New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-02-28
SOPHISTRIES OF INITIATION.

SENATOR SCHURZ ON THE FINANCES.
EXTRAORDINARY THEORIES ADVANCED IN THE SEN
ATE-ERRoRs or THE INFIArIoNIsTs--A PRAC-
TICAL ILLUSTRATION OF MISREPRESENTATION
CURRENCY THE MONEY OF THE sPECULAToR-AN
HONEST CURRENCY THE SAFEST BASIS or PROS
PERITY.
The following are some of the more striking
portions of Senator schurss speech in the Senate
Tuesday last:
The Senate has been during weeks Of debate
senting most extraordinary spectacle In the second
half OF the nineteenth century with the uniform expe
with public dangers pressing upon necessity OF
exceptional measures with ample resources TO defray
the expenses OF the Government and TO develop the re
sources OF the country, the highest legislative body Of
this Republic which proud TO call itself the most pro-
| question whether issues Of rredeemable paper
money shall not be resorted order to promote the
proposition is supported by arguments which will make
the civilized world stare IL they ever become widely
| known beyond these precincts
IL has actually been asserted in this body that the pre-
clous metals can no longer remain the standard OF value
and value OF the precious metals IN existence do not
Of industry and agrcuturean idea just original and
"a luminous as 1t would be TO say that yardsck can
| not remain a standard measure of length because
yard stick Is not as long roll Of cloth of carpet
whose length TO be- asceraned or because all the exist
ing yardscks in the world put together would not have
the length all the objects whose length is to be
measured. We have been grayey told that conclusive
this coantrS is by the fact that England and
| currency
and that there are many people in the country who can
not get all the loans and all the discounts which they
currency must be good thing after all, because there
are three countries in IEurope-Ausrla, Russia. and
rapid OF late while countries have rredeemable
paper currency Nobody who knows anything about
those countries be ignorant of the fact that the sud
den development referred to has been brought about
by great and benehcent changes in their political and
the productive forces of society," aud that the leading
Statesmen OF those countries are day and night rackng
|
| curse OF an iTredeemab) paper money, which Is here
represented the source OF prosperity. Aud
would say to the Senator from Indiana tMr. Mortonl,
who advanced that proposition here, that he should
hold to those leading statesmen their rredeernable
currency element OF progress they would receive
the assertion with melancholy smile Of derision.
THE SUPPLY OF CURRENCY NOT INSUFFICIENT.
An imitation of paper money is demanded OF us in
any form, the form OF creenback the form OF National
bank currency both combined but imitation in
event upon single ground-that there Is at present
insufficient supply OF currency in this land to I'll the
legitimate requirements OF the business OF the country
No other reason Is given; and upon that ground the
American people to be put through the same expert
which has cost ourselves and other nations which
have tried IL 80 dearly and gratuitons repetition OF
which viii be Justly looked upon by every sensible man
IN the world rs little short OF AN act of madness
The assumption that the volume OF our currency las
short Of the actual requirements OF the legitimate bust
nes OF the country forms the Osls and the only Dis
OF all the arguments that are made here IN favor OF eX-
pauson l. That assumption cOrrectf deny us cor
rectness. In the hrst speech that made this sub
ject. stated principle which furnishes te1t said
ment issuing an uredeemabe currency. that currency
will not necessarily deprccatc stand discount rs 20
gold, as long as simply snpeIsedes lnd does not ex
80 - I,. M, nj ar ,5Sirh f,r,perIv snf
feed TO transact the Of that country; but, the
condition OF confidence remaining the same the ire
deemabe currency will depreca,e, VIII be at discount
gold, It's volume exceeds that quantity.
