The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-01-06
NATIONAL FINANCES.


GreenhncLs versus Gold ms Currency-A Re-
ply to Mr.. f. Il. 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. Waldie, OF New
Jersey On the currency, has been extensively ctrcu
lated by the newspaper press. The extracts or
points Of Mr. Waldles argument noticed by Mr..
that some curiosity has been excited TO see the en-
tire communication. In reply to an application on
the part Of one OF our citizens Mr. Waldie has obg.
ngy furnished manuscripts copy OF his letter, and
is publication Is asked by those who have the author
ity OF the writer.
LETTER FROM MR.. wALDIE TO Mr.. SPINNER.
Hon. 4. Il. SPINNER, Washington,sD. o.
DEAR SIR-ln your letter Of August 10 to ---,
ESQ.,, OF Boston, you speak OF irredeemable paper.
What paper has been issued by our government that
Is irredeemables Surely you cannot mean the green
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 a. evidence OF
debt to soldiers and Others for services and materials
given to the people, and they are continually re.
deemed In the same coin. II we had issued gold
pieces instead OF paper, service would have to re-
deem the gold and the end Ia the same. Labor for
kind is only the agent that gives to each individual
an acknowledgement OF how much labor u due TO
s When give gold dollar for gs
Redemption You call it. by giving your dollar and
gettinga breakfast your money Is redeemed. Howl
former gears cotton was shipped In large amounts
to Europe; that balanced 70 great extent the I'm
Europe and our lmportatons are increasing, making
wide gap In our balance sheet. which gap must BIO
supplied by some substitute for cotton and gold being
the most convenient article, u adopted and conse-
gently Its price, In proportion to other articles, ad
vances the same as cotton Is higher now than for
merry. Let US have three million bale cotton crop
and connne our importatons to the amount OF for
mer years and gold will be rs OF old. 0 nuisance.
That gold q . standard or measure Of value 10 50
absurd that am really astonished that any one
dares assert It, Look over any price current during
the years that are called s'specie payments" and
examine the fluctuations In relative value Of one ar
tice with another Sugar goes up, coffee goes down;
cotton and rice remain stationary. All IN gold. IL
gold was the standard, why should one article adj
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 70
tutes for his own When you sign greenback ana
and give It to me you merely assure me that ~ an
entitled TO 80 much OF It's property Part OF the
preenback Is my own debt and the balance Is first
upon the u ii PGpeay % my ana
what better security can havef
Because cotton has been sold at ten cents per
pound your Boston friend might as well Insist upon
ten pounds for dollar az the present time, when II
IL worth two and q half times rs 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 lf0 and cotton ut
twenty-five cents. II 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 unity OF
measure as a means OF expression. When l say
pair Of boots Is worth 800 units do not mean 500
units Of gold, zine, or In any specific property but
worth twenty-five cents then pair OF boots worth
twenty pounds or sugar. People appear to forget
tat barter app4s lot y ,ne onlecs 70 De nc
aren't TO facilitate the barter. Money III itself is
nothing, be IL gold or paper, without the association
plcases, and In determining what money to adopt
We must ask ourselves the question: "Wny do we
create money! In creating money DO We wish %
preserve equality among the people, or do we wish
To favor one cass al the expense OF the othersy
1. We create money 10 enable producers TO ex-
change their commodities and enhance their Induce
q We wish 10 preserve equality as far as possible
and prevent any class from taking undue advantage
You cannot deny these points, 80 we viii proceed
TO what shall money be made Of What are It's re-
qurcmentss Portability and cheapness In ITS manu-
facturc are the main essentials If we assume any
klno OF property we give ut once IN advantage to
the prodseer o. ne CHOSEN aLcic wncn = ra aso
be dinnculty In getting enough OF II, 50 property
will not answer. Individuals buy nom each other
and give evidences u debt, called IN mercantile par
lance bills payable but the law prevents these bills
payable being used as money, and Justly, too.
roads Snc debarred private enterprise from being
letter carriers by instutinx under It's own control
postal system that Is rapidly advancing to perfcc-
III
rency, It II bound 10 supply currency to serve the
wants OF the people. the government does not char
ter post oice COMPANIES TO supply the place o. those
hands; and 10 has no right TO delegate power 10
corporations TO supply tnat currency she dcbars
herself because she can do II the cheapest.
Our banking system Is the most expensive one
that can be devised. Unreliable ana nuctuailng IN
In their calculations and there u no need OF t. Why
should l. citizen OF republic, be compelled to pay
when my governments, OF which am part owner
Ia taxing 10 pay interest upon the bonds Of which
am endorserf IL my property y pledged 70 nam.
tain the credit Of q currency want my share OF the
when When the government forbade the Issuing Of pr
vate debts currency II virtually said, :" VIII buy
your dcbts, and should have said, ~ will give you
q debt in which both creditor and debtor are alike
interested m miiniainlng rs credit and VIII cost
cate.r 1t rs constantly redeemed and constantly
circulated.
day on January OF each year These debts bought
BY banks, but should be bought by the government
Imade . calculation some two years ago Of two
BANKS made II three thousand millions. He had
better access 10 know the figures than had, and
presume no IL nearer correct as he IL man Of INTEL
There Is another question that comes in play.
What the proportion or currency 70 the assessed
value OF the property OF the United STATES at the
time OF making the oanss Justice should be done
TO the bsndholier well as taxpayer. As an illus
traiion OF my questi0n:-Suppose we had property
assesscd al 100000 600 and currency at SO 900 .000
or ten per cent ratio, and we borrowed loan for
twenty years. We add to our wealth every year say
1--WE per cent If we do not increase our circulation
In proportion 30 our advance In wealth the purchasing
power OF the bond increases yearly In value. II we
add yearly TO our circulation It's proper percentage
and buy our bonds with the Issue we gradually form
the beat currency the world has ever seen and pay
our debt In portable FIRST mortgages upon a property
IN the United States.
demand for gold By the government, and II we
could only throw the gold we have got into the sea
10 prevent any importation beyond what we could
nav by batter. our American enterprise would soon
bring the world dept 10 ns by exporting manufhc-
turpe instead OF raw material.