The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-07-29
WHAT MR.. BOUTWELL, KNOWS ABOUT Fl
NANCE AND CURRENCY.

TO TIE EDITOR OF THE BERALD:-
Mr.. Secretary Boutwell's late North Carolina speech
has been severely handled by his political oppo-
nents on nearly every topic, except those of finance
and currency. These branches OF the public admin
istration constitute the peculiar field for the labor
and the teachings of a national minister of finance
and it is here that the student of political economy
expects to learn wisdom and great and broad prn-
cIples. Like his immediate predecessor, Mr. Nc
Cnlloch, he has eXacted from the too willing tax
payers a superintendent revenue, and made haste
to pay or the national debt, which would have
fallen lighter future generation, when the
country's resources will he doubled or quadruplcd
in amount. This, he argues, rs the right way to
establish the public credit and he then lays down
this remarkable proposition
The establishment OF the public credit upon
firm basis Is q condition precedent to the resump-
ton OF specie payments.
This is the most astounding proposition ever put
forward by man holding MI. B0ntwell's position,
surrounded, as he is, in his own department by
able men who could have pointed out to him the
extraordinary absurdity OF such decaration-a
declaration that stamps him an ignoramus in
financial affairs. To talk Of establishing the ma
tional credit firm basis and leave the nations
paper, currency, at a heavy discount and the
football OF SPECTATORS is manifesty prepOsterous
as to require no argument to demonstrate its
1allacy. President Grant, In his two first messages
at the opening OF sessions OF Congress, urged on
that body the indispensable necessity OF passing
sures to hasten resumption OF specie payments,
as paramount to all other considerations But how
did he carry out his own sound principles Why
at the close OF the second session by signing bill
making 1t law, to inlatc the currency by the ad-
dition OF $65ooo,OOo to the national bank paper
thus indefinitely p0stpOning specie payments.
This act Of President Grant, when he had 1t in his
power to veto the bill, shows how completely he
ring and thebond holders. Had there been any
reasonable grounds for increasing the currency
why should this S55000,0 900 have been donated to
the latter to enable them to start additional banks?
Why not issue the amount in greenbacks and pay
converted into gold would have accomplished ?
This would have effected an annual saving of
$3,OOo,oo0 or million more than Mr.. Boutwell,
claims to have saved by his boosted conversion OF
$500, 100000 of six per cents into Gves
Now. word about this latter claim. What merit
can there be in having made bargain with his
pet banks. who hold large balances Of government
funds without paying interest therefor from one
years end to another. to exchange for SKIES held
circulation, formerly presented to them by the
nation, for fvesY How much OF this boosted con
version was made in the open markets Certainly
not third, and that only by resort TO an enOr-
nous commission OF more than six per cent on
| Syndicate Of spectators and bankers
| The claim made by Mr.. Boutwell, for President
Grants administration, on the score Of finance, is
utterly untenable. The boast OF having reduced
| the taxes on spirits and increased the revenue
thereirom by an honest execution of the laws has
| no better foundation as a claim for merit IL was
beyond all dispute, that the OF the
evasion OF the Excise laws under Mr. Johnson's
administration. was mostly. if not wholly, due to
the enormous duty OF So a gallon. The moment IL
was put down to seventy-fve cents the temptation
to defraud the government was removed. Instead
OF collecting on 20 900 gallons at the rate OF 81
IL became easy TO collect on S0O000 600 at the lower
rate.
The same argument applies TO other branches OF
the revenue where before the duty amounted to
nearly prohibition. Since the days when lot OF
ignorant and stupid Bank OF England Directors in
1910, repudiated Hr. HOmers now universally ac-
cepted theories OF currency and finance, embodied
his mastery ''BulOn Report" such ignorance
OF the first principles OF the science OF money and
political economy in all its branches has been eX-
hibited as that openly proclaimed by. Mr.. Boutwell,
and acted on by Mr.. Grant.