The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-07


-. aneviation. This ground cannot 5e urged in ii
mvor; II -, therefore. indeienslble, upon tn,
Siuuha OF expectancy AZ Wen az OF principle.
"nere tue experiment tuI paper currency hal
been made directly by government excessiy,
issues have quickly ensued, ana depreciation Ia,
been the immediate consequence. Where the ex
pertinent has been attempted through the agenc,
OF oaiks IT has invariably failed Instead o
sanitary restraints being imposed upon the
inoneyeu institutions which have been employed
the vitai principle OF whose being Is gain, the,
nave not simply been lett TO the guidance OF thel
OWN cupidity, but have been stimulated 10 eSees
save Issues 10 supply Deficiencies IN the public
revenue
In the same paper Mr.. Crawford cogently de-
nounces 'the want OF stability, morality and intel
lgence IN the government which undertakes 70
substitute paper for metallic currency"
ALEXANDER J. DALLAS.
rms eminent pennsylvania, Secretary OF the
Treasury from 1914 to lsI6, thus declared TO Oon-
gress IN his report OF the former year the true doc
trine as 10 a forced legal tender currency. Would
that Ms anticipa.ions had been VERIFIED
Whether the issue OF paper currency proceed
from the National Treasury or from national
BANK the acceptance OF the paper III course o.
PAYMENTS and receipts must be forever optionai
win Tie eltEeDs. Inc extremity o. that Gay can
not be anticipated, when any honest and ehllghT-
eEed statesman VIII again venture upon the aes-
perate expeaient OF a tender law.
RICHARD RUSH,
who was Secretary OF the Treasury during tne
thus wroUe in his annual report OF December 8,
1873
IL is the preservation or good currency that
can alone impart stability TO properly ana prevent
r.ose duo tuations IN its value hurtiul alike 10
disidual and to national wealth.
THOMAS II. BENTON.
The name and lame Of '.Old Bullion as the great
defender OF sound, redeemaole currency, need
no introduction or encomium at our hands. Mr.
Benton was the lifelong adyocaIe OF hard money.
and believed that gold and silver com was tue
only currency contemplated by the constitution.
In his speech in February, 1881, against national
bank Mr.. Benton said: -
Gold ana silver is the best currency for re-
pubic; 1t suits the men OF middle property and
establish workingmans party IL should be on
the basis oi hard money--a hard money party
against paper party.
Mr.. Benton further objected to q paper money
bank on the following grounas:-
IL tends 10 create public debt by facilitating
public loans, aud substituting unlimited supplies
o. paper Tor limited supplies oil coin.
y tends 70 u@gravate. the inequality OF fortunes
10 MAKE tue rlcn richer ana the poor poorer, to
multiply naDobs ana paupers and to deepen ana
widen tAc gun which separates Dives nom i.aZa-
ra>. great nohered power II favorable 10 great
eaptasts or II Is the principle OF money To favor
money.
II Is uniayorable TO small capitalists. for It is
the principe OF money 70 eschew the needy and
unfortunate IL is injurious to the laboring classes
because yaer receive no iayOrs and nave the price
OF me property they wish to acquire raised 10 the
paper maximum, Wnlie wages remain at the silver
IDluinillni.
1t tends to make and to break fortunes, by the
huN and reluX OF paper. Proluse issues and sud.
den contractions perform this operation transfer
ring millions IRON the actual possessors OF prop
erty 10 the Neptanes who preside over the lux and
reuux OF paper.
In another argument, IN 1894 Mr. Benton thus
summed up the merits ana advantages OF u gold
I'M oil
lost Acknowledge OF that metal, and the advocates
OF the system OF irredeemable paper money have
been very busy In and out of Congress in dlspar-
aging It's merits, let us put upon record the nine
distinct and prominent advantages which Mr.. Ben
ton ascriOed TO a hard money currency
FdSt-it has an intrinsic value Which gives 1t
currency all over the world to the iuli amount OF
that value, without regard to laws or circum-
stances.
Second-It has uniformity OF value which makes
1t tue safest standard OF the value OF property
which the wisdom OF man has ever yet discovered
1H5u-its portability, which makes II easy Tor
the traveller 70 carry 1t about With him.
FOurth-Its indestructlbility, which makes it the
safest money that people could keep in their
houses.
Fyth-Tts inherent purity, which makes it the
hardest money 10 De cOunterielted aud the easiest
10 he detected and therefore the safest money for
the people 10 handle.
.Sirut-Its superiority over all other money
which gives to It's successor the choice and com.
Inanu oil ali other money.
Seuenth-lts power over exchanges gold being
the currency which contributes most TO the enual-
izatlon OF exchange, and keeping down the rate OF
exchange TO the lowest and most uniform point.
ESghth-lts power over the paper money. gold
being the natural enemy OF that system, and, with
fair play. able to hold II in check.
Ntahe-it Is constitutional currency. and the
as long as the present constitution is permitted to
exist
JOHN c. CALHOUN
has been largely quoted OF late as in favor or an
irredeemabe government currency. 1t is true
that some OF his speeches appear to bear out this
assertion; bat II is also true that the kind OF
paper currency favored by Mr. Calhoun Us a gov
eminent issue was heaven-wide asunder from the
irredeemable greenbacks and national bank issues
which the modern proessed disciples OF Mr.. Cal
houn's financial views insist upon expanding. In
the drst place. Mr.. Calhoun declared expressly
tuat the government paper which he advocated
should never be made legal tender. In his speech
on the bill authorizing the issue OF Treasury notes.
In 1887 Mr.. Calhoun said that such national notes
would be as stable in value as gold ana silver itself
provided The government be bound to receive IL
exclusively with taose metals in all Its Dues and that
1t be LEFT perfectly optional with those who have
claims on the government TO receive II or not 1t
Will also necessary condition that notes oil TOO
small q denomination shall not he issued SO that
the Treasury shall have ample means to meet all
demands either in gold silver the bills of the
government at the option OF those who have claims
on it, 'With these conditions" said Mr.. Calhoun,
mo further variations could take place between /.
and gold and silver than that which would be
caused by the action OF commerce."
II VIII thus be seen that Mr. Calhoun's national
currency was to possess three vital elements all
OF which conspicuously wanting In the cur.
rency advocated by our Congressional expansions
lists First, 1t was not TO be legal tender at all
but the creditors OF the government were to re.
ceve it or the specie at their own option; second
the government itself receive it for customs
revenues and all other dues and third, no frac-
tional currency nor small notes were to be issued
thus making the Treasury notes really nothing
more nor less than more convenient promise tC
pay specie on demand.
The TACT IS Mr.. Calhouns intense opposition tc
tue banking system, private and corporate. was
the real reason for his so far departing even IL
theory, rom true financial principles as to advo
cate government emissions OF paper money based
upon it's own credit and not directly upon specie