The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-27
Mr.. Garfield on the Currency and Specie
Payments,

nlf. (snrhcIu on the currency ana specie
Payments.
The chairman of the House Committee in
Congress on Banking and Currency has been
interviewed" by our Washington correspond
ent relative to his views on the subject of
returning to specie payments and the currency.
The honorable gentleman appears brimful of
this subject and is preparing to take an active
part in the consideration of it in the approach
ing session of Congress. He does not think
this matter properly belongs to the Committee
of Ways and Means, which has heretofore ''set
itself up not only to provide ways and means
for raising revenue, but to shape the financial
policy of the country" and it is his intention
to make his committee the financial one of the
House in this respect. Mr.. Garfield evidently
is in earnest, and the country will be gratifed
to know that he entertains some broad and
liberal views, which the Committee of Ways
and Means has not shown, on the currency
and national bank questions.
Mr. Garfield Is becoming emancipated from
the on-to-specie payment and currency theories
of some of his party organs and men in Con-
gress. While he avows himself in favor of
resuming specie payments and would set his
face toward resumption, he does not believe
''the way to resume is to resume" and would
not do anything that might suddenly unsettIe
values and create great financial Distress" So
far, then, he is on the right track. But he
has not got far enough in his financial educa-
ton, for he still clings to the old idea that a
contraction of the currency is necessary to
| bring about specie payments. He has, conse-
| quently, scheme for gradual contraction
with view to accomplish that object. But
why contraction? There is not more currency
in the country than it needs, and any con-
traction must prove disastrous. If the volume
| of currency be left as it is the extraordinary
growth of the country and the increase Of
| population and business will operate the sane
| as contraction; for the increased demand for
money as circulating medium would make
it more and more scarce relatively. This IL
what we call growing up to specie payments
BEAUTIFULLY and gradually, and what we have
advocated all along. But Mr.. Garfield makes
a mistake in supposing specie payments de-
| pend altogether upon the volume of currency.
Specie payments can only be resumed when
the exchanges are not so much against us
when the balance of exchange with foreign
| countries Is more egualized and when he
| precious metals cannot be drained from us to
meet the demands Of foreigners. Here lies
the difficulty, and we recommend Mr.. Garfield
to turn his attention to that rather than to Tho
mere abstract and impracticable theory Of
| contraction.
As regards the national bank circulation and
Withdrawing that with view of substituting
legal tenders in its place. Mr.. Garfield is right.
There is no reason why the government and
| people should not derive the profits from
national currency, which amount, on that por-
ton which the national banks circulate, to about
twenty-four millions of dollars year, and
there IL every reason why this vast sum should
not be given away to private corporations,
particularly when the people would have a
uniform and better currency by substituting
legal tenders for national bank notes. Let
Mr.. Garfield mature some measure for effecting
this change and press 1t upon Congress with
all his ability, and he may feel assured of the
appreciation of the public. lie will have
uphill work for this national bank monopoly
is mighty power. Still 1t is work worthy
Of a statesman, and he will find bis reward In
promoting tho interests Of the country and in
the gratitude Of the people,