Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1873-01-08
Mr.. Boutwell's Currency and Specie
Payment Theories,

lnu peSrctaiJ VI tnS lTtaeuiy 10
not n very apt scholar, and sticks gen
orally to his crude theories with great
tenacity; but there are some things
he is forced 10 learn. Experince and
the logic of facts break down even bis
impracticable and dogmatic notions.
Hence it is that we see in his annual
report, just submitted to Congress,
views entirely different from those he
held previously on the subject Of the
currency and specie payments. Mr..
Boutwell, was one Of The on-to-spccic-
payment believers, and held that the
proper way to reach specie basis
was TO contract tho currency. His
opinion is changed now. In fact, his
practice lately has been expanding
the currency, and wants 10 have the
power to expand it at pleasure. We
are inclined to believe he has been
reading tho Herald the last five or six
years, at least in his bedroom or pri.
vate office, if not elsewhorej for on
the subject of reaching specie pay.
ments and leaving tho volume of cur
rency undsturbed he has IN his report
expressed precisely the views We have
published all along. THE editor oi
The New York Mercantile journal
begs pardon for the intrusion here in
venturing to ask: What paper has the
Herdld'S editor been reading during
the same period y lie has come tc
the conclusion that to contract the
currency would be disastrous, and
that if the present amount of circula.
ton remains as it is, the country
through increase Of population, wealth
and business, will grow up to specie
payments. He says, emphatically
that ho believes "the country is no,
prepared to sustain the policy of con.
traction" Farther on he adds =
"The basis of policy Of improvement
must be found in n sturdy refusal to
add TO the paper in circulation until il
is of the same value substantially NJ
coin" Yet Mr.. Boutwell, assumed the
doubtful responsibility lately Of add.
ing to the circulation. AS n rcsolu
tion calling upon the Secretary for in,
formation rs 10 what law authorized
him to make an increased issue ol
legal tender notes last October, offered
by Mr.. Randall, was adopted by the
House Of Representatives on Tuesday
he will have an opportunity TO explain
this incongruity between his theory
and practice. Then, in bis report he
says :--"This being the settled pur-
pose of the country-that is, that there
sho-,d b. 40 i"~.~-s~ ef si.s-'~tion-
there will be an opportunity for the
influence OF natural causes, tending
upon the whole, TO better financial
condition" That is, as he goes on Ia
show, tending to specie basis. We
congratulate Mr.. Boutwell, on the
progress of his financial education
while at the same time we must con
demn him Tor his attempt to regulate
the money market by increasing the
paper circulation.
Still tho Secretary wants TO have
the power of increasing the currency
or OF contracting IL at will, and makes
an argument in favorof such elasticity
as he calls it. He saw, probably, the
necessity Of such an argument for the
purpose Of justiiying bis action in re-
issuing legal tenders and in meddling
with the money market continually
Evidently he has not very clear views
on this subject. There is, indeed, n
confusion and conflict Of ideas on il in
his report. We may, however, get at
the drift of tho policy he would cstab-
lish. While insisting upon fixed
amount of currency as the only safe.
guard to business and values and as
necessary 10 grow up to specie pay.
ments, he has the idea Of elasticity all
the time in his mind. In other words,
he would havo tho national bank cur
rcncy fixed by law, but wants the
Treasury Department 10 bc invested
with tho power to increase or decrease
the legal tenders, as the Secretary
may deem expedicnt, NJ certain sea.
sons Of tho year, with view TO aid
business In tho removal of the crops
orin other ways. "Upon these views,
he says, "l form the conclusion that
the circulation Of the banks should be
fixed and limited, and that the power
bo hold by tho Secretary 70 change The