The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1872-01-13
Mr.. Boutweii's Policy.

- Mr.. Boutweirs Policy.
The following Is from the speech OF Mr.
BorrswE,L, Secretary Of the Treasury IN Phil
adelrhis, to the merchants assembled az tiie
Commercial Exchange:
srlook upon it that Just to the extent that
tho capital Of the country, py the Iaymen. o.
the public debt, Is transferred from the pun
H., ssr.,r,,,es, to the banks and safes of our
ctnittlists, lust to that extent you have the
y,esns for the construction of railroads, for
The Improvement of all your means OF CONF
municstion between one part OF the country
and another. for the establishment OF MANU-
facsurcs. and for the development OF your az
riculture, The $500, 00o, 900 Of pubic oeDt3,
or nearly that amount, which have been pau
within tho last three years, have been Juss 'is
many dollars transferred from the Pliohc So
curi;ics in which they were locked up 10 tlle
channels Of business, and Decoue .ne B. w. o
means of developing the resources Oh '''o 'i'
tire country ....
r,,o Vow York con,ncycta! Bulletin re-
marks on this:
we with Mr.. Boutwell, would point out
how ,the capital Of the country Is tTanSleilea
from the public securities to the Danks anu
safes of our capitalists by the paslncht VI
the mlblic debt. 10 pay the debt money mas
~ hc ,.ollc,ted from the people and trans
ferred to the banks and capitalists who hoia
The Emitted States securities to. be pala OH.
But how can the transfer Of coin ana lesai-
tenders to banks and capitalists from the
hau,l, of the productive classes iul1llsh INC
latter with means for the construction Oh
Jaiirouds and for the development OF aSrlcuf-
tire mining. and manufacturing
Thus: Mr.. Boutwell, collects little mo-
ney here and little money there, anu ~
"maur Titles make mickle," ne gets
cnoueh over and above what Is needed 10
DIV the expenses Of conducting the Govern
,,ent to redeem fifty millions OF the pupnc
debt Now, these fifty millions of BONDS
were held b. men who do nothins-by capt.
talists who live upon the interest upon tner
Investments. They must invest their money
iu soirle way and the probability Is that
tlcy will so invest it as to provide ior inc
construction Of railroads and for the defei-
opmcnt of agriculture, mining, aud manu-
featuring.
Bit we are told that this money is COL
lected from the people. True enough. That
docs not alter the case. Let us illustrate:
Suppose that General ANDERSON or the Ireae-
.c,r COMPANY had in 1870 had the present
cipital of that company-say million OF DOL
lars-inycsted in Government bonds, and
that on the Ist day of January, 1871, Mr.. BOUT
WELL, had redeemed those bonds, and that
the company had thercupon established the
magnificent works which they now carry Oh
in this city. Cannot every one see that
the change IN the investment would have
been immensely beneficial to the city Of Rich
mond? In the case supposed, the company
would have been compelled to invest their
million Of dollars in some way or other, and
there is no way in which they could have
used i, which would not have resulted in
greater benefit to the city than could have re-
salted from its investment in Government
bonds.
What is true of Richmond is true of every
city-true of the country at large. If MIR.
boutwell, redecms one hundred millions OF
dollars worth of bonds annually, he will an
n,ully set free just that sum. He will throw it
into the hands of its owners, and they will be
forced to use it for the public benefit, They
cannot lock it up. They cannot afford to let
it lie idle.
Concedng what the Bulletin says to be
true, it would apply with as much force to
the collection of money for the formation of
railroad companies manufacturing conlpa-
MICS, banking companies, insurance compa-
MICS, and shops of all sorts. The money for
all these "has to be collected from the poo
ole aud transferred to the companies II,
therefore, the argument is good, there should
10 10 more companies of any sort formed
which it would require tue collection OF
money from the people to put into operation.
MIR. BourwELL's policy of rcdeeming an
nualt from fifty to one hundred mil
hons Of dollars worth Of the bonds Is
in fact almost equivalent to forming
large number of new joint-stcck comra-
MES every year TO engage in mining, in
manufacturing, and in building railroads.
Every million dollars that he thus causes to
bc set lcosc-to be employed usefully instead
OF being locked up in Government bonds
may thereafter afford employment to several
hundred persons, as in the case supposed as
to the 'Fredegar Company.
II the policy of redecming the bonds is in
furious, the contrary policy of issuing more
bonds and increasing the amount thus in
vested would he a wise one. But would it
boz No one will say it would be. Why
not If it is wise to keep the money already
invested thus locked up in ideness, why
would It not he wise to use more of it in the
sumo way: Has the country exactly rs much
money invested in bonds us it is best to keep
soinvested? If so, then such could not have
been the case twelve months ago, and SO Mr..
BourwELL's policy was right up the list Of
january. Or ii it was not right year ago,
then it would result benefcially to the coun-
try if he would issue new bonds to. the
amount which he has redeemed within the
last yesr. We conclude that the Bulletin is
wrong and Mr.. boutwell, right.
-
.w&4s-@ Grant in Peril.
Mr.. GREELEY comments on the proposition
to form d new party US follows: .. ,...-..