The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1874-12-03
The Financial Question.


There are three or four questions on which
Congress ought, at this session, to put It's oest
foot forward but the subject of the first mag
n;tude is the finances. Tie political revolution
is chiefly the consequence of last years panic
and this wears stagnation Had the business
of the country continued to go on swimmlng!!y,
as it did for several years previous to the panic,
neither the Louisiana usurpation, nor the sala-
ry grab, nor the Washington ring exposures,
nor even the third term aspirations OF the
President, could have shaken the republican
ascendancy. Everything was forgiven, and
would have continued to be forgiven, SO long
as the pockets and prosperity of the people
were not touched. 1t was business prostration
that first opened the eyes of the people to the
shortcomings and malversation of the party in
mower. and induced them to listen to complaints
which would otherwise have passed unheeded.
A revival of business would put the people in
better humor, and it is in the power OF this
Congress to contribute so powerfully to the re-
suscitation of public prosperity as to take the
wind out of the sails Of the victorious democ-
racy. But courage, energy and sagacty are
requisite to this end
Under our government great financial meas
ures have almost always had their birth IN the
Executive Department, like Hamilton's fiscal
policy under Washington and Chase's flscal
policy under Lincoln. If President Grant
would promptly reorganize his Cabinet and
present to Congress we'll digested plan of
finance it might be carried through at the COM
ing session by administration pressure, and the
republican party redeemed in popular estma-
ton. But if this great subject is left to the
unguided action of Congress, the prospect is
slender, indeed, that inharmonious body
will agree on any measures which the coun-
try would indorse. The fountain Of such leg
isiation should be now, as it has always been
on great occasions, the financial sagacity of an
able Cabinet capable of impressng its views
on Congress- Without new Cabinet of COM
manding ability, the next session will be as
barren in valuable results as was the last, a
contest of competing financial crotchets, result
ing in no policy fitted to inspire confidence.
There is no class of subjects in which the
steadying- hand of an enlightened administra-
tion is so necessary as currency and finance
subjects which few public men understand and
on which we'll selected Cabinet would possess
more wisdom than all ths members OF Congress
put together.
1t is reported that President Grant will re-
commend the earliest possible return to specie
payments in his annual message. This is all
very we'll so far as it goes, but is not very en-
tightening. Nearly all the business men in
the Eastern, and quite proportion in the
Western States, desire return to the specie
standard; but they do not see the way and
have a right to demand that the President shall
not merely echo their sentiments, but point out
safe and specific measures for reaching that
great result If the financial sagacity of Sec
retary Chase had taken him no further than a
declaration that Congress ought to supply
means for prosecuting the war, so obvious a
financial truism could have gained him no
credit. His fame rests on the fact that he was
able to tell how the thing could be done and to
convince Congress of the practicability OF his
methods. IF fPresident Grant has no definite
plan for restoring the specie standard he
might as we'll leave the whole subject out OF
his message, since it amounts to nothing to say
that thing is desirable without showing how
it may be attained.
Perhaps the best recommendation which the
President could make to Congress on this sub
ject would be law permitting the holders of
greenbacks to fund them in five per cent. gold
bonds Five per cent. bonds of the United
States are at par, or about par in gold and
the greenbacks would be speedily brought to
par If made exchangeable for such bonds. The
funding of the greenbacks would, of course,
reduce the volume of the currency but there
is no danger that the process would be so rap
id as to -embarrass the business of the country.
So long as money could be loaned on good Sc
curity at seven per cent or six per cent inter
est it would not be exchanged for bonds yield
ing only five per cent, and the funding of the
greenbacks would proceed but little way be-
fore the contraction of the currency would car
ry up the market price of money, and check
the funding by opening more profitable employ
ments for capital than investing it in form
which yielded only five per cent interest. As
the privilege of converting the greenbacks in
to bonds would be permanent there would be
no haste to secure transient advantage, and
so long as there was an active demand for
business uses the greenbacks would be loaned
to merchants in preference to funding them.
But they would steadily and inevitably tend to
par with gold, and as soon as there is no differ
ence in value between gold and grcenbacks
the most difficult part of the financial problem
is solved. 1t is true that the greenbacks fun
ded in this way could not be recovered to the
circulation. But they would be maintained at
par, and occasional deficiencies in the curren-
cy might always be supplied by redeemable
bank notes, which would be returned to the
banks when no longer wanted in the channels
of business. There is, perhaps, no way of re-
turning to specie values 70 simple, direct and
effective rs q permanent law authorizing
the funding of the greenbacks in five per cent
gold bonds.