian financial policy and the bare majority Of Con
gress--mostly radical republicans-that sustained
and carried It out. More upon this point ct another
l time.
Il 0nxx nvfxsp - Ka0