The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1871-11-18
A REMARKABLE LETTER.

The following letter, written nine years
ago is from one of the ablest, truest end
most ar-sighted friends of the financial
principles of the National Labor Union :-
New YORK, Dec II, 1862.
| Hon. Vim. H. Seward Secretary Of State
DEAR SIR take the liberty of address
ing you, for the reason that | believe you
! will not only read the communication, but
I give il an impartial consideration.
| Fist, permit me TO express the opinion
that had the bill which was submitted by
the Treasury Department and passed by
| the House of Representatives, viz To
authorize the issue of Treasury Notes made
Il legal-tender for all purposes whatever,
and convertible into Public Stocks bearing
interest-hed that bill, without modifica-
| ton, become a laW-that gold would at this
time have been at discount That is, one
hundred dollars in Treasury Notes would
have been worth mOre than one hundred
dollars in gold.
Had there been one other clause added
to the bill, viz OF giving the holders of
certificates of public stocks the option ofre-
c0nrarting them into Treasury Notes-that
it would not only have been the most per
feet bill, but conducive of NOR blessings 10
| the Human Family than any bill ever en-
acted by man.
trust you will pardon the extravaganza
of the language, when l say that not only
! believe it myself, but believe that on ret1ec-
| ton you will arrive at the same conclusion.
| | will attempt TO state a few reasons why
/ gold would be at a discount. There were
two forms of notes issued. One by way of
! distinction, is called, Demand Notes :
| the other, Greenbacks" Gold, at this
time, Is worth, in market, some five or six
per cent more than Demand Notes. Why :;
Because the law gives gold the preference
| in paving interest on Public Stocks.
Demand Notes at this time are worth IS
to % per cent more than greenbacks.
WHY Because the law gives demand
notes the preference in the payment of
customs Then does il not follow that had
the Jaw made treasury notes a legal-tender
for the payment of interests and customs
and for all other purposes, they would have
taken the place of, and we would have had
no farther use for, gold, except in settle
ment of foreign balances As receipts from
our mines about equal shipments abroad,
the whole mass of coin in the country
would be unemployed. There being no
further use for coin in this country, even
by the banks, for they use Treasury notes
as basis Of circulation, would it not all be
|
Europe? The whole cost ofshipment must
be deducted from its value thus reducing
it below par, Just the per centage it would
cost in sale and shipment.
In the commencement of the war, Gov
eminent found great difficulty in raising
comparatively q small amount on loan,
even by agreeing TO pay, in some cases, IL
per cent interest, in others, by submitting
to large sacrifices in selling 20-year per
cent. bonds.
Since the creation of Legal Tender notes
convertible into stock bearing interest, it
has met with no difficulty in its financial
department except in preparing the paper
money as fast as required. Said paper
money, being at one time issued rather in
excess of the wants of the public, caused
for time slight redundancy, and a small
amount was converted into $40 bonds.
How is it now? The issue is virtually
stopped, and no more is being converted !;
neither will there be, until large amount
Is issued, for there is not enough now TO
supply the legitimate wants Of the public.
And what effect has been produced by
the two hundred millions or more issued?
Has not the Government had the benefit,
without creating debt to that amount or
| its costing cent, except the expense at
tending rs issue? And has it not been a
blessing, as it were rained down from
heaven upon the whole Northern people,
dltfusing prosperity unparalleled in the
history of the world during a state of war
DO we hear any cry of want. distress or
starvation coming up from any part OF the
land not In rebellion, such as we are wont
to hear at this season Of the yearp No
the laborer, the mechanic, the merchant.
the manufacturer, the farmer, are dH-1u
employed to al extent far surprising any
| time since the Eevulsion OF 1857. That this
is so, il appears to me, all can see who are
not wilfully blind. Now, shall we shut
our eyes to all this blessed experience and
go back and repeat the bitter, the hunlIia-
ting experience Of the past?
Shall the Secretary of the Treasury come
into Wall street, hat in hand, on Bonded
knee. and beg US to buy his bonds at or
own price, to supply the daily wants of the
Treasury
None but the Shylocks, the gold idolaters
will ask this of him; but they will ask il,
with all the sophistry and cunning of their
craft Go back to the expedient of throw
ing Federal bonds upon the market, and
what will be the consequence Twill state
my own case.
The Life Insurance Co. with which am
connected, has already invested in Govern
ment Stocks some &40O, 900, and continues
not only to invest its surplus accumul ations