The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-29

try, and general panic would Indefinitely postpone
resumption. The slow and gradual process would
De aided by the increasing requirements OF tr4ue
and industry and would hasten the ability OF tne
country 10 resume. But contend that The best way
" 10 let 'we alone; LEI the natural Laws work lle
cure and egisate only 10 prevent as far as possible
the daily infracton OF those laws BY SPECTATORS.
mere u yet another class OF philosophers 70 20
noticed, namely, those who argue That there is y
marked difference between government ana nanS
currency, because the banks lend their notes ana
can always call them in SO as to Keep within their
ability to pay all demands. Hence as logical con-
clusion, banks enjoy higher degree o. pubic cLeu,
than the government. have already IN part reiuleu
ths argument and shown that this conclusion Is er-
roneous and upsete the theory. The truth Is the
proposition itself is not well founded. IAe govern
nent Just Ike te banKs pays Gu, s notes a1r
them back for the sRme-that H. IN taxes; Inc
ability OF government or q bank 10 cIrcuale its
notes depends wholly on its credit or I'D other woTus
on public confidence. Either may damage itsen ia
pubic estimation by reckless and Dac management
Lnt That Is question not a. preenI rnaer 20 cG be
drawn from these well established Observation-Disclosures
both BY theory and PRACTICES that our government
any other having equal stability and equal credit-
that being superior to any bank credit-can resume
and continue specie payments on less casn capitai
than any bank. H.
our own experience both as to the superior credit
OF the nation founded It's resources and ability
" pay TO that OF D bank, and or tne law wllcn
causes the value Of an irredeemab,e paper cur
rency To depreclate below and appreciate towards
liked metallic standard measure or values, IN
the almost exact ratio Vi the increase alu
ample during the last seven years say the almost
exact ratio not because the law Is not as "unchange-
able as che laws OF Modes and Persiaus,n DuL be-
cause 1t acts on condition VI things continually
undergoing change One OF these thlDgSls the RAPID
increase III the industrial pursuits always attended
by corresponding increase al Tue aggregate com,
moditieS entering into commerce al nome ana
abroad. THIS can be judged OF IN some degree ny
the simple statement that the gross amount and
value OF all the freight transported on the railways
OF the United states as Increased IourIou III zen
years IL viii, therefore, not seem surprising thai
we now require about three times the volume or
Currency that was adequate ten years ago. But be-
sides this the demands Tor currency are continually
varying from day to day ana from month 10 lhohsh,
and the best regulator OF the amount needed for
legitimate business always Keep The paper cur
rency within the limits Of ABILITY t0 pay specie or
According co these infalIible laws our present
greeuback currency will appreciate last enough Tor
safety to our enormous Commerce aud Vasl Indus
trial system, and the chief evils we shall nave 10 en-
dure meantime are those caused by the prodlgous
amount OF speculation in gold Which causes endless
fluctuations that unsestle al values Ils i an eyl
that was comparatively little known iii England
during the long suspension OF the national bank.
They mad not in that country invented the rehne-
ment OF the "gold exchange which Is due to
Yankee enterprise. Gold remained sometimes for
over u year ut liked paper value ana then rose or
FELL according TO the expansion or contraction OF the
paper currency. The laws OF nature were NOT IN TACT
impeled in their operation. When gold was needed
for export IL was bought in the shape OF bullion Tor
the export Of coin was prohibited ny law which made
it criminal offence, ana few bullion brokers and
the Bank " England monopoized the business.
II may be noted as singular fact that when the
Bank OF England did resume specie payments
nobody wanted any specie, because the paper
had gradually appreciated leaving no wide
gap to be brldged over. The country
was found TO be fun Of 1t, and 1t flowed in
from every part OF the world. This led to new and
dangerous Imitation Of values and business, which
ended In the grand financial collapse OF 1875 which
once more desolated tne country. Those who VIII
study these events carefully and In detail VIII see
much to create socitude as 10 the course OF our
own national destiny They will see that the vast
system OF lnnaton in our railway, telegraph and all
must end in a terrific calamity to those who are
involved IN them and 1t is probable that most OF our
men are more or less in this predicament
sudden and large reduction OF values by cOntrac-
ton would precipitate what seems to be only mas
ter of time, complete obliteration OF these purely
fictitious vaines, Just as 1t did in England and Just
rs we have witnessed many times here after periods
OF great and undue speculation. But one genera
lion seldom learns from another Yours, &c,
Ii. Il. w.