The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-22
THE TREAsUHY-THE MISTAKE.
To THE EDITOR OF THE HERALp:-

To THE EDITOR OF THE HERALp:-
We are very much encouraged BY the tone and, In
some cases. decided opinions Of the daily press upon
the oft repeated CRY OF on to specie payments. An
evening paper has headed an article, "How Values
are Elected by the Decline In Gold" and this ar
ticle shows plainly that the price OF farm produce
and gold rise ana fall together. This is very en-
couragng change. morning paper, speaking Of a
project for establishing q new bank, says:--"Its
connection with the Southern States and the foreign
exchange market can be used to produce a revolu.
ton In our foreign exchanges which VIII enuro
greatly TO The advantage OF the Southern States and
all American interests, thereby emancipatng our
land aad foreign bankers.n Now. this is not very
clear as conclusion from any or the promises laid
down by the writer, nor does he SHOW how the Bank
OF England and the foreign bankers can control
our market. There Is but one way by which,
they do. 30 at any time. anu that ID by
drawing largely upon US for gold, and thus they
not do unless we are largely indebted to Europe.
We would therefore nlodesty suggest taat tho safest
strive to pay ali We owe before we place ourselves in
the power or the Bank OF England by attempting to
establish specie par OF exchange. Fifty such
banks could do no good for such purpose until we
become creditor nation and then as the gold will
flow back upon us We do not need the use OF banks.
There IL no expedtcnt In our case as a debtor
tlon put to pay Or postpone the time Tor paying the
debt. We have resorted to the eXpedieut OF post
pOnement by tue use OF oar bonded debt. We thus
keep down the price Of produce and gold. There Is
no other way. III we were not po=Iponlng In this
manner exchange would De not less than $50, and
possibly 200. Ia our present condition any attempt
short or payment or postponement OF great debt
before attempting 10 MAKE specie par, would crush
down or overthrow al the material interests OF our
country.
suppose power could crush down tue debtor and
elevate the creditor interest equal To the premium
on gold, which would be n adherence taken from
the debtor and added TO the creditor interest of
twenty-five per cent, what would be the effect Mt
homer For this process would pay no part OF our
foreign debt, except by bankrupung the merchant
that may be indebted abroad. 1t would not only
deduct twenty-five per cent from the value Of the
products OF labor but 1t would AFFECT capital that
labor would cease 10 get employment All trade
and inland business would be parayzed Your rail-
roads and canals would have no business, For when
you strike al labor or the producing power you shake
the foundations OF society. DcdacI twenty-five Der
cent from the present price OF Western produce and
the farmer will to raise 1t. The laDorer Will
cease TO find employment, our active, enterprisIng
and intelligent population VIII be reduced TO tine
condition OF the population OF Italy. The post
poning OF Our foreign debt has been going
on rapidly. All the foreign bankers and q
watching the oond and gold market, aud their
calculations daily determine at what price each can
DC exported to Europe III profit. the conse:
quence is that every steamer taxes out batch OF
our bonds winch, being valued against make bills
OF exchange. Ihus, alternately buying bonds and
tnen gold, as the prices 1uctuate shey SO infu-
ence the market that bonds and gold aresneid ut
comparatively steady price. II IL possible to
put stop to the sending or our bonded debt to
Europe the effect would be TO advance the price OF
gold ana exchange very largely; aud, therefore, the
course taken by tho Secretary or the Treasury has
secretary wishes 10 Sell gold and lie Is using all the
power and influences nc possesses TO Cry down and
depress th very gold he IL Offering lor sale. The
Secretary wishes TO buy bonds and he Is crying up
the value anu trying to enhance the prices OF the
very ponds he II seeking 10 purchase. Tuis is new
Kidd OF nanancierng, and was never before set
down aS evidence OF American statesmansnIp.
the opposite policy were pursued lie would help
tue farmers and nan1iacturers OF our country but
TINS course or management savors strongly OF lunacy
or political blindness. we have now so large DEBT
In Europe that one hundred and fifty millions sent
from here III com annually will not pay all the inte-
rest; add TO tins some forty or fifty millions drawn
from here by wealthy absentees and you have a
large annual draft upon our industry Tor these two
nonproducing items. This heavy drain VIII con-
tlnue for many years, and will cause exchange and
gold to rule high Ia thus country, without taking into
consideration that we should In the meantime, be
paying or some OF the bonds II we expect 10 eXtin-
gulsh our DEBT at any time.
There Ia no way to reduce specie to par but by
paying our debt to Europe, and therefore no attempt
should he MADE, by legislation or otherwise TO force
down the premium on exchange. II the pubic men
oil our country VIA see tue law OF supply ard de-
mand as applied to exchange they Will cease to DIS
ouss the question Of tho par Of specie IN debtor
country.
AS soon as this point shall be settled plan for the
consolidating and funding our public deot can be
presented that VIII clearly utilize II that VIII
u IN In a lnFDn