New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-31
EX-SENATOR MORGAN NAMED FOR Tux POSITION


from the same Office at the beginning of Gen
Grants first administration. Mr.. Morgan ha
been q heavy importer, and it is doubtful i
he can close his business so as to TAXI
The Office ii it is rendered. His name, however, ha
long been urged upon the President for the Office
and it is believed with his consent. AS for Mr.
Richardson, it is web known here among his friend:
that he is tired of the Office which was never his
liking, aud that ne viii retire without regret. Hi:
life has been a quiet one and he detests
politics and politicians, and does not take
Kindly TO criticism The reasons for the pro-
posed change are. principally. belief on the
part of the President that Mr. Richardson lacks the
breadth experience and capacity for the Office, and
desire the part Of Mr.. Richardson to retire from
conspicuous position. One of the organs of the
Administration, which is supposed to speak by
authority, has occasionally, lately spoken of the
Secretary in sighting terms.
JUDGE KELLEYS VIEWS ON FINANCE.
WHAT A PENNSYLVANIA CONGRESSMAN THINKS OF
TIKI sITUATIoN-THE CAUSES OF THE TROUBLE
AND TIKI MISREPRESENTATION HELD TO BE
FURTHER OFF THAN EvER-JUDICIoUs EXPANSION
RECOMMENDED AS THE TRUE POLICY.
lBY TELEGRAPH TO THE TRIBUNEl
WASHINGTON Oct S0.-Representative Kelley of
Pennsylvania. account of his long service in Con-
syress and prominence on the Ways and Means Com
financial discussions at the approaching session of
Congress. He arrived here day or two ago, and
has had long conversations with the President and
the Secretary of the Treasury. The interview with
the former lasted about an hour, but Kelley refuses
30 give any of the details of it, except to say that he
was surprised TO find how closely the Presidents
opinions agree with his own. His interview with
Secretary Richardson was not so satisfactory, and
Judge Kelley could not during all his talk discover
exactly what financial policy the Secretary has
adopted.
Judge Kelley is "expansionist," and in this
agrees TO extent with Gen. Butler. His method,
however is somewhat different and he does not be-
-icve In Buffers proposition to pay the National
Jlebt principal and interest in currency. He traces
snuch Of tho present financial trouble to what he
yardS as the folly of Congress and the mismanage-
Iment Of the Treasury Department in producing
Sontrsotion of the volume of the currency. As
might be expected, he is opposed to a speedy re-
sumption of specie payments. lie says he hears of
BwO plans for resumption. One is a contraction Of
she currency, and the other is by impartng to the
currency volume 1exibility or elasticity and cOnse
rIuent expansion at times. Judge Kelley says
in ,his judgment, no measure of contraction
whether great or small, gradual OF abrupt, would
bringus TO specie payments. On the contrary a
vigorous contraction would produce wide spread in
tjyidual and corporate bankruptcy and IN all prob
ability disable the Government for time from
baying with regularity the $1OO0OOOOO of gold in
forest upon our bonds We are now, he thinks,
further of from specie payments than we would
eayo been had there not been great mistakes III our
tegislation and the administration of the Treasury
Ono great obstacle in the way Is that so many OF our
n,onds national and corporation, are held abroad,
.causinR a steady drain of gold from the country.
Kelley says the annual amount Of interest which
are reaui1ed TO pay abroad, S1OOOOOOOO is 100000
moro than The annual products of The gold mines of
nhe country Besides the balance of trade has all
along been against us. While this condition of af-
sairs remains he regards any attempt at resumption
as absurd
His theory is that we must have cheap money
market that it will be 10 the interest OF capital
ss TO purchase and hold our bonds and to thus get
them from the foreign holders, so that the gold in
aerest shall be paid at home instead of abroad
Among the causes that have produced the
sresent condition of affairs Kelley places the retire
rnent of the compound interest notes. the calling in
of the three per cent certificates the payment OF the
eeven-tbirties and the formation of the S44oOOOOO
.,reenbaek reserve. All these he thinks.
produced contraction, made money dear. ad-
VaDced the rate of interest, and destroyed
abe business of the country. The absurdity
Of the proposition that the way to resumption is to
resume Kelley thinks is demonstrated by the fact
gay specie for greenbacks, the National banks pre-
4erriug to hold gold rather than greenbacks, would
present bills for 1928 600 $50 per cent more
gold than the Treasury holds. Of course, the banks
would not be likely TO pay out the gold inasmuch as
4heir notes are redeemable in greenbacks aud not in
specie The attempt to resume would result simply
IN the transfer of the gold from the vaults OF the
Treasury 10 the vaults Of the banks
I'm the opinion OF Mr. Kelly there are two ways
4bat lead 20 resumption. One is to wait until our
expors shall steadily increase over our imports, and
foreigners in payment of their balances shall send
our bonds paek The other process is to leave the
transfer OF the bonds to our own people by making
money cheap and reducing the rate of interest To
accomplish this he proposes 10 SO modify the bank
ing Law ~ 10 make the payment or receipt OF IN
terest by the banks forfeiture OF thef char-
ters He would prohibit under serious penalues me
certifying by National banks of any cheek when
did moi represent an actual deposit III the 'auit OF
the bank He would relieve the banks from nam
tanning reserve 10 secure either IneI CIcu
oD or their deposits, because this Is at best Dut
felusion and snare, for while 1t induces people 10
believe that their deposits are secure, they are not
iss,Ie OF bonds payable interest and principal IN
lawful money at the rate Of one cent day for IN
trrest the bonds to be convertible INTO greenbacks
On demand. The Judge is of opinion that all the
unemployed capital which now goes INTO specuIa1,
ton would be invested IN these bonds; ANY bill
authorizna the issue of such bonds shOnld empower
tbe Secretary of the Treasury TO invest the funds
Tins obtained as closely prudence would permit
IN the purchase of the $40 gOld-bearlng bonds, and
,sanr,e him Ia hold any surplus of gold that might
scerue for the express purpose of calling IN overdue
old-bearing bonds. In this way the Judge things,
the American people would soon become largely the
holders Of our debt, and we MouIo uiSh DC ." VIC
highway 70 resumption.