The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-11
TREASURY POLICY, AND WHAT HAS 1T DONE :

To THE EDITOR or TIE HERALD
The present depressed condition OF the trade and
commerce OF our country with Europe and our West.
ern States will justify II 1t does not call Tor,
full examination into the causes That have produced
it; and that may ana no doubt WILL continue like
an incubus, to Cypress all the producing interests
OF our people. A brief retrospect may serve to
throw light upon the line OF policy pursued by
our Treasury managers, and enable us to avoid in
our future course the disasters which have overaken
us. 10 manage tho finances OF great nation, when
they are properly understood, requires no more
SKILL labor and judgment than Is necessary TO con-
duct successfully retail store In country village
The accounts are debtor ana creditor; and while the
creditor side Is well provided for and q surplus
added to 1t yearly ali win 60 well aud prosperous
But when the debtor side shows unmistakaDle EVIL
denCe OF loss, then comes trouble and s0rr0wior 1t
Is quite PLAIN that some one mast sutherland 1t Ii
generally evidence Of bad management and incom-
petent or dishonest managers
When the flfdt note OF war sounded IN 1881 we
were exporting to Europe annually from the South
ern States cotton. tobacco and rice-thas produced
more than 5000, 5000 The war put stop to this
export but cur Northern merchants continued 10
Import much from Europe during tine war as they
hau done before 1t commenced. As the same time
Northern states ala not increase the volume OF
exports, because the war drew int0 the army large
portion OF the best ab0rers Ia the country and tins,
or course increased The homo value OF all our pro-
ducts Thus exports were diminished and imports
increased 10 enable our merchants thus 90 exceed IN
Imports the regular exports OF tls country the eXpe
dent OF using railroad and oJaer interest paying
securities at low prices WAS resorted to In Europe,
apd thus so large debt was created aud was press
lng Tor pay menu wien our war drew 10 close that
the rate vi exchange and gold rose In our market TO
more than Z30. Here was an overwhelming evidence
OF great and reckless uyerradtng, ana nov was CHS
condition metz The country VIII remember that the
then Secretary OF the Treasury requested and author
lied Robert T. walker TO 10 abroad ana to write ana
talk up the credit OF the United STATES and try TO IN
duce cap taiss IN Germany and to purchase
the bonds of the federal government at about sev-
enty cents on the dollar. Mr.. Walker dd go ABROAD,
and reports that he inluenceo demand RON franz
tort aud other GOWNS Ia Germany, through mer-
chanss and bankers mere, that resulted In sales OF
near $50 700, 900 OF our hve-twenty bonds WITHIN
few months FROM the tune he arrived Ia Europe.
The sales thus produced brought so large volume
Of exchange uHon our market nat the price OF goid
and exchange fell from 230to las. Here we record
one OF the great mistakes made by the treasury
and also show that the price OF gold dopena3 upon
currency. The laws OF trade, or supply ana de-
mand, Invariably indicate the condition OF debt and
credit accounts by the premium o.. discount on eX
caange and gold Tne price OF exchange beug 2so
on Europe VINO was benefited and wno injured by
tie act of the Ireasuryt The buyer not the seller,
or exchange must be benefited Who IRE the buy
ersp The merchants who import The legitimate
bills in regular trade should be Drawn against ths
products Or tho country, shipped TO be sod m for
exchangeaoe produce or other branches OF indus
try, make The farmers and mechanics the real own
ers or exchange sold IN our market. Then the far-
mer3 are the sellers Of exchange When the
market Is III normal condition. II fol
was benefited by this OF the Treasury 10 the OK
tent OF nifty per cent, several hundred millions Of
dollars; ana it is equally PLAIN that the farmers and
other producing interests Ia our country were
injured by reduction or the price OF the products Of
their labor hfty per cent, or several hundred MIL
lions OF dollars Thus these hunareds OF millions
taken from the farmers aul given to foreign import
ers was the effect Of the ignorance or knaVery OF The
Treasury. =
1t is difficult to conceive Of an act thai has or could
produce so great an injury TO suffering people.
The Stimulus OF $50 FOR exchange would have set a
a
resurIed soldiers would have found full employ
ment at remuneratve prices; our railroads and Ca
nails would have been occupied, and oapsnipping
largely Increased To do the yaJt exporting that would
have bcea required to meet tue demand; and the
people grew rich and moro able To export Tao large
snpply would have gradually reduced the price OF
exchange to par, when, there being no farther de-
mand for gold TO export 1t would ere this have be-
come drug In our market, and the banks could
have resumed specie payments without ialcsing an
injury upon the public. These severe consequences
have flowed from violation Of GODS owl law OF
legitimate supply and demand. mus We nave
shown great and iatai mistake made through
Ignorance Or fraud by the Treasury
JONATHAN 0LDDUCK.