The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-01-14
SPECIE PAYMENTS.

The Hon. Thomas Ewing, Secretary OF the
Treasury under Presidents Harrison and Ty-
Ter, and subsequently Secretary Of the Inte-
rior under President Taylor, has addressed q
letter to the Finance COMMITTEES of The United
States Senate on the subject of the resumption
Of specie payments. After insisting that "we
are not bound in faith or morals to make the
funds which we pay to the creditor for his
principal-be it what it may, gold or legal-ten-
der notes-wo1th th moro at the time OF payment
than it was worth when borrowed" MIR. Ewing
goes on to argue against immediate specie re-
sumption on the ground that's general provis-
ion Of this kind would prove great hardship
and injustice to the debtor class, ruin the
'sproductve class, }" and drive them into bank
ruptcy. The postponement of resumption by
| law for two years, and then making it abso.
lutte, he thinks, would produce the same re-
suit in slightly mitigated degree" MIR.
Ewing says:
Make the greenbacks payable in gold in two
| wears, and they will be at once bought up and
boarded by capitalists To all who understand
| their value they weuld be worth ut once as
much as gold, less two years discount upon
them-not quite twelve per cent: The debtor
class then instantly suffer loss OF about
TWENTY-FIVE per cent. on six thousand millions
of findebtedment-a loss of 81, ,429, 900 taken from
the debtor and given to the creditor class, for
which it will be difficult to find reason other
than the true kingly SIC uoio. The same act,
| when it should produce its full effect, would
make our national debt, now equivalent to
81, $50, 100000 in gold. rise at once in value to
2,5OO,0 600 600, making an increased gold IN
debtedment Of $3.50, 10000, and it would at
once involve the payment OF interest on an
smount OF additional debt nearly equal to our
present erecnback currency, adding nearly
S1s 00o. 600 to our annual interest. This looks
like sinking the ship, and am AFRAID OF It, 1t
is certainly better to let the law OF trade regu-
| late the currency than to hasten measures
| fraught with such consequences.
The object OF this proposed most dangerous
| measures is to remove the evils Of depreci-
ated currency-the end is good, but not worth
the sacrifice it must involve. It would enrich
the capitalist generally uon-producer. Ihe
burden OF the war, which almost crushed the
nation, has not borne heavily on them. They
loaned the United States very large amount
| of money, each hundred dollars OF which rang
cd in value from little less than forty to about
eighty dollars, ut six dollars year, in gold,
| for every nominal one hundred-making the
orprecate interest on the whole debt, when re-
duced to average value, about twelve per cent.
| is the legitimate mode of estimating it, where
paid punctually (for tho interest may be at o1ce
reinvested and made to produce interest,)
| doubles every six years..
Thus the purchaser Of our five-twentie3 who
purchased when currency was worth fifty cents
on the dollar will, when they become due, at
| fhe end of twenty years, have received some
thing more than four times the amount OF his
orioinal investment in interest, and twice it's
amount in principal-six times the amount OF
| his investment in twenty years. Thus long, l
| understand, it is proposed in your committee
| to let the present bonds run, and in the mean
time resume specie payment; that the ques-
ton OF specie payments may be put out OF the
way as q disturbing clement before you pro-
ceed to fund the debt. Do this, and there will
be no longer middle course between repu-
dlation and q condition Of hlury at which
mat men will revolt. You put the nation at
once in the power OF tho creditor; you can
| no longer hope to fund at less rate than
six per cent. in gold our present bonds that
cost fifty cents in gold for every nominal
dollar; 30 that in ninety-six years the people
will pay on every million Of actual dollars bor-
rowed sixteen thousand three hundred and
eichtyfour million dollars ($16 384 900 000), and
| on our whole debt nearly one thousand times
that sum--an array OF numbers which, like the
| figures representing stellar places, makes the
| head swim. The mind cannot compass it; but
being translated into plain intelligible Eng
lish, it signifies national bankruptcy and ruin:
The result of this large accumulation OF
interest in long periods OF time has given rise
to frequent outbreaks of popular feeling
against usut ers and those suspected OF favor.
ing them, and nations have enacted laws, and
courts have been astute to construct laws, so as
| to guard against it.
Mr.. Ewing recommends that the national
debt be paid of in legal-tender notes or in four
per cent. bonds, and insists that the effect OF
this would be TO cause the issue OF very few
additional currency notes.