New-York tribune., 1874-03-31
JUDGE PIERREPONT ON THE FL
NANCES.
FUND THE LEGAL TENDERS.

FOR CUSTOM DUEs-A SAFE CURRENCY WITHIN
| TWO YEARS.
To the Hon. JOHN SHERMAN, Chairman Of
the Finance Committee Of The Senate: With the returning
Spring, trade does not revive much and all the great
industries Of the country paralyzed Distrut OF the
future causes the difficulty. Men who have money will
not enterprises while the financial policy
| of the Government is uncertain.
Congress has been session nearly four months and
men business have not yet discovered what the nan
cia plan of the Secretary Of the Treasury H. After
many years Of profound peace abundant harvest gen.
eral health and vast resources 1t would possible
TO devise system OF relief from tho disturbed condition
| OF our finances.
Able Senators ip iheIr place, and learned writers
| everywhere have demonstrated that irredeemablc
promises to pay do not Increase the national wealth,
and that issuing paper dollars redeemabe only In paper
promises is a fraud Under the present system, our
currency absolute limit and s contrived that
the currency OF the commercial world cannot circulate
hero at all hence when gold over in large guam
titles last Fall currency was not expanded; the gold
merchandise like steel rails gold
watches, and our currency was to considerable extent
absorbed and tlghtened by purchasing the imported
coin.
In travelling through the West lately. my attention
was called 10 the condition OF the farming interests
which are nue. depressed and find with some sur
prise that their great agricultural products beef pork
lard corn and wheat In the aggregate brought quite
much in gold in January 1861 as the same products
brought in paper promises in January, 1879, while all
the articles which the very much
higher in 1873.
During the first sx months Of 1862 the average price
OF mess pork was S1 per barrel in gold and during
the first three months OF 1861 before the It aver
aged sl7 1G gold while the for the period
in 1873 was but s13 co. inflated paper. Lard followed
| pork and corn was higher during the gold period Of
during the period in 1873, with only paper
| afoat. Comment is superAuous Add another hundred
millions of rredeemable paper. and in three years the
! farmer will be no better paid than serf.
Increasing the legal tender without provision for re-
demption is brlDg disaster upon the country,
| and certain destruction TO the party which forces
such measure We brought face to face with this
question, and IL requires prophetic vision to foreseo
that financial chaos will before another Presiden
tal election II persist in expanding irredeemabe
currency 1t is rash prediction to that the dyo-
Gates OF paper imitation will be utterly disappointed in
the Of their policy II it prevails that dlsust
| and notconfdence will follow; that even spectators
in stocks will revel only for time, and that the great
u business interests of the country Will he pros
l tratc, and find no considerable number Of capital
lists willing impcril their money in enterprises which
uusound legislation renders insecure. Dreamers, who
ignore all the experience of the past and fancy that
capital be created by legislative enacmants, may,
perhaps, cling TO their deusons until the Good comes
and sweeps them away.
HOW TO HAVE A SAFE CURRESCv
HOW HAVE A SAFE CURRENCY.
We want currency which is perfectly safe and sufh-
eient amount to meet all the requirements of legit
mate business. insist that attain that want by
easy grades, without jolt upon the way, and with
calculabe advantage to the whole country.
First: Fund the legatender notes ia the following
way Limiting the grcenbacks to s4Oo,Ooo.OOO issue
OOOoOoo in per cent gold bonds at thirty years. free
taxes and after thirysyears payable the
ham in Anfhn fha Gnara rtoffb
Treasury sell these bonds to the highest bidder
below par payable in gold or greenbacks canceng the
greenbacks received and exchanging the gold " any Is
paid, with the National banks for gIeenbacks pro rata,
according the which each bank is required 10
keep
Offer for sale more than s2e.oOoo0 in any one
MONTH and leave the day OF sale in the month and the
amount not exceeding $40 600 900 month, the dscre
ton Of Secretary.
6eeond: At the end Of "a months n the greenbscks
ali funded let the Secretary sell to the highest d
der in gold not par any bonds remaining OF the
oo ISSUE and redeem tho rest Of the greenbasks
and cancel them.
Third Allow the National bands, any organ
izatons that will deposit with the Treasury 100000 or
any amount Of the 3Oyear bonds Of any
existing bonds Of the Government to receive national
currency within 10 per cent Of the face Of the
bondsthe currency to be redesmabe in greenbacks
gold Government bonds at their face, under such
rules the Congressinay prescribe.
Fourth: Impose the same burdens on and give the
privileges to the to the old banks and re-
qure TO be held by either except for edemp
ton of the currency.
FIN Let all who desire nay customs dues in Govern
coupons (ess the discount, having than
six months to run. ..
OPERATION or THIS PLAN.
The 3Oyear bonds would forthwith rise above par in
gold and as the greenbacks could gradually be
yerted into these bonds, the greenblcks would soon
equal gold The sale OF the bonds TO the highest bidder
would prevent all partiay IN the SALE and in less than
the greenbacks would all DO absorbed and the
National currency substituted in their place and before
time the credit OF the Government would be such
that il could convert the six per cent bond into 80
year bond less than I've per cent interest The inter
paid the bonds used in funding the grecnbacKs
would be saved thrice over in this cheaper
mode of administering the finances. avoiding
the cost o, Gt & premium ana interest on aeeu-
pery o the country. AS the Government would have
the coupons not received for customs 1t would require
no large hoard of useless gold losing interest and ab
stracted from the needs OF commerce 10 lie i'd In the
Treasury but the gold would pass 10 the banks for
actual and legitimate use The Government would then
be confined TO its proper functions and leave the banks
take OF their circulating notes or be WOUND
| Thus banking wonld he entirely free; Just so much
currency would be kept out as the wants OF the country
might require and more; the amount allowed to be
issued would be very large the amount actually crcu.
the community not another dollar could he kept out
The history OF the fractional currency like that OF
other redcemabe currency proves this. Under the law
$4,000 900 OF fractional currency may be issued, and yet
IL Is found that $4,000 ~ all that the country needs
When the issue rises above that sum 1t Immediately
| turns for redemption.
Gold and silver would come in as means OF expan-
sion. AMI we should have all the elasticity" winch
could reasonably desire. bank reserve, beyond that
required for redemption of the currency the pretext
that IL the bank depOsitOr Is dcluson. benefit
ing only the reckless specuatng banks to the derit
the careful and safe IL Is no. the business OF
Government TO protect careless against the folly Of
placing their In the hands OF nsOlvtt bankers
Since the bonds would rule higher than the par gold
they could never be used,n redemption OF the currency
| IN ttue pIpat nd We