New-York tribune., 1869-01-01
TIE N1TIONAL FINANCES.

SENATOR MOTIONS REPLY TO HORACE GREELEY
| wAsHISGroS, d. c., December 1865
Hon. Horace greeley, Iew York;
DEAR SIR: In your letter addressed 10 me-
in THE TRIBUNE Of the 2st inst yoa unuetaKe " "n
swer several positions taken by me In my late sPeeoh "
the Senate on the currency, but devote yoursel cnen
TO the establishment of the proposition that .he
,nont can and should resume specie pay lnc.,s %
,h only so Ooo of gold Treasury and hat te
declaration resumption would have tne rno e be de
tbe creenbnck currency TO par. And 10 ispu to hi
that more than s7JOOcOO would DO required Win WHICH
to begin resumption. you say o..,, u,, redeem IL.
'lsl currency Our tsnt' have ye.seag Iea1
s %"nS 80 r redeem Ger .unds on %: eou.r The
facts their pton upifr rreeudrd Az Ind
s the Psa. behind but were the mere ~s on
e s nd them ees the sie oi
SPs S ,s s asep pssr we %ha have aud
toward private moaey,d n.ss given
| reason, for sharing your distrust -. .. ,o,ctb IN
sha the superior convenience OF the grecnbacx currency
over coin You show very clearly how business WUa i
be mPedea ontry oy csn be better aud extended
by redeemabe or pef s eepback currency
long enough to have 1t run into INC Afe"sui' o'
% Yonr M argument is excellent provo that after the
preenback currency has been brought to par wou pt
preferable to god and but little OF & w1ua m onc as he
Seepbsck currency three cents under par that margin
would make profitable to M brokers 20 slae. pas " '0
1
Again You sy ny re.un. ro,ov~ choose
G H., At hsndwbo drain the Treasury Of
IL Not and eeanyLso, Is gre srsa & s soas
i've We have ss pduceweu We should 60 On
,s a, ssss sv sS Pi's % lit @ sos ssss
some sss, = p. ed .1a %Gs % @ IT., 90" %Gss
would ea Sas . nc. IL. . SS sas or q.
,r"us that Should Be ,lak s1sd these
gan wu.i Mind that ever
,,nt bondhor In au honest otinI
rrredto
ossr ss.d scome woud .e'. in The ,use.
.ms asci. Of It, speculate" n.'O'.i dAOnO are '''0Hs
re- Won assume the great fact to be established that
BY the declaration OF resumption the grcehDacK hoes
win be brought TO par & s tb 10 bs
and the In gold in the Treasury would all short
make themseyes strong they would have to convert
their into CON- which would require more than
the Government could furnish az 's % s NS n anonr
the people, aud Leave the currency III much worse con-
dition than 1t is now and most likely bring Oh ors
and crash. -.
But then you 70 say that you would not rely ouy
on he o OF coin Inc pui Voa,s vsar m be
and to draw interest at the rate OF Tour per
cent? aud this bond you believe could DC noA1ed ~ p1r
on your part proceeds upon the fundamental
would be- Suddenly brought to par it would be pre-
postsrous 70 talk sSout selling nye per ret sd
bonds cent interest In gold are worth less
Son reIy upon legislative declaration Of resumption
to bring greenback currency suddenly to para result
which only be effected by time and ample prrpaaa1n
acton where there should be no spasn or Violence ana
sSs S" ADOPTION Of
command the confidence of the country without disturb
the currency brought to the gold paid out would
pass into circulation but sink back Into an article VI
merchandise, to be sold In the market
Ths one ;hns nssdu resumption provide form o.
obligation winch The holder. Of srrn.cs s p to c:u-n
security which will largely sell at son
:a niIos. q een in til. Ts.sar Without a.
specie payment though brFa with specie reserve Of SsS
This changes the whole character OF your proposition.
makes resumption look rather to contraction oy fuhd
Your nrst argument was that greenbacks much
more and desirable than gold that they would
that we cannot safely resume. even with 900 Of
gold the Treasury and that the one thing redfu or
Of sreanSacts Would prefer to CON- which viii se at
premium above specie par and that when we have goi
such bond safely resume with &i0Oo0O of gold
u tho Treasury. Here you would To make resump
tion impossible by requiring In advance national
% par Which the holders Of sreen6aeKs prefer con
and which have before said should brnr interest nt
the rate of per cent. Such bond could not e sold
even at par, until after resumption firmly established
much less IN advance, as means OF bringing II about
would prefer 10 COIN the grcenbaoks would lie funded
and would result Ia large and sudden contraction which
peops iced the srssnSacks and viii Keep them Your
policy like that Of the Secretary OF Treasury resolves
mediate resumption. you add the caames OF large
traction will make short work VI the business of the
country.
-. s s al s - to- u % :, cen: IN g
vii. di:.es. TO M.ay and At least .pp.rea. 70. al
aor resumption than they DO Wages must ,
good Of We mus, suffer asybs~ bat prefer To ss
II sudden resumption viii Involve the great decline In
prices which you say It WILL would be vast calamity
Would certainly bankrupt or suspend s Of the
bnsness men Of the country ut once IL would produce
this ~ any other country Hundreds Of thousands now
hvine In comfort would be reduced to poverty Business
people
itself threatened with bankruptcy and dishOnOr and yet
private Indebtedness OF the people tS each other on the
lst Of February, 1862 amounted to esOW0o0.ooo tho
Sd% Ss To S
ready to make the plunge, but the great body OF the
Class Of people who are not In debt have plenty Of
capital. or who have fixed incomes which would bo
sya. ,ns the Of SsSo for
u.s. property would be sold for song, and large
balance OF debt be left against future earnngs And
statement Of what would be the effect Of immediate
| resumption.
would seven, noss Of cop and pro-
vide s: ss s. ; a.. s .'sS 1
a M 5 . Sp.e a 90"
% T Pm s ' 10 90 % sss @ the
that this would render possible negotiate
| better than could
This il equivalent to declaration that II you cannot
have immediate resumption you will postpone It nden.
nitely resumption the desirable thing you describe,
would not BE- better have at the years
and half than to put 1t on for twelve fifteen years
gold in the purchase II bonds, with view Of appreeat
ing the value OF the rest OF them. would DO like
proposition TO go from New.York to Boston by way
OF the Sandwich Islands 1t would be long way around
| Again, you say:
prospective mpton that doons a business
H directing the cancel and destroy four mil
geenbcts mouth amer certain Day That you'd
bough bus surely had perveved
the shoe began prcb ordered be