New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-30
LETTERS FROM THE PEOPLE.
FINANCIAL QUESTIONS.
MR.. BOUTWELL, AND TIE BALANCE or IRA

subject very clearly understood by the public, and
think that an expose Of two OF the faIlaces Of
that speech IN your columns will not be entirely IN
profitable.
What troubles Mr.. Boutwell, most IN considering ths
instability OF resumption OF specie payments, tho
fact thar there IL a balance OF trale AGAINST and no
thinks that we must wait until quite sure that
our exports equal exceed imports before We can
safely resume II that theory be correct fooWe ~
matter OF course that II must be easier for the country
70 bear balance OF trade AGAINST II with an rredeem-
able currency than 1t would be with currency on =
specie basis In order discover that such supposs
ton would be incorrect have only to examine tho
consequences ,.,---. -.
Trade agninSt ns UNA ,c .i .iprlent Of gold tho
consequence would he contraction Of the currency ~
it has been proved beyond controversy that geheras
m S,9 IN 800 isey tbt tn immediate eject o
a contraction would be fall IN general prices, consf-
quent increase in demand Tor oar goods from foreign
countries and decreas3 In demand for IN err goods
la this way the balance Of trade would be brought In
eSaaiIzed With an irredeenabe currency, precisely
tue same effect produced by advance IA the pflcO
OF gold immediate consequence being tue same sI
the price Of foreign goods aud decline m the goif
bugbear. balance OF trade j. no. always against Vs.
continually OF settlement. II may to-
day be In favor IL qute evident from the price
OF exchange that England Is OWING us at TINS momfht'
however much may DC owing ner, due at future
time. II 1t Is better for the country that IL should gtu
orally be in favor that end may easily be atainrd
by reducing the circulation, aod so causing decline ia
our general prices below those OF the countries WIZ
such lower prices Gold would Cow Ia 70 buy our goods,
would continue 10 do 50 until our prices were equal
izcd with those OF the comlh ttlsI "Olu. u
millions needed, II would come ana remain ana
until the Government again began tue issne OF lrf.
deenaOie paper, higher Law 'HAh In"s u 'onsioS
would maiutain specie payments.
have "A currency the quantity Of which IN circulation
permits range OF prices higher thAh tnose eomoh IN
one way. We may maintain - nigh an average prca
that the gold price vi our goods would be per-
manenty lower than prices abroad. But then We would
from specie pdyhtatr' dppd4chAgB ~ NV
are really; and Mr. Boutwell, woud have 100 abundant
proof OF the fallaeies Of Lis sveeca to be tempted 10
ScS- York Oct. q. 1873
WAR CURRENCY IN TIME or PEACE
To the Edttor Of The Trt6une.
SIR: 1t is now nine years since the over
throw Rebellion. The pulpit, platform and press
dwell with PRIDE and emphasis the enormous gain
in wealth which our nation has made during the past
decade In nearly all discussions Of financial question:
IL IS assumed that nation are rchenthan before
the war. Now. Is this assumption warrantaole one
II il cannot be subsantaed with the greatest cearness,
are not we liable to make fatal mistakes in the estimate
and solution OF the present financial situation BaDs
suspensions distress in mercantile circles paralysis os
manufacturing interests hundreds OF thousands OF per-
sons unemployed, the decline In Government revenues
all signs Of the gravcst character, indicating tho
approach OF deadlock" IN the COMMERCIAL and hnan-
! dial machinery OF Government and people. These arc
not causes but effects; and what has produced them
! There must have been gross mlsmanagenent ana uh-
pardOnaDe mlsappreheuson OF tue financial SITUATIONS
| by those have admins cred public finances. A.
policy which has brought about the troubles we are eX-
periencng cannot receive mder qualification than a.
being unreasonable AMI impracticaDe LIS continuance
Will certainly produce the actua rum wnch no" tnIeA,
ems. WHAT has been that poiicyi IL mas been simply
this keep in circulation Ia time OF peace currency
forced upon us as necessary IN he OF war ana W W
courage and practically prevent tue circulation OF go9
and silver, the only true money lhscdd OF paying -
demand cobt aud thus making way for the circulatonz
money. 10 has kept an arcal pressure upon tn
driving gold from the country causing Us TO be hooded
with importatons OF foreign goods, and preventing ext
nf
,gDoa Is JmI ~ u i & INSTRUMENTATION Win eachl
other 10 supply the bome demand, with very meagerl
| profits perhaps none at All II wOnld 10
han the one which we have been undergoing for several
years. Is it not evident enough that the efforts OF tho
Government TO regulate trade have been very danag-
lag in their eecs Is 1t not time for II to bd aden t
the gold market and cease is bear pertomancesf Let
II attend 10 its legitimate business OF enforcing ts a@
collecting its taxes, aud paying ITS debts, beglnnn5
with its demand notes wien H. gets strong enough ann
then buying uem AT tlclt ua. Aettole 'auo III gou1
Leave gold aud cotton grain AMI sugar. now aud forI
supply, which infinitely superior 10 any which any
government enact All that the mercantile interests
legitimate duties Of the Government are few general.
and easily understood. Tie conditions, requirements.
and laws OF trade the merchant understand ana
make provision for, but such eccentric aud egtmase
movements As have 0een made 10y tue Government 10.
regulate" trade, DEFY the skill, reason or forecast or
any set OF men in business to calculate for OK
against with certainty. DORC.
Baltimore, Nd, OCT. %, 1873.
THE BALANCE OF TRADE AND THE CURRENCY.
TO me Editor Of The Tribune.
SIR: Your editorial of 3d. on "MT. Bout
well and tie Currency" throws d much-needed light
| this subject Our present currency being without
specie basis and the also OF the undue nhat
OF prices, it would clear that We cannot resume
specie payments VIII the business OF the country
regain natural course, until the disturbing element
be removed or adequately provided for Many of tho
speakers and writers OF The present day that
ability to depends thc balance Of trade being
in our favor, while, you have shown. there is "a
necessary connection between the two matters. TIC
currency issued all know, without reference
whatever a specie basi-, II directly bank
inV camta ba sed on the bond, of the Government the
rest IN payment Of bills due by the Government for
supplies, but the whole for expenses virtually THIS
being the 1t manifest that the whole amount "a
simply DEBT Of the Government II IL were desirable
that the currency should he redel med and cancelled
resumption would be at once effected by the payment OF
this debt But this is not sought for as Mr. McCuochs
| effort at contraction concds iyely demonstrated.
The situation may be briefly stated thus: The Generah
Government has by stress circumstances been obgcG
practically 10 constitute itself bank OF issue for thu
preservation Of the national Ite. The coin necessary
Tor the redemption OF It's issues, Il the duty OF tue
people 10 supply. Let Congress, then impose reason
able well considered the cOuntry for the
ton OF sinking fund for the purpose The details os
| management Will suggest themselves. The knowledge
the existence OF such fund woul0 operate 10 prevent
the irregularities INDUCED IN by many of our banks AS
well hold in check the sDJ OF reckless speculation.
| Nelcark " j.. Oct. %, 1873 Ar.
ISSUE OF COMPOUND INTEREST NOTES PROPOSED.
| To the EdttOr or qae TrtbNae.
| SIR: The writer, with a feeling of anxiety
| that the finances OF country should be speedily
placed on assured basis. and have the confidence
of our aborng class. would submit for consideration
l. An issse OF compound interest bearing obligations
in g and upward payable at the option OF
Government but redeen.able az the pleasure OF tho
holder when presented Ia OF 500 and upward In
the new per cent bonds
IL A reissue, II though: advisable Of said compound
interest notes OF small DENOMINATIONS TO be again