New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-09-01
CURRENCY AND THE TARIFF.
AN OPEN LETTER FROM EX-SECRETARY
MCCULL0CH.

MENTS-IHE OhADOAL WITHDRAWAL VI m"
PAPER CURRENCY-MR MCULLoCHs PLAN FOR
REACHING SPECIE PAYMENTS - A REVENUE
TARIFF ACKNOWLEDGEMENTS IN ITS FAVOR.
Ex-Secretary Hugh McCulloch was recently
invited by some gentlemen Of Cincinnati TO deliver an
address in that city upon finance and taxation otner
engagements however prevented an acceptance OF the
invitation and in the place Of an address Mr. McCuoeh
has written an open letter. He assumes that py
finance the currency especially referred TO and by
Taxation" is meant the tariff and upon these two SUD-
iecis the letter is mainly written.
A PORTION OF THE PAPER CURRENCY SHOULD BE
RETIRED.
His opinions upon the currency as expressed In MS re-
cent speech at Fort Wayne and in his reports as secre
tary of the Treasury from 1865 1862 in language as
stong and unequiyocal lac could command nave
neither been changed modified, but, on the
contrary, strengthened and confirmed by FUR
Their observation and reflection. He then thought all
legislation currency should have for its OBJECT
return 10 specie payments He believed the restoration
of the specie could only be effected Dy retiring
OF the paper currency I'D Circulation as Wouu
be 10 bring the residue up to par he says
There was seemed to me, but one class IN the com
muny the debtor class, who could he benented 3y
precltedcrency and was anxious that decided action
Tor relieving country OF such currency should be
taken Immediately after the close OF the war; when h-
many years II seemed to me- Also that the injury TO
this class from a reduction and consequent improve
was reared by them that what honest and energetic
debtors needed not legislation to enable them 70
nav their debts deprecated currency but egsia-
non that wond give activity to well directed specu
latve enterprise and stability TO business tnaV as:
paid by the creation Of another, aud tue genera
rcm year 10 year. materially reduced the debtor class
itself IA serious danger OF being injured Dy tne
Were to be injured Dy it the injury would he small in
comparison with that which had been Inflicted upon the
creditors through the egal-teDder acts, which CON-
PEELED them receive. satisfaction Of existing con-
tracts currency OF FAR less value than ass s n
who generally bore their losses without murmurlng as
SacIih required 6y tue Government IN us struggles
with Il gantc rebellion"
PLAN FOR SPECIE PAYMENTS
Mr.. McCulloch says that while he regards an exciu-
elusive metallic currency impractcaOe among an
enterprsng and commercial people, he looks upon an
irredeemable paper currency evil, which extreme
circumstances might render necessary for sea-
son. but which would be sustained as
a policy. "The truth is" he says, and the
Federation Of it ought not TO be necessary gold and
silver are the only standards OF value and as long as
part Of the great family Of nations and are
commercial people, adopt no Inferior standard
without being greatly the loser by IT, None but bank
rupt nations, with the exception OF the United states
keep In circulation an irredeemabe paper currency-a
currency which, in their tends TO produce and per-
petWae the poverty 1t indicates To the United States
such currency is utterly dsreputable, since there Is
not the slightest necessity for it,"
While believing that all men who are not gamblers In
business desire speedy legislation the finances he
thinks there is sach difference OF opinion upon the
subject that the question cannot be made strictly
party The following plan he offers as the most
certain and direct path TO specie payments but says no
would rejoice more than himself II "a wiser plan
snail bo adopted: ,a-o
che "ns o' %s,sa
ond The Secretary Of the Treasury
!es use % surplus ies5Se 6 s5 Of % IS states no peI
until all have been retired and he shall be prohibited from re-
the retired under preeI or Circumstances what
Td lien Of the Uu.ed State. notes retired
bank they should be required should be issued National
Fourth When the specie standard reesabhed by
Of the gaende banking should be made free and Con-
necessary prevent Illegal issues and to provide ,6s every dollar IN
deposit United States bonds the Treasury
1t is obvious Mr.. McCullach says, that as long as
United States notes are legal tender, the specie
standard will not be restored. Unless the notes
gradually retired they will not permanently improve in
value, because tho banks wll not supply themselves
with coiu until they perceive the reduction is actually
the value OF property disturb business for, notwh-
standing the Legal Tender acts. gold to-day and will
continue to be The real measuring standard.
THE FIyE-TwENTY BONDS CANNOT BE PAID IN
GREENBACKs
Mr. McCullOch advocates the substitution Of bank
for United states notes. because the latter stand
In the way of return to specie and also because he
regards it exceeding importance that the subject
OF the currency should be withdrawn from politics. In
speaking the Fivetwenty bonds he they cannot
be paid in deprecated greenbacks for the following
reasons:
lated aud held foreign countries as well . 10 the United states and
which alone recognized money BY the common consent Of the
second TOsy paid eeubsks because could no, be
done without Increasing the issue Of Legal tender notes beyond
had been pledged BY set Of that
1869 declared these bonds payable in
r1sn a and % 1 s s SoSa a the nep
well IS the interest should be paid in coin
at true he says that the law does not expressly
state that they are payable in coin, but it is provided
that the interest paid II 1t is silent In regard to
the principal it is because at that time regarded
the United States notes any thing else than tempo
rary currency. which to be redeemed retired by
conversion into bonds long before bonds by their
terms would be brought under the control Of the Gov
tonal obligation the interest which was pay
able in one kind Of currency and the principal in
another aud deprecated kind, and what would be
thought OF people who should take advantage OF the
technical construction OF their own law ana compel tne
holders their bonds take in payment their own dis
hOnOred paper Notwithstanding their servants In the
scriptons and the public press with the full knowledge
and approval OF the aw-maRng power had represented
the principal we as the interest OF the BONDS to be
payable in CON-"
ARGUMENTS IN FAVOR OF A TARIFF FOR REVENUE
ONLY.
Mr. McCulloeh dwes briefly upon the tariff devoting
only about onethrd Of his letter to that subject he
says: 81 favor revenue, not protective, tariff The
present tariff been highly productive of revenue,
aud therefore contended that Is in fact revenue
tariff and that, inasmuch q large portion Of our
revenues are to be derived from customs duties,
the difference between tarlf Tor protection
Imaginary than real. Now, while 1t is true that
since 1862 the importations into the United
source have consequently been large it does not follow
that the present tariff in the proper meaning OF the term
Ia a revenue tariff 1t intended and framed TO pro-
tect certain interests in the United States and has
DONE and is stl doing, this by preventing fair COM
petition between home and foreign manufacturers
thereby increasing TO consumers the cost of many ar
ees Of and indispensable use. IL true ALSO
that this, TO some extent must be the effect OF any
system Of raising revenue by custom duties and free
trade desirable II be, is not likely TO be adopted
large revenues are needed for the payment or
the public debt and for defrayng the expenses OF the
Government. Tue policy OF raising revenues by taxes
upon imports Is not however, to be aband0ued and II
will possible even II IL desirable. to frame
laws which will weld such revenues as Will he required