The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1873-10-22
Lecture by the Ex.secretary Of the
.LHlT Treasury Last Night.

Lecture by the Ex.Secretary Of tn
''u Treasury Last Night.
NEW YoRK, Oct 21.-Mr. Boutwel
ex.Secretary Of the Treasury, deliyere
one Of the Galaxy course Of lectures tc
night OF the Church Of the Disciples, o
Finance, the Panic and It's Remedies.
Judge Edward 8. Pirrepont presided an,
introduced the lecturer. Of the idea @
having paper currency brought 10 al
equality in value with coin. Mr.. Bout
well said: Twill make q distinction be
tween the resumption Of specie paymen
and the equalization Of the commercia
value Of the paper currency Of tht
country with coin. Tho consideration
oi the latter Is more importanI
than the actual resumption ofspecie pay
ment, which, do not look upon as prac
ticable or desirable; nor Is II practicable
that the banks shall resume specie pay.
ment, but the government, I Iexpect, will.
Ifthe banks are required to redeem their
currency in legal tenders or specie, prac-
tically we shall have resumed for the
banks as well as for the country. The
Atlantic cities are passing through the
severe crisis, and propose to deal with
some Of the causes. First, we have a pa.
per currency Of more than 100000, 900.
Its not possible, think, to say whether
that currency Is In excess or not. There
are those who demand contraction as
means ofresuming specie payments and
those who demand expansion, as do, Tor
the purpose ofrelieving the country from
the present condition Of things. The
Of specie payments Is
due 1l to three causes: First,
rather q consequence of the two which
follow Is depreciation Of the credit oil
the country In 1869. Coin bonds of the
United States principal and interest pay.
able In coin here is worth eighty.two In
the hundred, or at discount OF
1S or 30 per cent, and the obligations
Of the country were not payable In coin.
During the last four years this has been
remedied. AS to interest bearing oblgs.
tions they are Of par In this and the chief
financial countries in Europe. / wish to
correct an error as to their value. A few
months since when the French loan was
put upon market, ours were Tor twenty
years bond, the French per cent bonds
were taken in excess Of the amount offer
ed, while ours were subscribed for
IN moderate sums. The difference was
that their bonds were put into the hands
Of bankers at S3 or 81 cents on the dollar
and sold for 81 or IS cents, while ours
were sold at 100 cents on the dollar, and
there was an element Of speculation in
theirs which did not enter into ours. An.
other circumstance which has contributed
to the present condition OF things was the
excess Of the volume Of paper over
the actual. wants oil the country.
During the war paper money was issued
In vast quantities, and while no one was
able to state automatically the law of
the relation between volume OF paper
money that may be circulated and specie
payments maintained, yet unquestionably
there Is such q law. You may carry a
paper currency to a certain point, but be.
yond cannot maintain specie payments.
Take our volume of paper to-day, and no
one can tell whether it is In excess Of that
amount. For o third reason, which is
that the balance OF trade has been against
US for many years, we have not consid.
ered the losses during the four years Of
The war the losses OF the cotton crop, the
OF the North from active pur-
suits, millions Of men, non-produciDg in
The field in all previous experiences. The
allure Of the banks 10 maintain specie
payments was due to transit causes;
but the inability Of the country to resume
and maintain 1t to-day Is due to the ex-
haustion Of the war, followed by the Chi
csgo and Boston calamities, by which
millions worth Of property was swept
away. The present year promises better
financial conditions between the trade of
this and other countries. Certainly the
non.specie paying countries Of Europe,
France and Austria 60 on for years with
out specie advancing to high premiums,
because the balance OF trade between
them and other countries has been hard
" ever against them, while the balance OF
Irade has been largely against us since the
OF the war. Another fact
10 be taken into account Is the large spec.
ilations In gold In Wall street, based on
he actual demand oil five millions week |
Tor the payment Of duties, and the balance
IS against US in our foreign trade. Il
that It Is not possible to resume
Or return to specie payments until
The balance OF trade Is q little
Or nothing against us, and I have no faith
in any scheme for resumption, but In the
generous comprehensive OF the public |
policy by which the industry OF the coun-
Try shall be developed. Its resources
and its capacity 10 supply
toreign countries with articles Of produc.
lion increased so that the demand for gold
10 go abroad shall be met by q demand
for gold'to 60 to US. l hope we shall re.
sumo, and that when VIC do It shall last
Lor one life time.
Mr.. Boutwell, then spoke OF the benefits
produced by drawing laborers from other
under the system forced upon
Us and the increase ot wages which fol-
lows in Europe, 80 that we can produce
many articles at corresponding cost.
In 1912 seventy.six per cent Of our trade
was carried on in foreign vessels: Last
year 1t was seventy.three per cent. He
next showed how q reduction might
De made in the Naval Department.
The Naval armaments except for coast
1efencees not being OF any consequence 10
he great powers, and the cost may be
BIO 100000 or $12 900, 900 instead OF $780,
100000 q year 10 the United States. He
poke in favor Of subsidies to enable our
hip builders TO acquire control OF carry:
Ing trade. He condemned the practice OF
banks taking money on deposit, and pay |
ing interest on It. Merchants giving pa.
per on time, find that 1t natures when
be knows he has to pay, but
that given on call natures not BY time,
but the approximations oi men, and no
business can or ought to resist such o
practice. In September 90 the banks
that made loans on call did not dare to
ask the money, as they knew the men
could not pay. This Is unjust 10 all the
interests Of the country. In
a, - L.