New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-01-26
OUR NATIONAL FINANCES.
SPEECH OF SENATOR FENTON ON THE CUR
RENCY BILL,

SPEECH OF SENATOR FENTON ON THE CUR
RENCY BILL,
Mr.. FENTON Rep., n. W yesterday adj
dressed the Senate follows Mr. President the measure
under consideration naturally brings before us the great
financial problem which the country has TO solve We
may adopt partial like the present directed to
particular branch OF the subject but they should all DO
framed upon broad and comprehensive policy having In
view q clear distinct end The subject is one OF wide
scope II embraces the questions OF debt and taxation
banking and currency all distinct in their character
yet all interaced in their influences and bound up To-
gether To some considerations on these mutual rea-
atons but mainly bearngu upon the bill before u.s. ven
ture to AJAX the attention Of the Senate
The currency is closely connected with all the varied
and multiplied interests OF daily affairs In all the
exchanges trade in all the work of production in the
compensatons OF labor in every business transaction
enters as principal agent We sustaining vast,
depreciaed and inconvertibe paper currency. 1t has
had two effects has raised prices and so given an
extraordinary impetus to traffic and exchanges. stimu-
atng speculation to q morbid degree. and creating
semblance Of unusual prosperity On the other hand
makes this appearance Of prosperity hollow as 1t
gltterng. 1t leaves II resting upon no stable founda-
ton. touch would produce collapse. by changing
nominal values and unsetng natural adjustments TINS
deprecated currency has wrought the most gross ana
unjust inequalities Its deepseated and farreaching
evils connot be overstated 1t takes from men their
property, Dy putting II upon
basis and measuring by false standard Of value 1t
wthhods from labor its Just reward, by paying II In
fictitious money, compes IL TO resOrt TO higher de-
mands the only protection from the reduced pur-
chasing power OF its compensation 1t introduces I'M
certainty and anxiety into all business operations,
wantony changing contracts suddenly affecting prices,
injurousy taxing all Interests producing violent nuetua
TONS and building up airy and delusve structures OF
hope, only 10 toppe them over IN disastrous rum.
But need not dwell upon the calamity OF such cur
renoy All sound men recognize ~ ana are looklhg WIN
eveTsh anxiety for an avenue OF escape The return OF
the country specie basis is generally conceded TO be
an object OF paramount Importance Differ as widely as
tbs necessity of the end We cannot for any pro-
tracted period in the present exceptional condition The
direction must stu further in seductive path
until arrested by tremendous CONFUSION Inone way or
other n must reach the universal standard Of value The
gold basis through resumption or the gold basis through
more violent derangement II not rep9dlanon are the
nations have issued government papern excessive guam
Titles until has become deprecated like ours; but his
tory few where such government currency
has been redeemed at par fatal tendency almost III
Variably manifests itself.
To retrace the path toward the safe position from
which the nation has departed is difficult and laDeriOus
10 20 forward in the entcng way easy and allurng.
The hone of securing relief present and
ing evils through further extension OF tue currency las
Tens upon the mind and the face suggestion is followed
ninth the result is either the depreciation OF the whole
expanded volume 10 worthlessness or It's hnal redemp-
ton runous discount The records OF France, Rus
sa aud Austria convey impressive warnings upon this
point They have in the past followed this inviting
course TO this disastrous end The same sinister influence
is perceptble recent history. Eight ears ago
the Of inconyerble paper money based on credit
universally regarded as deploLaOle evn Only 10 pe
Justified BY the necessities Of war Five years ago the
gradual withdrawal Of this paper and the restoration TO
sound basis we're equally regarded as measures 10
which the Government must steadily direct Itself To-
day under the corrupng influence OF its continued pres
ence portion of the people have come TO regard II as
essential and desirable and from some quarters we nave
even a demand for its further expansion
THE IMPORTANCE OF RESUMPTION.
Bat il cannot exaggerate the Importance Of resump
ton. neither do underrste its difficulties. Those who
are Indifferent to its urgent necessity, and those who
treat II as easily attanable alike at fault Its diff
cute are of two kinds; first. heavy addition to the
burdens Of the debtor class and second general decline
OF prices accompanied by prostratOn or greater en-
barassnen Of trade. An addition OF fourth or fifth
10 the private Indebtedness of the country such would
ense contracted in deprecated currency were
lightly considered This individual Indebtedness cannot
crease OF "A fourth NTH would itself nearly equal the
whole amount ~ the national debt TO impose TINS vast
additional burden at once. or within very short period,
upon the debtor class wond produce graz hsIusp anu
distress. Yet delay only enhances the dculty Credits
constantly expanding, and individual Indebtedness IS
year will amount 10 more than 81 OOne1t Great
with the lapse OF time country shrinks from the
effort at present, viii recon with still greater repug-
The second dhculty is to be found in the decline of
prices, which must inevitably accompany resumption
do not believe the decline will be great many sup
pose because they thus assouaed resumption,
while working hardship, is vet desirable Until
prces are reduced TO their naturaand normal standard,
until trade returns its proper channel until the morbid
rage of speculation is subdued, until the constantly
ebng tide OF obligation arrested, until indus
try production receive their sober stimulus there
bty in domestic business. Undoubtedly the return TO
this condition will be accompanied by hardshps There
are also cOpensatons; al least the reductions in some
balance each other II prices decline so IN part
does the cost OF living IL the merchant loses IN WHAT ne
sells, lie gains In what he buys
But beyond all this. if we right in our estimate Of
the vast evils OF deprecated ana lneonveruole cur
rency. il follows that the embarrassments which VIII
mark return the sound basis are Insignificant com
pared with those which will surely mark continuance
Of affairs they confront There should be no
sweeping and violent change the process should be
npon the funrc and cngag ements may be entered into
without the danger of overwhelming those who make
them True moderate shrinkage will tend to parayZe;
but better such a compression upon the system than
sudden wsa wall wall faRG e iSd Ss
Ieonlc wars and with currency far less deprecated
than ours, in returning to specie payments Indeed,
men m 1919 the actual Of resumption embodied
in Pees celebrated Currency bill was passed. although
thr were allowed for the accomplishment Of re-
SUMPTION and years were actually consumed in the
process In the face of such experience we cannot nope
10 leap a cbasm OF 20 per cent III u few months
HOW CAN sPECIE PAYMENTS BE RESTORED
In considering the method OF resumption 1t is impor-
tau the outset TO establish right principles IN order to
fix upon specific Unless the latter are based
upon the former they than useless The deter
,nnatlon of the amount Of currency required by the
business OF the country not the real question 10 De de
cded The question is WHAT are the conditions upon
which specie payments can be restored and maintained
Into the discussion TO whether the country needs more
would bring us no the end II any one tells me
we have TOO much currency for the requirements OF
present prices. II any tells ought TO have
twice much currency, fully concur that twice as
much wOuld not be too large sum for the conditions
which would then exist II any tells we ought 70
have less currency fully conenr that less currency
would suffice with the fall Of prices which would accom-
pany the reduction of volume.
In one sense there never can be redundancy Of
reucy for prices adjust themselves TO the amount and
the IOfe there is issued the more there needed 10 make
eTchanees Tie value of the circulation regulated by
the volume. UUder the natural laws OF distribution,
which Apply all the world, certain quantity falls
70 our lot ana the amount have, whether nOmnaly
GREATER or less viii be equivalent acrual value 10 that
0uauity In 1850 the currency Of the United States, D