Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-10-23
BOUTWELL,.
The Late Secretary Of the Treasury on
the Present Financial Condition
Of the Country.
The Question OF Resumption Of Specie
PaymeEts-Tke Recuperatlve
Energies Of the
Country.

J
New YORK, October 22.-Last night
Mr.. Boutwell,, eX-seeretary of the treas
ury, delivered one of the GALAXY course
/ Of lectures at the Church of the Disciples,
on Finance, and the Panic and its
Remedies Judge Edward PierrepSnt
presided, and introduced the lecturer.
! OF the idea Of having paper currency
! brought to an equality in value with
coin, Mr.. Boutwell, said: / make a dis
! tinction between the resumption of spe-
! eie payment and the equalization of the
commercial value Of the paper currency
Of the country with coin. The consider
alton of the latter is more important
4 than the actual resumption of specie
payments, which / do not look on as
| preferable or desirable. It is not practi-
cable that the banks shall resume specie
payment, but the government, expect,
will. II the banks are required to re-
deem their currency in legaf-tender or
specie, practically we shall have resumed
for the banks as well as for the country
The Atlantic cities are passing through
a severe financial crisis, and l propose
to deal with some of the causes. First,
we have paper currency to the amount
of more than seven hundred millions of
dollgrs. 1t is not possible, I think, to say
whether that currency is in excess or
not. There are those who demand con-
traction as q means of resuming specie
payments, and those who demand ex-
pansion, as do, for the purpose of re-
lieving the country from the present
condition of things. The suspension of
specie payment is due to three causes,
the first of which is rather a conse-
quence of the second which follows, and
is the depreciation of the credit of the
country in 1869, when the commercial
bonds of the United States, principal
and interest payable in coin, were worth
eighty-tWo cents in the hundred OF at q
discount of eighteen or twenty 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 obligations, and they
are now at par in this and the
chief countries of Europe. l wish to
correct an error as to their value. A
few months since when the French loan
was put on the market ours were for
twesty-years bonds. The French five
per cent. bonds were taken in amount
offered, while ours were subscribed for
in moderate sums. The difference was
that these bonds were put into the hands
of bankers at eighty-three or eighty
four cents on the dollar, and sold for
tighty-fOur or eighty-five cents, while
ours were sold at one hundred cents on
the dollar, and there was an element OF
speculation in theirs which did not en-
ter into our. Another circumstance
which has contributed to prevent the
condition of things was an excess of
the volume Of paper over the actual
wants of the country. During the war
paper money was issued in vast quanti-
ties, and while no one was able to state
mathematically the law of relation be-
tween the volume OF paper money that
may be circulated and specie payments
maintained, yet unquestionably there is
such a law; you may carry paper cur
rency to a certain point, but beyond
that you cannot maintain specie pay
ment. Take one volume of paper to-
day, and no one can tell whether it
is in excess of that amount for third
reason, which Is, the balance of trade
has been against US largely for many
years; we have not considered the losses
during the four years Of war, the losses
of the cotton crop, withdrawal of the
north from active pursuit, millions Of
men not producing in the field. All pre-
viOus experiences teach that failure of
banks to maintain specie payments was
due to traDsient customs, but the inabil-
ity Of the country to resume and main
tain it to-day is due TO the exhaustion
followed by the Chicago and Boston ca
lsmities, by which millions worth of
property was swept away.
The present year promises a better
financial condition between the trade
of this and other countries. Certainly
the nOn-specie paying countries of Eu-
rope, France and Austria, may go on for
years without specie advancing to
high premium, because the balance of
the trade between them and other cOun-
tries have been hardly ever against
them, while the balance of the trade has
been largely against us since the COM
mencement of the war. Another fact TO
be taken into account, is the large speeu-
lsting in gold in Wall street, based upon
the actual demand of five million dol
lars week, for the payment of the du-
ties and the balance against Us in our
foreign trade. | maintain it is not i'm
possible to resume or retain specie paw
ment until a balance of trade is little
or nothing against US, and | have no
faith in any scheme for resumption but
in generations of comprehensive public
policy, by which the industry Of the
country shall be developed and its re-
sources multiplied, and its capacity to
supply foreign countries with production
50 Increased that the demand for gold to
90 abroad shall be met by demand for
gold to go to the United States. / hope
this shall last for our lifetime. Mr..
Boutwell, then spoke OF the benefits pro-
duced by drawing laborers from other
countries under the system. forced upon
US; the increase of wages which follows
in Europe, so that we can produce many
articles of corresponding cost. In 1871
and 1872 seventy-six per cent. Of our
trade was carried in foreign vessels; last
year it was seventy-three per cent. He
next showed how a reduction might be
made IN the naval department, naval
ornament, except for coast defense, not
being of any consequence to great
powers, and the cost may be ten or
Twelve instead OF Twenty millions year
to the United States. He spoke in favor
of subsidies to enable our ship-Euilders
to acquire control of the carry
ing trade. He condemned the practice
of banks taking money on deposit and
paying interest on 1t. Merchants CIV
ing paper on time find it mature when
be knows he has TO pay; but that given
on call natures not by time. But
the apprehensions of men of no business
can or ought to resist such practice. Iu
September, 1863, banks that made loans
on call did not dare to ask the money
rs they knew the men could not pay
This is unjust to all, and the substaD-
tial interest of the country in the sum-
mer. All the money goes to New York,
and is used, not by merchants on time,
denly made. Young men speculate,
and are tempted to use monev not be-
longing to them, and in nearly all de-
falcatiOns the cause is speculation. In
his opinion, with the aid of the treasury,
the demand might oe met this year
without the demands caused by
the systems of which he had
spoken. Every one wants their funds
when sppEehensiye of financial disas-
ter, and there are none 70 meet the le-
gitimate bonds Of trade, by withdraw
ing the borrowing of money and
paying interest on it by the banks. AS
to the proposed issue Of forty-fOur mil
lions dollare reserve, he had no doubt of
the legality OF the issue, but it should
moi be used TO increase the permanent
volume of the currency but to relieve
the substantial interests Of the country.
~
A PO1.EOs with Ute ChiefS.
WASHINGTON, October PA delega-
ton of Ute chiefs and one Apache, from
r. l. 4 mil u