The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-03
TREASURY POLICY A MISTAKE.

To THE EDITOR OF THE HERALD:-
Your correspondent, whose letter was published In
your issue Of Tuesday, has not fully met my expec
tatOns as he has not struck sufficiently hard at the
vulnerable points / purposely left open for his en-
couragement. 1 mad In my facts and arguments
so completely rendered my armor proof against
the assaults OF adversaries that could be per-
suaded 10 enter the lists. l therefore threw out
q lure, by opening my harness to thrust from any
adventurous lance; Or in more classic language,
like Pat at DonnyDrook. "Wil any jintleman phase
to thread on the tail OF me cOatY But your cores
pondent has not trod on the tail OF my coat He has
not assailed one OF the positions have TAKEN and
therefore hope he will try again. All the books
and writings to which he has referred, and
ten times the number, have been read BY me IN my
younger days. But we who live In q land OF pro-
gress, and among an intelligent and law abiding
people, must learn facts and apply to them the rules
that exist among u.s. or what use would be the
armor Of the old knights In warfare at the present
timer We get our facts from the current events Of
the times and The inspiration OF our situation fur
nlshes US with arguments and illustrations
Thus we md the following enumeration to be
iacts-We iind that at the commencement Of the
into gold, 30 far as two hundred millions OF bank
credits could be redeemed with twenty millions Of
pleasant, because the system was derived from Eng
land. We find tnat TINS system lasted so long as no
not draw gold nom fear or dlstrust Of bank credits
But when the cotton and tobacco crop was not sent
forward to Europe, III consequence OF war, the
Piled with gold. This drew gold from bank
deposit, where alone 1t was needed. for 1t
has not been zen currency for many years From that
was not sought for by Americans here, and Is not
now 1t Is entirely subject to foreign demand.
1t bank papers This was not increased. was 1t the
greenDackss This coined paper had not been issued.
on gold had risen to large per cent before legal
tender note had been issued by authority OF law and
before further issue OF bank paper had taken place.
Let old authorities and musty books account for
these facts by imitation. These are stubborn facts.
well known to the country. But there Is another
patent fact which the books cannot explain, ana
that is that in 1854 gold rose TO 1885, and with few ex
ceptons has been declining IN premium since. Now,
tenders aud bank issues have been increasing and
have not been diminished The premium on gold has
declined while paper has been increasing in volume.
Can the contraction theorists or the readers OF old
books on political economy answer these questonsf
). There Is no truth In the mere naked assumption
cause foreign DEBT debt has taken gold from rom US.
There Ii no proof that our credit has decreased In
Wa S9 n On In
have more faith IN our own integrity Then why Ices
i a n 10asa call 81 to
want the truth and no exploded old musty theories.
Gold never was currency, and never can be Id tnls
country so long as good laws and good government
pie prefer paper. and paper they Will have and
therefore Congress has done wisely In giving them
the best paper that has ever been issued and which
by common consent IL preferred to metal. Nobody
calls for gold III exchange for paper for home cur
exploded But as 1t Is apparent that the Issue OF
paper has not increased the premium on god ana
lnat the contractionst cannot answer my question
What mas 1saHSed The premium slpce Its highest
price VIII Answer. There are several causes, but
the first and leading cause Is the export and sale Of
our bonds In Europe, which has taken the place OF
gold III making exchange, and this export Is
going on more rapidly now because the price
OF cur bonds 10 advancing In Europe. The next
cause is the restoration for shipment OF the long
missing cotton and tobacco crop OF the Southern
States. These two are the principal sources from
which supply OF exchange can be obtained, aud
these causes are sufficient TO bring down the pre-
MUM on gold to par, and would have produced this
res ut long time since did not the government re-
quire and lmperousy demand a large sum TO be
collected for duties and retained to large extent in
the Sub-Treasury.
Now, on behalf OF the credit OF our government
call upon all the contraction and bullion theorists
In the country to deny these facts and concuslOns
As 1t was In England in 1885, so IL Will be here in
1870 Gold Will now pack here and be drug with
out any contraction OF our coined paper; and all
this WIN be done to the ruin OF our western in
terests by transferring bonded debt to European
brokers' for the benefit OF importers and ondnOlders
Oh, wise and learned Secretary, say to our West
ern farmers, IN the words OF Richard, Down, down
TO bankruptcy, and say sent you theren
JONATHAN OLDBUCK,