The New York herald., 1869-01-06
NATIONAL FINANCES.
Greenbncks versus Gold Currency-A Re.
ply to Mr. r. e. Spinner, Treasurer Of the
United States.

Grcenbncks versus Gold M Currency-A Re-
ply to NIr. r. e. Spinner, Treasurer Of the
United States.
From the Ptttsburg Commercial, Jan. Al
The recent letter OF Mr. Spinner, Treasurer OF the
United States addressed to Mr.. w. S. Wadie, OF New
Jersey on the currency has been extensively circu
lated by the newspaper press The extracts or
points Of Mr.. Wade's argument noticed by Mr..
Spinner develop such vigorous train Of thought
that some curiosity has been excited 10 see the en-
tire communication. In reply to an application on
the part Of one OF our citizens Mr. Wade has obllg
ingly furnished manuscript copy OF his letter, anu
It's publication Is asked by those who have the author
ity OF the writer.
LETTER FROM MR.. wALDIE TO Mr. SPINNER.
Hon. +. f. SPINNER, Washington,sD. C:-
DEAR SIR--In your letter OF August Is to -,
ESQ.,, OF Boston, you speak OF irredeemable paper.
is irreeemabe, Srey vou Cannon mean the rreen
back. have handled several millions Of them, and
have yet to see the first note that has not been re-
deemed at sight They were issued as evidence OF
debt to soldiers and others for services and materials
given to the people, and they are continually re-
pieces instead Of paner service would have to re-
deem the gold, and the end is the same. Labor for
labor s the real transaction and money Of whatever
an acknowledgment Of how much labor Is due to
nlm. When give you Q gold dollar for paper
q
getting breakfast your money is redeemed. Howf
Wny, by the services Of Landlord and servants. In
to Europe; that balanced TO great extent the i'm
portations. Now there is little cotton going 10
wide gap In our balance sheet, which gap must be
supplied by some substitute for cotton and god being
the most convenient article, is adopted and conse-
gently Its price, In proportion to other articles, Rd
vanceS, the same as cotton Is higher now than for
merry. Let US have three million bale cotton crop
mer years and gold will be as of old. a nuisance.
That gold Is q standard or measure Of value is 80
absurd that | am really astonished that any one
dares assert 1t. Look over any price current during
the years that are called sIspecie payments,n and
examine the fluctuations In relative value OF one ar
tcle with another. Sugar goes up coffee goes down;
cotton and rice remain stationary All In gold. II
gold was the standard, why should one article ad-
vance, another recede and others undergo no
change ! The law OF supply and demand fixes the
price, and gold is but the expression Of that value
In merchandise. How would your Boston friend like
to have New England measured by gold-an article,
with all their ingenuity, they cannot produce. Bos
ton merchant In giving his note does not calculate to
pay 1t In coin, but In bank notes, which he subst-
tutes for his own. When you sign greenback ana
and give 1t to me you merely assure me that as an
individual partner In the firm OF the United States
am entitled to 80 much OF It's property. Part OF the
preenback is my own debt. and the balance is first
mortgage upon the property OF my neighbors-a
mortgage prior TO all individual mortgages, and
what better security can n2vef
Because cotton has been sold at ten cents per
pound your Boston friend might as well insist upon
ten pounds for dollar at the present time, when 1t
is worth two and half times as much. Years ago
ten pounds OF cotton and gold dollar were the
same. Gold has advanced forty per cent and cotton
$50 per cent taking gold at 40 and cotton at
TWENTY-FIVE cents. IL we mad not shipped our bonds
abroad gold would be very nearly the same advance
as cotton
All values are relative, governed by the law Of
supply and demand, and we must have a unity oil
measure as means OF expression. When say
pair OF boots ID worth $40 units do not mean 500
units OF gold zinc or in any specific property, but
IN any kind Of property. Ii pound OF sugar IS
worth twenty-five cents then pair or boots Is worth
twenty pounds OF sugar. People appear TO forget
that barter aopss for candes Is the object 10 be ac
complsned, and tnat money Is the go-oetween or
agent TO facilitate the barter Money III itself is
nothing be II gold or paper, without the association
OF man, and a nation can make any money II
pleases, and in determining what money to adopt
we must ask ourselves the question, ''Why do we
create moneysr In creating money do we wish 70
preserve equality among the people. or do we wish
TO favor one class at tine expense OF the othefsy
l. We create money to enable producers TO ex-
change their commodities and enhance their induce
2 we wish to preserve equality as far as possible
and prevent any class from taking undue advantage
over others.
You cannot deny these points, SO we viii proceed
to what shall money be made OF. What are Its re-
quirementss Portability and cheapness In Its manu-
iacture are the main essentials. II we assume any
the producer OF the chosen article, which Is ruled
out by article two OF new code. There might also
win not answer Individuals buy from each other
and give evidences VI debt called In mercantile par
lance bills payable, but the law prevents these bills
payable being used as money and justly, too.
The government assumed the right to all post
roads, and debarred private enterprise from being
letter carriers by institutnq under Its own control
postal system that Is rapidly advancing to perfec
ton. In debarnng individuals from making cur
rency, is bound 70 supply currency to serve the
wants OF the people, The government does not char
ter post Office companies to supply the place OF those
It deba-s, but keeps the whole power In It's own
! 10 supply a CO she
those interested IN nom doing. she Should do II
herself because she can do II the cheapest.
Our banking system Is the most expensive one
that can DO devised. Unreliable and nuctuating In
its policy, business men are harassed and DISTURBED
in their calculations, and there Is no need OF I Why
anOuIu citizen n rgnublfr be compelled TO nav
high interest for bank credit to do business with,
when my government, OF which am part owner,
II taxing me TO pay interest upon the bonds OF which
am eniorserY II my property is pledged TO main
tain the credit OF currency want my share OF the
When the government forbade the Issuing OF pri-
vate debts currency II virtually said IL VIII buy
your dcbts;' ard should have said u wiz give you
a debt In which both creditor aud debtor are alike
interested In maintaining its credit and viii cost
you nothing but the expense OF printing the certin
cate.r II rs constantly redeemed aud constantly
How much deot do you suppose exists on the lst
day OF January of each These debts are bought
by banks, but should be bought by tue government.
Imade il calculation some two years ago OF two
thousand millions, but the president OF one OF your
better access 10 know the figures than had, and
presume he IL nearer correct as he Is man OF INTEL
ngence and integrity.
There is another question that comes In play.
What the proportion OF currency TO the assessed
value OF the property OF the United states at tue
time OF making the ioansf Justice should bc done
TO the bsndhoder IA well as taxpayer As an Illus
trat0n oil my question:-Suppose we had property
assessed at si0100o 600 ana currency ut $40 000
or ten per cent rati0 and we borrowed q loan for
twenty Years. we add TO our wealth every year say
vo per cent. II we do not increase our circulation
In proportion TO our adyance In wealth the purchasing
power Of the bond increases yearly In value III we
add yearly 70 our circulation Its proper percentage
aud buy our bonds with the ISSUE we gradually form
the best currency the world has ever seen and pay
our debt In portable FIRST mortgages upon all property
In the United states.
Having no gold interest to pay there win be no
demand for gold BY the government and n we
could only throw the gold we have got into tue sea
10 prevent any importation beyond what we could
pay BY batter. our American enterprise would soon