New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-08-16
THE NATIONAL FINANCES.
IMPORTANT LETTER FROM TREASURER SPINNER
HIS REPLY TO GERMAN VIEW OF THE FUNDING
po1Icy oF THE UNITED STATES.

HIS REPLY TO A GERMAN VIEW OF THE FUNDING
POLICY OF THE UNITED STATES.
WASHINGTON. Aug. 15.-The following letter
of Treasurer Spinner has just been made public:
TREASURY OF THE UNITED STATES.
WASHINGTON, Aug. IL, 1873. !
DEAR SIR: Your interesting letter OF the 10Th OF June
was received the 10th nltimo; An answer was De
because you stated therein that my answer to Mr.
Riddle in Australia, would be published In your then
next Saturdays paper desired 70 zee what part o. the
t9''' when your comments thereon referred.
Various parts of that letter have been published and
anpeared thus dong great Injustice No part ought
70 have been RSaes letter. to %ScS mao s %a
an answer As was, with extracts from 1t here and
there without conference ana WITHOUT he OF
tended as answer 1t made me appear In ridiculous
Mr Riddle ia n political economist OF considerable rep
utstion he is an expert in mathematics and thinks that
he has invented plan iSt ~ necgsr sn aeD,
which, II adopted by our Government In lieu OF our pres
emf pan he insists would save our nation hundreds OF
miiIions of dollars. and for which discovery and ts
adoption here he claimed very large reward Ny en-,
70 nroye 70 him that pursuing the best
that this nation Tor any other similarly crcumstancedl
fine. and with the least expense under
the the, circumstances; am very glad that you
d not Pou IN regard to what you say to the re-
funding of the "hve-twenty" bonds, and am entirely
sSonid be allowed for the placing of the loan are
correct Your proposition IN regard to funding 81 oOo
Wear have doubts about There are several Difficult.
ties in the way for the process OF such PLAN the great
est Of which would be, that one would want to be
ronbed with the short bonds Every series would have
different time 10 run TO maturity and consequently
would have "A different price In the money markets OF
the world from the issuing TO the final redemption OF
the stock There would be REQUIRED 20 different qnota
and to sellers as well this ana would be
one reason why the British Consols stand SO high is
uniformity dsr & peT e%s OF
1868 which year longer 10 run 10 maturity IMAM
like bonds of 1861 and should on .na' gg no
per cent than the shorter bonds OF 1901 IN TINS par
cua case the rule H. 10 DC Sae b1 @Sd Of Sut e
dealers in these stocks confused and that the repu
taon and value of all our stocks suer @ y, ,o
subscription 10 contemplated new stock payable IN
Ss contTV about thirteen per cent amount II with
drawn in short time large enough 10 bIng asaster
mon the business interests Of the country, but too
snail 70 bring about the result both desire, the
speedy resumption Of specie payments You seem 10
think that such an operation would bring gold and
naper within five or six per cent OF each other and that
The gold would into circulation 10 an amount
greaer than the amount OF currency withdrawn Even
+ the first part OF your proposition should out to
| he true the second would certainly prove 10 De
ts,lacios difference of one-quarter OF per cent
% Secidc which currency will and which Will not go
into circulation IL is always the cheapest currency tba
goes into circuation the traction of cent will e1
inde the better kind. The poorer will always drive out
the better kind of circulating medium. -
After reviewing your four propositions you VIII,
mink End that If they adopted and carried out the
refIndng process would be much complicated,
that il would require time and that the expense to
our would be much greater than under the
present plan and that no corresponding dement, Wouo
be obtained thereby But the whole tenor OF your
letter. II is inferred that object not so nuch 70
devise the best way 10 refund, or rather reYes cur
loans at lower rate OF interest, put 10 ping hpouI an
early resumption OF specie payments While as much
as YOU or any one else desire this latter consumnatlon
combining the two objects IN Moved singly, the
of each is plain, combined III any way emDar
More tnan seven years ago urged by letters then
written and otherwise the enactment OF law compel
ling the resumption OF specie payments on uay IN inc
future TO fixed say three years from the passage oil
such ACT; and st think this to be the safest and the
surest way OF any that has yet been proposed TO
bring about the much desired result Under the opera
ton OF such law the whole volume OF paper currency,
that of the national banks well that OF the Gov
eminent, would immediately begin to appreciate IN
value and would continue to do so gradually Out GER
tainy until at the time hxed Tor resumption the paper
CURRENCY would become the equivalent OF coin. Many
obstacles have thus far been, and they continue to
be in the way ofsresumption OF specie payments Inc
friends of currency have themselves retarded
Wav 20 bring about the desired result IS to reduce the
volume paper currency; that the nrs duty OF the
the exchange of loans bearing high rate OF interest
for lower one, should be deferred until after that
event This has enlisted the opposition OF very large
class of citizens who are otherwise sound on the
question, but who contend that better, and
more economical withal, retire the bans which
high OF interest paid than loan On which no m
whatever IS PAID Then come the real opponents
Of per Chez among these rs the debtor
class which this country Is largely In the majority.
The persons constituting this majority desire to pay
facturers These learned that the suspension
their protection against the Importation OF FOR
elgn fabrics by the amount that the paper money is
deprecated below that In which 1mpost dunes fe col
lected Then come the national banks, which by sus-
pension are relieved from the TO them most irksome
duty the redemption of the circulating notes in COIN
There other interests that naturally combine
with those named all acting in the firm belief that the
pension OF specie payments is beneficial TO them.
Our Government being strictly representative OF course
majority Of the members OF Congress elected
represent aud to carry out these views OF their
stitusnces Thus resumption has been and think viii
continue 20 be- put off, until the time you speak OF,
when the balance OF trade shall be IN our favor"
When that time arrives resumption viii be easy, in
truth VIII from that Of its
really can't, for the life OF me, how the fact
how We conduct our commercial relations at home,
whether domestic exchanges OF commodities
made through paper a metallic medium, affect
the OF national securities abroad. IL is
pressy stipulated that the interest our loans shall
be paid coin. And in the OF the new five per
cents TO be paid in liquidation OF both the prin
cpal and the interest TO be OF the fu intrinsic value
United States The conversion OF Government stocks
from higher "a lower rate OF interest is pro-
crossing quite fast the present available force OF
the Treasury Department can comfortably manage
and the prospect OF It's continuance seems TO be pretty
certainly. assured.
IL is now question with the Secretary whether he
will continue the exchange for per stock or
wait until he place the stock az ~,
per cent
Thanking you, in behalf Of Government and peo-
pie for expressions OF good will Tor kindly
offers of assistance have the honor TO be, very respect
fully. your O6edient servant.
r. 4. SPINNER, Treasurer OF the United States
H. OsTERBERGER esq. Editor &c. OF German nerfcan
Economist, Frankfort, o. NJ, Germany.