Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-11-25
THE TALK ABOUT THE REsUMP-
,rEONOF SPECIE

has been raised in Washington within
few days, where there has been a gather
ing of politicians preparatory to the meet
ing OF Congress, has excited anticipations
not likely to be realized 1t has been
telegraphed over the country that Ar.
Garfield. of Ohio, the chairman OF the
Committee on Banking and Currency in
the House of Representatives, has ez-
pressed a determination 10 secure re-
sumption Of speciepayments, even should
such a step result in injury to the Reprb-
Iiean party. This is probably piece OF
bravado on the part Of Garfield, and it
seems to have produced its legitimate re-
suit already, for it appears to have scared
Grant. The Washington correspondent
of the Cincinnati Gazette writes on the
22d inst. as follows:
3 "The President has expressed himself
quite definitely, within day or two, to
several of his financial friends concerning
the question of taxation and return 10
specie payment. He said that he had
heen represented as fayoring continuance
of all the present rates of taxation, win
theidea of enabling the treasury TO reduce
the debt rapidly. He really believes,
however. that the time has come for re-
beving the great agricultural and labor IN
terests of the many taxes now imposed,
audto Tighten the load upon other classes
in many particulars. He thinks there can
he a still further reduction on the public
expenses, which win go q good way
toward offsetting the reduced re-
GENTS from taxes. In regard to resuming
sneeie payment, the President said that
while his desire TO accomplish TINS mad
not been oyerrated, he was free to say that
the wav to secure a speedy resumption did
not seem clear to him. He thought that
il would be necessary TO bring 1t about by
sucb a pIan as would make tbs losses oc-
casioned by it, fall as equally as possible
uDon all classes. For the present nc
thinks leap TO specie payments with
gold at twenty-five would be disastrous,
but he is inclined to believe II the
Secretary of the Treasury is enabled 10 go
on with his present rates of buying bonds
and selling gold, that before great time
has passed gold viii drop TO from 10 to 10
per cent. and If this should occur, il would
soon be possible TO resume without great
shock"
This shows very clearly that Grant IS
frightened. He has just discovered that
his administration is in a quandaiy. He
finds that his Secretary of the Treasury
cannot resume specie payments for some
time to come; Boutwell, says not until
January, 1871; and at the same time there
is a strong probability that the Supreme
Court of the United States viii decide the
leeal tender act illegal, and thus praci-
eally precipitatc specie payments. In ad-
dition to this, the New York Herald
states that ''the bondholdeTs, the national
bank ring, the spectators in
Wall street who profit by dis
turbances, and the large capitalists
/ and rich creditors, whose property might
be enhanced in value by forcing specie
payments, are combining again for a
movement upon Congress-" and that all
the signs of the time indicate such move
ment. But the Herald asks ''What
would be the consequence of an attempt
to force resumption to the business COM
munity, to those who have mortgages to
pay-to all, in fact, who owe anything
! Their debts would be increased in weight
twenty-five to thirty per cent, while there
would be far greater difficulty to get mon.
ey than at present The people generally
would be made bankrupt, and all for the
benefit Of a few rich creditors, capitalists
and bondholders. These are some Of tho
considerations which have frightened
Grant and caused him to speak out. The
government should resume specie pay.
ments Just as soon as it possibly can, bat
of the country on such a basis as that rc
sumption would not create panic alik'
ruinous to business men and the farmers
and artisans of the country.
Touching this talk about the rcsump
ton Of specie payments, the New Horh
| Herald says: "Somc three years ago Mr.
| MeCulloch, who was then Secretary q
the Treasury, had the same notion Of fore
ing sNecic payments and had been con
tracing the currency to that end. Ba
there was such cry Of alarm sen
up from tn, business mcn
the debtors and tlin people ccncr
ally, that Congress va, compcllc,
to promptly chccl, the Secretary IN hi,
rlinous policy Since That time We have
had no further contraction, and the con-c
oucncc has been business has gone oI
smoothly and prosperously, and the rcycnu,
| of the government has come in enormously
However, the lessons of the past or O
present experience cannot teach these IN
sane theorists and men Of one idea. II
fact they are not consistent, and are inca
pallc of reasoning. Mr.. McCulloch, fo
example, who is sort of rcpreecnta'iy,
man or this class, while urging con
traction and forcing specie payments
remarked in an official letter, date,
March %, 1865, 10 the Committee o
WAYS and Means, that 1t was moi drsiia
bic that specie payments should be re
stored till that restoration could be mad,
permanent by increased industry AMI ;
proper adjustment of the trade wiki En-
rope Here the Secretary comedies, il
opposition 10 his own theory and Plac
tee, and perhaps unconsciouSlv, the poin
We have been contcnding for all along
that is to say, that 10y The increased indus
try Of the country we shall grow up Il
specie payments, and cannot return per
mancntly in any other way. He admits
too, that the trade with Europ
must be adjusted tirst-that is tn
balance of trade must not he so heavily
against us as to drain the country Of spe
Gle and place us at the mercy Of the Banl
of England and European capitalists
Yet our debt abroad is larger now than
when Mr. McCulloch expressed thes
words. The balance of trade against u
has been greater, and the drain Of speci
to meet this continues Il is absurd, then
to talk of forcing specie payments, anc
it is to be hoped Congress will not at
tempt anything so foolish. %
? 7 A N Q S.