New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-11-17
WASHINGTON.
4 TALK WITH GEN, GARFIELD.

TALK WITH GEN. GARFIELD.
AN OPINION ABOUT THE HOUSE or REPRESENTATIVES,
NO GOOD EXPECTED FROM ITS ACTroN-CAUsEs
OF THE PANIC ANALYzED.
tYRoM REGULAR CORRESPONDENT or THE rRrBUssl
WASHINGTON. Nov. 15.-There is probably no NOM
Der of the House of Representatives who is better
informed upon financial subjects than Gen. Garfield
of Ohio, or whose views to the prospective nan-
cia legislation of the approaching session are enti-
tied weight. He has served upon all tho three
Committees of lthe House which originate financial
measures First member of the Ways and Means,
he was then Chairman of the Banking and Currency
during the Congress when the Committee invcsti-
gated the Black Friday panic, and afterward Chair
man Of Appropriations Besides the study of ma
tional finance and all kindred themes has been with
him a labor of love- 10 which he has devoted
much of his leisure time ever since he first
entered Congress, TIE General returned to
Washington few days ago, and in conversation
expresses tho opinion that the session will DO an OK:
ceedingly unpleasant and probably an Improbable
one. The gloom Of the panic will., be thinks,
overshadoX Congress, end we may expect
hbgfy debates Upon Proposed remedies >, for
the difficulties of the situation, many Z OF
which will be impraeticable. crude. and
even absurd The pertinscity with which these
schemes will be advocated will likely to be in direct
ratio to theirc cruelty and absurdity. The fact
that the House will contain about 15O new members,
entirely unframed in natural legislation, and for
tue most part unfamiliar with natural affairs makes
tdlcut to forsee tho results of the session. Another
thing adds to the difficulty. The old members will
come back with their opinions considerably changed
by their nine months vacation. Their minds arc
like fleece of wool that has been left out in the
rsin--shey are saturated and dripping with the aocu
mutations of public sentiment that have fallen on
them Gen. Garfield does not regard this as health
full or natural public sentiment. The distrust, sus
pcicn and scandal which the last Congress left to
poison the political atmosphere infected the business
world, he thinks, and made the panic worse. People
who had lost confidence in their political associates
and public servants were in condition Of mind to
dstrust their business agents and associates at the
first breath of suspicion.
e Speaking of prospective legislation. Gen. Garfield
says he looks for the immediate repeal of the Bank
ruptoy Law or at least the "involuntary" features
of it. the fist measure Of relief af1he House TO
pealed the law last session. but the Seeate did
not take action. : The demand for repeal
ia business circles is almost unanimous.
the operation of the involuntary clause. which
enables q creditor to throw q debtor into bank
ruptcy who does not meet his obligations promptly,
without regard 10 his real solvency. is often
unjust and injurious in ordinary times, but
in /. monetary crisis it is particularly
30. Men with unencumbered property to the
amount of hundreds of thousands of dollars
are often meDaced with the Bankruptcy Court OF
actually forced into it, because they cannot raise
few thousand dollars of currency to meet their i'm
mediate liabilities. single hostile creditor may
ruin long-established and perfectly solvent firm.
The banks are not able to give the usual aid because
their depositors have taken alarm and withdrawn
their money to lock it up in safe deposit companies
or in their own safes. The panic is greatly aggra-
waited, in Gen. Garfelds opinion by the existence of
this law hanging like sword over the heads OF
debtors It causes men to be exceedingly cautious
They curtail their business operations, withdraw
money from profitable enterprises to pay their debts
and instead of energetic stimuators OF industry and
employers Of labor, they become tmorous and anx-
ous to retire from all enterprises involving risk
The repeal of the law will take great load from the
minds of thousands of merchants and manufac-
turers and 20 far toward ameliorating the
,risis. Gen. Garfield says that many of the
arqest manufacturing firms in the Mahoning Valley
ron region in Ohio would have been thrown into |
bankruptcy by the scarcity of currency, ii their
hands had not agreed to take promissory notes Tor
their pay These notes circulate as money at con-
siderable discount A Treasury agent was sent out
to see if the law was not violated by their issue.
but as they bear interest they cannot be held to be
- designed to circulate as money"
The General expects to food of financial
measures introduced at the beginning Of the session,
most of which will be visionary and valueless. he
has found from long experience, that the commence
with which Congressman support such schemes
ia in pretty exact inverse ratio to their knowege OF
the subjects involved. The sea OF talk upon which
both houses will launch. will he believes, efectually
\, lie md rhan n
trv from the evils of ignorant and precptae legs-
latiou The great danger, he thinks. is that bill
for the imitation of the currency by the issue OF more
creenbacks will be rushed through at the outset.
without much consideration. He has no doubt that
n strong pressure will be brought TO bear
for sncb a measure and that large number OF the
nav members will favor it. He is strongly opposed
10 imitation in any form, believing that 1t would al
ford no permanent relief for the evils OF the cris
Init onld in the end intensity them. an imitation
hill should be passed. there is some hope that
the President would interpose his veto. Gen. Gar
field has no financial scheme Of his own to urge
n Don Congress. He has no hobby ready saddied 70
ride when the House meets, and has come 10 ais
trust all theories of finance that have not been put
TO the test of experience. If he were to name bis
remedy or the troubles growing out OF the criss'
be would no doubt say free banking and specie
navments.n at least, 1t is fair to suppose this,
for be has long and consistently advocated return
to specie payments. and has moro than once offered
hill. authorizing free banking upon specie basis.
IT, rsfs,snce to the plan for checking the crisis that
,.;ll probably be preached in Congress, he
avnscts 10 see the old measure known as
che :" Interconvertbility BILL" providing for
.hs conversion of greenbacks into 36 bonds, and rice
,srsa brought forward With much stronger sup
mort than it has over had before. This plan has
been floating about in both Houses and In the
committees for six or eight years, and has had
s.nnort of nAopla Of widely different