When such depreciation steadily continues under the
same conditions OF conf ece il is sure sign thar the
OF currency excess OF the real requirements
~ The legitimate business OF the country asked the
question n our currency were Insufficient would
been possible for the general prices OF commodities 70
remain hong the high iuh atom point at which they
have stood for yearsi really the amount OF currency
insufficient 70 impede The necessary UanSlc-
fious Of the business OF the country, Is not certain
that the gold IN the country which Is now hiding ITSELF
would have been driven Odt Of its hiding places To fill
the vacuum Occasi0ncd by the nsuicencyl Tue prOpo
very Ingenious Efforts have been made TO the
question. Senators have tried very hard to shed bill
! meas ure they II we succeeded.
FUNDAMENTAL ERROR OF THE NFLAroNIsrs.
[ willing TO admit that the present abundance OF
money the loan market Is OF precaious nature. As
an irredeemabe and redundant currency always begets
speculation and gambling it will DO 50 again spite Of
the check that put upon it By the recent crisis 1t
I il already reyving although carried on, as am In
formed to certain extent by different set OF persons
and IN different ways; but its revival VIII undoubtedly
be quicken Is always the case by every ADDITION
To- rredcemabe currency IL may revive more rap
dv even than legitimate business does and
to greater dimensions IL Will draw away from legitimate
large amount OF currency rs - can lay hold OF The
expansion of speculation, therefore, IL likely nay 1t IS
!
market and again to bring iorth mere and there
feeling oil scarcity. THIS think VIII only DC gues-
But now Sir maintain, hrst that although there is
an excess Oh currency IN the country over ana aOOVt th
rrnl requirements OF legitimate business, feeling OF
scarcity may, nay, say Il Will. enaue a. speculation ex'
ptuds and, secondly, that ths evil Will not only not be
De TeuIedied. but Will be aggravated ~ imitation until
the next crash comes. AMI here viii eau te attention
OF Senators on the opposite side 10 the fundamental
which lies at the bottom Of all their arguments.
From the fact that scarcity Of cUrren IS som times
felt by legitimate business they draw the conclusion
insufficient lOr the real requirements OF that business
I'M. conclnslon h utterly and glarn-y fallaciOus Gen
tlrmeu cOnfound things which essentially older
! eut another. Ono Is an insuiiceucy OF the
aggregate OF currency IN tine country and the
vicious diffusion Of thdt currency really sun
cient than sufficient for all legitimate pur-
poses. The dihcuty Il not that there Is not enough
currency the whole bur- nrSt, that one part OF the
cOrntry not rich the Oter aud, secondly that
legitimate business is apt not to control enough OF cur
rtucy. because icgtinate business speculation, and
gambling control too much Ihs Il one or the evils
inherent TO an lrredeenaOle anu huctulting paper
money; and repeat that evil cauDOt only not be RENE
died 6y nton OF the same paper money but It viii
Doe seriously aggravated by A. for the simpe reason that
imitation always stimulates speculation ana SImDllnS
nFLATIoN MEANS INFLATGoS AT THE SPECULATIVE
CENTERs.
| The Senator from North Carolina Mfr. Nerrmonl hav
ing been quite prominent in this debate take his State
as an Illustration. He complains that Ia North Caro-
| lima the people Impoverished that business is
oramped that banking capital Is that rates OF
interest are high aud All this is true sincerely
sympahze WIN the senator a1d MS people, anu e can
scarcely anxious TO do something to aid them
than am We entirely agreed rs 10 the object but
now let Us scrunize the means, The Senator wants
more paper money Tor Ills People. anu therefore he
advocates expansion Of the currency AT first he adj
yocated an expansion OF the leglltendcr currency,
and admit mat would certainly DO the most
efficient means. Now suppose IL were made; suppose
we hundred or two hundred millions OF our
irredeemabe legaltenders, how viii It operate Gen
emen speak II the Government OF the United States
t.sung additional amount OF paper money We're AT
the same time issuing proclamation to the country rG
ming somewhat IN this way; Al ye wno are weary
aud heavily laden, come TO me that may put money
into your pockets YOU good farmer, have u mortgage