The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-06-15
The Finale OF Currency Legislation
for This Session.

] imitation bill in the House is final demon
| stration that all the attention given to this
great subject during the present session has
been sheer waste of time. We shall stand
on the day of adjournment precisely where
we stood at the opening of the session, unless,
perchance, bill should be passed for more
equal distribution of the bank note circula-
ton. The prospect for the future is indeed
somewhat better than if no action had been
attempted, since it has developed the fixed
resolve of the President to negative schemes
of imitation and so removed an element Of un-
certainty in commercial calculations. The
| community has complete assurance that the
currency will not be materially expanded be-
yond its present limits in the ensuing three
years. Such business engagements as reach
final settlement within that period will be
exempt from any fear of payment in cur
rency still further deprecated This will
operate as some relief to the prevailing
stagnation. Capital will now be more will
ing to accommodate enterprise with loans
when it is sure that the money parted
with will be paid back in q medium not
less valuable than that which was lent.
During the winter and spring, business has
subsisted by hand-to-mouth feeding, waiting
for the action of Congress and not daring to
plan for anything very far ahead. Most new
enterprises require an investment Of fixed cap
ital, from which returns are not expected
until after the lapse OF considerable time
Both borrowers and lenders have been repealed
from long engagements by the uncertainty
and suspense which have attended the action
of Congress-lenders because they fear rob-
berry by further imitation and borrowers for
an opposite reason. We may now count upon
tolerably active revival of business as soon
as the always dull summer months are over.
Those republican members of the House
who voted against this last imitation bill be-
cause they dreaded the political effect of an
other veto have evinced more party sagacity
than those who voted for it. The party can
not be so badly injured by the failure to do
anything as it would have been by new veto,
resulting in an open breach with the Pres
ident- The opponents Of the administration
overrate the political effect of this wasted ses-
sion. In the first place it is rather sectional
than party difference which has brought
legislation on the currency to deadlock. So
far as it is national and not sectional ques-
ton the elected national representation of the
republican party occupies ground of which the
democrats can take no advantage. If they
have anything to gain in this juncture it must
be either as an imitation party or as an anti
imitation party If, like the republicans, they
show a divided front on this question they
can make nothing of it for party effect They
must, as united body, exhibit aggressive
vigor on one side of it or the other to secure
even the attention, not to say the respect, of
the country. Now, supposing the difficulties
Of perfect union to be surmounted after the
division of the democratic votes in Congress-
on which side can the tardily united party
make any Roadway? An accord delayed till
the eve of the elections could gain little credit
for sincerity. But, supposing it accomplished
or simulated, it could not sit upon the fence.
To make itself felt it would have to be very
positive and strenuous on one side or the
other. To consolidate as fighting imitation
phalanx would be too absurd. Thurman and
Bayard, the two ablest and most respected
too much strength of character, depth of con-
viction and devotion to principle to permit a
union of the party on policy they detest- The
solidarity of the democratic party on the
currency question is possible, if possible at
all, only on hard-money basis Even sup
posing their internal discussions got over by
an eleventh hour arrangement, what can the
democrats expect to accomplish by means Of
this issue? Nothing, surely against General
Grant ALI their invectives against paper
money would be SO many eulogies of the re-
publican President The drift and effect of
their campaign would be to strengthen public
confidence in the official head of the govern
ment- In the East, where all the republicans
support the President and are as stanch
hard-money men as the Eastern democrats,
no republican votes will be thrown off in this
issue. In those parts Of the West where in
fation is popular the democratic party would
lose the little strength it has by adopting hard
money as the test of political orthodoxy.
Western opinion may change; we believe it
will; but the credit is more likely to be
ascribed to President Grant who has proved
his sincerity by differing from majority of
his own party in Congress, than to a simulated
electioneering truce on this subject by the
differing democracy.
1t may be said, moreover, and said with
great truth, that the postponement of cur
rency legislation till the next session is the
best thing for the country in the present
divided state of public opinion. The worst of
all evils in legislation affecting the measure
of value is instability. 1t is not safe to make
changes unless they are supported by such a
strong preponderance of public sentiment as
affords a reasonable guarantee of perma-
nence The advocates of sound currency
have more to gain by adjourning the question